The following is a sponsored blog post:
Most of my readers aren’t wealthy. They’re not poor either, but they’re in no place to be called financially independent. That’s fine, but if you’re in a situation like this, you’ve really got to get your ducks in a row before you can start laying a foundation for wealth. There are no steps here that can be skipped. But if you can successfully make the decisions necessary to pull this thing off, you’ll find that you have a lot of wealth at some time in the future. And you don’t have to have a lot of money to start this process.
Start by changing the way you spend and save. This may not sound like investment, but it is. Investing is about taking a finite resource and using it for the best possible purpose. These resources can include time, energy, learning capacity, and the like. These decisions can be translated into money, but investment is frequently allocating intangible resources with somewhat intangible results. We’ll confine our discussion to things you can do with your money before you start properly investing.
I’m speaking here of cancelling debt and increasing savings. Debt tends to snowball quite quickly, many credit card debts building at 17.9% and higher every year. This is faster than you can earn money in most investments, so if you have debt like this, you’ve got to cut it off at the knees or you’ll be bleeding money faster than you can earn it. This process may take months or a years, but it’s important that you throw everything at it that you can. If you can kill off your debt, you’ll be able to save much faster. Once you have several thousand, or tens of thousands, of dollars saved, you’re probably ready to start investing in earnest.
CFD Trading with CMC Markets is a great way to learn about investment as a whole. Using their demo account, you won’t even have to risk any money. You’ll simply have to make tutorial investments based on the real value movements of a variety of markets and financial products. By seeing what you would gain and lose in real life, you can start to develop habits of making wise investment choices. This will build into every other form of investment that you ever take on. These can include many things.
Once invested, I recommend setting money aside for long term investments, like ETFs and index mutual funds. These are typically stored in a tax free account like a 401(k) or an IRA. Whereas CFD trading will resolve quickly, giving you money for today and tomorrow, ETF and index fund investment are meant to pay off over the course of decades, giving you money when your kids need to go to college, or you need to retire.
As you can see, starting an investing career without much money requires some important decisions and lifestyle changes. But once completed, saving and real investment isn’t hard at all. By learning the basics of investment using free tutorial opportunities available to everyone online, you’ll learn what you need to make judicious investment decisions for the rest of your life.