When you first start a job, it’s exciting. You agree on a salary, and you are thrilled that you will soon be getting paid. If you are receiving a salary of $40,000 a year, and you are paid every two weeks, that means your pay (divided by 26 pay periods) should be $1,538.46 each check. … Read moreYour Paycheck: Tax Withholdings and Payroll Deductions Explained
When you leave a job where you have contributed to a 401(k) plan, you have three options for the money: Cash out your 401(k), keep it in your current plan, or move it to another qualified retirement account. A qualified retirement account can be your new employer’s 401(k) plan, a Traditional IRA, or a Roth … Read more401k Rollover Options: How to Transfer Your 401k Fund
Dave Ramsey’s Baby Steps is a financial plan designed to help you get your finances in order, get out of debt, and achieve financial freedom. Dave Ramsey has taught these Baby Steps to millions via radio, The Total Money Makeover, Financial Peace University, and on DaveRamsey.com. But how practical are these steps? I offer a review of each step in … Read moreA Review of Dave Ramsey’s Baby Steps to Financial Freedom
No matter how much solid financial planning we put in, life cannot be reduced down to complete predictability. Indeed, there are always unexpected expenses, large and small, that can crop up. And, you never know when something catastrophic, like a major illness or a job loss, will happen. The reality of unexpected financial situations should … Read moreHow Big Should an Emergency Fund Be?
If you are in a bad financial situation, and here are 10 things that could help you toward recovery. These steps will put you back on track, but the journey will be long. But as Confucius said “A journey of a thousand miles begins with a single step.” Photo by billerr via Flickr 1. Empower … Read more10 Steps to Fix Your Money Problems
When you contribute money to a 401k or a traditional IRA, you receive a tax deduction. Your money grows tax-deferred until you withdraw it from your account. However, if you don’t withdraw it from your account, the government doesn’t get its revenue. As a result, at some point, the government requires you to withdraw money … Read moreRequired Minimum Distribution Rules for IRA and 401ks
With taxes out of the way, it’s time to prepare for some summer fun. But like your house, your finances will be much more manageable when you take the time to spruce things up this spring. Below are a few areas where you can get started. Bank Accounts Envision your perfect financial set up. Do … Read more5 Ways to Spring Clean Your Finances
One of the ways that you can track your financial progress is to periodically check your net worth. Your net worth is a look at one moment in time as far as your finances are concerned. It provides you with a picture of what your overall financial position is right now. Net worth offers you the … Read moreHow to Calculate Your Net Worth
When it comes to saving for retirement, it’s important to understand your options. Figuring out which type of account to use is a big deal. For some workers, understanding the difference between a 401(k) and a 403(b) is important. Photo by PT Money. What is a 403(b), and How Does it Differ from a 401(k)? … Read more403(b) vs. 401(k): What’s the Difference?
One of the items that many people rely on for retirement planning is Social Security. You know that you will likely receive Social Security benefits (although they might be reduced). However, Social Security benefits are also among the surprising things you pay taxes on. Depending on your income level, and where that money is coming … Read moreStrategies to Reduce Taxes on Social Security Benefits