Before parents tell their kids how they should plan for the future, they should be prepared with solid advice—advice they’ve incorporated into their own financial planning, regardless of which life stage they’re in.
The way we spend money is very similar to the way we eat food. If something looks appetizing, we consume. Sometimes we can go overboard and indulge too much. That’s when the unhealthy aspect kicks in. As it pertains to food, you begin to gain additional weight – financially, the additional expenses that you’ve created for yourself begin to weigh heavily on you. When that happens, then it may be time to shed some pounds to get back on the right financial track.
We're told we're supposed to save diligently for retirement during our working years, and socking away funds in a 401(k) is a great way to do so. If your employer offers a 401(k) plan, you can consider yourself lucky. And if that 401(k) comes with a Roth savings option, consider yourself even luckier.
Yes, it’s true: spending money is fun. Buying a new TV, treating yourself to a massage, taking a vacation—all of these things can feel, well, awesome. Especially when you’re rewarding yourself for the hard work you do. But going into debt to be good to yourself? That takes a little of the shine off the experience, doesn’t it? Fortunately, it’s possible to enjoy life and manage debt, at the same time!
Can you believe over 52 million Americans have over 4 trillion dollars invested in 401(k) accounts? While most understand the mechanics behind the 401(k) – allowing workers to save and invest a portion of their paycheck before taxes are taken out – many are not aware that there are things to think about regarding maximizing your account’s financial security.