Where Do I Find My Grub Stake?

by: Daniel P. Matthews

Your "grub stake" is all around you. It is your money, including the cash you have in your pockets. If you save only $5 per week you will have $260 at the end of a year. Generally, you can find $5 per week to save. The secret is doing it - you know the Action thing from VGAP © ! Most people that fail do so because they quit taking action. Pure and simple, if you persist in saving $5 per week it will grow and eventually provide a grub stake of noteworthy size.

The money that you save should be put into a savings account for a time. The time period you use the savings account is until you have one thousand dollars. Now that is when the fun really begins.

Take your one thousand dollars and move it into a mutual fund. Let me be real clear here - there a lot of things you can do with your money. But, persistent action and successfully managing risk are two very important keys to gaining financial independence. Mutual funds, in my opinion, are a good place to put your money.

All right, hold the thought on mutual funds for awhile because you might be interested in other ways to find your "grub stake". Some people, in fact quite a few people, own homes but have no regular savings plan in action. They can use money in their house to start investing in a mutual fund. Home owners can gain a grub stake through a home equity loan or by remortgaging their home, taking a little equity out of their home.

For those that have no house that can be remortgaged or borrowed against, another alternative is to borrow money to set up a mutual fund. You can get a personal note or use credit cards, etc. While borrowing is an alternative, saving the money is a better alternative.

Borrowing speeds the process of getting into a mutual fund. For beginners, debt can be a very risky and challenging prospect. When you use credit, you must carefully consider the amount of the monthly payments and your ability to pay off the loan in accordance with the terms of the loan. Remember, one of the goals is to establish a regular savings plan. When you borrow to start the savings plan, you pay a monthly amount to pay off the loan and then you must contribute to the savings plan regularly.