Question

A common problem for some people is they don’t have the money they need to begin an investment program. Given your current circumstances, what steps can you take to “find” the money to start an investment program?

Answer 1

This is very common issue :-) Right,

Those are the common person i.e. belonging from middle class and and lower middle class and upper middle Class these are three category which suffers the most for this issue, where they do have fixed earnings and the expenditures which are 80% fixed and 20% variable but sometimes that 20% increases to 40-50% in some months, so the saved amount in the previous months gets absorbed in the month when there is the rise in expense in the current month.

So now how can wee manage ??? Correct

Let's think in smart way now,

Suppose we do have the earning of $1000 every month and now we do have our basic expenses and our life style living cost and some other cost which includes medicines and outing cost along with some emergency funds, by considering the all in some proportionate basis we allocate $400 for Basic needs, will give $100 to ourselves, then for emergency and medicine will keep $50 and for weekends celebrations we give $100 now if we sum up all the amount that comes to $400+ $100 + $50 and $100 Total comes to $650. Wow still we have got some chunks of amount with us of $350, now that's the point where we need to think for the serious Investment program for the future retirement life or to fulfill anyother goals in life, why can't we make the investment amount as Compulsory investment every month along with the all other decided budget, so let's keep it simple we will allocate the $200 in total every month for the investment, and still we have $150 which we can utilise for family trips and for some big emergency or medical expenses.

Now we again will come to that $200 which we have started to Save for investment, now we will check the risk appetite of us, and if we can take some risk then wee will invest some of the amount in stocks ( in Good Stock!!) which can give us better return as compare to the bond market and we can also start some small SIP which will give handsome return in long run....!!! so based on the own risk taking abilities one can create a healthy wealth in a span of 10 Years, which can be in multi million $$$...