{"id":2023,"date":"2018-07-06T03:00:12","date_gmt":"2018-07-06T08:00:12","guid":{"rendered":"http:\/\/kerryaclark.com\/blog\/?p=2023"},"modified":"2018-07-05T18:24:06","modified_gmt":"2018-07-05T23:24:06","slug":"using-401k-to-save","status":"publish","type":"post","link":"https:\/\/www.kerryaclark.com\/blog\/using-401k-to-save\/","title":{"rendered":"4 Steps to Using A 401k Plan to Save"},"content":{"rendered":"

A Real Plan For Retirement Funding – Part 2<\/span><\/h2>\n

How can I begin saving for retirement when it seems I have nothing extra to spare?<\/span>
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\n<\/span>The hard part of saving money is doing so when you currently use every dime you have. \u00a0You can\u2019t image adding to the expenses you already have nor can you imagine anyone taking more out of your paycheck. \u00a0This sounds like a problem with no solution. <\/span>
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\n<\/span>So your situation is much different than <\/span>the one we discussed prior when you have a new job or position and haven\u2019t received the 1st paycheck<\/span><\/a>. \u00a0It\u2019s easier to put some things in place using funds you never had in the first place. \u00a0While it might seem like there\u2019s no solution, we\u2019ve been in those shoes and we discovered a way to accomplish what seems impossible. \u00a0Maybe not impossible, but certainly uncommon.<\/span>
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\n<\/span>\"\"Become familiar with the rules.<\/b>
\n<\/b>If I haven\u2019t said this already, you need to know how the process works. \u00a0Even in any game you play, you need to know the rules so that you know whether you\u2019re winning or losing. \u00a0Let\u2019s say you want to begin contributing to the company provided 401k benefits. You need to know what doing so really looks like. \u00a0You need to know the benefits as well as your expected contribution. If the benefit matches your contribution for 10% of your annual income, you need to know that. \u00a0What the company matches is your money making money; it\u2019s like free money. You need to know what happens if you decide to contribute more or less than the matching amount. \u00a0You need to know the rules so that you can plan accordingly.<\/span>
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\n<\/span>Decide to contribute.<\/b>
\n<\/b>Once you know how it works. \u00a0You weigh the pros, the cons, the limitations and the advantages. \u00a0You now know what you gain by participating and even what you stand to lose if you don\u2019t. \u00a0You\u2019re now ready to make a decision on whether it\u2019s in your best interest to contribute. If you\u2019re going to save, I think 401k is the best starting place. \u00a0It\u2019s not as risky and you receive instant returns.<\/span>
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\n<\/span>Invest incrementally.<\/b>
\n<\/b>No one will tell you that you don\u2019t have to contribute the full 10% or that the match doesn\u2019t have to happen all at once. \u00a0Based on your financial positions, you might not be able to invest the entire amount at once. So I suggest you start with 1%. \u00a0Make a selection of just 1 percent for now. Then at the end of the year or when you\u2019re blessed with an increase or raise, increase your 401k contribution by 1 more percent or a few percentages. \u00a0By doing it this way, you\u2019re steadily increasing and in less than 10 years you\u2019ll be at the full match. Of course, if you\u2019re planning and managing your life, your business, it won\u2019t take you 10 years. \u00a0You\u2019re much better than that. You\u2019ll finds ways to be a little more aggressive. After awhile it becomes fun watching your money grow. Plan to add to your savings incrementally so that it doesn\u2019t hurt you now, but enables you to still accomplish your goals.<\/span>
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\n<\/span>Begin thinking of ways you can manage this benefit.<\/b>
\n<\/b>Once your 401k or future savings begins to accumulate, increase and multiply, you will see other financial options and opportunities arise that you didn\u2019t see or have before. \u00a0Let me give you a few examples so you see what I mean.<\/span><\/p>\n