If you’re new to saving money, start out by saving $10 to $20 a week in an envelope or a shoebox.
After a few months, put the money in a bank account or open an online savings account and put your savings inside.
When your cash stockpile gets big enough, open an online brokerage account and start investing in stocks.
Most companies no longer charge commission for buying or selling stock, and apps like Robinhood and Public will let you buy fraction shares in companies so you don’t need a lot of money to get started.
Also, you can open an account with a mutual fund company and have money taken from your paycheck, which will then be invested in a mutual fund of your choosing.
Many companies have no minimum investments if you invest $50 a month. If you’re interested, try searching for mutual funds with low minimum investments.
Also, if you’re working from home like many others, you probably can’t take a tax reduction for a home office. But you and your employer could both save on taxes if your employer reimbursed you for certain expenses.
Under the IRS code, employers can reimburse workers for certain expenses during a disaster, like the pandemic.
This means your company could reimburse you for things like computers and office supplies, and they could write off those expenses. The supplies would not become part of your income, so you won’t pay tax on them.
If you’re working from home, ask your company if the option is possible.
The IRS is also allowing more flexibility for people who use FSA’s or flexible spending accounts to pay for child care.
Now, you can have more time to file claims and change your payroll deductions mid-year.
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