If you’re following Tesla in the news, you probably realize they are spearheading the electric car industry and sustainable energy pathways. And if you think companies like Tesla represent the wave of the future of cars, you might want to invest in the company yourself. But with the Coronavirus stripping away most people’s extraneous cash, you might not find yourself in a position to invest with the likes of Elon Musk.
Luckily, you don’t have to be independently wealthy to dabble in the marketplace. All you have to do is create a gap between your income and expenses so you can grow your money in the investing world. But how do you do that when every penny you bring in is for an existing expense?
Short-Term Loans
If you want to get into investing right away, but don’t have the means upfront, you could apply for a loan. You can find loans in Albuquerque, Las Vegas, New York City, and other cities for as much as $2,000. You can use this lump sum of cash to invest in the stock market and repay the loan in small increments. That way, you don’t miss out on an opportunity to make it big.
Opening Up Your Budget
If you have a budget, but your income only covers your cost of living, you need to make some adjustments. It might be challenging to add to your income given the state of unemployment levels, so you’ll probably have better luck reducing your expenses. First, look at every cost and decide if it’s necessary. Are there any you can eliminate or reduce by changing your plan or asking the creditor for a lower bill? Remove obvious expenses like streaming services and reduce your electric or phone bills by asking for better rates on your monthly cost for the service.
Another expense you must eliminate to build your wealth and make investing worth your time is credit card debt. As long as you’re paying interest on the money you borrow, you’ll never get ahead, so consider rolling those balances into a debt consolidation loan. By talking with a debt consolidation loan agency, you could reduce your minimum payments down to one and free up extra cash you could use to pay your debt faster while you build your investment portfolio. That way, you’re gradually eliminating the interest you pay out and increasing the interest you could earn on your investments.
Is Gas-Powered On Its Way Out?
Thinking about it logically, the use of gas as a source of power will eventually become obsolete because there is only so much fossil fuel on the planet we call home. In fact, automaker giant GM has plans to phase out its gas-burning car production entirely by 2035, which isn’t too far into the future. And Volkswagen is set to sell more electric vehicles than Tesla within the next few years.
Investing in an emerging market can be a smart move, especially if all signs point to that market becoming commonplace across America. But if you want to take your hard-earned money and place it in the market, you want to reduce your risk as much as possible or risk losing it all.
Diversification Is Key
Investing in stocks, thereby companies with shares like Tesla, is different than depositing your money in the bank where the federal government insures it up to $100,000. If you gamble in the market and aren’t careful, there’s no safety net, and you could lose your savings. You definitely don’t want to end up in that position. The way you can reduce that risk is by diversifying your investments across various markets so when one takes a hit, you offset your losses with gains from another sector -- hopefully.
If you aren’t comfortable taking that risk on your own, talk to a financial advisor who can help you choose investments to give you a diversified portfolio. Although hiring a professional doesn’t eliminate your risk, they can help you make the best choices and alert you to risks so you can adjust accordingly.
Watch The Market And Invest Over Time
Investing in companies you believe in can be exciting, but placing your money in the market is not a passive sport. You need to keep an eye on your investments, national and world happenings, and company performance to know where and how much to invest. Start slow and notice how events and earnings affect a stock price so you can grow and learn as you invest and earn.
