If you aren’t spending less than you earn you are at significant risk of catastrophe. First, you need to figure out how to save, then figure out how to grow. Pause here and take a hard, honest look at your budget. What can you minimize, or ideally, eliminate? Even if it’s only a few dollars. Every little bit adds up over time.
If you don’t have a budget, there are a lot of apps available to simplify the process. For example, Mint and Personal Capital are two popular apps to categorize your daily expenses and keep track of your monthly budget. You could also use a spreadsheet to view long-term trends, spending habits, and potential opportunities to save more (Google sheets has a free template that is pretty good). We are always looking to spend less and save more because once you spend the money, it’s gone forever. So is the money that it could’ve earned in the markets, and the money that that money could have earned, and so on.
The discipline required for this exercise will set you up for success in your investing and trading endeavors. So get your cash flow straightened out and come back. If you aren’t sure how to go about it, let us know, we’re here to help!