Money Tip #1

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“Money” by Keith Cooper is licensed under CC 2.0.

There are few things in life I get really excited about. Money is one of them. I’m always on the lookout for a good financial podcast or new money blog. My husband (and probably many of you) think these are boring and dry, but I can’t get enough. Since I have historically not been great at posting on a regular basis I am going to start posting a money tip once a week in an effort to get myself back in the habit. I find myself watching entirely too many many shows online these days and since we recently added Netflix back into our budget I need something like writing to keep my mind engaged between episodes of Parenthood and Property Brothers.

Money Tip #1: Enroll in your workplace 401K. TODAY. Log into your Human Resources account from home if you can or set an alarm on your phone for your next scheduled shift and get the paperwork needed to start it. Most companies make the process really easy. If you already contribute to a 401K my stretch goal for you is to look into additionally contributing to an IRA.

Co-workers made fun of me at my first job out of college because I was always logging into my retirement account to check the balance. DO NOT listen to the people who tell you you’re too young to worry about retirement. Those people are probably poor and you should always be skeptical of financial advice given by poor people.

If you don’t have a 401K available at your job there are other options. Any of the big investment firms (Vanguard, Fidelity, T. Rowe Price, etc) have a whole team of people who can help you choose the right account for you. Saving for you future is important and you should start today. No excuses.

Don’t know what a 401K is? Need additional help? Feel free to ask questions in the comments section or send me an email and I’d be happy to point you in the right direction.

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3 Comments on “Money Tip #1”

  1. Rachel Muller says:

    do you have to work fulltime to be able to contribute to a 401k? what’s the difference in 401k and IRA?

    • Christy says:

      Great questions! It depends on the company and their 401K rules as to whether or not a part time or “as needed” employee can contribute. You would have to contact your HR department to be sure.

      A traditional IRA works similarly to a 401K but you don’t have to be employed by a company. This is a great option for someone who is self employeed or who has already maxed out the government allowable limits for their 401K. You contribute money on a pre-tax basis so if you made $45K this year and contributed $5K to a traditional IRA the federal government would only require you to pay federal income tax on $40K of income.

      Make sense?


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