Platinum Swing Trade Alerts

The 10-Buck Broker (Long-Term Stock Picks)

Announcement

Collapse
No announcement yet.

Making Money Work

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Making Money Work

    As I begin the journey of finishing my working career I look back at messages I have received throughout my lifetime about money and the idea of saving money. Of course, as a young man I never gave much thought to saving. After all I was young and I had a lot of time to save.

    It was a plan built on wishes and fantasies. A plan which gave me all sorts of money to party and put me on a path of self-destruction. While I had some amazing times, albeit a bit crazy, the memories have lasted me a lifetime. But those memories did nothing for me when I had an emergency.

    It got to a point where I could justify not saving money. After all, with all the debts I had how could I possibly save a penny? The question should have been how could I not save a penny?

    One of the easiest ways to save money and to also get a raise in pay is through your pension plan at work (401K). People don't do it because... well it goes back to my early beliefs that I was young and I'll worry about it tomorrow.

    Let's look at a simple example of how this can help. This is just an example using simple financial amounts. During the month you make $1000. Let's say that 20% is taken for taxes. Your take home pay is $800. That is everything you make for the month, so saving money is impossible, right? I. Say. Wrong.

    I'm still learning the UK pension plans, so I'll use the 401K models that I am used too. Let's say your employer will match your contributions up to 5%. So if you put in 2%, they will contribute 2%. If you put in 3%, they do 3% and so on up to 5%. So if you contribute to a 401K and only contribute 2% (in this example) you are losing money. You are losing 3% of the money your employer would contribute.

    In the above example, based on a 100 hour work month, your hourly wage was $10. By contributing 2% to a 401K, which your employer matches your monthly wage grew by $20. An hourly increase of 20 cents. So the hourly wage grew to $10.20. But without taking advantage of the employers 5% maximum the employee is losing $30 a month and 30 cents an hour.

    Yes, to get this increase you will have to give money from your check that you say you don't have. 401K contributions are taken into account before taxes. So if you take 5% from your monthly check of $1000, your taxable income is $950. Then the 20% taken from that amount leaves you with a take home check of $760. A loss of $40. But you are adding $50 to your account and your employer is adding another $50. So for the month you added $100 to your account, which only cost you $40.

    These are simple figures but it is crazy not to use pension plans to your advantage. I have heard from people in the UK that plans are garbage. The only horrible plan is no plan. To take advantage of any plan, contribute at least the maximum that your employer will match and also look at your plan. Many plans offer different investments to grow your money. From simple safe plans like bonds and CD's to more risky investments from international funds.

    Just don't view a plan as rubbish. Look at it, invest in it and make plans for your future.


    Article Source: http://EzineArticles.com/9909980
    Platinum Swing Trade Stock Alerts(FREE 14-Day Trial)

    The 10-Buck Broker (Long-Term Stock Picks)


    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!


    Best FOREX Signals Software

    Stock Market Investing For Beginners


    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    Good KARMA and positive energy abound.


    Terms Of Service

    Disclaimer: This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

    Promoted content: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this website and may receive commissions from purchases you make on subsequent websites. Always exercise due diligence before purchasing any product or service. This website contains advertisements.
    Best stocks to buy now Stock Market
    Best stocks to buy now
    Dow Jones TodayDJIA
Working...
X