3 simple ways to save more cash to buy ASX shares today!

If you want to invest more in ASX shares but don’t know where to start, here are a few easy tips to save more money in 2020!

| More on:
woman putting hundred dollar notes into purse

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in ASX shares can be a funny game. Everyone wants to invest more all the time, but it’s often hard to find the extra cash to buy.

Here are a few simple tips to help you save more cash and invest more money in your favourite ASX shares today.

3 easy ways to save more and buy more ASX shares

I think an easy way to start saving more money is to cut up the credit card and shut down any buy now, pay later accounts.

I personally have both of these, but I think they can be a tempting way to spend more money. If you’re looking to save more, removing the temptation of instant purchases with delayed expenses is a good place to start.

If there’s one thing that the coronavirus pandemic has shown me, it’s that cooking at home can save a heap of money. By reducing spending on takeaway and Uber Eats, you can save more cash to invest in ASX shares.

Finally, I think the best way to save more money is to create a detailed budget. Budgets help me focus on where my money is going and target areas to reduce.

Of course, you want to pay yourself first. Once I’ve got an emergency fund setup and have some fun money set aside, I’d look to invest more in ASX shares.

What should I invest in?

Once you’ve got some spare cash, it’s time to decide which ASX shares you want to buy.

If you’re just starting out, I think diversification is the key for long-term success. If I was buying my first shares again, I would probably invest in a broad market exchange-traded fund (ETF) like Vanguard Australian Shares Index ETF (ASX: VAS). This Vanguard fund provides exposure to the S&P/ASX 300 Index (ASX: XKO) and is a great way to get started.

For more targeted exposure, I like the Consumer Staples sector right now. These companies tend to provide more “essential” services and have steadier earnings across the business cycle.

That means I’d look at Coles Group Ltd (ASX: COL) or Bega Cheese Ltd (ASX: BGA) in the current market.

Foolish takeaway

It’s easy to be overwhelmed by the excitement of investing in ASX shares. These are just a few simple tips to help you save more and invest for your long-term future.

Motley Fool contributor Ken Hall owns shares of Vanguard Australian Shares Index. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Female miner smiling while inspecting a mine site with another miner as the Lynas share price rises today
Broker Notes

BHP share price has ‘drifted into attractive value territory’ with 25% upside: broker

BHP shares could be a top option according to Morgans...

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Share Market News

5 things to watch on the ASX 200 on Monday

A busy day is expected for the ASX 200 on Monday...

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers are feeling positive about these ASX shares...

Read more »

A woman sits on sofa pondering a question.
Share Market News

What goes up when the share market crashes?

If stocks are falling due to inflationary pressures, you may want to consider exchange-traded Treasury Indexed Bonds (eTIBs).

Read more »

A man looks frustrated with head on hand as he fills up car at service station.
Energy Shares

Sick of high petrol prices? Then buy this ASX share: analyst

Is it painful paying $2-something at the fuel bowser? Stock investors can get some of that money back by doing…

Read more »

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium
Resources Shares

Why is the Pilbara Minerals share price having such a strong end to the week?

The lithium miner charged up on Friday.

Read more »

Group of people cheer around tablets in office
Technology Shares

These 3 ASX tech shares had a cracking day on the ASX today

Some ASX tech shares were on fire this Friday...

Read more »

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today
Share Gainers

Why is the Piedmont Lithium share price off to such a great start in August?

Piedmont shares extend gains this week.

Read more »