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When one decides to invest even the small amount can reap big rewards.

Let’s take a ride through this article for you to understand 5 steps to easily start investing with little money.

It is never easy or simple to save a lot of money every month – if you want your savings to have a outcome and grow into a nest egg, you need to invest and invest.

There are many people out there that put off investing just because they think to invest you need a lot of money – like a good bank balance is a requirement.

But, No! That’s not true – You can start investing for as little as you have, for example $50 per month.

The success key to wealth is developing in good habits. Try to make investing a regular habit, it will help you in the long run down the road.

Don’t really believe in what I am saying? You think I am just saying it for the sake of my article?

Then let’s just have a look through and you will know what I am saying:

Cookie Jar Approach:
To save up money and to invest them are kind of the same thing to do it is slightly connected in a way. When you are planning to invest some money, you need to save up some for it. It can be less time consuming – you can manage to do it in few easy steps.

If you’ve never been able to save up money, you can start doing it little by little – like $10 per week for example. That won’t feel like a huge burden, but when over the year you come to see it will be $500. Which is a good achievement in simple words for a person who was never able to save up?

You can save this amount in an envelope, a small box, a small safe, or also in the legendary bank of yours, the cookie jar. It might sound stupid or silly to you, but trust me it is a necessary first step. Make a habit of living on a little bit less than you earn and stash out the savings away in a safe place for a better tomorrow.

Consider a good bank for yourself that can cover a good annual percentage for the online savings account.

Try starting with small amounts start increasing it with time.

For example: it can be not having a good expensive meal for now or passing on your movies you like, and save up that amount into the cookie jar instead.

Real Estate Market – Your First Step:
Real Estate might look something you’ve be scared off or nervous about but it can be an intriguing investment for you. It does not have to be very rich. There are many options for real estate crowd funding.

Now with Fundrise its really easy to use online platform, for the start up all you will need is a minimum investment of $500. If you are an unaccredited investor, you can easily buy properties without even paying those large amount of fees that can be a deal breaker of you are planning to start dabbling in real estate. You can manage your own portfolio, the fee will only come up to %1 and Fundrise is always offering a 90 days satisfaction guarantee.

Employer’s Retirement Plan – Enroll In
If you are under a tight budget, simple step of enrolling or other employer retirement plan might seem out of your reach. There is always a way out remember.

You can easily begin investing in an employer – sponsored retirement plan without any amount that is small and you won’t even notice it.

For Example: Just try to plan 1% of your salary into the employer plan. It won’t be missed as it is such a small contribution. But it will be easy for the tax deduction will make it even smaller. You can increase it gradually each year.

For Example: Maybe in 2 years you might be able to increase your contribution to 2% of your pay. In 3 years, into 3% and so on.

The increases with your annual pay raise, you’ll notice the increased contribution even less. if you get a 2 percent increase in pay, it will effectively be splitting the increase between your retirement plan and your checking account Just if your employer provides a matching contribution, that will make the arrangement even better.

Mutual Funds – Low Initial Investment
Mutual funds are investment securities that allow you to invest in a portfolio of stocks and bonds with a single transaction, making them perfect for new investors.

The trouble might be regarding the many fund companies initial minimum investments of between $500 and $5,000. Some of the mutual fund companies might waive the account minimums if you are ready to agree to the automatic monthly investments of between $500 and $100.

It is a common feature for automatic investing with mutual fund and ETF IRA accounts. Less common it is with taxable accounts. There are a lot of Mutual Fund Companies that are known to do this and the following are some names Dreyfus and Transamerica.

Automatic investing arrangement is convenient if you can do it with payroll savings. Set up an automatic deposit situation through the payroll, in almost the same way you do with an employer- sponsored retirement plan. Just consider it with your HR department on how to set it up for you.

This will be helpful. Get help with your finance and accounting services via Black Ink.

How does Tax Planning Work?

It covers several considerations, which includes timing of income, size, and timing of purchase, and planning for other expenditures. The types of retirement plans and the selection of investments must be complementing the tax filing status and deductions to create the best possible outcome of it.

Important pointers:

The analysis of finance through at a perspective with the purpose of ensuring maximum tax efficiency is Tax Planning.
The considerations of tax planning does include timings of income, size, and timing of purchases made, and planning for expenditures.
The strategies of tax planning can include saving for retirement in an IRA or engaging in tax gain – loss harvesting.
Tax Planning for Retirement Plans:

A retirement plan is a popular way to efficiently reduce taxes via savings. Money contributing to a traditional IRA can minimize gross income up to $6,500 in general.

If meeting all kinds of qualifications, a filer under the age of 50 can receive a reduction of $6,500 and a reduction of $7,000 if age 50 or older than that – as of for 2018.

For example: If a 55 year old man with an annual income of $50,000 who actually made a $6,500 contribution to a traditional IRA has an adjustment gross income of $43,500, the $6,500 contribution would grow as the tax deferred until his retirement time.

There can be several of other retirement plans that one individual might be able to use to help in reducing tax liability.

Tax Gain- Loss Harvesting:

This is another form of tax planning or management relating to investments. This can be helpful as it can be used as a portfolio which losses to offset overall the capital gain. Through IRS, short and long term capital loses must be the first used to offset capital gains of the same type ones. In simple words long – term losses offset long term gains before offsetting short- term gains. Capital gains for short- terms, or earnings from the assets of the one owned for less than one year, are taxed as ordinary income rates mostly.

Capital gains long-term are taxed based on the tax bracket in that the taxpayer falls.

Pointers:

It is a 0% tax for the taxpayers in the lowest marginal tax brackets of 10% and 15%
It is 15% tax for those in the 25%, 28%, 33%, and 35% tax brackets.
It is 20% tax of those in the highest tax bracket of 39%.
Just if we bring back the same kind of losing investments then might be a minimum of 30 days would be able to pass to avoid the incurring of a wash sale.

So up to $3,000 in capital losses may be used to offset ordinary income per tax year.

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Owning a car is a great experience. But, for most people, the process of purchasing a car can become tiresome. Pushy sales people can really pressure you to buy the car before you leave the dealership. The experience of buying a car can become less dreadful than most people think. Fortunately, there are many strategies you can use before you walk into the dealership. Let’s understand how.

Deals & Dealerships: Steps to Get the Best Car Deal

The following steps will ensure that you take the correct steps in securing the best car deal and walk off the dealership in a happy space of mind.

1. Walk in with a Pre-Approved Auto Loan

You may have heard of Buy Here Pay Here dealerships. However, from a financial standpoint getting an auto loan from such places is not a good idea. Interest rates are much higher than normal and the deal will be expensive. The best idea is to get a pre-approved auto loan before you start shopping at a dealership. Check your credit score and look up various online auto financing companies. You will get a good understanding of your credit ratings. You will know if you need to improve your credit score and the amount of money you are eligible to get against an auto loan.

2. Keep Your Options Wide

When you walk into a dealership, do not go with a fixed mindset. Look at used cars as well as new cars. Test drive all the cars to your satisfaction before purchasing a model. However, when you do select a car, understand your finances and the money that you can comfortably put aside every month for a car payment. Calculate if all your income sources cover all your current expenses, including the monthly payment for the car. A new car and a used car will have their own pros and cons however, your income will be the deciding factor for the car that you should purchase.

3. Factor-in Hidden Charges

Always ask the dealer for the invoice price of the car. Invoice price of the car includes the total value of the vehicle along with insurance and other taxes. Hidden charges such as accessories may also be included in the total amount of the car. Therefore, make sure you factor-in such hidden charges and keep a buffer of a certain amount when you understand the pricing of the car. Shop around various dealerships to get an idea about the various discounts and incentives that are available and then choose the dealer that gives you the best deal.

Car Buying for the Long Run

The value of your car depreciates the moment you drive it off the dealership lot. The best way to ensure that you get a great price for the car is through negotiation. You must start by preparing yourself for the car buying process. In the end, a car is an important and financially significant decision, therefore identify all your best options before you walk into the dealership and you will surely score a great deal.