What if you invested that pizza money in a different “bottom” line?
Before I learned some simple, powerful investing guidelines, I knew two things – “Buy low, sell high”, and “it takes money to make money”. Catch phrases aside, there are some simple things that will make a big difference if you’re willing to play “the long game”.
The rule of 72 is something I’ve talked about before. You divide your interest rate into 72 and you’ll know how many years it will take to double your investment. That’s why it’s a long game. Not months, but years.
But where can I put that $1 a day?
Don’t hate me for saying this, but the bank may be the last place you want to leave your money if growing it is your goal. New fee transparency rules aside, they’re in it to make money for their investors. You need to be one of the investors, not the one feeding the investors.
You can invest through companies like Fidelity or Manulife Investments for as little as $25 a month, but here are some other ideas:
1. Buy someone a cup of coffee.
Investing can take many forms. What I’m suggesting here is getting outside your own head. Talking to an “insider” can be as cheap as a cup of coffee – add a muffin or donut if you’re getting someone out of their office to talk. What will coffee get you?
– Want to switch jobs? Ask how to get noticed by their company, what steps they took to get hired, if there is anything you should know about the company from an employment standpoint.
– Want to change industries? Same idea. Plus, aside from career advice, you may find them willing to be an industry contact.
– Already in an occupation you like, but feel stuck? Find a mentor. Meet once a month and discuss strategy.
2. Find a charitable cause.
Put money in, sure, but maybe lend a hand. Donating money will help you at tax time, but volunteering your time has huge psychological and physical benefits, one of which is lowering your blood pressure. (Harvard has studied this: volunteering-may-be-good-for-body-and-mind
3. Convert your lawn into a garden or start an indoor container garden.
You’ll be saving money in the long run, once your green thumb grows in, you’ll save big. (Canadian Living Magazine has a good article on this: 7-secrets-to-successful-container-gardening)
4. Your mattress has a lot of room in there right?
Stuffing in $1 a day every day for 50 years will net you $18,250. Just remember to move it when it’s time to switch mattresses. (Yes, someone’s made that mistake. Check it out: search?q=money+forgotten+in+mattress)
Statistics show that people with an advisor and who check on their investments yearly are more likely to stay with it, and those people are 85% better off after 15 years than those who don’t.
5. Ask an advisor. Seriously.
Guys like Todd Darling are happy to help in small ways, hoping to make a difference over time. (Cat food does not have to be on the menu… unless you really like it… like my dog, who would almost kill to get the cat food.)