Move 4: Budgeting
If you don’t know how to budget your money efficiently for you, then there are multiple different ways you can help solve that problem. You could potentially put aside a certain amount of money from each paycheck, divide up all your money into physical envelopes to divide up where you need to spend your money (the envelope method), and of course, living in a world that is run by technology, there are tools on the internet that can help you as well.
As an investor, it’s important to keep track of where you spend your money each month to determine which places you can trim down a bit and which places that maybe you can spend a bit more in. Unfortunately, tracking where your money goes is only half the battle.
When you find out which places you are spending more money than you would like, you can easily change that since you have determined where your problem is. However, I will have to say that budgeting isn’t for everyone especially if you are okay with how much money you spend on groceries, rent, and other bills; however, budgeting is an important component that determines how much you can save and invest with.