PRESQUE ISLE, Maine (WAGM) – When we think of investing, we often think of investment accounts – stocks, bonds, and mutual funds. However, there are many different types of investing.

If you have a car or house loan, subscriptions to streaming services, or a savings account, you are making monthly investments already.

“The best way to start is to sit down and review your finances,” says Madison Staples, a financial advisor associate at Thompson Financial Group. “See what investments you’re already making, whether that’s subscriptions for YouTube TV, or SiriusXM for your car, then you can look at any debt that you’re paying down, any money you’re already contributing to a savings account, and really see where you could cut a corner or invest more into something.”

Staples says 20-percent of your income should go towards investing in your future. This can include paying down student loans or credit cards, opening a savings account, or starting an investment account with whatever budget you’re on.

“We’re not saying that you have to put $1,000 away every week, nothing crazy like that,” she says, “but whatever your budget can afford is your best outcome.”

Staples adds that for those on a low income, investing can help with budgeting and provide financial security.

“Whether I put a small amount away in my savings or I have it in an investment account, if I know where my money is going I’m more apt not to spend it,” says Staples.

And although it may be easy to put off, it’s best to start investing as soon as possible.

“Compounding interest is earning interest on interest,” explains Staples, “so the sooner you start the more your money can grow, and the more powerful it will become later on.”

Those who are struggling with their finances are advised to take a close look at their budget, and make sure their spending is intentionally going to things they need and want.

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