For starters, if you contribute to your 401 (k) plan at work, or a 403(b) plan if you work in the private sector or with a nonprofit, when you contribute to these employer-sponsored retirement savings plans, what you are effectively doing is reducing your taxable income. You save money for retirement but you also often get matching contributions from your employer.
So I do not care how mean or unfair your boss might be. Even if he doesn't like you personally and would never think to give you a raise, if your company has a 401 (k) or 403(b) plan in which you're eligible to participate, there's nothing that tyrannical boss can do to stop you from contributing to that retirement plan and getting some money from the company in the form of a corporate match. That is free money on the table from your employer.
If you have a 401 (k) plan at work or a 403(b) plan and you are not contributing, you are literally leaving dollars on the table. If you are getting a dollar-for-dollar match, that is a 100 percent return on your money guaranteed. You definitely cannot get that in the stock market or from any investment, so take advantage of it when it's offered.
For 2007, 2008, and 2009, the contribution limits for your 401 (k) are $15,000, $15,500, and $16,000, respectively. Generally speaking, employers let you put up to 15 percent of your pay into a 401 (k). If you are over 50, there is a so-called catch-up provision in the law that allows you to sock away another $5,000 dollars (an amount that rises to $5,500 in 2009).
So assume you make $50,000 annually and you put 10 percent of your pay, or $5,000, into your 401 (k). If you employer matches even 50 cents on the dollar, they will put in half of your contribution, or $2,500 bucks.
Article Title : How to Find or Create Extra Money, Part 5
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
I was actually considering filing for bankruptcy because of the extreme debt I had incurred in veterinarian school EdFed was able to reduce my debt by $40,362. Edfed saved my finances and for that, I thank them.
- Brad O Colorado Springs, CO
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.
The federal student loan consolidation program is intended to help students better manage their loans. Because getting higher education is expensive and millions of students rely on student loans to finance their education, federal loan consolidation provides a break for graduates with debt.