Starting A Budget
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Investment Category

Depending on where you are in starting a budget, the investment category may not be something you can afford to fund. Your best immediate investment is to get out of debt, then focus on investing for the future. I am not a stock broker and am not qualified to give you any advice on buying shares in the stock market. Instead, I will show you the wisdom of getting out of debtbefore building your investment portfolio.

How Does That Work?
Let's take the typical example that you are paying 18% interest on your credit cards. Let's further say that you have an extra $100 this month that you could either put towards the principle on your credit cards or put in your 401K. Which is the wiser move? Some would argue that putting the money in the 401K is the wiser move because of the time value of money, you get that $100 gaining compound interest over time. While that is true, you have the opposite happening when you have a continuously outstanding balance on your credit cards only you have compound interest accruing against you that you have to pay back!

There Is More!
The second thing to understand is that your investments are at risk. You have no guarantee that you will make any money or that you will not lose your investment; though historically the market has climbed over time. If you put that extra $100 against the principle on your credit cards you get an immediate 18% return because that is $100 that you won't be paying any interest on next month.

What About Employer Matching Funds?
It is hard to argue against free money from your employer in the form of 401K matching funds. It is a good idea to take full advantage of that when you can. However, there are times when it makes sense to halt your contributions to your 401K for a little while in order to get your debt under control. It makes no sense to amass a pile of wealth into retirement only to have to turn around and pay all that money to creditors in the form of interest payments. It is better to work your way into retirement debt free.

The Key Is Starting A Budget!
If you have not already started a budget, the time is now to begin. A budget, or spending plan as some like to call them, is an essential tool to help you plan your spending, reduce your debt and increase your savings. You cannot make intelligent spending decisions if you do not track every penny that you spend. You cannot make wise saving and investing decisions if you do not knowhow much you have. Your budget is key!

Who Do I Turn To?
After you have your budget established and your debt eliminated then is the time to build up your investment portfolio. If you are one of those who want investment advice but don't know where to turn, I would suggest you check out Kingdom Advisers where you will find solid investment advice from professional financial advisers who base their advice on biblical principles. They are required to go through a very stringent qualification process to be able to call themselves kingdom advisers and then must go through an annual re-accreditation. Be sure to check out the Kingdom Advisers website for more information.