| One of the hardest things for new online investors is | | | | save enough to get started. Option 2 should not be |
| to be disciplined enough to separate funds they will | | | | ignored as it is a sign of good management to wait |
| use for investing from their day to day living | | | | until you are in a position to have funds available. For |
| expenses. The temptation is to fund something | | | | option 3 you have several alternatives, you could |
| quickly because it provides the allure of high returns | | | | borrow from someone you know, get an extra job |
| with a relatively small outlay. | | | | or if you have a good credit rating you could exploit |
| Unfortunately this approach can lead to poor | | | | credit card deals that offer 0% or a low percentage |
| management of funds and in the worst case lead to | | | | interest rate to provide funds. This is not a strategy |
| losses that escalate and impact a persons quality of | | | | to be applied lightly as it does carry more risk and |
| life. To stop this happening it is important to develop | | | | you could end up owing more than you earn. Seek |
| the right mindset around the funds you need to set | | | | advice before doing this. |
| aside for online investing. | | | | Keep records |
| Making funds available | | | | As your life changes you may find that |
| The first thing you need to do is to work out what | | | | circumstances interfere and prevent you from |
| level of discretionary fund you will have to apply to | | | | releasing funds for online investing activity. If this |
| your investing needs. Take the time to sit down and | | | | happens review the investments you already have in |
| work out accurately (if you haven't already) what | | | | place and see if you can make considered |
| monthly or weekly budget you need for the level of | | | | withdrawals to either finance an immediate bill or to |
| lifestyle you currently enjoy. If, when you have done | | | | replace the funds you had originally earmarked for |
| this you find that you have no money left you then | | | | investing. |
| have three choices: | | | | This ensures that you are able to maintain discipline |
| | | | and also will help you to diversify your investing |
| 1. Cut back on expenditure to save money | | | | strategy over time. The way to know what options |
| 2. Put your online investing plans on hold until funds | | | | you have available to you is to maintain good records |
| become available | | | | of both deposits and withdrawals on all investments |
| 3. Seek alternative funding options If you are serious | | | | you make. Understand the terms that apply to any |
| about investing online option 1 may be the easiest | | | | opportunity you invest with and ensure you plan |
| solution. There are many places where you can find | | | | accordingly. |
| advice on ways to save money that could help you | | | | |