How to make an investing schedule and stick to it

Most of us have a hard enough time making ends meet and living paycheck to paycheck. So how can we make up an effective investment schedule and stick to it?

Difficulty Level: average      Time Required: ongoing

Here's How:

  1. No matter how little you make, there is probably someone making less and getting by just fine. So determine to save 10% of every paycheck and live on less.
  2. Set up an investment account with your bank or credit union, or open a brokerage account.
  3. Arrange to have a specific amount (at least equal to 10% of your pay) automatically deducted from your bank account each pay day and deposited to your investment account.
  4. You can either have this going directly into a mutual fund, thus dollar cost averaging, or have it put into a cash account and use it to buy a stock when there is enough accumulated.
  5. You can invest in a mutual fund on a regular basis with as little as $25 an installment. So don't think you can't afford it. Just do it!
  6. If you and your spouse both work and you can get by on one salary, have the entire sum of one spouse's paycheck go into an investment account automatically.
  7. Print off, sign and frame the Contract With Myself linked below. (Yes, you may cut off the ads at the top and bottom!)
  8. Hang it in a prominent place in your house where you will see it every day.

Tips:

  1. Putting a pledge in writing is very important. Be sure to follow step 7 and 8, whatever else you do.
  2. There are a number of good books to provide ideas and inspiration. "The Richest Man in Babylon" by George S. Clason is highly recommended.
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