<![CDATA[Household Finance Tips - Blog]]>Sat, 21 Nov 2015 00:08:10 -0800Weebly<![CDATA[3 Tips to Establish a Healthy Retirement Fund]]>Thu, 19 Mar 2015 18:36:22 GMThttp://householdfinancetips.weebly.com/blog/3-tips-to-establish-a-healthy-retirement-fundWhile you may be young, or financially unstable, or even without a mortgage, it's important to immediately begin preparing for retirement. The truth of the matter is the earlier you begin preparing for retirement the more money you'll have. This isn't true simply because you'll be able to put a higher amount of funds in your retirement fund, but with elements such as compound interest, this nest-egg will blossom. When you're trying to establish a healthy retirement fund, these four tips will help enhance the efficiency of your savings.

Tip #1: Immediately Begin Contributing to Your 401(k)

The importance of a 401(k) is nothing new, and many employers offer this type of retirement plan. In a nutshell, a 401(k) allows you to deposit pre-tax earnings directly into this account. Therefore, you're able to add a higher percentage of money into this savings account without taking a major hit directly to your take-home amount. For example, if you wish to put $100 in your 401(k) per paycheck, you'll only see a reduction of $85 in your take-home pay.

Tip #2: Employer Matched 401(k)

In some instances, a 401(k) is matched by your employer. When this is the case, you must add a set amount of funds into this account in order to gain the most benefits from the employer match. For illustration purposes, let's say that your employer offers a 50% match if you agree to deposit 5% of your salary into this account. Since your salary is $50,000 per year, you'd have to contribute $2,500 into the 401(k) account, which requires your employer to deposit $1,250 into this account. Essentially, this form of retirement plan actually gives you free money. Always meet the maximum of an employer-matched 401(k) benefit to gain the most out of this incentive plan.

Tip #3: Create a Savings-Centric Plan

While there are many plans and programs designed to enhance your retirement plan, the most effective way to build a healthy retirement fund is to simply start saving. Create a budget that allows you to put at least 10 to 15-percent of your take-home pay into a savings account. The type of savings account you choose to use can dramatically vary; however, always use one that offers annual interest payments on available funds. This essentially means you're being paid to save your money, not a terrible deal, right?

Above all else, make saving for your retirement plan a priority, even before getting approved for a mortgage and purchasing a home (Your650Score). While you may feel you have decades before you wish to retire, the sooner you start the greater your quality of life will be in the coveted twilight years.
<![CDATA[How to Stretch Your Paycheck]]>Tue, 03 Mar 2015 19:41:43 GMThttp://householdfinancetips.weebly.com/blog/how-to-stretch-your-paycheck
When dealing with your financial stability, it's so important to learn how manage your finances. While this process requires a strong grasp on budgeting and figuring out where you stand with your bills versus your "fun money," you must also set some strong rules to help stretch your paycheck. Although this process can take years to master, once you have, you can live comfortably even when your paycheck is missing a few zeros.

Increase Withholding

While having an enormous income tax refund year after year could appear similar to a healthy reward, you're in fact allowing the federal government to make use of your hard earned money interest-free until they revert it once you file. More than likely you could’ve already been making use of this cash instead. Even better, you could’ve already been investing it and truly earning money with these funds.

Essentially, when you get an enormous tax refund at year’s end, you’re getting an excessive amount withheld from your pay. To rectify the scenario, file a new W-4 form with your workplace to change the federal income tax with-holdings. Speak with the Human resources division or your manager to render these types of changes and take a look at the IRS withholding calculator. Be cautious however to never declare a great number of exemptions or you might wind up owing the IRS a tremendous income tax bill instead.

Create a Plan

An expense plan, that is. To create one, you initially must identify the amount of money you're shelling out and exactly what it's getting allocated to. Therefore composing a financial budget, a six-letter expression that conjures up four-letter responses in most consumers. Nevertheless unlike well-known thoughts and opinions, a spending budget doesn't have to imply compromise or even slavish focus on each and every nickle you spend. It's basically a system to enable you to notice exactly where money might be slipping through your fingertips and how you can reduce the flow.

While creating a plan is a highly individualized process, you must begin this essential step by figuring out where your money goes and how much you wish to save. Begin documenting every transaction you make. When possible, only pay with cash. It's much easier to manage physical cash rather than numbers on a screen. After carefully documenting your expenditures, take a moment to realize where your money is going and where you can make cut-backs. You'll probably be surprised at how much money you spend on non-necessary items. When this is made clear, it's much easier to determine how and where you can save money, which is the heart of any financial plan.

Saving for a Mortgage

When you are saving for your first home its important to set aside a good portion of money for the down payment. You will also need to make sure your earnings will cover your monthly mortgage payment according to www.your650score.com. Use these tips to help make your dream of owning a home a reality.