2 responses to “A Financial Guide for Students

  1. Credit Brain: Great move to talk about paying yourself first.

    I am always surprised to meet co-workers who are reluctant to sign up to pay themselves first and receive an automatic 1% in a pretax payroll savings plan. Consequently, they also fail to take advantage of the additional 4% match in the retirement savings plan the company offers.

    Seems a no-brainer to me, but they say they have bills. Even if you have bills–isn’t this an easy way to raise your income 5%?

    Example: if a person’s base pay is $39,000 and 5% ($75, $1950 per annum) goes into the plan every two weeks, the company match (5%) adds another $75 ($1950 per annum). A total of $3900 compounds tax free till retirement and can be borrowed against in emergencies for around 4-5%! Of course if you don’t pay this back, the double whammy of zero retirement savings hits home.

    I suggest you rename yourself:

    Credit/Saving Brain!

  2. Interesting CSB that you bring up the notion of pre-tax deductions, as this is a topic that will be discussed on Tuesday. Why Tuesday you ask?

    Well, here’s the thing… Some days there is nothing to write about. However on others, 4 or 5 interesting topics may come to mind… which was the case yesterday. In this situation I schedule the posts over the coming days. Reason being, that since this is an educational slanted discussion, I feel that the *right* amount of information for the readers to digest should not exceed one message per day.

    This is obviously an interesting debate and brings into question ‘How often should you publish?’ (see http://sethgodin.typepad.com/seths_blog/2008/09/how-often-shoul.html)

    But for now, stay tuned for more on Tuesday!

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