#401k #Savings #FinancialAdvice
Understanding Your 401k Matching
If you’ve recently started a new job and your employer offers a 401k plan that matches 15% of what you contribute, you’re in luck! This means that for every dollar you contribute to your 401k, your employer will contribute an additional 15 cents, up to a certain percentage of your salary. This is essentially free money that will help you grow your retirement savings over time.
Setting Yourself Up for Financial Success
Before you meet with the broker to discuss your 401k options, it’s important to assess your current financial situation. Since you’re making slightly above minimum wage and have bills to pay, it’s crucial to strike a balance between saving for the future and covering your living expenses. Here are some steps to consider:
– Calculate your monthly expenses and determine how much of your paycheck you can realistically contribute to your 401k without causing financial strain.
– Aim to contribute at least the amount that will maximize your employer’s matching contribution. This will ensure you’re taking full advantage of the free money being offered.
– Think about setting up an emergency fund to cover unexpected expenses, such as car repairs or vet bills. This can help prevent you from dipping into your savings account.
– Avoid touching your savings account for non-essential purchases. Consider creating a budget and tracking your spending to ensure you’re living within your means.
– Educate yourself on basic financial concepts, such as budgeting, saving, and investing. This will help you make informed decisions about your money and build a secure financial future.
Taking Control of Your Financial Future
While it’s understandable that you may have had limited exposure to financial literacy growing up, it’s never too late to take control of your money. By leveraging your employer’s 401k matching program and implementing sound financial practices, you can start building a strong financial foundation for the future. Remember, every small step you take towards financial literacy and stability will pay off in the long run. Good luck on your financial journey! 🌟
In conclusion, starting a new job with a 401k matching program is a great opportunity to grow your retirement savings. By carefully planning your contributions, setting up an emergency fund, and avoiding unnecessary expenses, you can set yourself up for financial success. Don’t be afraid to seek out additional resources and advice to help you navigate the world of personal finance. Your financial future is in your hands – make the most of it!
This may sound like non-advice, but you just need to practice discipline in saving.
Make a savings account and just force yourself not to touch it. Treat it like you’re stealing from yourself and whenever you feel an urge to withdraw it, imagine you’re doing something incredibly wrong and force yourself to feel shame until you just don’t take it out.
Become addicted to seeing that savings number go up. Treat it like going to the gym; the bigger that number gets, the more satisfying it feels.
Your dog has a better financial plan than you do at this point and that needs to change.
Start with a emergency cash fund at a local credit union or bank to keep things simple and get on the positive side. You should try to put double the amount you save for the dog into a account for yourself . Cut the dog funds to help yourself.
Hey OP 21 is earlier then most realize-
First of all, do you have a bank that is a high yield and nobody else has access too?Â
If yes, then I’d say see if they allow unlimited savings accounts/buckets
Then ask yourself- what do you want to save for? 6 months of expenses first. Try to limit discretionary spending during this saving time.Â
After that, you can start saving for fun stuff- you can have a bucket for video games, for car, for eating out! For all kinds of things.
Try as hard as you can to put abou 15% away into your 401k since you get matched, but don’t go much lower then 7-10 if you can’t do 15
During this time, track your money- what other bills are popping up that you need to pay, and how much? Make sure there’s buckets funded for them! Take it one step at a time following the flowchart
Making 2 dollars over minimum wage at age 21 I probably wouldn’t put more than 5% of your paycheck in there, just to start the journey and develop the habit. But really you need to focus on growing your income more than any other goal.
Start with what you can afford. Increase it 1% every year if you can.