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How to Invest in Stocks on a Shoestring Budget

Investing in stocks is not for everyone, especially those on a tight budget. There is, however, a way for even those to invest for their future. One such website is Sharebuilder.

Why do the vast majority of individuals never save any of their money? The most prevalent explanation is because they do not believe they generate enough money to save any of it. While it is true that surplus money should be used to pay off debt, this is not always a good reason not to save anything. If correctly invested, the payout could be greater than any debt interest paid. That is, of course, the first thing a consumer should do: determine whether the possible earnings would outweigh the debt interest. Assume your credit card debt has a 10% interest rate, but your investment will pay it off at a 15% rate. Investing makes the most sense in this scenario. Why not, on the other hand, do both? Spend the majority of your discretionary income on debt, with a little portion set away for investing. The amount of money to invest is heavily influenced by a person's budget. After paying all bills, how much money does he/she have left over? Even if it's only $5, saving money is preferable to wasting it on an expensive cup of coffee or a magazine.