I am broke and I need money? Should I invest the little cash I have?

Question

I work a 9-6 shift and I get paid $13.00 , but I have a wage garnishment that makes me get about $500 every 2 weeks after taxes and benefits. Not to mention I have bills: rent, gas, food, phone bills, etc, including unexpected troubles. I often have to ask for money for food and gas to get back and forth to work. I don't like to spend money so i try to hold onto every penny I have, so I don't go shopping, I don't go to the hair salon, I don't buy cd's or magazines or go out to dinner, don't go to concerts, vacations or any of those other things that cost money. People ususally think that I am just being cheap or I am saving my money. I look for evening jobs but they usually want me to start my shift a 6pm but I'm still at work. What can I do? I don't have any funds for an unexpected emergency. My wage garnishment will last for 1 more year. I am getting desperate.

Answer 1

I would get a second job. Maybe just part time. Maybe sell things on eBay to bring in more cash. If you can make even an extra $200 per week, that is 10,400 per year. You would probably take home an extra $150 per week. Put $25 per week into a Scottrade account, and $25 per week into a Roth IRA (I use Scottrade for that also).

That will be $1300 per year to invest, and $1300 per year into a tax free IRA retirement account that is protected from most (but not all) lawsuits, garnishments and bankruptcies).

It you put the money into a REIT fund such as UMREX it MIGHT earn 20% per year.

This gives you an emergency fund, and hope for retirement in the future.

Answer 2

The best thing you can do in your situation is save. Try to put 7 dollars a week,(a dollar a day) into a saving account and don't touch it! You have a phone, but is it the right phone for you? You can save a big chunk of money by ditching your cell phone and just going with a normal phone, or maybe even no phone. Can you ride a bike to work? If you have a decent car, can you trade it for a cheaper car and some cash? Can you do without a car for a month? Cancel you insurance for one month and don't drive your car. This will let you make an extra 150 dollars a month! I know what it is like to be REALLY poor. You can get back on your feet if you are willing to make sacrifices. You can live on 1 dollar a day for food. Ramen noodles and a multivitamin!

Answer 3

I went through a similar problem and discovered the local library rents DVD's at no charge and you can get magazines and rent CD's. Also, I've invested in the market and advise that you should do some serious studying before investing any money. If you can't work prior to 6:00pm I would advise working at home if you have a computer. It's a great way to make extra money and if I'm not tired I sometimes work till 2 or 3 in the morning and also on the weekends. I don't know where you live but I've found lots of free things to do in my area. Museums often have days they don't charge, nature walks/hikes, the beach. Also, in may be a pain but you can save alot of money by bringing your lunch.

Answer 4

You can try using generic brands and using coupons for your home and grocery needs. Maybe on your phone bill, if you are not already there, go to the lowest service level possible, perhaps look into car pooling with co-workers to save gas money. I would not worry about investing right now, the biggest challenge is to pay each monthly bill and to try to get out of debt if you have any, investment money should be excess cash. If you are still having problems, you may want to call a credit counseling serive sponsored by a local church in your area. Hope this is helpful.

Answer 5

I suggest you read The Total Money Makeover by Ramsey. His ideas may help you give yourself more cushion. I suggest don't invest in retirement yet, get a small emergency fund saved up at your bank/credit union in the simple savings account. That will help with the emergencies, car breaks down, etc. If you have a loan on your car, maybe sell it and drive a beater for awhile. If you car is paid off but worth several thousand, sell it and drive a beater.

Don't worry about being cheap, if you need to be cheap for a couple of years but you stay out of debt, then let your broke friends laugh at you. Most people "look" successful but the truth is they are in debt up to their eyeballs. If you can avoid debt at all costs you are already doing better than majority of America.

Read the above book (the total money makeover) I think it will give you hope on what to do and how to have more breathing room with your money.

Answer 6

You should not invest money you have ( are you talking about buying shares)...to invest it will cost you money...fees and more fees...Trust me I have investments and its very little but after all if you see the fees on my statement I actually pay $200.00 for every 3 months on management fees. So it adds up to $800.00 for a year. And that comes out of the investments along. You are better of trying to save it right now or put it in a savings bond.
Bonds don't make that much but at least you still have your money when ever you need it. And don't need to pay broker fees to actually sell it Or buy it.

So good luck and hope you make the right decision.

Answer 7

Been there, done that. Contact the local (government) agency to help people with debt. (not the kind that charges). It will be listed under government.

Learn to budget as best as possible, and seek other sources of income (doing chores or things for other people for money). You seem industrious, so you will succeed. Just don't panic.

A job is one thing, but use your mind and create work for money. I cleaned windows, did small chores for elderly people. Look for things people need and want, and supply it.

You can do it. You have the power within you to overcome this, and you have begun by admitting that you do have a problem.

Good Luck to you.

Answer 8

If you want to "invest" a little in an IRA or a 401k contribution at your work, that makes a little bit of sense for the long-term. But if you are thinking that some spare change thrown at the stock market will pull you out of your financial well--don't, it won't.

Save your spare money, there will be plenty of folks to call for it soon enough. As for trading systems to get cash to get you out, forget it--buy ONE lottery ticket and leave it at that if you want to gamble (the odds are horrible, so never buy more than one, it gains you absolutely no advantage, buying several is about like jumping up just so you can be a little bit closer to touching some star in the sky).

Something to consider for the groceries, thinking of when I too was strapped and we had these little envelopes where I put money in for various basic bills to make sure there was some when they came due: almost no prepackaged foods and very little meat, eat lots of whole-grain bread, potatoes, brown beans, and rice for the starchy fillers, eat lots of salads (more than one kind of lettuce, but iceberg is also a filler for the salad, just not exclusively iceberg, cabbage can be a filler too), color veggies like carrots, bell peppers, broccoli, corn, peas, green beans. Count meat as you would an expensive candy. Make soups and stews to eat with bread and crackers, but not the pretty packaged soup crackers, simple saltines. Drink milk, tea, or water instead of pop. Treat yourself to one good meal out a week, but no more than two. You are "on a diet" if people ask. Visit the library for books and cancel the cable TV and the netflix if you have it. Write letters to people--not to beg money, but to show appreciation for people that are special to you. You have to get yourself off your own troubles from time to time and hand-writing a letter to say something nice to an aunt or cousin or parent, etc. will help insulate you from depression, or from further depression. Relax. They won't take you out and shoot you. As long as you are trying you will have the respect of most and a good attitude (even if only a public attitude) will be so remarkable that when little opportunities do arise, someone will think of you in time. Patience, this isn't a tattoo, it will pass.

Answer 9

There's nothing wrong in controlling your expenses. In fact, that's the best option than go sleeping on the streets, right? But whether to invest your little money or not, I say, it's safer not to put the money into business. In business, in order to profit you have to sustain it. But you have only a little to spend, the case would be you'll just lose it sooner than you think.

Not that I approve of it, but if you think you are lucky enough to go into gambling, that's up to you.

Answer 10

No, you need to build up an emergency fund first....invest in a money market fund that is liquid.....as far as job goes.....look for another full time jobs. Jobs are everywhere for those willing to put the effort in. Don't give up/