Should You Invest if You’re Hand to Mouth?

Though common wisdom says to always save when you can, it’s not always feasible for everyone. For those who live paycheck to paycheck paycheck, investing in the future just doesn’t make sense.

Sure, a solid investment account for retirement pays off in the long-term – but what good does that accomplish now, when you need the money most?

Luckily, there is a way to overcome this. Here are simply ways you can invest in yourself now, so you can improve your financial future without breaking the bank. 

Invest in a Better You

“Just get a better job” isn’t good advice all by itself. Instead, focus on improving yourself to qualify for a promotion or start a side business so you can earn more.

Spend your free time, as well as any influx of cash you receive, to take steps towards earning more, whether it’s buying a new suit for interviews or taking a class to build your resume. If local classes don’t fit your schedule, budget, or interests, you can find suitable replacements online, on websites like Skillshare. YouTube is also a treasure trove for free videos on anything you could possible want to learn

Whether it’s advancing in your current job or finding a new one, you need to invest in yourself first.

Invest in Quality Products

What’s one of the greatest drains on finances for low wage workers?

Buying cheap items that will need replacing very soon.

Finding well-made items doesn’t have to be expensive, either. If you’re seeking a new pair of work shoes, try patrolling your local thrift or consignment stores. These places sell second-hand items that are durable – just no longer useful to their original owners. Also join local Facebook groups that focus on free giveaways in the area.

Putting in the time (and money) to invest in higher quality items is worth it in the end, since you aren’t pumping endless cash into things that quickly need replacing. 

Invest in Paying Off High-Interest Debt

Is your less-than-satisfying financial situation caused by a debt dominating your budget? Then it’s wise to put your extra money toward that first. While you may be able to get by on your current income if you ignore it, that debt will only snowball – worsening your long-term finances.

If you lack extra money, consider a debt consolidation loan or balance transfer credit card that has a lower interest rate than your original debt. Just watch for fees that could end up costing you more. These resources could help you pay off debt faster and more affordably.

Invest in Stocks and Bonds

Once you’ve got other areas of your financial life under control, consider investing for the long term. Start by investing small amounts of money over time. There are plenty of free trading platforms out there today that don’t charge fees and let you buy fractional shares in companies or funds that you love.

It’s always smart to invest in yourself, no matter how much you’re earning today.