Essence Magazine asked readers to share the best financial advice they've received and how they used it to build wealth. Here's today's tip:
"As a freelance television producer, my earnings are sporadic. My biggest mistake was not investing in the 401(k) plan offered while I was working on the Oprah show. I literally missed out on free money because Harpo matched employee contributions. When I landed on another show, the first thing I did was set up a 401(k) retirement fund. A sorority sister advised me to ask friends on my same income level what they did to save. After some research I met a broker who advised me to invest in a plan that doesn't penalize you when you borrow against it during times of unemployment."
As most of you know by now, I love 401k's but don't like borrowing against them. Maybe if your income is sporadic then you need something that you can borrow against, but I'd recommend doing all you can to avoid that. Instead, save up and emergency fund and let that 401k money stay and work for you!
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