Saving Money

What is a 401K?

Many people have heard of 401K programs but may not be entirely sure what they are, how to get one, and then what to do with a 401K once they have one! It’s no wonder that there can be some confusion about different types of savings and investment plans  – since most people did not have a course about it in school, and some employers do not bother to educate their employees about options. However, continue to read on and you will get a clear idea of what a 401K plan is.

 A Tax Free Savings Plan. A 401K plan is a plan that can only be offered through your place of business and is also known as an employer-sponsored retirement plan. This is because the IRS allows special tax breaks to companies and their employees who use a 401K plan to save for retirement. A 401K plan is also called a defined contribution plan as well, because the plan allows employees and employers to contribute specific amounts or percentages of funds into the 401K plan on an annual basis, free from taxation! In other words, your pre-tax dollars go into the plan and can be saved, invested, and accumulated until you retire without any tax payment required. (That is, only if you keep the funds in the account until you retire or to age 59 ½ – early withdrawals will be taxed at regular income tax rates AND penalized at an additional 10 per cent.) › Continue reading

Tuesday, March 16th, 2010 Financial Planning, Saving Money No Comments

Reducing Household Expenses

There are many people who are looking to reduce household expenses and save money. There are many benefits to doing so. For one, reducing unnecessary waste can end up saving a lot of money in the long run that could be used toward generating savings, and another reason is that many times, reducing expenses can have a positive impact on the environment.

Save on Household Services. There are many services every household utilizes, such as Internet, Cable, and phone services. It is a good idea to do an inventory of your current service and shop around for a better price. Often times, you can call your current service provider and mention you are thinking of switching, and you will be amazed at the kinds of deals they send your way to keep you as a customer. The same goes for other services you might pay for, such as lawn care, or gym fees. › Continue reading

Tuesday, March 2nd, 2010 Budgeting, Saving Money No Comments

Tips for Using Coupons

If you are interested in saving money, you might be interested in starting to clip those coupons you see coming in your mailbox on a regular basis. However, if you do not have a strategy for how to use coupons, you might just end up wasting time on clipping and then forgetting you have the coupon in the first place!

Keep in mind that your home or apartment mailbox is not the only place coupons are likely to show up. Your email inbox as well as different online sites can be great places to scout out deals on your favorite items. Here are a few steps to prepare you for getting the most out of using coupons.

Come up with a strategy. Not every coupon is something you are going to use. One of the biggest pitfalls in using coupons is using them for things you never really wanted in the first place, but think you should buy just because you have a coupon. Of course, this is one of the primary marketing reasons coupons are offered in the first place: to gain new customers. However, coupons are also used to reward loyal customers too. › Continue reading

Thursday, February 25th, 2010 Saving Money No Comments