For the past 5 months,–after I started investing my money via Stash Invest. And I’m still experimenting on choosing which ETFor stock what I want to invest on. Before I had a Stash account; I used to only have a debit card hosted by Walmart. That’s the time before I signed up for Solutions North Bank in Kansas. Typically, starting off as a person who is unbanked is common when you were just a young adult. That’s the time when I only lived in an apartment is a small city like Salina.
When I first started investing my money; I’ve learned to take courage as I take risk. It’s okay to invest your money via a stock market, but you have to think twice,–before you invest!
The Poor Wastes More Money
Even families in poverty waste more money, and barely save money for other uses. Banks offering savings accounts were left in the dust. SSI clients, disability clients, and child support clients who get these funds waste unused money that wasn’t saved for other uses. Common uses of unused money being wasted are the following:
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Cable Subscriptions For Children To Watch TV
I used to have cable TV as I live in my apartment. With a magic of TV on the internet… I don’t need to rely on cable TV to watch content/movies. I killed off my cable subscription, but kept my internet and phone as a cheap option. Not just just removing cable TV from my apartment saved me some money, that gives me enough money to spend on other things. However, this is a biginning of a story. Using the internet is the way for me to consume content. I also write content on my blogs. This is necessary for me to be creative as I enjoy time without TV. That’s more than enough to give my TV a long rest!
Months went by; I discovered my savings going up as I elemated cable TV. This is my first experience of cord-cutting as a way to reduce money being wasted. Cable TV is expensive to subscribe to. And these prices go higher, and higher!
As I rely on the internet… I can watch content on my devices as a way to enjoy free TV. YouTube is a known site what I use for many days. And I still rely on it.
As I kept TV subscriptions off my budget, money can still be saved.
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Buying Random Groceries
This is a loop what I’m trying to get out of! Having a grocery list is necessary to strategically buy goods from a store. This is necessary if you rely on a SNAP card, or other systems. Putting all of the eggs in just 1 basket is common via our poor community. That’s why poor communities have families who were hungry, parents depriving children their food via abusive rules in families, lack of money, lack of jobs, and lack of investments, and even neighbors who can barely help the poor.
This tactic has been causing ussues with the poor community who is getting poorer than ever. If you were a parent of a family, wasting money is common when you buy random items. These families has been buying foods that are rigged with hormones! If you were shopping for food with this format… you are causing you and your family to be end up in a food crisis.
Poor families often have an action to shoplift items from these stores, and go to food banks to find foods that are safe to eat. No such culture has a power to help the poor. Typically, the poor who work at these businesses live from one check to the another. Not even 1 poor person has opened a savings account at a local bank, and implement ways to prevent overdrafts of their accounts. These savings accounts has been placed on many offer listings,–posted by banks, and online advertisements. A person can fail to open a savings account,–if these excuses are vague:
- To many accounts – this excuse is common. It doesn’t hurt if you have a savings account. This is useful to save many for the future, or a rainy day. This is a feature what you bank offers.
- Prefer only 1 bank account – this is a common reason why the poor don’t want to open a savings account, and build up wealth via a timely matter. One banking account is always susceptible to overdraft,–just like I’ve experienced since a week ago. And I managed to survive it. I did have a strategy implemented to pay up these fees. And I decided to have these funds ready for any case of overdraft.
Expiring food, and uneaten food stored in cabinets is also common. Even canned foods can expire. All food items have a shelf life. For this instance; oysters have a shelf life about a week.
The poor often have a jar of peanet butter, and a jar of jelly or jam, and a loaf of bread. PBJ is the known sandwich what the poor eats on the face of our planet. Typically, money being wasted when buying random items are common when PBJ is only available. If you were about to have a snack, and you give your kids PBJ,–trying to save money,–dispite having snack cakes in your cabinet… you are wasting snack cakes. And this is one sign of money being wasted.
During your shopping activity… you buy random items, and you don’t have your own grocery list with you. This is a known habit what I’m trying to break out of. Lacking a grocery list is common, and many people has been failing to save loose change, and secure it someplace in their homes.
Common items are bout are the following items that caused you to waste money:
- Tobacco Products
- Cheap Dairy Products
- Cheap Meat Products
- Low quality Foods
- Random Snacks
- Random boxes of cereal (without input from children)
- Cleaning supplies (without checking household inventory)
If you were having this kind of a habit that is hurting you; you may need to check with your advisor, or a financial professional who will help you.
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Use Of Incandescent Bulbs
Buying LED bulbs doesn’t just reduce energy, that also reduce carbon, and saves you energy. Even the best LED bulbs can make you a money-saving consumer with your electric company. If you have regular bulbs, you are still wasting money, in some countries, they’re illegal to purchase these regular bulbs.
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Lack Of Investments
The Poor has no brokerage accounts what so ever! However; investing some of your unused money for bons or stocks is one way to earn passive income, and receive dividends,–depending on a stock, or ETF. Starting off with ETFs like buying bonds is a way to get started. Whether if you were buying government bonds, or any bond; this is a choice to start off with. It takes some time for your bonds to grow. Reinvesting your dividens for these bonds can be a fun way to invest your money. I’m still developing my investment strategy, but I’ll share it later on via the next post.
What I’ve mentioned earlier, investing takes courage, and it also takes risk, if you are willing to risk your money for investing on stocks and ETFs.
Well, I’ve already took courage to invest my money for stocks and ETFs.
That’s what some poor folks don’t understand! Investing doesn’t hurt. This is one way to let your money work for you,–useful if you have trouble finding a job, or you were wrongfully fired from your job. It take some years for your stocks to grow. If you have a stock like PayPal, my favorite stock… you can still keep hold of this stock for a long time.
The poor usually lack investment accounts. They’re really missing out on these features what common wealthy communities have. Such as a large home, great clothing, and other features. However; I’m planning on ditching a housing program that has too much limits. My apartment doesn’t have an ability to have a room that is dedicated for business use!
Most prepaid debit cards aren’t supported by investment firms. You must have a standard banking account to do it. I chosen a local bank over a big one because, that’s when my life upgrades from a prepaid banking account. Since I didn’t start a saving account yet… I must build up money to establish a goal to open a savings account as a way to set money aside. Typically, savings accounts are okay to establish with your same bank, and you can save up lots of money easily. Every penny counts as you save up.
Investing at the other hand… enables your money to work for you.
Investment Apps What I Recommend
I use both of these apps to invest my money. And I’ve started using them since months ago. And you should give them a try. Here are the following apps what I recommend:
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Stash Invest
Stash is a microinvesting app that enable you to buy fractional shares of stocks, ETFs, and bonds. You can link your bank account to add money to your stash account. You can build your own port folio of stocks, ETFs, and bands. There are many stocks, and ETFs,–and bonds to choose. You can invest as low as $5 to get started. Stash also offers a debit card that enables you to earn stocks as you use your debit card for everyday purchases.
What I like about this app… I can choose any stock whhat I want to invest on. Unlike most investment apps; I can also reinvest my dividensa manually.
Here are the Advantages of Stash Invest:
- You can invest on any stock what you like.
- You can choose to reinvest your dividends to any stock what you like. That gives you more choice to reinvest your dividens.
- It’s affordable, just $1 per month, but the app is free!
- Share your port folio on social media sites.
- Doesn’t reinvest your dividends automatically
- Doesn’t have an automatically-configured port folio
- Doesn’t buy shares for you as you add money to your account
- You must choose stocks and ETFs,–and bonds wisely
Here are the drawbacks:
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Acorns
Acorns has a different approach as you invest your money! This app is also a robo-advisor! I’m still experimenting with investing my money from my PayPal account. However; this app is useful,–if I want to hold my earnings what I receive from any ad network, or rewards provider. This app is ideal for starters who aren’t ready to buy individual stocks, ETFs, and bonds. Just add your money to it often, and let the app do all of the work for you. Since this app does all of the guest work for you… you can just set it, and come back to it later.
Here are the following advantages:
- Audomated setup of your port folio,–if you chose an an investment risk level
- You let the app choose stocks for you.
- Port folio is already set for you.
- Links to PayPal accounts
- Receive dividends, and your dividends are reinvested automatically!
Adding just $5 on a regular basis makes it easier for you to buy shares, ETFs, and bonds in bulk!
Here are the drawbacks:
- No possibility to build your own port folio
- No possibility to choose where to reinvest your dividends via any stock
- Parts of your shares may be sold to cover costs of an investment service. To me… that’s not the case!
- Fixed to your risk profile.