Create Love: Money Tips

Ruth's tip: Enroll in your employer 401(k), if they offer it, as soon as you can to take advantage of the benefits. If you have a traditional 401(k), your contributions are taken from pretax dollars. Employers automatically deduct from your paycheck, helping you maintain the discipline to keep contributing. Many employers will match a certain percentage of your contributions, so at a minimum, try to contribute enough to earn the full match. That match is part of your compensation, so don't leave that money on the table.

Ruth Jacks is a Sr. VP at a national bank and is the Co-Founder of jTruth, a financial consulting firm. Thanks Ruth for sharing with CREATE LOVE!

 

Felicia's Tip: Determine how long it takes for your money to double? 

As you are planning for retirement, taking a look at your age and determine how old you will be when your money doubles will help you determine 3 things:

1.      Are you saving enough each month
2.      Is the interest rate you are getting enough to meet your goals
3.      Approx how old you will be when your money doubles

The Rule of 72 is a simple calculation to help you determine how long it will take for your money to double.

• Divide the interest rate you are earning by 72. The result will be the number of years it will take for your money to double.

• Assume your interest rate = 6%. Divide 72/6 = 12 years

• Assuming you have $25,000 invested at 6%; you will have $50,000 in 12 years.

A 6% interest rate is often found with Mutual Funds, Variable Annuities, and individual stocks.  6% is NOT typical with checking, savings, CDs or money market accounts.  See chart below.

This financial tip was brought to you by Felicia Lewis, Co-founder of jTruth, Inc.
Thanks for sharing with CREATE LOVE!