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Step 1
Record absolutely every dime you spend for one month. If you're spending money using a debit card, clearly mark the receipts and put them a jar or box during that month. If you pay for something with cash, write it down in a notebook. If you purchase something with a credit card, mark the receipt and add it to your debit card receipts. Be sure to print receipts for any purchases you make online or bills you pay.
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Step 2
Total all your expenditures at the end of that month, and then divide them into two columns. One column should be for things that are fixed and that you cannot change such as your mortgage, car payment and utility bills. The other column should include things that are flexible, such as entertainment expenses, morning coffee's at your favorite coffee shop and new clothing.
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Step 3
Identify enough expenses from the flexible list to total $50 or more. For example, if you buy a latte three times a week, that probably totals about $15 week. That $15 times four weeks equals $60. And that $60 is the money you can earmark for your monthly investing by eliminating your coffee purchases. The same would work for weekly lunches at fast food restaurants or other expenses that you see regularly appearing on your flexible expenses list.
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Step 4
Establish a dollar cost averaging program with the money you've earmarked from your flexible spending list. Dollar cost averaging means you invest a fixed amount of money on the same date each month into investments of your choosing. Typically, the money you invest in a dollar cost averaging program comes out of your checking or savings account each month automatically. You can establish a dollar cost averaging program by contacting an investment professional.
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Step 5
Look for ways to increase the amount you commit to your dollar cost averaging program every six months. Once you get into the habit of regularly investing, it's easier to increase that investment.
