If you don’t have access to a lot of investment capital, consider these 3 strategies to put you on the path to financial success:
1. Invest in Your Financial Education- There are many investments you can make when you don’t have much money, but one of the least expected solutions people receive in their quest for investment advice is to invest in their own financial education. When you’re investing with a small amount of money, the odds that you’re going to get rich overnight are low, so you might as well begin your financial education. This prescription isn’t appealing to most, but you have to know what to do with money once you earn it, and learning how to earn more is often the best use of a small amount of capital. Before sinking your money into an investing course, find out which area of investing you’re most passionate about. The passion you feel for that type of investing will propel you to greater success.
2. Eliminate Debt with High Interest Rates- High interest rate debt is a wealth killer, and something that needs to come off your personal balance sheet as quickly as possible. This strategy can payoff quicker than you think, and will free up capital to invest in what you learned after ready our first rule. Another added benefit of paying off high interest rate debt is that unlike many traditional investments, you won’t have to pay taxes on the benefit to your bottom line. If you’re not sure how to tackle your debts, consider using the debt snowball method, which has helped millions crush their debts once and for all.3. Put as much Money in your 401K as your Employer will match- Thinking about 401Ks and IRAs can feel mind numbing for those who aren’t financially inclined, but these investment options provide tremendous tax savings. Another often overlooked benefit of 401Ks sponsored by your employer is the matching that is provided, which gives employees an incentive to invest in the 401K plan. Be sure to always invest at least up to your employer’s match, as the match will serve as an instant 100% return on your investment.