Just about everyone has aspirations to be wealthy some day, but very few people ever attain their goal of becoming financially independent. They just never get around to coming up with a plan to make extra cash and invest it wisely. Making it a point to reduce your expenses and invest money on a monthly basis requires a lot of discipline, which is why so many people don’t attain their goals of becoming wealthy. Fortunately there are things that you can put into place which will make the discipline happen for you, so that you’re automatically spending less money each month and putting away money for the future without ever even thinking about it!
Before you can begin investing into mutual funds and other investments, you have to have the money to do it. Most of us don’t have time for an extra job, so we have to more effectively use the money we’re already making. The best way to automatically cut down on some of your monthly expenses is to spend less on your monthly bills, such as your cell phone, cable, and subscriptions to periodicals, day care, utility bills, and the like. You can opt for a cheaper cable or cell phone plan so that less money goes out each month. You can cancel subscriptions to magazines you probably never read anyway. You can make your home more energy efficient by installing a programmable thermostat and filling any holes in your home, saving you money off your utility bill each month. You can find a cheaper day-care to send your children to.
Just about anything where you send money out each and every month, chances are there’s a way to find a little bit cheaper way to do it. Find the most cost effective services you can, and between all the different services you’ll adjust, you’ll easily be able to come home with a few hundred dollars of savings each month.
Most people lack the discipline of intentionally investing money into their retirement accounts or other investment accounts each month, this is why you have to make it happen automatically. Fortunately, just about every mutual fund company (we recommend Vanguard or Fidelity) will make it so that you can automatically deposit a certain dollar amount each month, and the money will be transferred directly out of your checking account. You’re putting money away every month for the future, and you never have to take the time to think about it.
Don’t let a lack of discipline prevent you from being a millionaire; use methods that will save money from your monthly spending automatically and then invest it wisely.