How to Find Money to Invest

Some links below are from our sponsors. Here’s how we make money.

Advertiser Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone. This article may contain links from our advertisers. For more information, please see our Advertising Policy.

default sharing image
Investing takes sacrifice and hard work. I have made it a goal to build a sustainable income stream from dividends paid out by stocks. In order to reach my goals, I need to make personal financial sacrifices to get there. As a small investor, one of the hardest parts of building a portfolio of dividend…

Investing takes sacrifice and hard work. I have made it a goal to build a sustainable income stream from dividends paid out by stocks. In order to reach my goals, I need to make personal financial sacrifices to get there.

As a small investor, one of the hardest parts of building a portfolio of dividend stocks is funding it. Most of us don’t have thousands and thousands of dollars lying around waiting to be invested. If you are like me, you probably have to rely on making small investments throughout the year.

We are a single income family that lives within their means. However, we don’t have a ton of money left over every month to invest. So how to I find the money to invest?

Here are 5 ways that I find extra money to invest throughout the year that may help you as well!

1 – Take Another Look at Your Budget

find money to invest
You may find extra money in your budget.

I am not going to tell you to cut your cable bill or sell your car and start walking to work. However, it is a good idea to look at your monthly budget again. You may be surprised of ways to get a little extra out of it each month.

For example, I recently found a few recurring expenses for services we no longer use. I would have liked to say I cancelled them when I should have – but I honestly forgot. After cancelling them and adding them up – it came out to about $40 per month in savings. Since I had been use to paying for these in our budget in the past – I simply routed that money into helping to fund my dividend stock portfolio.

Maybe you won’t find any savings in your budget – but it never hurts to look again!

2 – Earn Some Side Income

Probably easier said than done if you are trying to balance a full-time job and a family. Nobody wants to spend more hours working. However, if you want to see the long term benefits of building a dividend income portfolio, then you need to make some sacrifices.

Side income could really be anything other than your full-time job. Back several years ago I was earning a couple hundred dollars in ad income from my blog (Passive Family Income). Every month I had a plan to use at least half of these earnings to fuel my portfolio. I actually built a sizeable position in one stock from all of these earnings. Today, that stock accounts for $115+ per year in dividends.

Most of those earnings from my site have long dried up but I have branched out into other ways to earn some extra income.

3 – Treat Your Investment Like a Monthly Bill

Cable bill, mortgage, car payments, grocery bill, utilities, etc. Those are common expenses that you are probably use to by now. Why not add another bill to your list that can actually benefit you in the future. Consider creating a new monthly bill for yourself to fund your dividend account.

It could be as small as $25 or $50 a month to get started. Any little amount will do. All you need to do is set up an online savings account if you don’t have one already and add a small recurring deduction into this account every month. Before you know it, you will have a couple hundred (or thousand) dollars saved up to invest.

When I first started building my dividend income portfolio, I did just that. I started with a deduction of $50 every month into my account. When I had a couple hundred dollars in the account, I transferred it to my brokerage account. It was great because the money was sitting there waiting to be invested.

At first I missed that $50 because it meant making a sacrifice (one less night out). Over the past 4 years I have actually expanded that amount and try to make a payment to myself of just under $500! Small sacrifices overtime really can add up.

4 – Tax Return Money

Every year it seems like our family gets a large tax return back. Eventually, I should probably adjust our withholdings coming out of our paychecks to have this money sooner in the year. For now though, I just prefer getting the lump sum every spring.

What do we use this money for? My wife and I decided long ago that we would help pay for our children (now 3 of them) to go to college sometime. So every year when we get our tax refund, we use the money to help fund our children’s 529 plans.

One alternative to investing in these 529 plans would be to invest it in dividend paying stocks instead.

What about you? If you get a tax refund back this year – what are you going to spend it on? One option that could pay off big-time in the future would be to invest it in some dividend stocks or other investments.

5 – Interest from Other Investment Accounts

Do you have any high yielding interest accounts? If so, you could potentially use your interest earned to help fund your stock purchases. Interest on savings accounts, certificates of deposit, or even capital gains earned from the sale of investment could be used to help fund stock purchases.

For example, my wife and I have our long term emergency fund set-up in low-risk certificates of deposit. Each year, we earn about $1,000 in interest from these accounts and had been rolling the income back into additional accounts. If interest rates remain low, then investing in the stock market with this money could be a better option this coming year.

Even if you are earning $100 (or less) a year in interest, you may want to consider using this as “seed” money to add to your dividend income portfolio.

Final Thoughts

There really is no excuse for not being able to invest – unless you are totally in debt. The best thing for you then is to pay off your debt first before thinking of investing. However, if you are not in debt, then there are plenty of ways to start setting aside money to invest. You just need to be a little creative is all and make some personal sacrifices along the way!

You don’t need a ton of money to start investing. The key is to start and get some momentum going in your favor – even if it is investing $10 a month. Just starting out? Here are some tips to help you start investing.

What other ways do you find money to use for investing? I would like to learn what works for you.

Get Instant Access
FREE Weekly Updates! Enter your information to join our mailing list.

Posted In:

About John Schroeder

John Schroeder writes about investing and other topics at The Money Sprout where he shares his goals on how to create passive streams of income so he can spend more time doing the things he enjoys, and less time working.

Reader Interactions


    Leave A Comment:


    About the comments on this site:

    These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

  1. Mario Adventuresinfrugal says

    Automation really is the key for me. Investing is something I absolutely know I have to be doing, but if given the choice every month, I might convince myself that there are more pressing priorities. By getting it deducted before I even see my paycheck, there’s less temptation to cheat 🙂

  2. Frank @ Wall Street College says

    I really like number 3!! I do believe that if you treat your savings like a monthly bill your savings will increase. I also do believe that the mindset you put into savings is really important. For example Let’s say you figured out your monthly spendings amounts to $1,000, simply leave $1,500 on your savings account and transfer the remaining amount to either your IRA or your savings account and try to forget about that money. From now on you only have $1,500 in your checking’s account, $1,000 for your monthly expenses and $500 for unexpected spending.

Disclaimer: The content on this site is for informational and entertainment purposes only and is not professional financial advice. References to third party products, rates, and offers may change without notice. Please visit the referenced site for current information. We may receive compensation through affiliate or advertising relationships from products mentioned on this site. However, we do not accept compensation for positive reviews; all reviews on this site represent the opinions of the author. Privacy Policy

Editorial Disclosure: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.