Believe And Budget
Money Talk with The Maloneys
How to take advantage of your companies benefits for investing in your future
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Do you feel like starting to invest is hard? I can completely understand. I know many people right out of college feel the same way. You get your first job and have so much debt and you’re supposed to invest into your future, but you are just trying to understand the concept of investing and why now. Come with us to talk with you about how you can take advantage of your companies 401k and if you don’t have a 401k with your company you can open up a Roth IRA.
1. Company Match
The company you are working at right out of college will probably have a 401k whether you can invest in it right away it up to your company’s policy. Some do not allow you to invest right away.
Kroger did not allow me to invest until I was 21 and I started working there when I was 16.
Know what your company match is – it is FREE money!
It is very important to know what your company match is because you need to be taking advantage of it. Many people I have talked to do not do this because they “cannot afford it.”
Start small and grow it each time you have a raise or when you feel really good about your money situation you will be golden!
Where I used to work the match used to be if you contribute 5% and they would match 100% of the first 3% and 50% of the other 2%. Recently it changed and it is very rich match – Contribute 5% and they match 100% of the full 5%. This is 5% of the company adding to your salary in reality! Can you say… THANK YOU!
Whatever your companies match is please take advantage of it.
Don’t know what it is. Find out from your HR leader or your manager. I am sure they will know and help you out, which will bring me to the next point.
2. Ask your leader how to take full advantage of the benefits
One of my greatest mentors were my leaders in my career. They taught me all about the 401k benefit.
Do not be scaried to talk about it because it is your future you are investing in.
Let me tell you a secret.
You are not alone! A lot of people do not know about the benefits they are missing out on unless they ask.
Looking back at my experience in HR in the benefits world, so many people would ask and I was so excited and thrilled to help them out to help them grow their wealth.
When I changed roles and was a leader, I talked to even my department leaders about taken advantage of the benefits during our weekly close the loop calls because everyone needs to know and needs to be educated about the benefits.
3. Watch your money GROW!
How can my money grow? The magic of compound interest. Think of it as another place to get “free” money. Your money is working for you instead of you working hard for your money.
Let us show you the beginning of our start of investing.
From July 2015 – July 2016, I was busy paying off the last of my student loans to become debt free and did not contribute much to my company’s 401k. (If I could go back, I would have at least done a little bit like 3%).
In 2017, I started back up heavily, 6%, because I started reading books and articles about the magic of compound interest. I did an experiment with my own investment and want to share with you!
In 3 years, look at the growth. You can do the same!
My husbands’ looks a little bit different, but that is okay. That’s why it is personal finance. We all have our own journey. He started a little later, but has been investing in his future and paying off his student loans.
4. Talk to a Coworker!
My hubby is a great example of this…
When we first met he was not investing into the 401(k), I get you – you are thinking and you married this man? YES – he challenges me in other areas where I am not strong.
Anyways… I talked about it a little bit to him but knew I could not push it onto this decision. His coworker and my hubby then started talking about it one day at work, and they both started investing into their 401(k) together!
Now, my husband is investing more into his 401(k) and ROTH than I am and it is because a friend talked to him about it.
Do not be scared to talk to someone about investing in their future. They may need you to give them a little boost.
5. Invest into your HSA
Another good piece of investment with your company is the Health Savings Account (HSA). This is where you can place money into a fund where it is tax free now and you can use for medical expenses in the future.
To open an HSA, you have to be enrolled in a high deductible health plan.
My old company would allow you to keep $1,000 in the regular savings fund and then you can invest the rest! You know what I did, I invest the rest because why would I risk letting my money sit there doing nothing?
I had an executive who was my boss tell me the greatest advice and I want to share it with you all.
He told me, do not spend the money you place into your HSA. You may think you “need it now”, but wait until you are older. You will need more medicine, you will need more doctor visits, and you can even use it to pay for your Medicare and Medicaid!
To this day, I have listened to him and invest it for my future.
We did not even dip into it when we had our baby. We saved up a baby fund with $10,000 to fund our baby expenses.
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6. Open a Roth IRA or an IRA
Your employer does not offer you a company match or a 401k option until after a year or even three years. Do not let them stop you from investing into your future.
Open an account with a broker. We use Betterment. I have used TD Ameritrade and Robinhood too. If you want an easy investment account, Betterment is for you.
You will want these accounts anyways when you work for a company and need to roll over your investments if you leave that company anyways. That way you do not forget where all your money is when it comes to retirement.
Leave a company. Take your money with you and roll it over to your outside investment account. Personally, I have done this with the companies I have left.
Listen here, if you think you do not have money now. You do not want to be in the same position when you are 80 or 90 years old and cannot physically work.
Start small. All eyes on you right now. Just kidding, but seriously.
Let it all out, scream, shout, and open it up.
Post it once you do and let me know, tag me in it! I will be your cheerleader!
I will dance and sing and have some drinks with you to celebrate! Even ask my sister, we partied hard for her 21st birthday. I also say I will be like my mom and party with my kids when they turn 21 and do a power hour! Why? Because life is FUN! Investing can be FUN too! Think of all the FUN you will have when you can have in your future!
Want to make life last forever? Start investing in your life!
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If you want to let someone else learn, pin it.
Know someone who is young who would benefit from this, pin it.
Want to be happy in your future, like it.
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