Optimizing Your Pay Structure

Employees often receive paychecks twice a month or every other week. If you’re on a biweekly schedule, you’ll see 26 paychecks a year, two more than those paid twice a month. This slight difference opens up opportunities to bolster your financial stability.

If your first paycheck in 2024 was on January 5th, you will get three paychecks in March and August 2024.

If your first paycheck in 2024 was on January 12th, you will get three paychecks in May and November 2024

Don’t Squander the Surplus

Extra paychecks shouldn’t be an excuse for splurging on frivolous expenses. Instead, approach them with intentionality. Plan your budget around receiving two paychecks per month, allowing the extra paychecks to serve as strategic financial tools.

Utilize the additional income for:

1. Building an Emergency Fund: Start or strengthen your emergency fund, ensuring you’re prepared for unexpected financial challenges. Aim for at least six months’ worth of expenses saved in a readily accessible account.
2. Tackling High-Interest Debt: Redirect surplus funds towards paying off high-interest debts, beginning with the loans carrying the highest interest rates. This approach minimizes interest payments and accelerates your journey to financial freedom.
3. Investing in Retirement: Boost your retirement savings by contributing to IRAs or Roth accounts. Even modest monthly contributions can yield significant returns over time, thanks to the power of compounding.
4. Exploring Discretionary Investments: Consider allocating funds to a discretionary investment account, where you can explore opportunities in index funds, individual stocks, or dividend-paying assets. Diversifying your investment portfolio can provide additional sources of passive income.
5. Accelerating Mortgage Payments: Reduce the principal balance of your mortgage by making additional payments, potentially shortening the loan term and saving on interest expenses in the long run.
6. Saving for Major Expenses: Whether it’s a down payment on a home, holiday gifts, or home improvement projects, earmark funds from extra paychecks to achieve your financial goals faster.
7. Investing in Education: Start saving for your children’s college education by contributing to a 529 plan. Early contributions can ease the burden of future tuition costs.

Crafting Your Financial Strategy

By proactively planning for three-paycheck months, you can lay the groundwork for a more secure financial future. Whether you’re focused on debt reduction, savings accumulation, or investment growth, these additional paydays offer valuable opportunities for financial empowerment. Take control of your finances today to realize your long-term goals tomorrow.

Let’s take a look at the pros and cons of brokered CDs.

What you need to know about brokered CDs

CD vs Brokered CD

Certificate of Deposit (CD)

CDs are a type of a saving account that guarantees a fixed rate of return over a fixed period. But if you withdraw your money early, you will need to pay a withdrawal penalty

Brokered CDs

Brokered CDs are offered by banks but you can buy them through brokerages. They are covered by FDIC insurance just like CDs.

Advantages of a brokered CD

Early withdrawals

When you buy a bank CD, you will usually pay a penalty if you have to withdraw your funds early. The penalty for early withdrawal can be several months of lost interest. But with a brokered CD, you can sell it at any time. Note that the brokered CD trades like bonds and its value changes on the interest rate environment. So you could lose money with a brokered CD but you can have the peace of mind that it can be sold and converted to cash at any time.

No need to deal with a bank

When you buy a CD, you have to work with a  bank. To get the best interest rate on CDs, you have to be constantly swapping the bank you park your money with. But a brokered CD can be bought and sold from a brokerage account.

Longer terms

While CDs are generally available for up to 5 years, brokered CDs can have terms that are more than 20 years. If you want to lock in rates for the long term, brokered CDs are an excellent option.

Get more than the FDIC insurance limit of $250,000

If you have a CD with a bank, your insurance caps at $250,000. But with your brokerage account, you can buy CDs from multiple banks. So you have coverage of more than the FDIC limit of $250,000.

Disadvantages of a brokerage CD

Brokered CD offers simple interest

With a CD, you get compound interest on your investment. But with a brokered CD, you get simple interest but the interest rate is likely to be higher.

FDIC insurance is available only on bank-issued CDs, not securities

Brokered CDs are FDIC-insured if they are bank products. If they are a security, then it’s not FDIC insured. Please do your due diligence before buying a brokerage CD.

Bottom Line

Brokered CD offers several benefits – high interest rates, longer terms, and withdrawals without penalties. The downsides include the potential to lose money due to changing interest rates and only getting simple interest on your investment.

Investing in promissory notes

What are promissory notes?

The promissory note is a contract between two parties and includes the terms of the money borrowed – how much, at what interest rate, and the frequency of payments. Promissory notes can be unsecured (which means it’s high risk) or secured by collateral (lower risk).

Promissory notes are typical in real estate. Real estate investors need cash to buy and renovate their fixer-uppers. They don’t hold on to the property long after renovating. So investors get their money back in a short period but can earn a higher rate of return and their money is backed by collateral.

Promissory notes can also be car loans. The only difference here is that a car instead of real estate will back the loan.

In this case, you act like a bank. You lend money to someone and collect interest. To succeed in private lending, you need connections with people who need money.

Do you have to handle all the paperwork involved with lending money?

The paperwork involved with lending money can be tedious. Thankfully, you can outsource this. You will work with a third party called a loan servicer that will handle the loan documents, filing, and money transfer.

Advantages of investing in promissory notes

Passive income

The income from promissory notes is passive. You don’t have to manage tenants or take care of the property. Your returns are typically higher than owning and managing real estate.

Consistent returns

When you invest in income-producing real estate, your returns vary based on maintenance expenses, property taxes, and whether your tenant pays on time. But with notes, your returns are steady. It’s not uncommon to earn more than 10% per year passively with notes.

You can invest in promissory notes through a self-directed IRA

You can invest in promissory notes with money in your retirement accounts. Your high returns from note investing will be protected from taxes if you invest in an IRA.

The key to investing your money in notes with an IRA is finding the right custodian. First, not all IRAs allow this type of investing. Second, you need to do your due diligence to ensure that you are working with the right self-directed custodian who will make investing in notes and collecting payments easy.

Bottom Line

Investing in promissory notes can yield steady above-average returns. You will often find real estate investors needing short-term cash, who will be good customers for this type of opportunity. The investment is passive since the loan servicer will handle all the paperwork for you. You can lend money from self-directed IRAs which will save you money on taxes.

But before we get into the strategies to grow money, you need to understand a simple formula called the Rule of 72.

Understand the rule of 72

The Rule of 7 is a quick formula that’s used to estimate the number of years it takes to double your money at a given annual rate of return. You can also compute the annual return you will need to double your money given the number of years.

The Rule of 72 applies compound interest, not simple interest. Compound interest is calculated based on the initial principal and the accumulated interest of the previous period.

Example 1
Annual return = 6%
Time to double your money = 72/6 = 12 years

Example 2

Let’s say that you would like to double your money in 6 years. What’s the annual return you will need?

Number of years to double the money = 12
Return required to double the money = 72/6 = 12%

Best way to double your money

Invest in real estate

Real estate has produced a lot of millionaires. It doesn’t have the volatility of the stock market and tends to yield similar levels of return over the long term.

You can buy a rental property with a 20% downpayment. You can then pay most or all of the mortgage every month with the rent you collect from the tenants.

Real estate tends to appreciate over the long term. So you enjoy the capital gains while getting the tenants to pay for the house through their lease payment.

With real estate, instead of renting the house, you can choose to buy run-down houses, repair them, and flip them. While there is some risk involved in this approach, you can also make quick rewards if it pays off.

Another option is to invest in crowdfunding platforms. These platforms allow you to invest money in real estate with others. Unlike traditional real estate, you don’t need a lot of money to get started. You also don’t have to manage tenants, repair, or deal with the hassles that come with owning an investment property. The management company takes care of property maintenance and will send you a check periodically. So it’s essentially a hands-off way to invest in real estate.

Invest in the stock market

The stock market has yielded approximately 9 to 10% return over the long term. This allows you to double your money every seven years or so.

The stock market is volatile. So instead of choosing individual stocks, you could buy a basket of stocks through an ETF or a mutual fund. Stocks are liquid – which means you can sell your stocks when you need cash. But in order to high annual returns, you need to hold them long-term.

Buy art

If you love art, buying art masterpieces can be a great investment. Art has given better returns than the stock market. But it’s not as liquid as the stock market. So it’s not something you can easily flip but if you are patient, long-term returns are appealing.

Art allows you to diversify your investment. Many art investors own art masterpieces for a long time and even pass them down to future generations.

To invest in art, you need to have a passion for the area. This allows you to know what art you need to buy. You can also work with an expert in the area. This person could be a dealer, a gallery owner, or a private collector.

Popular platforms such as Masterworks allow you to own art that is securitized – this means that you don’t have to purchase the entire art piece. You can invest only the amount you are comfortable with.

3 ways to pay a friend with a credit card

Cash App

Cash App, owned by Square, is one of the most popular financial apps. Paying with a credit card comes with a 3% transaction fee. But if you use your bank account, the transaction is free.

Venmo

Venmo (owned by PayPal) is a peer-to-peer app that allows you to send money using credit cards. You will pay a 3% fee for using the credit card. If you prefer, you can make your transactions public so that your friends know what you are paying for. You can also keep the transaction private if that’s your preference.

PayPal

PayPal is another way to send money to your friends and family.  Though PayPal also owns Venmo, the two operate independently. With PayPal, you can send money through your bank account or by using a credit card. If you use a credit card, you will pay a 2.9% fee and a $0.30 transaction fee. Paying with a bank account is free.

Cautionary note when using apps with credit

Some credit cards treat credit card payments to friends as cash advances which may involve a big fee. So check with your credit card issuer before using a credit card to pay your friends or family.

Are the fees worth it?

The 3% that most apps charge to pay with a credit card is hefty. So you shouldn’t pay with a credit card every time but for occasional uses, it’s a great option

Advantages of paying with a credit card

You don’t have cash

Sometimes, you are short on cash and need to send money to someone. Being able to pay with a credit card comes in handy.

You get reward points

Paying with a credit card allows you to accumulate reward points which you can use for purchases or travel.

Paying with a debit card or bank account

Paying with a credit card involves transaction charges. But if you pay with a debit card, Cash App, Venmo, and PayPal charge no fee. To use this option, you need to have enough money in your bank account for the payment.

Zelle

If your bank offers Zelle, you can use your bank’s app to send money.  If your bank doesn’t offer Zelle, you can download the app to send money. Here’s a full list of banks offering Zelle.

Zelle works across banks, so the receiver doesn’t have to have an account at the same bank as yours. 

Apple pay

If you are an iPhone user, you can send money to friends using Apple Pay. The receiver needs to have an Apple device linked to a debit card or Apple cash. Your debit card information is saved to the Apple wallet so you don’t have to enter it every time you have to send a payment.

Google Pay

Google Pay app allows you to send money to anyone with your bank account or debit card. You will need the receiver’s email o phone number. They don’t need to have the Google Pay app but will need a Google account.

Bottom Line

If you find yourself low on cash, credit cards can come in handy when you need to pay back friends and family. While there is a 3% fee for paying with a credit card, it’s sometimes worth it to avoid damaging relationships by being late with payments. However, it’s important to not rely on this method too often as fees can add up fast. Before making a payment with your credit card, make sure to check with your bank to ensure that it won’t be processed as a cash advance, which can come with significantly higher fees.

Chime is a popular banking app that caters to those who don’t like traditional banks, which have minimum balance requirements and fees. Chime is the second most popular banking app in the US with more than 13 million users.

Chime Review

Sign up bonus

You can earn $100 if you set up a direct deposit of $200 or more within the first 45 days of opening an account.

Chime checking account

Chime’s checking account stands out because it has the following features.

• No monthly fees
• No minimum balance
• No credit check. It’s one of the reasons the Chime app is popular among the underbanked community
• No overdraft fees. With SpotMe, you can get an overdraft facility of $200 without fees (with $200 or more in direct deposits every month)
• Free ATM withdrawals
• You can get paid 2 days early with direct deposit.

When you sign up for Chime’s SpotMe service (no fee for signing up), you can overdraw up to $200. It’s a great benefit if you run out of cash at the end of the month and need to make purchases.

When you open a Chime checking account, you get a VISA debit card which gives you free access to 60,000 ATMs.

Chime High Yield Savings Account

You will need to open a checking account first before you can open a savings account.

The Chime Savings account also has a no-fee structure and a competitive APY

• No minimum balance
• No monthly fee
• Automatic transfer feature – this allows you to set up a recurring transfer from your checking account to the savings account every time you get paid
• Round Ups feature – when you use your Chime Visa debit card, Chime will round up your purchases to the nearest dollar and transfer it to your checking account.

Chime app

The Chime app is the best product in its suite. It gets 4.8 stars on the App Store and 4.7 stars on Google Play.  You can deposit checks using the app and get notifications about transactions and balances.

Chime Credit Builder Visa Credit card

With a Chime account, you can get the Chime Credit Builder Visa Credit card without a credit check. Note that this is a credit for people trying to build their credit, so you won’t find many premium features.

To use the Chime Credit Builder Visa Credit card, you need to move money from your checking account to the Credit Builder account and use that money to make purchases. It’s like a secured credit card. Chime will report your payment to all three credit bureaus, which helps you build credit.

What are the advantages of a Chime account?

Chime has an excellent app for those who are starting their financial journey. The no-fee checking and savings account is helpful to those who maintain low balances in their account. Its Credit Builder Visa Credit card allows you to build credit.

What are the disadvantages of Chime?

• No physical branches you can go if you need help
• You need to have direct deposit for mobile check deposit
• Though Chime has free withdrawal at 60,000 ATMs, if you withdraw from an out-of-network ATM, you will pay a $2.50 fee

Chime is not a bank. It’s a fintech company. Banking services are provided by The Bancorp Bank or Stride Bank. Chime Credit Builder credit card is issued by Stride Bank.

Bottom Line

Chime is great for people who are young and getting started financially. Though it doesn’t offer the bells and whistles of a traditional bank, it has good benefits with no fees or minimum balances. The app allows you to make mobile check deposits and alerts you on transactions and low account balances.

Ordering tests on your own is called Direct Access Testing (DAT). It’s sometimes called patient-authorized testing or direct-to-consumer testing.

Why you should consider doing your own lab tests and skip the doctor

Doctor appointments can be difficult to get

Doctor appointments are difficult to get unless you plan early. It can take weeks to get doctor appointments. Going to the doctor to simply get a lab order can be expensive even if you have insurance because you have to pay the deductible. Some doctors want you to come back so that the doctor can go over the results with you.

Deductibles apply for lab tests

Lab tests done through medical insurance can get very expensive if they are not medically necessary. Deductibles apply if the test is part of your annual physical exams.

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The doctor may not order the tests you need

Because the insurance company may not pay for lab tests if they are not medically necessary, most doctors won’t order tests if they think they are not necessary. But you may need some tests done to monitor your health proactively.

Get a second opinion

If your doctor diagnosed you with an illness, you may want to get a second opinion.

Privacy

Sometimes, you just want to keep certain tests off your medical record. Let’s say you want to get an STD test done. Ordering the test on your own will help you protect your privacy.

States that allow DAT

AK, AR, DC, DE, IN, IA, KS, LA, MN, MS, MO, MT, NE, NM, NC, ND, OH, OK, SD, UT, VT, WA, WV, WI, TX, VA

States that don’t allow DAT

AL, CT, GA, HI, ID, IA, KY, MI, NH, PA, RI, SC, TN, WY

How online lab testing works

• Choose a website where you would like to order tests
• Decide which tests you would like to take
• Choose a lab closest to you from the website
• Pay for the test with a credit card
• Get tests done at the lab
• You will get an email in 1-2 days that the results are ready. You may need to login to the portal to see the results

Websites where you can order online tests

letsgetchecked

You can order the lab tests at the websites below.

• Anylabtestnow
• Personal Labs
• Walkinlab
• UltaLabs
• Jason Health

Paying for the tests

Understand that if you order the tests, you are responsible for costs. You will need to pay upfront when you order the tests.

What should you do if you get abnormal results?

If your results are abnormal, see a doctor to understand the results. Your doctor should help you come up with a treatment plan.

What tests can you order?

Through these websites, you can get an annual physical, CBC, comprehensive metabolic panel lipid panel, STD, urinalysis, and may more.

How much do the tests cost?

The cost varies by the test you want. But most common tests start at $12.

Bottom Line

Taking a proactive approach to your health will pay off in the long run. You don’t have to rely on your doctor to order tests for you. The tests are cheap and can be ordered on many websites. After you order the test, you go to the lab to provide a sample. You will typically get the results in a day or two. If any abnormalities are found, you will need to schedule an appointment with a doctor to address the abnormality.

History of FDIC Insurance

Federal Deposit Insurance Corporation (FDIC) agency was created in 1933 to prevent the kind of bank runs that happened during the Great Depression. President Franklin Roosevelt signed the Banking Act of 1933 which established the FDIC.

FDIC’s mission is to maintain stability and public condense in the country’s financial system. FDIC insures deposits, examines and supervises financial institutions for safety, soundness, and consumer protection, and manages receiverships.

How is the FDIC funded?

FDIC is funded by the premiums banks pay for deposit insurance coverage. It receives no money from Congress. Since its founding on Jan 1, 1934, deposits have not lost a penny of their money when banks failed.

How do you know if your funds are insured?

FDIC insurance depends on 2 things 1) whether your bank is FDIC-insured, and 2) whether the product in question is a deposit product. Not all accounts at a bank are protected by FDIC.

What the FDIC covers and what it doesn’t

FDIC covers

• Checking accounts
• Negotiable Order of Withdrawal (NOW) accounts
• Savings accounts
• Money Market Deposit Accounts (MMDAs)
• Time deposits such as certificates of deposit (CDs)
• Cashier’s checks, money orders, and other official items issued by a bank

FDIC doesn’t cover

• Stock investments
• Bond investments
• Mutual funds
• Crypto Assets
• Life insurance policies
• Annuities
• Municipal securities
• Safe deposit boxes or their contents
• U.S. Treasury bills, bonds, or notes

FDIC insurance amount limits

FDIC insurance amount limit is $250,000

• per depositor
• per insured bank
• per account category

Ownership categories

There are 14 FDIC deposit insurance ownership categories

• Single accounts
• Joint accounts
• Revocable trust accounts
• Irrevocable trust accounts
• Certain retirement accounts
• Employee benefit plan accounts
• Business/Organization accounts
• Government accounts (public unit accounts)
• Mortgage servicing accounts for principal and interest payments
• Accounts held by a depository institution as the trustee of an irrevocable trust
• Annuity contract accounts
• Public bond accounts
• Custodian accounts for Native Americans
• Accounts deposited by an IDI pursuant to the Bank Deposit Financial Assistance Program of the Department of Energy

FDIC calculator

To make things easier for consumers, FDIC has a website where you can check if your money is insured. For each bank, you have an account with, the FDIC calculator calculates how much of your money is insured. You have to do this separately for each bank account you have.

Example showing how FDIC insurance works

Single accounts

If a person owns a checking account with $200,000 and a saving account with $100,000 at the same bank. Only, $250,000 is protected by FDIC insurance. The $50,000 that’s over the FDIC limit is not protected.

If a person owns accounts in different branches of the same account, only a total of $250,000 is protected.

Joint accounts

Let’s say that you and your spouse have a joint checking account with a balance of $300,000. Your account would be protected by FDIC insurance because it’s less than the $500,000 limit for joint accounts ($250,000 per depositor. In this case, there are two depositors).

Ownership category

As listed above, you are protected up to $250,000 in each of the 14 ownership categories.  If you have a single account, a joint account, a business account, an annuity account, and a revocable trust, you will be protected by up to $250,000 per account holder in each of these accounts.

Bottom Line

FDIC insurance protects your money for up to $250,000 per depositor, per insured category, and per bank. You can strategically spread your money around to take advantage of the FDIC insurance, which gives you peace of mind that your money is safe even if the bank fails.

How to save money when seeing a doctor without insurance

Community Health Centers

You can get discounted primary care at community healthcare centers. You will pay on a sliding scale based on your income. If you fall in the low-income bracket, you may qualify for a free doctor visit. Community healthcare centers provide primary care, vaccination, and even dental cleaning. You can use the HRSA website to find a healthcare center near you.

Urgent Care Centers

Urgent care centers can handle non-life-threatening conditions and can be a substitute for an emergency room visit. There are more than 10,000 urgent care centers in the US. So you may be able to find one near you. They offer extended hours which can be helpful if you need to see a doctor after hours.

Urgent care centers employ physicians, physician assistants, and nurses. They do routine exams such as physicals. Cost varies between $50 and $200 based on the services. Urgent care centers take both insured and uninsured patients.

Telemedicine

Virtual doctor visits became popular during the COVID-19 pandemic and continue to be popular because it saves time. With telehealth providers, you have the option to pay out of pocket if you don’t have insurance. Online doctors can help you with minor health issues and prescriptions but they can’t handle emergencies.

Walk-In Clinic

Pharmacies like Walgreens and CVS have walk-in clinics where you can see a doctor or nurse practitioner.  Even grocery stores have walk-in clinics in the pharmacy section. At these clinics, you can get vaccinations, do wellness visits, and several everyday treatments.

Emergency Room

Emergency rooms are required by law to see all patients, whether they have insurance or not. The cost to visit an emergency room is high – the average cost is around $200 for a non-emergency visit.

Medicare or Medicaid

If you are over 65 or if your income is low, you can qualify for Medicare or Medicaid. You can check your eligibility at healthcare.gov.

Frequently asked questions

What is the cheapest way to see a doctor if you don’t have insurance?

Your cheapest option might be a community health center. You will pay for services based on your income. Another option is a telehealth provider like Teladoc or MDLive.

How much does it cost to see a doctor without insurance?

The cost varies depending on where you see the doctor. Community health centers are cheaper than emergency visits. In general, it costs around $185 to see a primary care provider and $350 to see a specialist.

Can medical providers refuse treatment?

It’s illegal and unethical for a medical facility to deny treatment to any patient in an emergency. But you can be denied treatment for non-emergency situations. A community health center may be more accommodating in a non-emergency situation than a private institution.

Saving money when you are uninsured

Shop around

Call your local doctor’s offices, community health care centers, and walk-in clinics to find out about their services and pricing. Costs vary widely, so shopping around is key to saving money.

Avoid ERs for non-life-threatening situations

ERs are expensive. Unless the situation is life-threatening or pressing, you should visit an urgent care center, which is a cheaper alternative. You will also be able to see a doctor quickly at an urgent care center or an ER.

Ask if the provider has payment plans

Many medical providers offer payment plans to ease the burden on their patients. Read the payment plan to ensure that you are not paying a high-interest rate.

Try telehealth

You can see a doctor cheaply and quickly through telehealth providers. The cost to see a doctor online is cheaper compared to seeing them at a clinic.

Bottom Line

There are several low-cost ways to see a doctor. Whether you visit a community center, an urgent care clinic, or a doctor’s office, shop around for prices. Prices for medical services vary widely. By shopping around, you may be able to save a lot of money. Consider seeing a doctor online for everyday issues. Online appointments are cheap and easy to get.

Let’s assume that you open a Roth IRA when you are 18 and invest $1,000. Assuming a 10% annual return, your Roth IRA will grow to $88,000 when you are 65. But if you open a Roth at 30 and invest the same $1,000, you will have $28,000 when you are 65. That’s the power of compounding over time.

What you should know before investing as a teen

Age requirements

You have to be 18 or 21 years old to invest in the stock market or in real estate. You can open a custodial brokerage account with your parent or guardian before 18 and start investing.

Discuss with your parents

Your parents have more investing experience than you. They probably have 401{k)s and have experience buying a house and saving money. Your parents may have relationships with a financial advisor or a real estate broker and may be able to introduce them to you.

A good financial advisor will guide you through the process of investing for the long term. Don’t listen to friends. Most people like to invest in the next big thing or meme stocks. They will not be able to guide you effectively.

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Investment opportunities for teenagers

Stocks

You can purchase stock through a brokerage such as Robinhood or Charles Schwab. When you buy a stock, you get small ownership in a company. Note that you are not entitled to the company’s assets, but you get to participate in the company’s fortunes through its stocks. Stocks generally appreciate when a company does well.

ETFs

Buying stock in one or a few companies is risky. The company may go bankrupt and you may lose your money. ETFs or Exchange Traded Funds consist of many stocks but trade like a single stock. This allows you to spread your risk across many stocks. ETFs could cover a certain country or a certain sector of the market.

Mutual funds

Mutual funds are also a bundle of stocks but you can’t trade them like stocks. They can only be bought and sold at the end of the day. Mutual funds typically have investment minimums and higher management fees compared to ETFs.

Real estate

Real estate is an asset class that has created a lot of millionaires. Real estate allows you to invest in homes, apartments, and even land. Compared to stocks, real estate needs cash upfront.

Most people start by buying a single-family home and renting it out. You collect rent every month and use that money to make mortgage payments. The home appreciates over time. You can sell the property down the road to buy another property.

How to get started investing in stocks

Choose a budget

When you start investing, start small, A few hundred dollars is a good start. The goal initially is to get comfortable with the investing process.

Open a brokerage account

Open a brokerage account at Robinhood, Fidelity, or any other broker. Choose a broker that has no monthly minimums and fees.

Make your first stock purchase

Do your research and buy your first stock. It’s a big milestone in your investing career. It’s the first of many investments you will make.

Monitor your portfolio

After you purchase the stocks, get familiar with the volatility of the stock. Read the news related to the stock and follow its quarterly and annual earnings.

Bottom Line

Investing as a teenager has many advantages. You have time on your side and even a small investment will grow into thousands as its compounds over time. Your goal as a teenager is to get started early and learn the investing process. You will make mistakes but you will also learn. Investing early will set you up for financial success.