Erasing Our Debt

Before I had written all of my goals for 2007, I was going over them in my head for about two weeks. One I had forgotten to put down in what was my post popular post was my goal to rollover my previous employer's 401(k). I am happy to say that I sent in my rollover form to them to request a check to send to my new 401(k) last Tuesday. I checked my online account for the old account and it shows that the funds have been withdrawn.
I didn't realize how much it had actually grown.
I didn't contribute to it very long but I personally contributed a little over $660. I received a match total of about $165. So that's about a total of $825 contributed within a year. My withdrawal was over $910. I'm not sure on the percentage of return, but that sounds pretty good to me.
A lot of people are scared to put money into their 401(k). This usually comes from them not knowing how it works or anything. I delayed my contributions by a year because of the same reason. I wish I hadn't.
At my current employer, I had an 8% return on my 401(k). That's pretty good. A guy in the office I just moved to had a 20% return. I've been listening to him about all the places we can put our money so hopefully I can increase my return.

Labels: 2007 goals, 401k

Being the last business day of the month, I received my final check for 2006. And boy howdy was it a good one! I covered for some vacation time a few weeks ago and received a lot of overtime and it was on this check. 32.25 hours to be exact. I knew I would be receiving the overtime on this check so I upped my claim on my W-4 to 2 just for this check so I could receive more money, as I'm pretty sure I had already overpaid my income tax this year. I also bumped my 401(k) contribution to 10% for this check, up from the 3% I had been contributing. It is now back down to 5% where I hope to be able to keep it for the year. In July I will start receiving the match from the company. I'm wondering if I should maybe just contribute 1-2% until I get some debt paid off. Opinions?
I'm also working a lot of overtime this week as well. I've been coming in at 2pm and leaving at 1am. That should put me at around 20 hours of overtime and I worked Christmas day so that's another 8 hours of overtime as well. Looks like the first check of 2007 will be full of good money to pay towards debt!

Labels: 401k, overtime, work

I meant to post about this last month as it was when I received the email about it. My employer is changing up their 401k plan starting in 2008. While I wish it went into effect in 2007, I can live with it.
Currently, they do a match of 3% after you have been with the company for a year. This part doesn't effect me until July 2007 as that will be my one year anniversary. But starting in 2008, they are bumping it up to a 6% match. You must contribute your own money to receive the company match as most of you expected.
Currently, I think you have to be in the plan 5 years to be fully vested. But on December 31, 2007, you will be 100% vested.
Also currently the 3% match goes into the company stock and cannot be moved until fully vested, but with the new plan, the 6% will be allocated to the funds in which your contributions are made.
The best addition/change to their plan is that there will be an additional contribution of 2% of your eligible pay contributed to the plan. You DO NOT have to even contribute your own money to the 401k to get this 2%, but if you do contribute your own money it's just another extra added bonus.
So starting in 2008, I will be happy to getting an 8% match on my money. Can't wait!

Labels: 401k

The greatest single source of wealth is between your ears. -Brian Tracy

I get a daily email of 9 quotes or blurbs that I have received for the past 3 or so years. The above quote was #8 on the list on Wednesday.

There is usually a quote a week that sticks out and makes me think. This one doesn't necessarily make me think but rather agree with it. While I do not consider myself to currently have wealth, I am on my way to accomplishing that goal. It wasn't until I decided to use what is between my ears that I figured out I didn't have to be in debt anymore, that I too could become wealthy - financially independent. I think all of us that blog about finances or getting out of debt pretty much came to that conclusion too. We started using our heads and thinking about our situation. We stopped worrying about impressing people. We stopped being normal. But as Dave Ramsey says, "Normal is broke!"

Another thing that really bugs me is something I read the other day. I hopped on AIM and was checking the away messages and someone I graduated high school had something to this effect as their away message: "I am now enrolled in a 401k. I feel like such an old woman". I'm sure they will read this too, but that's ok. Enrolling in a 401k, when it is available, is about of the smartest financial decisions you will make. It's like when you go to college and you received more financial aid than was necessary. You would stand in line for that refund check. That's free money baby!! So when your employer provides a match on your contributions, that's free money too - only you don't have to stand in line. So, my old high school chum, if you still feel like an old woman, I hope you feel like a WISE old woman. sidenote: I get paid on the 15th and last day of each month, and after those days I check my 401k balances and keep them in a spreadsheet. At my new job that I started in July, I have achieved a 7% return on my investments. I guess that's pretty good. My old 401k that I have yet to rollover has returned about $55 after I contributed about $650 and received a match of about $125. I really need to roll that over. Just all the information I have received on how to do it, makes it seem complicated.

Labels: 401k, dave ramsey