Here is the link to Step 6. This assumes you are paying off your debt already. But it's a great topic to motivate you to keep making those payments.

http://www.mydebtmanagementplan.com/save...nvest.html

As always, come back and post questions and comments after you've read it.

This post was last modified: 02-12-2009 08:52 AM by getmeout.

this is good to save and invest. but if some one has no separate money to invest than what should he do i think he should go for applying loan and he or she should invest that money somewhere to generate revenue.

If someone has no extra money they haven't followed all the steps in order to get here! In the first 5 steps we discuss how to pay off your debt, and that's what leads us to step 6 of then saving that extra income and investing it for the future.

I strongly discourage people from taking out a loan and investing it. Had you taken out a $10,000 loan in 2007 and invested it in the market you'd have lost about half by now.

Now there are exceptions to that, if you are investing that money into a solid business plan to become self employed, it MAY, and I'll double stress the may, be a good idea. However you should always use caution in this type of situation, if you are investing in a get rich quick scheme, be prepared to owe that money back even after you make no money from the scheme. Only borrow money to finance solid business plans, and or other business ventures that you've done your research in.

Again I discourage taking out a loan to invest, so if you do it, don't blame me if it doesn't work out.

Good advice, getmeout. If you have already gotten yourself out of debt and still have no extra money to save or invest then you are living beyond your means and should downsize your lifestyle in some way.

Even with a mortgage payment to make, you should be able to invest at least 10% of your paycheck right off the top and still livve comfortably on the rest.

Thank you Kevin! That's exactly right. Living beyond your means is the biggest reason get into trouble. It's hard to get out of that mess. Especially right now in these tough economic times. If you got into trouble because of a home, it's tough, if possible, to sell that house. But keep your chin up.