Can I cut back on my expenses and invest a little more?

I bump into people all the time who have plenty of debt and not enough going into their savings. 

Can you possibly cut back on some of your expenses and consider investing these funds?

You may ask, “Clinton, will this even make a difference?”

Let me tell you – It sure can!

Can you possibly cut down on your spending on take-outs and entertainment?

What about on your coffee?

What about on your mobile phone contract?

Could you spend a little less on your shopping?

Could you downgrade your car? Not only would your monthly installment reduce, but so would your insurance premium!

If you can cut back a little on various items in your budget, and if you choose to rather invest these funds, you could make a huge difference to your financial future.

Instead of spending all your money on “stuff” and “things”, you can turn your income into assets by building up a growth investment. 

Over time, you can set yourself up for a fruitful financial future. 

Let me give you an example. If you invested in a balanced fund or an equity-linked index fund, you should generate real growth, in excess of 10% percent p.a. over the longer term. 

If you invested in a growth investment, and you received a 10% p.a. return, your investment would grow as follows…

And, if you keep increasing your investment contribution by the inflation rate each year, you will generate even more growth, which will also ensure that your capital can keep up with inflation.

By cutting back on your expenses and investing a little more, you can generate explosive growth over time. 

Whenever you earn money, you can choose to spend it or invest it.  

You can break the cash-strapped cycle. You can turn your financial situation around, no matter how messed up your cash flow is. 

Proverbs 13:11 says, “…he who gathers money little by little makes it grow.” 

Can you cut back on your expenses and invest a little more?