How You Can Invest with a Low Income
Building wealth is a goal most of us have ‐‐ but many feel like they are restricted from doing so because their income is low. If you are scraping by with a low income, you may not be able to save a large portion of what you bring in, but this does not mean that you cannot save. It just means that what you do save has to go toward its best possible use. So here are some great places you should consider investing if you have a low income, in order to maximize your potential at building wealth.
Most advice geared toward investing begins with setting aside a certain percentage of income, but if your income is at entry level or near, that may not be the best advice. You should probably put your extra time and a good portion of your income toward building your career and income advancement.
What would it take in your current field to advance? Whether you are working as a secretary, a construction worker, or a cook in a restaurant, you can probably find someone who makes double your salary. Oftentimes the person making double does not have more degrees than you do and may not necessarily be smarter than you (don't mention that to them though!). They just determined how to make more money as you.
Convince yourself it is possible and make a plan. You may need to earn additional certifications or start studying on your own time with internet resources and library books. And work hard to prove yourself. In some cases you may need to find a new job or ask for a raise. Negotiating your salary can save you money.
If you want to invest in bonds, stocks, ETFs or mutual funds, look no further than the Roth IRA. Roth IRAs benefit people with low incomes more than traditional IRAs because the growth and dividends that are in the account will be tax-free once you are in retirement.
Another great place to invest is real estate. You do not need loads of money to do this. Flip houses, buy a rental property or rent a portion of your existing home to start bringing in more money.
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