Personal finance is a journey. It’s a way of life. Each road has many different choices. On this journey, it’s just you on the road. Each turn you make brings new experiences.
You can either choose to spend it on a nice juice box:
Or a lean, mean piggy!
Well, he doesn’t look that mean or big…
Last week, I set my retirement contributions at 10% of my annual pay. My company will be matching 7%. 10 + 7 equals 17%! Yesterday, I received all the funds’ prospectus (AKA financial information). Looks like I have some bed time reading for the next week or so.
I decided not to max out my 401K because we need to build our savings, pay for tuition, and we are still primarily depending on my income for living expenses. I still haven’t opened up a ROTH IRA. One step at a time peeps 🙂
It’s a little crazy to think I won’t be touching this money until about 3 decades from now. Hmm…talk about postponing pleasure. At least, I am not getting taxed now on the income. It will grow for years and years to become a fat little piggy.
Where in turn I can use to buy lots of crispy bacon! A girl’s gotta dream!!!
Have you started contributing to your 401K? How much do you have?
Saving, Debt, and Personal Goals for July-December 2012
By the way thanks so much for reading my post yesterday: The Exciting and Not So Exciting Parts of Growing Up! 🙂
Savvy Financial Latina 
Looks like you’re doing great!
Thanks!
Good job in starting your 401k contributions and taking advantage of your company matching options. Here in Canada RRSP’s are the equivalent to 401k’s. I started contributing to my RRSP’s quite young as well and took advantage of all my company’s matching options. It’s a great way to go!
Thanks! I am hoping it pays off 🙂
I’m not American, so I dont have a 401k, but we have retirement investment vehicles (RRSP) and I’ve contributed to it. I will be stepping up my contributions soon, but not until I’m finished paying for NYC,.
That’s awesome! You haven’t even graduated! I’m impressed!
When did you go to NYC?
You are doing the right thing! 401k contributions–it’s like FREE MONEY! 🙂
Right? It’s on top of my salary. I don’t know why people don’t take advantage of it more often!
You’re doing great!
I too think it’s a weird feeling contributing to retirement that I won’t be able to touch for decades. However, I know that we will be glad we did when that time comes!
Yeah, I might as well forget about the money. It doesn’t exist! :[
Sounds like you’re doing great! At my company, we contribute 6.5% and get 10% from the company towards our retirement plans. If we leave early, we get 1.5x our contribution back.
10% that’s awesome! What do you mean by leaving early?
That’s amazing! My company only matches upto 3%. SO I put in 3% and they put in 3% for a total of 6%. I hope by the end of the year, to put in 7% for a total of 10%. We’re waiting until my husband gets a full time job to increase my contributions. However, I also will get a pension so I’m not SUPER concerned about not maxing out my 401K this early.
Dang! Your company also has a pension!?!
God I miss 401k’s!! I have about 70,000 in mine right now, but remember I’m 41, so I don’t have as long till retirement to go, which is why I need to get my ass in gear and figure out ways to do it as a freelancer.
What are your options if you don’t have a company sponsored 401K? Are any options pre tax?
That’s an amazing match percentage! My company matches 3% and this is the first year where I’ll be maxing my 401k :). I have just over $150K in the 401k ($200k total if you add the Traditional and SEP- IRAs). I just kept inching up the contribution % year after year until I reached the max. Gotta work on maxing the IRA next….
I wish I had started at 10% when I started my first job!
How long did it take to get to 150K?
Until you started maxing out your 401K?
I started my 401k in 2004 and I was contributing only 3% (just enough to get the employer match). I think I was at 10 or 11% contributions during the huge downturn in the market in 2008-2009, but I was buying mutual funds at almost half price. They have all fully rebounded by now.
That’s awesome! It sucks when stocks go down because it means our economy is not recovering. But it’s good for us youngsters who can buy low.