Why College Students & New Grads Should Invest in a Roth 401k or IRA Plan

Saving for retirement can seem scary to current college students or recent graduates, but investing for retirement while young is one of the best things you can do to ensure you’ll have enough money for retirement.

People often think they have to spent the majority of their paycheck to see any kind of return on their investments. This isn’t true, especially if you begin investing as early as you can! College students and recent grads should take advantage of a Roth 401k or IRA plan, because it’s a fantastical way to get large returns on small investments. Learn more about why to get one while still in college or as a recent graduate.

What’s a 401k plan?

Let’s start with the basics. A 401k is a retirement plan that’s employer-sponsored. Usually, employers will match your contributions to a 401k plan up to a certain amount, which is quite literally free money you can put towards your retirement investments. You choose the amount you’d like to contribute to the plan, and the money is taken directly out of your paycheck.

Once you’ve placed money in your 401k, it will be invested in different areas of the financial market. However, your employer will be investing on your behalf, meaning that you usually have less control over where your money is being invested than you would with an IRA plan.

The amount you can contribute to a 401k can differ by your employer or your total salary. In 2017, anyone can invest up to $18,000 per year, and if you are 50 years or older, you can invest an additional $6,000.

What’s an IRA plan?

IRA stands for individual retirement account. It is an account is set up directly between you and an investment firm. Because your employer isn’t involved in this retirement plan, they will not match your contributions. However, this also means that you have more freedom to decide exactly how much you’d like to invest in your account and where you’d like to invest your money.

The contribution limits for both a traditional and Roth IRAs are the same: $5,500 per year, or $6,500 if you’re age 50 or older.

Ways to Earn Extra Money at the Office


A lot of us wanted to have additional income or extra money while in the office. Besides from monitoring and cutting expenses, the best way to increase extra cash is to have sideline jobs. If you are born as business minded person you can surely find ways to to improve your cash flow and always in your mind that business opportunities are everywhere. Use your creativity, resources and talents. 

In this post, I rounded up the ways to earn extra money at the office.

9 Ways How Savvy Shoppers Save Money

We always hear or read news on how someone can save lots of money by landing amazing deals regularly. But, have you ever wonder how these people done it and what’s their secret formula? We had interviewed dozens of shopping experts and below is a compilation of the strategies they used. Take action today and you realize you will be saving some bucks in no time.

#1 Follow brands on social media

In today’s digital world, retailers and brands leverage on the power of social media to reach connect with their customers. By following your favorite brands on social media like Facebook or Twitter, you get the first hand sale information or promotions from their marketing team.

#2 Reserve your money for annual special sales
 
If you are a savvy shopper, you will know that some sales and promotions occur annually. For example, the 11.11 Singles Day or Black Friday Sales. In countries like Singapore, there are even nationwide event like Great Singapore Sales. Knowing when to spend to maximise your savings is the most important trait of being a shopping expert. Why spend $50 for a perfume when you can wait a few more days and get it for $30?

#3 Join mailing lists

Almost all e-Commerce websites has a mailing list for customers to opt in. A savvy smart shopper will opt in to these mailing lists because they know they can get the first hand sales information. Well sometimes you can get 10% OFF by opting in to a mailing list too.

#4 Use coupons

Incorporate couponing into your shopping process. Before buying a item, always google and check online if there are any available coupon or promo codes that you use to get savings off your purchase. Sites like RetailMeNot, Groupon and Coupons Inc are great places to start looking for coupons.

Effective Ways to Save Money As a Student

One of the primary problems every student encounters is having insufficient money that results to typical scenario of begging money from their beloved parents. If you find yourself in the same situation then you should read this post and try all the effective ways on how to save money as a student. This can be apply to primary, high school and specially for the college students. 

Effective Ways On How to Save Money As a Student


1. Bring Your Own Food - If you have the time to cook or your parents then why not just bring your own food rather than buying at school canteen which is more expensive. I observed that foods from canteens are a bit expensive compared to other stores specially in the grade school or high school whereas some school prohibit their students of going out.

2. Water Instead of Soft-drinks and Juice Drinks - If you're a juice drink or soft-drink lover then try to discipline yourself and buy drinking water instead. Aside from water is cheaper it is also healthier compared to soft-drinks and juice drinks. 
3. Cut Out Vices - One way to effectively save money as a student is to cut out vices. If you like going to malls or pubs during weekends better cut it out and save your money. There are a lot now of vices every students are into like online games wherein some are even paid for subscriptions just to upgrade and play their favorite games.

4. Don't Be Impulsive - One situation that best demonstrate of being impulsive is when purchasing or buying things that you don't really need. Focus on the things that matters most, just visit the malls or shopping center when you really need to purchase an item.

5. Buy Second Hand Books - This one is familiar to everyone. In the millennial age everything is almost so buying second hand books is now way easier. There are now available sites where you can check to find the books you needed like eBay, Craigslist and even social media specially in Instagram.

6. Buy in Bulk - For most of the college students who are living in a flat or apartment it will save you money if you purchase in bulk. For example, buy toiletry in large volume like the toilet papers it will save you money if you buy in dozen or two than per roll. You can also apply it when buying school supplies.

7. Don't Get A Pet - If you're in college it is a wise decision to not get a pet until after college. Having a pet is a stress reliever but think of the expenses associated with it like the foods, grooming and sometimes medical expenses when they're sick. Having a pet is like having your own baby wherein you need to provide their needs.

8. Live Below Your Means - One of the golden rule to save money is living below your means meaning don't force yourself to buy something you can't afford. This is highly observe in college or universities where some want to have the latest version of gadgets like laptops and cellphones which is not necessary to upgrade every now and then if yours are still working well and doing its job.
Related Posts Plugin for WordPress, Blogger...