Updated: Jan 13
Just got paid? Friday night? Party hunting, feeling right? Aye!! You know the rest of the song!
After working 40+ hours from Monday to Friday and maybe even Saturday for you overachievers out there, the LEAST you could do is earn all the money you can. By that I mean, are you taking the extra FREE MONEY your job puts on the table every month for your 401(k) retirement saving account?
Never play yourself!
A 401(k) plan is a retirement savings plan sponsored by an employer aka your job. It lets you save and invest a piece of your paycheck before taxes are taken out. The plus is that your employer matches your contribution up to a certain percentage. In plain words they give you free money for simply paying yourself first.
For example: If I make $2000 every two weeks and put 5% of that in my 401(k) that comes to $100. Let’s say your job matches your 5% contribution, now instead of only adding $100 in your 401(k) every two weeks you're adding $200. Do it for 12 months and you’re at $2,400! Free money!
Let’s say you continue this amazing streak for 40 years (disregarding any future raises), at a 6% annual rate of return that $2,400 yearly investment turns into a wild $396,000...Never play yourself.
If that last statement has you a bit lost don’t worry I was too early on. Learning the money game takes time. Master money don’t let money master you. Plus $396,000 doesn’t sound too bad for only $100/month.
So as you venture into what should be a legendary weekend jot these couple of tips down somewhere you’ll remember in the morning…
Find the most senior person on your team and ask them “What should I do with my 401(k) retirement account?”
Enroll in your company sponsored 401(k) program
Contribute a percentage that AT LEAST matches the percentage your employer contributes
Stay consistent and forget the money is there
Visit investopedia.com for further information
Pass these tips to a friend you think is not aware of this legit free money scheme.
Never play yourself, you’ll regret it later
If you have any burning money questions, hit us up on our twitter (@FreeHype) we like spread the wealth!
Stay tuned for the next Just Got Paid segment next week.
Enjoy payday, you earned it!!
- Jauqius Frazier Buckman