60 Days to Change: Week 6

(Green Candy.com) - Below is a summary of the second week from the 60 Days to Change Challenge program. For more specific details on each day of the challenge sign-up here . 

Day 37
Employer Sponsored Retirement Plans

The nature of retirement savings has changed tremendously in the last few years. In years past, your employer sponsored retirement plan was just a small part of your overall retirement income plan, but that is no longer true. Most companies have done away with traditional pension plans, and instead are requiring the employee to be a bigger part of their own financial future. This “new” requirement isn’t really going to well. Americans are falling further and further behind in their efforts to save for retirement. But, you can make sure to stay ahead of the curve by following these simple steps:

1. Contribute to your company sponsored retirement plan. Don’t make excuses. Just contribute.
2. Contribute at least up to the employer match. An employer match is free money, but you only get it if you also contribute money.
3. Don’t get too risky with your 401k money. It is the same as gambling.
4. Don’t borrow against your 401k.
5. Don’t buy employer stock with your 401k.

If you can follow these simple tips, then you will be well on the way to saving for your retirement.

Day 38
How are you compensated?

Have you ever thought through the process of your employment compensation? It may not seem important, but understanding “how” you get paid is an important step to solidifying your financial life. In other words, can you affect your compensation? Can your hard work directly affect your pay? Can your personal successes at work increase your pay?

There is a very simple reason why this is important. If you need more money, and you can’t directly affect your income at your current job, then you need to get a second job. This is a very controversial solution, but a necessary one. Here is why: If you have budgeted, controlled your spending, and done everything else to make your cash flow situation functional, and you still have a shortage, then you need more money. Frankly, more money is rarely the solution to your financial problems, but if you have exhausted all the other options, then more money may require you to get a second job.

A second job is not as terrible as it may seem. In fact, it can be a great thing. You can sell stuff on eBay, babysit, deliver pizzas, mow lawns, or anything else that brings in a few extra bucks. The fact of the matter is, that if you need a great deal of extra income, then you haven’t done a good enough job cutting expenses. A second job should bring in an extra couple hundred bucks per week, and this can go a long way towards accomplishing your financial goals. A second job is a good temporary fix to a cash flow problem. If you have a long-term cash flow problem, then it is time to reevaluate your spending all together.

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