Wednesday, December 16, 2009

Make Money by saving it: 5 easy ways

saving money

Some of us might always be thinking to earn more and more. Better lifestyle and luxury are always irresistible things to avoid. Have you ever thought of earning money by saving it? No matter if you are undergoing economic strains under this turbulent economy and trying to cut off areas of expenditure or you are simply trying to save more for a steady future, some easy action could help you getting your desired aim.
Here comes some tips, relying on which you could save more.
1) Stop buying new things unless you really need it. Stay away from the luring advertisements which could create the hype in you and thereby compelling you to buy the latest trendy mobile handset. This is applicable for every such thing. Think many times before buying it and ask yourself “do I need that?” When you have to buy it, go for the best price available. Try looking up through the net. This way you will retain yourself from spending a lot of money.
2) Stop eating out a lot. Try to save money by having food from home. Keep away from expansive coffee shops or ice-cream parlor. We never realize how much money we can save by looking up these little things.
3) Some services need to be reconsidered if you are keen on saving. Think about your land phone, postpaid mobile bill, expanded cable connection etc. By managing such things you will end up putting aside around 100 bucks.
4) For sometimes stop buying cloths frequently. Many of us have weakness for dresses and other accessories. But if you can manage us to seldom buy cloths, it is going to help us in many ways. Even though we need to buy, try some special discount rates or second hand cloths stores. Often big branded cloths are available there. All you need is to keep your eyes open.
5) The most important thing is to make a budget. If you can then make a list of your monthly or weekly expanses that includes food, gas, phone bill, electric bill etc. Then calculate the areas. This is the best thing which serves limiting your expanses and saving money for you.

Try following this and don’t give up initially if it appears hard to follow. Take some time and be patient with this strategy. You will surely going to succeed if some of plans are implemented thoroughly.

Thursday, December 10, 2009

Financial advice 401k loan

Financial advice 401k loanMany people seek "Financial advice on 401k loan" but very few gets the right advice. It is very much important to have right advice on this big matter for the people who are interested in managing their finance especially in retirement savings.

In general 401K loan taken from the 401k saving and it comes with many facilities. First of all, it lets you get money from 401 savings. Secondly, it is the loan where you are to get more tax advantages after your retirement.

Another aspect of this loan is tempting enough in making it more popular among other interest plans. Often many financial counselors give advice in getting money on 401k loan plan but the key concern is that it will not be shown on your credit report. Lets know some financial advice 401k loan to understand 401K loan better.

Investment Advice on 401k
Some Advices:

Borrowing money in 401k plan should be done only if you have no other option.

Till you pay the loan, you will be having the same advantage of your 401k’s tax increase. It will naturally reduce the amount at the time of your retirement.

You have to pay the loan within 5 years. If you are unable to do so, it will be taken as a distribution and you have to pay the income tax while at the same time paying an fine (in case you are under 59)

As there is no fee for having a loan of from a 401k plan, many jump to it. But one should understand that this plan will cost more to repay the loan as loan payments should be done with after-tax dollars.

Some Advantages:-

1) It will have no credit checking and be sure of getting the loan.

2) Low interest rate

3) 401k loan is very handy. It is sometimes a phone call away while others need documenting.

4) It is tax-free. There is tax in the interest. Only when you retire, you have to think about it.

Some Disadvantages:-

1) In the 401K One actually doesn’t borrow money from others but invest his own.

2) One loses the interests. Ultimately one has a smaller amount to invest and to receive interest. Keep in mind that you are not actually borrowing money but using your own account (savings etc.) to repay the loan that you acquired from 401k plan.

3) It is not tax-free now. At the time of retirement you’ll have to pay taxes again. So consider it before taking it and it is also conceived as a consumer loan.

4) Until you pay the loan, it is considered as rash distribution. State and federal taxes are after you if you are under 59 and half.

The 401k loan is a convenient and fast way of getting loan using your retirement savings. After going through this article (Financial advice 401k loan) you must have a better insight into the plan. It is best option when you are facing financial crisis and you are left with only this option. You can also checkout investment advice on 401K.

Tired with all the tips, now checkout the funny video Hitler upset on His 401 K Statement