Most people think there’s no way they can ever start doing any investing because they don’t have enough money. The problem isn’t that they don’t have enough money; the problem is that they don’t know what their money situation is to make the best decision.

1. Start small.

When you get paid, take a small amount out of your paycheck and put it somewhere else. Start with something as low as $25 and put it in a jar or drawer that you don’t use all the time so that it’s out of your sight. Do that for a few weeks to see if you really needed that money. If not, then you know you can put money towards investing.

2. Do a quick down and dirty expenses versus income tally.

Write down how much you actually bring home for one month, whether you get paid weekly or every two weeks and total it. Then write down every bill you have and how much you pay each month to that bill. Subtract this amount from the other amount; this will tell you how much money you have left after bills each month. If you have at least $250, take 10% of the total and put it towards savings or investing. You can set a cap if you wish to.

3. Commit yourself to saving money for larger purchases.

Get out of the mindset that you need everything immediately, especially if things aren’t broken. If you want a new refrigerator, save up for it instead of putting it on your credit card. Get used to saving money; once you start, it gets contagious, and it costs you less money in the long run.

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