Money Saving Tips: Not Enough Money To Invest, Think Again!

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There are so many consumers that really want to start investing in real estate but simply can’t scrounge up the start up costs. It seems like no matter what they do, they never have enough to get started. Fortunately, for most of you, the money for investing is there. But, you will have to make some sacrifices. With that said, I’d like to start this article on money saving tips by saying: there are few well known real estate investors that didn’t put their personal comforts in jeopardy for their dreams! I’m sure Brandon Turner has and I know I have! With that said, below are a few ways that you can open up some start-up funds. If you use all of these tips for one year, you should have enough money to really get moving!

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Make Sure You Have The Lowest Credit Card Interest Rate Possible

It’s no secret, most of us use credit cards. As a matter of fact, more than half of the households across the US carry more than a thousand bucks on a credit card from month to month. During the recession, many credit card interest rates went up. Now that the financial climate is a bit better, you may qualify for lower rates. Lower rates that will reduce your payments and open up more resources for you! Now, your lender likes making money so, they are not going to call you and say β€œHey, you qualify for a lower rate, do you want it?”! This part’s up to you. All you need to do is call all of your lenders and say something like, β€œI was going through my credit card bills and noticed that you charge the highest interest rate. Can you do something that makes these balance transfer credit cards less enticing to me?”. You will be surprised at how effective this can be!

Stop Eating Fast Food

When I was 19, I would think of fast food as a quick, cheap bite to eat. Back then, I didn’t do the math! The truth is, fast food can really rack up quite the bill. I found out that my morning breakfast burrito’s almost every morning were costing me $120 per month! Making my own, about $20. Although not everyone has a once a fast food habit, most people do eat fast food at least once a week. Even stopping that can save about $20 a month.

Shop Around The Edges Of The Store

This one is a tip not only to save money but, for health! Think of how your grocery store is laid out. All vegetables, meat, cheese, milk bread, ect… can be found around the edges of the store. When you walk into the center of the store, you find food in boxes and cans, frozen food and highly sweetened and processed treats. The truth is, any boxed or canned food costs money to prepare. Therefore, you will always spend more for that portion of food than you will if you make your own. Although, I can’t personally come up with a recipe for Doritos, healthy alternatives like carrots and ranch dressing tend to cost less. This may be uncomfortable in the beginning but, you start to crave carrots and broccoli. So, save money and get healthy!

Enjoy Free Social Activities

Human Beings are social creatures. If you don’t find free ways to be around others and have a good time, eventually, you will start spending money to do it! Check online in your area for hikes, clubs, or anything that you could think of that would be free and local. Living in the Pacific Northwest, I spend a lot of time on the different trails through the mountains and, you would be surprised by who I meet out there! No matter where you are, I’m sure that if you look hard enough, you will find something free that you enjoy and involves spending time with others. Who would have ever thought that having fun could save you money?

Make Money Doing Side Work

Everyone has incredible strengths in one thing or another. Find yours and solicit your friends, family and neighbors for your services. If what you love to do involves crafts, sight up as a vendor when the craft shows come around. If you look online you can usually find somewhere to sell your art at least once a month! There are tons of great ways to make extra money to get your investment started. All you need to do is find the one that works best for you!

Final Thoughts

Getting started in the real estate investment market isn’t about who has more money. It’s all about who has the strongest desire to succeed. Those who do have that desire will find ways to save money or make money to get started! I hope that describes you!

Photo: Philip Taylor PT

About Author

Joshua Rodriguez (G+) is the proud owner of CNA Finance, a personal finance blog. He writes on topics designed to help you save (or make) money, with posts like "Balance Transfer Credit Cards: A 7 Step Guide To Understanding This Option" and "How To Improve Your Credit Score".

8 Comments

  1. Even better than having low interest rates on credit cards is not caring about the interest at all. I get telemarketong phones calls once in a while saying they can save me money each month by switching to their cards. None of those callers could ever find a way to save me any money. This is because I never carry a balance on my credit card. If people look at their budget like you describe in your later points then there is no reason people should be throwing away money on credit card interest.
    I love you point on finding side work. I believe I heard the other day that the Average American watches 36 hours of tv a week. If people could put just half of that to a productive use even making just $10/hour that is an extra $700/m easy. I know a lot of people that complain about not having enough money but with all the opportunity out there don’t do anything about it. People nust don’t seem to want to make the money that is so easily available.
    Great post and welcome to the BP Blog πŸ˜‰

    • Hi Kyle,

      I am with you all the way. Not paying interest at all is the best way to go. However, when we think about the average consumer, we remember that the vast majority are in debt. Therefore, knowing the interest they pay will help to inspire them to become debt free as soon as possible. On the T.V. note, WOW that’s a lot of watching. I have to agree with you a hundred percent. If people would spend that time being productive, they would definitely enjoy the fruits of their labor.

    • Hey Al,

      I’m glad you like the tip. It’s worked well for me for quite some time now. Food for my fiance and I comes out to about $200 to $250 per month and we eat like we are at a very nice sit down restaurant every night. It also helps you brush up on your cooking skills!

  2. Mike McKinzie on

    Joshua
    I wrote a similar blog recently and in researching it, I found that the average American Household has a credit card debt of about $15,000!! OUCH. Here are some other ideas: The average family has over $100 in loose change laying around the house, gather it up and pay it towards your credit cards. The average family has over $1,000 worth of items that they have not used for years and could sell at a garage sale, on ebay or craigs list. At the end of the month, other than rent/mortgage and car payments, the average family can barely account for half of their spending. They need to KNOW where their money is going and then need to know HOW to reduce it.

    Great article.

  3. Joshua:
    For the first few years of investing, we never ate out, never went to a single movie, gave up anything extra where we might spend money. The sacrifice was painful…. but the goals we had laid out kept us aware of why the sacrifices were worth it.

    Now, 10 years later, I’m so glad we pushed through the pain. Still love carrots and broccoli!

    πŸ™‚

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