There are plenty of investment options out there, but most require more money to get started than you may have on hand. Fortunately, you can invest with the money you spend every day, and there are several different ways to do this. Here are five examples to help you start investing today with the money you spend right now!
Tip 1: Open a Roth IRA
A Roth IRA is a tax-advantaged investment account that allows you to save for retirement. It’s made up of after-tax dollars, which means there’s no tax benefit at contribution time. But if you qualify, withdrawals in retirement are completely tax-free.
Tip 2: Open a Health Savings Account
Many employers offer a health savings account (HSA) to employees—and, if you’re one of them, make sure to contribute. As long as you use your money on eligible medical expenses, not only will it help you save on taxes but you’ll also end up with extra cash at tax time. An HSA is ideal for healthy individuals who can afford high deductibles and copays; use it to supplement existing health insurance or a high-deductible plan.
Tip 3: Get your employer to start a Flexible Spending Account
A flexible spending account (FSA) allows you to save pre-tax money throughout your pay period to spend on qualifying medical expenses. The amount of money you can save for a Flexible Spending Account is based on how much income you make each year, so if your employer offers an FSA, definitely sign up! Even if it’s only a $50 or $100 FSA, every little bit helps in your journey to becoming debt-free.
Tip 4: Do One Thing Differently When Buying Groceries This Week
Make your meal plan for each day of the week and then take that list to the grocery store with you. Shop around each aisle, focusing on buying a list of healthy, whole foods, like vegetables, fruits, legumes, and whole grains. Avoid processed foods as much as possible. If you find yourself getting distracted and going down an aisle that has nothing to do with your plan for healthy eating, get back on track by using a shopping app that lists everything you need in order to make those meals.
Tip 5: Take Advantage of Free Cash Offers
Many companies offer what is called cash back deals to consumers who use their credit or debit cards to make purchases at certain stores. Cashback can be as high as 10% of your total purchase! This is free money and you don’t have to do anything except swipe your card when shopping.