Beginners might find investing on a budget challenging, but this article by us at Carolina Title Loans, Inc. will show you it doesn’t have to be. Discover how to invest your money with simple beginner investing tips anyone can implement to begin their investment journey.

Those seeking to increase long-term financial flexibility with money from investing should learn how much to invest, what you can invest in, and how to find extra money for investing. These easy tips from Carolina Title Loans, Inc. can even show you how to handle a financial emergency so it doesn’t disrupt your investment plans. Those dealing with a financial emergency can also seek an online title loan from Carolina Title Loans, Inc. for up to $15,000.

How Much Should You Invest With On A Small Budget?

Saving and investing are great, but there are some things that beginners on a budget must first understand. You should avoid investing too much of your income to avoid having too little left over for necessities like bills and food. However, you also don’t want to invest too little, as only using small amounts of income for investments can make it hard to significantly benefit from your investments.

A good rule of thumb is to invest 15% of your income. This will leave you with enough money to pay for necessities and extra money for your entertainment budget. Using 15% of your income can provide enough investment money to see a financial return without negatively affecting your ability to afford daily expenses.

Remember, every investor is unique. You have your own set of needs, preferences, and goals. This flexibility is your strength. You’ll only discover your strategy by experimenting and adjusting as you go. Start small, learn as much as you can, and only scale up when you feel confident in your understanding of investing.

What Should Low-Income Beginners Invest In?

As you proceed on your investment journey, you’ll discover plenty of options along the way. However, you can’t invest in everything, especially with a limited budget. You must weigh all of your options and make choices that can maximize your investment fund.

Here are a few pointers to help you decide what investments might be best to include in your investment portfolio:

• Invest in things you know: One of the most important rules in investing is investing only in things you understand, whether that is stocks, mutual funds, or other investment products. Never invest blindly in things you don’t understand because that would be like gambling with your fund.
• Make low-risk investments: Some investments are riskier than others, though they offer higher potential rewards. As a beginner, it’s best to stick to the low-risk side of things as you gain more knowledge and experience.
• Only invest what you are willing to lose: All investments carry some degree of risk, even the low-risk ones mentioned above. That’s why you should only invest in amounts that you’re willing to lose. When making an investment, ask yourself whether you could lose that money and still pay your bills and daily expenses.

Overall, it’s best to get advice from a qualified professional who is more knowledgeable about investing. You can also seek advice from others, such as friends or family members. Remember that your money is at risk, so only take investment advice from someone you trust.

How Can Beginners Find More Money For Investing On A Budget?

The issue most beginners find themselves struggling with is not having enough money to invest. Finding the money to invest can be challenging, especially if you have a low-income job. However, there are ways for those on a budget to find small amounts of money to use for investing.

Here are four quick money-saving tips for beginners looking to add to their investments:

1. Beginners On A Budget Should Save Their Change For Investment

Never underestimate the power of saving your spare change. You will likely receive spare change when paying for food, groceries, or other purchases with cash.

Saving your coins can quickly add up and allow you to add to your budget. While a couple of cents here and there may not seem like much, it can add up over the course of a couple weeks or months. You can channel the spare change towards your preferred investments.

2. Beginner Investing On A Budget By Cutting Your Spending

Those living on a budget should not spend irresponsibly on things they do not need. While treating yourself occasionally is fine, consistently wasting money on wants can drain your money fast.

If you’re a beginner on a budget looking to save money for investments, you should cut your spending as much as possible. This can include avoiding eating takeout and fast food, buying luxury items, or spending too much on entertainment. Cutting out fast food and streaming services you don’t watch can give you more investment money.

3. Side Hustles Can Give Beginners On A Budget More Money For Investing

Aside from cutting back, you can also work to bring in more money. While your day job helps pay the bills, a side hustle could help you earn money specifically for investing.

Some examples of side hustles that can help earn you more money for investments include driving for Uber or Lyft, working with a food delivery service, babysitting, or mowing lawns. Using your free time for side hustles can provide a nice chunk of money that you can explore using for sound investments.

4. Automate Your Investments To Use Extra Money For Investments

Many banks and their apps offer options for automating investments, such as automatically taking spare change and depositing it into investment accounts. A financial advisor can walk you through how this process works and if it’s a good move, given your financial situation.

Automatic investments can allow you to earn passive income. Your extra money can work for you by going toward investments rather than just sitting in your bank account.

5. Investing For Beginners Can Involve Investing Your Tax Return

Finding large amounts of money to invest can be difficult for beginners on a budget. However, people can get a large sum of money yearly for their tax return. If you paid more taxes than necessary, you could get a lot of money back that could go toward investing.

Instead of spending this money on a vacation or a new wardrobe, you could invest it. Speak to a financial advisor to determine the best way to use your tax refund to advance your investment portfolio.

What Do Beginners On A Budget Do During A Financial Emergency?

Financial emergencies such as medical bills, home and auto repairs, and unexpected travel costs could disrupt your investing goals. That’s especially true if you have to sell your investments to cover your urgent costs.

One option you could consider to leave your investments untouched is to borrow money to cover your emergency costs instead. For example, you could get a title loan using your lien-free car title as collateral. That’s a quick and easy way to qualify for anywhere from $601 to $15,000 in emergency money, depending on your car's worth.

Alternatively, a signature installment loan doesn’t require collateral and could give you access to a maximum of $1,500. These loans offered by Carolina Title Loans, Inc. can provide fast emergency cash that day or the next business day for people with all different credit types. Using one of these options could help you overcome your financial emergency as you continue with your investing goals.

Contact Carolina Title Loans, Inc. Today For A Loan To Help With A Financial Emergency

Beginners can still enjoy the benefits of investing despite having a small budget. Start by devoting only 15% of your income to safe, understandable investments. Build slowly and save money to devote to your investment fund.

If a financial emergency threatens your investment plans, consider contacting Carolina Title Loans, Inc. A title or signature installment loan could help you cover urgent costs while staying on track with your financial plans. Fill out our quick cash online form or call us to begin the fast and quick process of securing emergency funds. Our loan representatives at one of our South Carolina locations can help you get money within one business day if you qualify.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.