3 Ways Your Employer Can Help You Save
Let’s face it; it is extremely hard to save money. Saving money for most middle class families is near impossible, if you have kids, you already know just how expensive it can be just to give the basics. However, if you want to give your family the most and be able to afford the big purchases such as college, a bigger home, family vacation or just a big screen TV, here are some tips on making it a little easier to save more money each month.
Your Employer Can Help You Save
There are many strategies that your employer can offer that can help you save. Three strategies include 401K plan, College Savings Plan and direct deposit.
401K Plan- A 401K Plan can help you save for retirement, but also can be withdrawn in the case of hardship or if you choose to pay for school or a new home. 401K plans allow you to set aside a portion of your income each pay period and invest this amount in a variety of options such as company stock, mutual funds, money markets, international stocks, etc. One of the great reasons to use a 401K plan to save and invest is that taxes are not taken out until you withdraw the money. This means that your investments are able to grow tax free- possibly saving you thousands of dollars.
College Savings Plans- Besides 401K plans, if you specifically would like to save for a child’s education, many employers offer a college saving plan. These plans also work similar to 401k plans in that taxes are not taken out from your income. These plans are easy to start and you can easily save as little as $20 per month if you wish.
Direct Deposit- While not a plan, your employer should offer direct deposit to send you your pay each period. Many savvy employees request that their pay be split up among two or even three direct deposit accounts. You can have one account for checking where you pay goes to pay important bills, one account for savings where you can save a specific amount of money each month that won’t be touched and you can even have a third account for saving as well- maybe for a family vacation or a big screen TV.
Using the above three strategies can help you easily increase the amount of money that you save each month.
