Are You Throwing Away Free Money?

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How to take advantage of your employee benefits to keep more of your money

In this lens I will discuss one of the ways that you can keep more of the money you make, and avoid costly mistakes that many people regret.  I'm a former Employee Benefits Manager and I've counseled hundreds of people in ways to make the most of the benefits offered by their employers.  In these days of rising health insurance costs and disappearing raises, it is important to know what to look for and ways to maximize your income.

Get the Match, the 401k Match! 

Your Employer is trying to give you more money!

Does your employer offer a 401k or 403b plan? Are you participating in it? There are SO many excuses and reasons why you don't want to commit that "chunk" of your paycheck, aren't there? Well, here's the deal. Buried in all the paperwork and legal stuff you got when you were hired, there are details about what could be the best deal you've ever ignored. FREE MONEY!! Yep, you put in some, and they give you some. Plus, your contribution is PRE-TAX. It lowers your taxable income and feels like even less of a hit than you thought. Depending on your tax bracket, you could be saving up to 40% of each dollar contributed from going to the government. In other words, each $10 of contribution you make only results in approximately a $6 cut in your paycheck ($100 contribution "costs" you $60). Yes, you could be saving on taxes by contributing to your own IRA, but are you?? If you are, great! But you should still be contributing to your employer's 401K at least up to the level that your employer will match your contributions. That's the rest of the free money. You contribute say, 5% of your gross earnings, and they GIVE YOU 1% or 2% or more. Some employers will even match your contribution dollar for dollar (if you find one of those, stay there awhile!)
SO...pre-tax contributions and free money from your employer. Again, you're not doing this why? Yeah, it's time consuming and confusing to wade through all that paperwork and fill out all those forms. If you found $100 in the street would you pick it up?? Some employers are now making it easier by automatically enrolling all employees and allowing then to opt out. If you have one of those, stay in the plan!!
The other mistake often made in not enrolling in optional Long Term Disability insurance. If it is not offered automatically, seek it out and make sure you are enrolled. Life Insurance is important if you have dependents, a mortgage, mouths to feed. You have a much higher chance of becoming disabled during your working life than you do of actually dying. If you become disabled, you and your family will need even more replacement income to support you. These plans seldom cost more than a few dollars from each paycheck. Look for one that replaces at least 60% of your gross earnings and provides benefits for at least 5 years of disability. For less than the cost of a couple of lattes, you can have protection and peace of mind!

Here's Another Way I Can Save You Money! 

Shop at my BISI store

I've moved my store to BuyItSellIt. Their superb service and low cost allow me to pass the savings on to you. Stop by Angelinas-Crafts-And-Home.com to find great deals on home decor, rubberstamps, scrapbook supplies and much much more.

Angelinas Crafts And Home on BISI 

See What's in my BISI Store!

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See What's New in My eCrater Store! 

Rubberstamps and scrapbook supplies at great prices!

At AngelinasCraftsAndHome.ecrater.com you'll find great deals on new and gently used rubberstamps, scrapbook and card making supplies from quality brands like Inkadindado, Stampin' Up!, Jolee's, Colorbok and more.

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Great Stuff on Amazon 

There are experts out there just waiting for you to buy their books

Now that I've given you a few reasons to dig deeper, there are tons of great books out there to help you make the most of your money. You work hard for it, you should get to keep more of it!

Going Rogue: An American Life

Amazon Price: $9.00 (as of 11/08/2009) Buy Now

Have a Little Faith: A True Story

Amazon Price: $13.47 (as of 11/08/2009) Buy Now

True Compass: A Memoir

Amazon Price: $21.00 (as of 11/08/2009) Buy Now

Investing For Dummies, Fifth edition

Amazon Price: $14.29 (as of 11/08/2009) Buy Now

New Guestbook 

SandrasACRE wrote...

great squidoo lense. sandra

ReplyPosted August 05, 2008

jenifersdesignercloset wrote...

great lens...found you from the board!

ReplyPosted August 02, 2008

OrganicGiftsByDiana wrote...

These are great tips.
And I'll keep them in mind for the future in case we ever have a chance to use these tips.
I just wish we had some of them from my hubby's work. We are lucky to even get a paycheck, let alone any bonuses like these - LOL

Diana

ReplyPosted May 16, 2008

sisterra wrote...

Great info - saw you on the stores board

ReplyPosted April 27, 2008

EvieJewelry wrote...

Great Info

ReplyPosted March 17, 2008

fanfreluche wrote...

Great lens!! Saw your post on ebay store board! 5/5

ReplyPosted December 30, 2007

view all 13 comments

by pattia3

Employee Benefits Manager for over 20 years.  Now happily trying to make my living giving people great deals on great stuff on in my store.

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