Finding More Money To Invest

Over the past while, we have discussed how to use the concept of financial leverage to enhance investment returns and how to automatically save more money.

While it may seem risky to use leverage for investing, it really is the only way to exponentially grow your wealth.  On the other hand, leverage is also a way to to lose wealth very quickly in a down market (see those with multiple mortgages in Las Vegas, Miami, and Phoenix).

With the stock market as depressed as it has been in many years, now stikes me as good time to be investing in quality companies at great prices as well as broad indexes of depressed sectors such as financials and international stocks.

Since, I am using leverage (In the form of a mortgage) to fund my personal residence and a rental property, I have no desire to leverage my stock holdings at this point in time.  Therefore, in order to invest more money in the market I need to “find” more money in my budget.

Here are 5 ways that I have cut back on my budget in order to ramp up my investments while the market is depressed.

I have started taking public transportation to work.  This saves me approximately $50.00/month in fuel and an additional $90.00/month in parking.
Savings $140.00/month

I used to treat myself to one purchased lunch per week.  Now I am packing all of my lunches and I’ve even scored a few free meals along the way.
Savings $40.00/month.

Hosted a family/friends social event instead of going out for our “monthly get together”.  Instead of meeting up at a restaurant with family and friends for our once per month social function, we hosted a wine night where everyone brought a bottle of a different wine to sample.
Savings $80.00/month.

Returned all of the recyclable bottles and cans from the wine night.
Income$15.00/month.

Canceled the Sports package on the cable bill. As much as it hurt to do so, especially with NHL hockey season coming up, I realized that I don’t watch a lot of sports that I can’t get on basic cable.
Savings $10.00/month

My total additional funds to invest is now $285.00.  It really is not a lot of extra money, but investing even this little bit extra today might buy me a month of living expenses in 30 years???

You might also want to review my favorite money saving story – The ultimate savings at my grocery store!

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