By now, I’m sure you know that you need to start investing as early as possible if you want to have any hope of retiring comfortably in future.
With plans such as POSB Invest Saver available at all ATMs island wide, everyone can start investing in Singapore’s ETFs or blue chip stocks even with just $100 a month!
However, many people still find it hard to invest as they do not have the excess cash to do so.
Hence, we have found 3 ways for you to free up some excess cash for your investment needs:
1) Streamline Your Insurance Portfolios
Here’s one of the biggest culprits that is responsible for holding your cash hostage. No, I’m not asking you to recklessly cancel your insurance. That would be a risky and foolhardy choice.
However, I’ve noticed that many of my previous clients often had several repetitive policies that were redundant and outdated. There are many new policies in the market that not only provide similar coverage at better rates; they also include more perks as well.
Hot Tip: If you have a trusted financial planner, get them to streamline your insurance portfolio for you to get rid of the unnecessary policies.
Often, you would find that you can actually get a new policy that replaces 2 – 3 of your old policies and free up a sustainable amount of excess cash at the same time!
2) Rent Stocks / Sell Options
Did you know you can rent your stocks and get paid for it?
I know what you’re thinking. It’s another one of those textbook advice asking you to buy high yielding dividend stocks and hang on to them for their payouts.
What I’m talking about is the art of selling options on your stocks. By selling a call option on a stock you’re already holding (aka Covered Call Strategy), you get to collect instant cash every month or even every week, depend on the type of options you sold!
If you are holding on to a dividend stock, this is a strategy can potentially increase your yield many folds!
Hot Tip: Given that most people are not that familiar with options trading, you can do yourself a favor by going to our free introductory options trading seminar that teaches you the basics of options trading.
3) Cancel Your Underutilized Memberships
So I know it’s the New Year and we all have made the same New Year resolutions regarding that toned physique and that hot body.
However let’s be honest … when was the last time you utilized that gym membership of yours?
Or what about that club membership or the cable TV subscription that you hardly ever use? You would be surprised at how much excess cash you can free up every month if you cancel your underutilized memberships.
Hot Tip: Be ruthless with your membership subscriptions. Cancel anything you haven’t used in the last 6 months. If you haven’t used it then, you probably won’t use it in the near future!
Image Credits: imgarcade.com