5 Ways To Find Investing Money

"Cast your bread upon the waters, for after many days you will find it again."
– Ecclesiastes 11:1

Saving is good, but I've heard it said that saving money makes losers of us all. How you ask? Because saving money usually ends up in you losing money, just not as fast as spending it. Let’s say you are making 2% a year in a savings account. If you realize that you will be taxed a significant percentage of that and that inflation will increase faster then your interest rate you’ll see that you are actually making minus percentage points. Yikes. One alternative to this slow bleeding of resources is invest and make your money grow. But how do you get the money to start investing with? Here are a few ideas:

1. Pay Yourself First. Almost everyone could put 5 to 10% of their income aside (first) every month and then invest it. This is by far the easiest and most productive way to raise money for investing. It is a great habit to get into. If you are on a salary, you could start with a small amount and have it automatically taken off your cheque and put it into an account until you have enough to purchase an investment or asset that will make you money.

2. Windfalls. Most people over their lifetime will receive a windfall, an unexpected blessing of money. Maybe it will be a lottery, a contest, an unexpected tax refund, an inheritance, etc. Instead of blowing it all on something that will depreciate quickly (like a car), why not put the lion’s share into an account for investing? That way when opportunity knocks you’ll be ready.

3. Sell something (or somethings). Most people have between $500 and $1500 of things around their house that they could sell. Or if you have a $20,000 vehicle, you could sell it and buy one for $10,000 leaving you with $10,000 to invest. Your $20,000 vehicle will only depreciate anyway, why not use some of it’s value to make yourself some money?

4. Use the equity in your home. Many people look forward to the day they pay off their house, but in the meantime that equity (the difference between what you owe and what your home is worth) is doing nothing. Why not unlock some of it and use it? We did this to purchase our first rental property – we didn’t even have to take any money out, we just used it as collateral. Another great way to use your home’s equity is to get a line of credit. The interest on a l.o.c. is often extremely reasonable. Just be careful that you invest in something relatively safe when using borrowed money.

5. Work a bit more. Doing a little work on the side (consulting, babysitting, etc) or even working overtime is a great way to make some extra money to invest. Even $100 extra a month is $1200 a year.