Money Management

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You’ve probably heard that investing is important to build wealth. But if you don’t have a lot of extra money in your checking account, you may be hesitant to actually get started with investing. It’s natural to assume you need a large sum to open a brokerage account and start putting your money into the market — especially if you think investing is something rich people do.The reality, though, is that it is absolutely worth opening a brokerage account even if you have only a little bit to invest now or for the foreseeable future. Here’s why.
Bonus offer: unlock best-in-class perks with this brokerage accountRead more: best online stock brokers for beginners
Many brokerage accounts make it easy to invest with very little moneyThe great news is, opening an account with a discount online broker isn’t something you need a lot of money to do. Many brokers make it easy and simple to get started with almost no money.You can find plenty of great online brokers with no minimum balance requirements, and that charge no commission fees or trading fees to buy stocks and ETFs (exchange-traded funds). A number of brokers also offer something called fractional shares, which means you can actually buy stocks and ETFs even if you’re investing hardly any money. Fractional shares are just partial shares, which give you the same percentage returns as any other stocks or ETFs. So, if a stock cost $100 a share and you had only $10, you’d buy one-tenth of a share.With fractional shares, you aren’t stuck with higher-risk stocks (often called penny stocks) just because they have a low share price. You can even buy an ETF that tracks the performance of the stock market as a whole, which is a great option for beginning investors without a lot of money or knowledge. The risk involved in investing in this kind of ETF is very low if you’re investing for the long term.Your small investments can add up over timeSo, you can open a brokerage account with hardly any money and find great investments — but you’re probably still wondering if it’s worth doing. And the answer is a definite yes. Once you get your money working for you, even if it’s a small amount, you can benefit from compound growth that happens when your returns are reinvested. And this makes a big impact.Let’s say you invested just $10 a month, or $120 a year, over a 30-year period of time. By the end of the 30 years, you’d have $21,713.21, assuming a 10% average annual return — despite investing only $3,600. There are not too many other things you can do to turn $3,600 into more than $20,000.Once you start making these small investments, you’ll also develop your knowledge and get into the habit of investing. This may help you increase your contributions over time. The important thing is to just jump in. If you have only $5 or $10, you can still get started. Open your brokerage account today, buy a great asset with fractional shares, and begin to reap the benefits of making your money work for you.Alert: our top-rated cash back card now has 0% intro APR until 2025This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!Click here to read our full review for free and apply in just 2 minutes.We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

You’ve probably heard that investing is important to build wealth. But if you don’t have a lot of extra money in your checking account, you may be hesitant to actually get started with investing. It’s natural to assume you need a large sum to open a brokerage account and start putting your money into the market — especially if you think investing is something rich people do.

The reality, though, is that it is absolutely worth opening a brokerage account even if you have only a little bit to invest now or for the foreseeable future. Here’s why.

Many brokerage accounts make it easy to invest with very little money

The great news is, opening an account with a discount online broker isn’t something you need a lot of money to do. Many brokers make it easy and simple to get started with almost no money.

You can find plenty of great online brokers with no minimum balance requirements, and that charge no commission fees or trading fees to buy stocks and ETFs (exchange-traded funds). A number of brokers also offer something called fractional shares, which means you can actually buy stocks and ETFs even if you’re investing hardly any money. Fractional shares are just partial shares, which give you the same percentage returns as any other stocks or ETFs. So, if a stock cost $100 a share and you had only $10, you’d buy one-tenth of a share.

With fractional shares, you aren’t stuck with higher-risk stocks (often called penny stocks) just because they have a low share price. You can even buy an ETF that tracks the performance of the stock market as a whole, which is a great option for beginning investors without a lot of money or knowledge. The risk involved in investing in this kind of ETF is very low if you’re investing for the long term.

Your small investments can add up over time

So, you can open a brokerage account with hardly any money and find great investments — but you’re probably still wondering if it’s worth doing. And the answer is a definite yes. Once you get your money working for you, even if it’s a small amount, you can benefit from compound growth that happens when your returns are reinvested. And this makes a big impact.

Let’s say you invested just $10 a month, or $120 a year, over a 30-year period of time. By the end of the 30 years, you’d have $21,713.21, assuming a 10% average annual return — despite investing only $3,600. There are not too many other things you can do to turn $3,600 into more than $20,000.

Once you start making these small investments, you’ll also develop your knowledge and get into the habit of investing. This may help you increase your contributions over time. The important thing is to just jump in. If you have only $5 or $10, you can still get started. Open your brokerage account today, buy a great asset with fractional shares, and begin to reap the benefits of making your money work for you.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Aldi doesn’t have a place on my regular supermarket rotation. Here’s why. [[{“value”:”

As a mom with a family to feed, I’m no stranger to doing my fair share of grocery shopping. In fact, other than housing, food is probably our biggest financial outlay every month.

My weekly food shopping rotation usually includes a visit to Costco as well as a stop or two at my local ShopRite supermarket. Since ShopRite is on my way home from taking my kids to school, I often pop in to replenish items as we run out, or to purchase items that Costco doesn’t carry.

Aldi, meanwhile, is a store in my area that offers the benefit of low prices. The problem with Aldi is twofold, though.

First, it doesn’t have the biggest selection. And more so than that, its limited inventory is also inconsistent. There have been times when I’ve stopped at Aldi and the store didn’t even have sandwich bread. I mean, you can’t get more basic than that.

It’s for these reasons that Aldi does not have a place on my usual shopping list. In fact, I’ll really only shop at Aldi if these situations apply.

1. I’m already doing another shopping run and Aldi is close

The Costco I usually shop at isn’t anywhere close to Aldi. But there’s a second Costco I have access to that I sometimes choose to visit because it has a slightly different selection than my regular one. And that Costco happens to be adjacent to an Aldi.

As such, I’m willing to run into Aldi for a few items if it won’t take up a lot of my time. But if I’m visiting the Costco that isn’t Aldi-adjacent, I’ll rarely specifically drive over to Aldi separately.

2. I have a light week

Most weeks, I barely have enough time to sleep, let alone make extra trips to the grocery store. But every so often, I will find myself with a lighter week.

During those times, I like to make a point to visit the grocery stores I don’t typically visit. These include Trader Joe’s, Whole Foods (I know it costs a fortune but there’s one brand of ice cream only available there that I absolutely love), and Aldi (which helps offset my $9 ice cream pints at Whole Foods).

But otherwise, I’m not going to take time out of a busy week to make a trip to Aldi. Doing so might save me, say, $20 on groceries, which is nice, of course. But that trip might cost me an hour of work.

Thankfully, I make considerably more than $20 an hour. So it’s only really worth it to make a separate trip to Aldi if it won’t take away from my ability to earn money.

3. I’m buying more produce than usual

In my experience, the best savings at Aldi come in the form of low-cost produce. I usually pay a pretty low price for produce because I buy it at Costco in bulk. But I have found that Aldi’s prices actually beat Costco’s for most fruit and vegetables.

As such, if there’s a week when I need a lot of produce, whether it’s for the recipes I’m trying or because I’m hosting people for an event and want to put out more fruit than my family normally eats, I may pop over to Aldi for the savings. But if it’s just my regular weekly haul, it doesn’t pay to make that separate trip.

Should you shop at Aldi regularly?

Shopping at Aldi has the potential to save you money. But you also need to think about what a visit to Aldi is costing you. If it’s time, and you have time to spare, then why not add it to your weekly grocery shopping rotation?

But if you only have time to visit one supermarket per week, if you choose Aldi, you run the risk of not being able to purchase all of the items you need. At that point, you might then need to order your missing items for delivery and run up a higher credit card tab for that service.

I will also say that while I have multiple friends who shop at Aldi regularly, it’s definitely not the only supermarket they shop at. But their schedules aren’t as jam-packed as mine. And they may not be as busy as yours, either.

Remember, we all pay for conveniences in life, and there’s nothing wrong with doing that. So if you decide not to shop at Aldi and forgo the savings it might offer, consider that your own form of paying for the convenience of being able to shop once for groceries each week and get everything you need at a more consistent supermarket.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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If you make an error in your tax return, it might be rejected by the IRS. Read on to see how that happens and what to do about it. [[{“value”:”

Taxes are due this year on April 15. So if you haven’t started your return yet, ideally you’ll get working on it sometime soon.

But what if you submit your tax return only to have it rejected? If so, don’t panic. But be sure to know what steps to take next.

Why tax returns get rejected

The IRS will rarely reject a tax return due to incorrect math. Usually, the agency can reconcile math errors on its own. (It’s worth noting that if you file your tax return electronically using tax software, you may be less likely to fall victim to math errors than by filing on paper. And that way, you won’t hold up your refund.)

Rather, the IRS usually rejects a tax return due to a glaring error that it can’t correct on your behalf. These generally include:

Putting down the wrong name (something that may happen if you accidentally enter your nickname instead of your given name)Entered the wrong Social Security numberEntering the wrong filing status

Usually, these types of errors can be corrected electronically. The IRS will send you a notice by mail telling you what your options entail. Some types of errors, however, can’t be fixed electronically, so in that case, you’ll need to re-file your return by mail.

When there’s identity theft at play

The above reasons for a rejected tax return may be aggravating. But a frightening reason for your tax return to get rejected is if someone stole your Social Security number, filed a tax return in your name, and diverted your refund to their checking account.

If your tax return is rejected due to a duplicate filing, you’ll need to complete Form 14039, attach it to your tax return, and mail it to the appropriate IRS location in your state. You may also be able to submit that form online and mail in your paper return separately.

However, in that scenario, you’ll also want to take steps to protect yourself financially. First, put a freeze on your credit so the criminal who stole your Social Security number can’t then go and open new loans or credit card accounts in your name.

Following that, check your credit report from each bureau (Experian, Equifax, and TransUnion) for fraudulent activity, like loans or lines of credit you don’t recognize. You’re entitled to a free copy every week, so you may want to do an initial check and a follow-up check a few weeks later.

From there, access your existing credit card accounts online and look for fraudulent charges. Also, log into your bank accounts and make sure you’re not missing funds. Finally, visit IdentityTheft.gov so you can not only report the incident at hand, but also get a personalized recovery plan that may go beyond the steps outlined here.

Having a tax return rejected can be frustrating. In many cases, the reason for it may be easy to rectify. But if your return is flagged as a duplicate and rejected because of that, make sure to follow the above steps to protect yourself financially.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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It’s not easy to cope with a layoff. Learn what four financial moves you should make to minimize the damage. [[{“value”:”

Getting laid off unexpectedly can make you feel scared, disoriented, and unsure of what to do next. Even if you’ve built an emergency fund, or you’re getting a severance, the negative cash flow can make you feel as if your personal finances are in jeopardy. All your friends are telling you, “It’s OK, you’ll find something new.” And while you believe this yourself, it’s hard to feel optimistic when you have bills to pay.

While a layoff might zap your only source of income, there are a few things you can do to keep yourself financially afloat.

1. Find gig work

Gig work, like driving for Lyft or Uber, can keep money flowing in. Even if it only partially replaces a lost paycheck, it can bolster your savings account and stretch out your emergency fund. And since most gig work lets you set your own hours, you can still schedule time to search for jobs and prepare for interviews.

You might even want to check out a temp agency, like Robert Half. These agencies will connect you to companies who are looking for contractors or temporary employees. While you might be looking for something permanent — with key benefits like health insurance — these companies could give you work for the interim. Besides, a contract position could easily lead to a full-time position at the same company (it’s happened to me).

2. Cut your spending

If gig or contract work isn’t enough to cover your monthly expenses, you might need to recalibrate your budget. You likely have expenses you can’t cut, like your rent or mortgage payment. But you might be surprised how many of your monthly expenses are firmly in your control.

Like food. While food is a necessity, it’s also a variable expense: You have control over how much you spend each month feeding yourself and your family. If you feel like you’re spending the minimum on your monthly meals, consider buying groceries from a store where prices might be lower, like Aldi.

3. Negotiate your bills

If you can’t afford to pay your bills, consider telling your billers about your layoff. You might be surprised how many are willing to work with you on fee waivers, grace periods, or other kinds of financial assistance. Even if they’re not willing to broker a deal, you could always cancel services and look for cheaper alternatives. For example, you can gather quotes on car insurance and switch to a new company if you find a better deal.

4. Consider a balance transfer credit card

If you have credit card debt, a balance transfer credit card could eliminate big interest payments and stop you from spiraling into more debt. Many of these credit cards come with an introductory period of 0% APR, so you won’t pay interest during that period. This might be a solid option if you can find work before the intro APR period ends. Once it does, your card will revert to a higher APR and you’ll have to pay interest on the money you borrowed.

Layoffs are never easy. When my wife got laid off last year from a big tech company — while pregnant, mind you — it took a good five months before she was back on her feet. But while it’ll likely be an emotional rollercoaster in the beginning, making these four financial moves can at least help minimize the damage to your budget.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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