We discuss pain-free ways to find extra money to invest. Whether it’s into a Betterment account, a Roth IRA, or a brokerage account.
It’s easy to say, “go out and get a second job,” and use that money to invest, but that’s not realistic for everyone. Using these methods, you can grow your investing money faster and easier.
1. Budget Better/Stop Spending Money
Now that you have a Mint.com account (and you had better), take a look at where your money is disappearing to.
Get rid of cable, reduce your coffee-buying addiction, stop buying clothes to fill your already bursting closet. Plug these spending leaks and discover riches.
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2. Sell Shit You Don’t Need
Old electronics, exercise equipment/clothes rack, your baller car stereo system that you’re now too old to make look cool – sell that shit on E-bay or Craigslist (for those who don’t fear being raped in a Cheesecake Factory parking lot).
And you get the added bonus of having less stuff that requires cleaning, storing, moving. Double win for this tip!
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3. Make Extra Money From Your Hobby
Every time someone buys a product you recommend through your site, you make a little money. Minimal effort for what can add up to a nice bit of extra cash.
4. Take It Out of Your Savings Account
Your investment account IS your emergency fund. You don’t have an emergency every couple of months. Use that money towards investing, and when you do have an actual emergency, you’ll have more than if it had been parked in a savings account making “dick interest.”
5. Save Your Spare Change
Bonus points if you save it in a Darth Vader head. But don’t cash it in via Coinstar – they take a cut.
Use the machine at TD Bank or PNC Bank and all the money (baring the few coins that get trapped in the metal maw of the machine) is yours.
6. Cash Back Credit Cards
Andrew uses the Fidelity American Express cash back card. The card gives 2% cash back on everything, and the money is deposited into his portfolio account.
Many credit cards have a cash back feature. Don’t spend that money on gift cards or magazine subscriptions. Cash it in and invest. As an avid LMM listener that you are, we know you’re putting every expense possible through your credit card. With a good rewards card, it can add up quickly to free investment money.
So there you go. The laziest ways possible to find extra money to invest. So stop buying useless crap, sell the shit you already bought, and start mining your sofa cushions for spare change. You’ll be in the 1% before you can say “BourbonBob.com.”
Gazelle: Sell your old electronics.