A Guide to Start Investing

Every wealth management advisor will start with one very basic principle: you need to save money--and the earlier, the better. We don’t think it’s necessary to convince you of the wisdom in that.

Here’s the problem: for most of us, investing is much harder than it sounds. There are already too many demands on our money: student loans, rent, car repairs, and groceries, just to name a few. Buying a new alternator before you go on that road trip is a much higher priority than saving up for retirement.

When you’re living on a shoestring budget, how can you invest without making major sacrifices in your life?

Well, here are some ways that you can start investing NOW - not when your car is paid off, not when you’ve finally gotten around to setting a budget, not when retirement gets close enough to scare you straight. You can put these principles into action without feeling like you’re living like a pauper.

Making Short-Term Investments

Sometimes we have expendable cash for a little while, but we’re anticipating big costs in the future, so locking away that cash into a long-term investment account feels crazy. However, there’s a better option than letting it sit in a savings account with a return of 1% or less: short-term investments! 

When it comes to short-term investments, it’s better to focus on low-risk options, since there’s not as much time for the investment to self-correct. However, even low-risk, low-return investments will do you a lot more good than a savings account. 




Talk to your investment broker about short-term investment options, or check out some easy online investment software or apps (like Acorn, Robinhood, and Betterment) that will let you play with short-term projects.

Setting Up Automatic Deposits to Investment Accounts

This is one of the most reliable and time-honored habits of smart investors. Automatic deposits into a retirement account will allow you to invest without feeling the pain of conscious deductions. If you invest before even counting that money as part of your monthly income, it doesn’t have the same pang. 

Use Extra Savings Techniques to Grow Your Investment

We all have a few things that happen throughout the year that just feel like bonus money. Any time you have that boost, consider turning it into investment, instead of an indulgence that will depreciate the moment you buy it.

• Tax returns: We’re in a dangerous place when we start considering tax returns money that’s owed to us, because we never know precisely how much it will be. Consider depositing the whole amount as soon as you get it, or treat yourself to something you really want or need, but turn over any surplus to savings.
• Yearly bonuses at work: If your company does yearly bonuses, think about it as a gift towards your retirement instead of fuel for yet another Holiday impulse-buy.
• Rebates: Some are factored into the price of something we buy, but some rebates come as a surprise.
• Sales: Did you just save 30 bucks on that jacket that you really wanted to buy? What a windfall! But most of us will forget about those savings, or spend them on something we don’t need because we look at it as free money. Put that free money to work instead.
• Resolution savings: Have you ever gone without a certain treat for a certain amount of time, due to Lent, or a health resolution with a friend? When my grandmother wanted to quit smoking, I promised to give up chocolate to support her. Even more than the health bonus that this brought, I realized that I was saving up to $15 a month by cutting an unhealthy habit out of my life. It’s not much, but it does add up! We all need our indulgences, but the next time you make a health resolution, consider the savings in cash. It will keep you motivated because it’s a positive benefit that you can see right away. To keep from rewarding yourself by falling straight back into your favorite treat, put that money towards a rainy day instead.

Bonus: Educate Yourself, Over Time

As you can see, it’s fairly simple to start investing. All you need to do is put your best foot forward to start getting involved. The key, after that, is to continually get better and better at it. 

This comes with continuously educating yourself about what your accounts are doing, and what you can do in the future to improve your portfolio. With time, a clearer understanding of things like fund transfers, cryptocurrency, and common vs preferred stocks will feel like 2nd nature to you.

In Summary!

So, next time your dad guilts you about planning for retirement, or you read an article that makes you feel way behind in money matters, don’t beat yourself up about it. Just put these three methods to work and watch your savings accumulate without feeling the pain.

Switching Banks? 4 Tips to Save Money with New Accounts

People have many different money management strategies. Some people like to keep all of their accounts at a single institution and others prefer to shop around for the best offers for each of their accounts. 

There are many things to consider when opening new accounts, including how best to make your money work for you. Making the wrong choice can be inconvenient and costly. Here are just four tips to make the most out of changing banks and opening new accounts.

Fees and Rates

Many of us simply put our money in one of the banks closest to our physical location. Few read the fine print. But if you take the time to go over the details you might be shocked by the number of fees attached to some accounts. Take the time to sit with a customer service rep and get a clear idea about all of the fees associated with your account. 

Not just overdraft fees, but ATM fees, maintenance fees, even wire transfer fees can add up and may be more than you are willing to pay. Similarly, interest rates on loans, credit cards, and certain bank products should also factor into your decision. Ideally, you want to find a bank that pays you for saving money. 

Many credit unions and online banks offer higher interest rates on accounts and lower interest rates on products like loans and credit cards. If you’re looking to switch your accounts to a new bank, then you can also potentially negotiate with the new bank to get rates lower than what you had before. Banks are often eager to make deals with potential new customers, so be sure to use that to your advantage.

ATMs & Branches

DO you make a lot of cash transactions? If so then you will want to look into how many branches and ATMs you have available to you. ATM fees can add up, and making deposits and withdrawals in person can become burdensome if you only have one or two branches available to you. 




Some credit unions and online banks are part of a larger network that allows you to use ATMs all across the country without ATM fees. If you don't use cash very often, this may not be a serious concern. However, as many banks charge service fees for you to use ATMs that aren’t part of their network, you’ll probably want to know their policies and ATM availability ahead of time.

Mobility

Mobile banking is not only a great tool but a great way to keep an eye on your money. The ease of being able to check on the status of your account every day and spot any discrepancies is one way that new banking technology can save you time and money. Many mobile banking apps help you to see exactly where and when you are spending money so you can budget better. 

They also allow you to make payments to avoid late fees and processing fees, as well as move money from one account to the other to make saving even easier. When looking at new banks, be sure to investigate what services they offer in terms of technology that will make your transactions easier.

Special Offers

Are you a senior? A student? A federal employee? In the military? Did you know that many banks have special financial products and accounts designed for these categories of people? Ask about these specialty accounts. 

They usually have low or no minimum balances, lower fees, free checking accounts, and other major perks to draw in new customers. Whether you’re a new customer or not, many banks today are offering new deals on rates, accounts, and new credit cards that can save you a lot of money.

The objective is always to find a financial institution that suits your needs. Don't be afraid to shop around and to open multiple accounts with multiple institutions. By negotiating with banks to get competitive rates, as well as taking advantage of already-present deals and offers, you can save yourself a lot of money now and in the long run.

What You Need to Know About the Underpayment Penalty

The definition of the underpayment penalty is a tax penalty enacted on an individual for not paying enough of his or her total estimated tax and withholding. Most places of employment will withhold taxes automatically. Checking a pay stub will show how much tax has been deducted and paid to the state and federal so people can keep track of it for their records.

How Do You Get an Underpayment Penalty?

Taxes can be confusing when multiple streams of income are coming in and estimating how much tax should be withheld from each one. The penalties come about when an estimated amount of the income you've made isn't paid to the IRS. 

Taxes from income are estimated on a quarterly basis and normally paid out before the quarter is up. These taxes can be applied to rent, self-employment, interest, etc. Basically, any source of money coming in or out is taxable.

The underpayment penalty comes into play when not enough of the estimated tax has been paid each quarter. This doesn't mean the IRS is going to come at you full force if you don't pay enough tax each quarter, weren't aware of it, or didn't have enough money to pay.

What Do You Do When Faced with the Penalty?

Whether your income comes in from a side business or somewhere else, if you do accrue a penalty the first step is communicating with the IRS. Finding out how much you owe in taxes and whether or not the penalty can be forgiven depends on your financial situation. People facing the penalty for the first time due to an error and not neglecting the responsibility will face less harsh consequences.




Making an appointment with a tax attorney at this point would be in your best interests, especially if you owe a significant amount to the IRS. Every financial situation is different and a tax attorney can help you navigate how much you need to pay back in taxes. 

Penalties can increase the amount you owe the IRS the longer the taxes go unpaid, so you want to get in touch with the IRS as soon as possible to pursue the best course of action.

Underpayment tax is calculated by income earned and the amount owed, and when penalties come into play the amount can easily increase. If, for example, you were unable to pay taxes last year due to not having enough money, you can most likely arrange a payment plan with the IRS to pay off the different amount. 

Keep in mind, there are also exceptions where the underpayment penalty will be waived depending on certain circumstances, like a natural disaster, paid at least 90% of taxes owed, etc. Investopedia does a great break down of exceptions of the situations and circumstances of when the penalty can be waived.

How Do You Avoid the Penalty?

The best way to avoid the underpayment penalty is to keep records of each source of income coming in and estimating the taxes needed to be paid on both. If you have multiple sources of income, whether from self-employment, rent, etc., you may want to talk to an accountant to help you keep track of how much is owed. 

If not, you can pay taxes quarterly for each source of income so the amount doesn't evolve into a landslide.

Make sure to pay each amount by their due dates and don't be late on payments. If for any reason you suspect you'll be unable to pay the estimated amount of taxes, be sure to get in touch with a tax attorney and explain the situation to them. 

They can advise you on the best course of action to avoid falling under the penalty, or get in touch with the IRS to let them know about the situation. The worst thing you can do is to not pay the taxes and ignore it hoping the problem will go away on its own.

Wanna Be On Top? How Proper Communication Boosts The Bottom Line

Any business attempting to stay on top needs to focus on communication. It may not seem too important, but the reality is that communication can end up boosting our bottom line. The following are just a few ways you can improve communication within your company effectively.

Good Instruction Writers

An effective way to improve communication within your company is to make sure that all instructions are as clear as they can be. This means you need to hire good content writers to make sure instructions are as clear as possible. Errors could lead to confusion, and that is not good for a business because it can cause costly mistakes or even accidents.

Clear and Effective Contract

You are going to want to make sure that all contracts are written by a professional meaning that you are going to have to talk to a lawyer. Make sure this person understands business law before hiring him or her to help you jot down contracts. 



Creating clear contracts helps make better deals, and it helps foster relationships with third parties that can flourish for ages. For example, a Keep in mind that strong contracts can also end up protecting you should something go wrong.

Product Waste

Waste can lead to all sorts of problems later on. Not only do they cost money, but the possibility of finger-pointing also goes up. You do not want to be put in that position, but you can do something about it. For example, those who work with chemicals could use a chemical industry asset traceability solution that should help reduce waste. You could also use big data software though it does have to be specialized software to help your type of business.

Strong HR Team

A good HR team can also do wonders for a business because these are trained specialists who understand how to talk to personnel effectively. These individuals not only know how to make each person's voice heard but also know how to convey your company's positions in a way that is digestible. You want to have a good HR team to ensure that employees are appreciated and issues are dissolved with little problems.

Some of these suggestions may be difficult to initiate, but they are worth the effort. Your bottom line is what matters here, and optimizing communication within your company can get you where you want to be, so do not wait too long before you start optimize communication.