savings | Journey

Retirement: Happy 40th Birthday 401(k)!

By Job Journey on Tuesday, July 24, 2018

Do you have enough saved to retire?

For those who don’t know, as defined by NerdWallet, “a 401(k) is a savings and investing plan offered by employers that gives employees a tax break on money they set aside for retirement.”

Why is it called a 401(k)? The term refers to Section 401(k) of the tax code, initially created in 1978 to give those who earned a high wage a tax advantage. That evolved into what we have today: one of the most popular retirement savings account for workers in the United States.

This year, the 401(k) turns 40.

401(k) Stats

To commemorate its 40th birthday, let’s go over a few stats, information brought to you by The Motley Fool, published in the Society for Human Resource Management’s HR Magazine.

Average 401(k) balance: $96,288
Approximate account value for those age 65 and over: $200,000
Percentage of U.S. employees who work for an organization or company that provides a 401(k)-type plan: 79%
- Percentage of these workers who choose to participate in a 401(k): 41%
Percentage of the overall U.S. workforce that is saving in a 401(k): 32%

Are you saving in a 401(k)?

What do those numbers tell us? That many U.S. workers could be saving in a 401(k), but aren’t.

If you aren’t saving for retirement yet, consider starting now. Retirement savings aren’t just for going on vacations or replacing your income source after you retire. A modest retirement account can pay for medical expenses, moving from one home to another, or simply paying for help with tasks you are unable or unwilling to do when you’re older.

You’re never too young or old to contribute into a 401(k). If you’re young and new to the workforce, dedicating even a small percentage of your income into that account each paycheck really adds up. And if you’re older, having some sort of retirement savings is still better than nothing. Essentially, if you’re working and receiving a steady paycheck, it’s worth it to invest in a 401(k).

And if your company offers matching funds and you aren’t contributing into a 401(k) , you’re losing out on free money! And everyone likes free money.

Still have questions about what to do with a 401(k) and how to start saving for retirement today? Check out our Beginner’s Guide to Retirement.

How old is your 401(k)? How is it performing? Let us know in the comments below!

Job Interviews The Job Search

Save Money by Thrift Store Shopping For What to Wear For a Job Interview

By Jared Cole on Monday, May 27, 2013

When it comes to finding appropriate professional attire for a job interview, the cost of what you need could be a challenge. Shopping online or in person at malls and suit stores can rack up the dollar signs and quickly go beyond most moderate budgets.

Luckily, that doesn’t have to be an issue. In a news segment from Triad Area North Carolina news station Fox 8, fashion designer and motivational speaker Craig Stokes gave an overview of classic job interview attire and how he was able to find a professional wardrobe in a thrift store for less than $20.

Depending on your area, you might not be able to find perfectly fitted attire at your local thrift store. But if you consider some of his advice, you might be able to save a pretty penny for your next job interview while still looking fashionable and professional.

The Daily Grind

12 Tips to Update Your Cash Savings Plan and Gain Peace of Mind

By Miranda Wilson on Wednesday, August 19, 2009

In these current economic times, it seems that everyone is looking for new ways to make a little extra money and save what they already have. Does this sound like you? Having money in the bank for an emergency is important, but having money stashed away in case of a layoff is equally important.

With bills to pay and things you want to buy, saving might be something you tend to push to the back burner. Or maybe you don’t know where to start when it comes to saving and you just feel overwhelmed. But, there is good news! Saving doesn’t have to be difficult or a burden. To help you develop or re-develop your own savings plan, here are 12 easy tips you can start using today to help build your emergency fund and feel good about your finances.

Rent or borrow movies from friends instead of going out to the movies.
Cook at home and take your lunch to work rather than eating out.
Limit yourself to only going to the mall once a month.
Limit how many purchases you make with your credit cards.
Give yourself a “pocket money” limit. Put your cash and loose change in an envelope and use it only for items you want but don’t really need. When that money is gone, you will have to wait until next month’s budget to make additional purchases.
Make shopping lists and stick to them.
Wait 30 days before making a big dollar purchase to think it over and make sure you really need the item.
Go to the library to check out books, DVDs, and CDs.
Make gifts for others on birthdays, anniversaries, etc.
Turn off lights and unplug electronics when you leave a room to help lower your electricity bill.
Carpool to work.
Cancel expensive gym memberships if you aren’t going frequently.

These are just a few examples of ways you can cut spending costs. You should also open up a savings account at your bank and deposit the money you’re saving in there. With your money in the bank, it will gain interest each month, helping you save more in a shorter amount of time.

Developing and sticking to a savings plan may take a little time, but it is something that you can definitely do. Start using these tips today and see how much money you can save in one month. Happy saving!

What do you think? Let us know some other tips that we can add to this savings list. We look forward to hearing from you.

Tag Archives: savings