How to Find, Save & Invest Money
- 1). Analyze your recent checking account statements. Use the information found on the statements to create a family budget. Categorize all spending, even the smallest expenses. Additionally, compare it to your income to see if any extra funds are left over at the end of the month.
- 2). "Find" money in your budget by reducing your spending. Upon first glance at the budget, are there any patterns of spending that are unnecessary? Are you buying snacks at vending machines as opposed to buying them at the grocery store? Are you eating out too much? Find money by reducing unnecessary spending.
- 3). Save money by reducing spending on necessary items. Use coupons and shop the sales at the grocery store. Make both the sales and coupons go further by matching the coupons to sales for additional savings. Reduce utility expenses by switching providers, bundling services or asking current providers to match the prices of others.
- 4). Use the money saved and found to invest wisely. Start by opening up a money market account. This money earns higher interest than a savings account, but is covered by FDIC insurance. It is easily accessible in an emergency and while the interest rate may fluctuate, the deposits in the account cannot decrease unless withdrawn.
- 5). Hire a brokerage firm to manage your funds once you have created an emergency fund with your money market account. Typically, the emergency fund should be three to six months living expenses. Allow the brokerage firm to buy and sell stocks for you to earn additional income from your investments.
