How to start your investing journey and make money

1. Track your money

All it starts with money. In this case, tracking your money. Track everything that you can. Track your source of income, track your expenditures. The more detailed, the better it is. This helps you to realize how you spend the money, where are the greatest cost you have, and how your source of income evolves over time. To have a good overview of your money is essential on your way to financial freedom. Why? It shows you the choices you do and the realization of how you cope with money. Maybe you then realize that you can save more money by avoiding unnecessary expenditures. The financial freedom is going to be the result of all the choices you are making, about spending money on fancy clothes, for sweets or your car, etc. All this determines how much you can put aside to invest. The more you invest the greater income you can generate. Earlier you realize how you can save more, the better it will be for you as you’ll be able sooner to reach your desired financial freedom.

2. Make reasonable choices

Living luxury life is something that most of us wish for. As soon as, we earn more, we spend more, too. Sure, you don’t want to be a slave of your money and buy something from time to time, but if you do it regularly every month, then think if it is really needed. Think rather about the increase in income as an opportunity to reach your financial freedom earlier than as an opportunity to show up. Everyone could look like living a dream life, having fancy clothes, luxury cars on leasing, etc. This kind of life will not generate you money, contrary it will cost you money. Focus on spending money on assets, investments, etc. that can generate you more money than on things that will just increase your expenditures. Do not spend money to impress the other but to make money work for you!

3. Make the investment a part of your monthly expenses

If you will count on the investment, as a part of your monthly expenses, you’ll be forced to put it aside every month. Sure, people that do not earn much cannot put aside a big amount of money, for instance, recommended 20% of your income. However, just calculate the possible percentage you could invest every month and create primarily expense out of the investments.

4. Know the purpose of your investment

Understand the purpose of your investment. You need to have the purpose that makes the investment important for you. So, you invest your money for long periods. As, everything in your life that has a purpose for you, makes sense to pursue. The same is with investments, as soon as you find the reason to invest, the easier it will be to follow the plan you set up.

Those are simple basic points that lead you to invest your money. Those steps are simple, however, still many people struggle with them. So, if you are unsure about any of the points above, sit down, think about that, calculate, write down, or whatever, so you can have the base you can build on.