I present a detailed study of the magnetic propertie of electron-beam evaporated Pdo.4Nio.6 alloy thin films by means of ferromagnetic resonance measurements on extended films of varying thickness and anisotropic magnetoresistance measurements lithographically patterned high aspect-ratio ferromagnetic electrodes, respectively. The results reveal that the direction of the magnetization with respect to the film plane strongly depends on the electrode lateral dimensions, transitioning from in-plane magnetization for extended films to out of the plane magnetization for electrode width below 2-3 microns, reaching ~58 degrees for electrode widths of about 100nm (nanowires). This behavior arises from a competition between the film demagnetizing vector, which leads to in-plane magnetization for extended films , and an intrinsic uniaxial anisotropy, which overcomes the magnetostatic energy for laterally constrained films, pulling the magnetization off plane.