Budgeting for Investing
I want to provide you the absolute easiest way to invest your money, into an accessible account, and kick off your path to financial freedom. Please follow along and use the tools I am providing. This isn’t a scam, I’m not selling you anything, it really is just this easy.
You’re investing in your 401(k), getting your employer match, and feeling pretty good about yourself right? You have been saving money by using the tools you’ve learned here, so now you want to do more. You want to invest more in your future but you aren’t quite comfortable with your new and improved budget. Maybe you don’t want to commit extra to your IRA or 401(k) in case you need it. That’s fine, I’m in the same boat. So let me tell you the easiest thing you can possibly do.
Get the free Robinhood app
Download it on your phone, literally right now. If you could be a peach and use this link here to support the site that would be pretty awesome of you. Enter your information, set up your account, and whatnot. Now take enough money out of your checking account that you are comfortable not having on hand. For my wife and me, we like to ensure that we have 1 month of expenses in our checking account AFTER our current month is completely paid for. That’s not a lot but we can always sell stocks and get our money back if we have to.
So if you have found, through my beautiful spreadsheet, that you need $3,000 per month to live, I would have $3,000 dollars remaining in my checking account AFTER paying all of the current month’s bills (rent, internet, and subscriptions, are typically paid at the beginning of the month for the month following). Again, if I pay all of my bills on the 1st of the month, on the 2nd I would still want to have at least $3,000 remaining.
This is what we do as it is enough room for us to transfer money if we need to. If this is too much cash on hand, you can adjust. If you think this would stress you out and you would want more on hand, that’s fine too. Just find what works for you.
Getting that money working
So you have that magic number, let’s go with $3,000 remaining on the 2nd of the month, I would transfer everything in my checking account over that amount into Robinhood. If I have $3,560 on the 2nd I would be transferring $560 by the 3rd.
Now that the money has been transferred to Robinhood, press the magnifying glass at the center/bottom of the screen. Here, you can search the letters “VTI” and buy, at market price. I would buy as many as I could with the money in the account.
Simple, easy, and profitable.
I hope this helps simplify some of those other things I have talked about in the past and provides you with an easy way to get started. If you have any questions please email me at email@example.com
As always, thanks for reading!