What to do if you do not have enough money to invest

Posted April 26, 2006 by Aloisius
Categories: Persoanl Finance

You should invest of course. So where do you invest? You seek out the cheapest way to invest with the most potential for a good return. Simplicity, fees, taxes, and potential returns are most important to me. The problem with most investments is that they are too complicated or over promise high returns.  Unfortunately, investing is made into sport by some people–ignore them–just like you ignored the guy in high school who was always bragging about his conquests. 

So what to do–start an emergency fund. I started placing money ($10 a month) in an online savings account at HSBCdirect, or you could use INGdirect, or Emigrant Bank.  Not much but start somewhere and guard it with your life–that is unless you life is in danger.  Continue to pay off debt but don't pay off debt with the emergency fund, you will always have debt to pay off, most of us don't have trust funds, so methodically pay down debt and slowly put money into your emergency fund.  

The emergency fund can take for ever too especially if you have no money so start slowly and enter the market very slowly too.  If you want to get into the market like I did but could not come up with the minimums it took to get into the fund families I wanted like Vanguard or T. Row Price I finally stumbled onto Homestead Value Fund (HOVLX), after looking for months on Morningstar.  You can automatically invest $5 a month into this 4 star rated fund beginning with a zero balance if sign up for automatic investing.  The fees are below 1% so it fit perfectly for me.  

Well my son is crying.  Good luck starting but start–do something.