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Previous Posts:


  • Investing on a Budget (Part 1 of 2)By John Mussi...

  • Investing in Stocks and the Game of Monopoly(Part ...

  • Investing in Stocks and the Game of Monopoly (Pa...

  • Shift Happens

  • Market Frustration (Part 2 of 2)

  • Market Frustration (Part 1 of 2)

  • Mutual Fund Overdose: How Much is Too Much

  • Investing in Stocks

  • Stock Options Are Not Risky!!

  • Why Women Make Better Investors Than Men


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    Denise Michaels
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    Tuesday, November 15, 2005

    Investing on a Budget (Part 2 of 2)

    by: John Mussi

    At the end of each month, take the change from the container and use it as money for your investments. While this might not seem like a lot of money, you'll find that over the course of a month you build up a decent amount of change.

    Should you want to have a slightly larger yield over the course of the month, you could repeat this same process but use smaller-denomination bills instead of loose change. Even if you only put aside 1 bill each day, that's still 30 or 31 by the end of most months.

    Making Small Investments Over Time
    A misconception that many people have about investment is that large investments must be made all at once. Many investment service providers, especially those who operate online, allow for relatively small investments to be made… even if the investment only buys a few hundredths of a share.

    Over time these small investments build up into a larger total investment, and with any luck the value of the investment will continue to grow even as you purchase more partial shares.

    Reinvesting
    Once you've begun to purchase some stocks and bonds, you might find that some of them are paying dividends… in other words, you're getting back a little bit of money as the stocks or bonds continue to grow.

    While these dividends might not be worth much early on because of the low number of shares that you own, you can set your investment account up so that it automatically reinvests the dividends into the stock that created them. Though it's not a large purchase, it's still that much more that you have invested… and over time the small purchases add up.

    John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

    Tell your friends about this site! This blog is provided by Denise Michaels. To see more blogs by Denise go to http://www.GreatIdeasForWomenOver40.com Michaels is author of the myth-shattering book, "Testosterone-Free Marketing" for women business owners. Go to http://www.MarketingForHer.com and click on "Get the Book!"





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