Tuesday, July 8, 2014

Upped My Retirement Contributions

I increased my 401k contributions to 10% today. I also get a 5% match that isn't affected by this. I'm really nervous because my paychecks will be smaller. But I don't want to be poor when I'm older. But I have so much other stuff to save or pay for.

I'm still a bit torn on this decision.

For groceries, we've spent $123 so far this month. We are about right on pace for the month. The sad thing is that I don't feel like we've bought much food for that price. I did buy steaks and stuff for kebobs over the long weekend. It was a splurge but cheaper than going out. We've only spent $14 on eating out when we grabbed breakfast on our way to the lake last weekend.

6 comments:

  1. Great job on increasing retirement! I am like you--I am motivated by fear. I don't think that I will get social security when I retire...so its completely up to us.

    And yes, food prices are so high. Last weekend, my cart was less than 1/2 full, and I bought no meat---the price was 77.00....it blew my mind.

    ReplyDelete
  2. I make my own steaks as well. I buy the family pack and it works out to less than $10 per meal, which is a third of the cost for a steak dinner out on the town :) I'm happy to see you've increased your retirement savings rate. Every dollar you don't spend today will make you get used to not spending it in the future as well, which saves you residual money in the long term. Plus the money saved now can be used to enhance your retirement later. It's a double win (^_^) My own plan is to max out my Roth IRA equivalent first before I contribute any more to my 401K equivalent, but that's because I don't make a ton of money.

    ReplyDelete
  3. I just started a new retirement plan last month when I realised that my company do actually offer a matching-type plan of sorts. Not sure how I missed it the last five years. Although, the way it works is that in February of each year, they pay out to me, 5% of what I have paid in to the plan over the previous year. The only catch is that I do have to still be working at the company in February to get that cash. And I've just started the search for a different job. Oh well. Chances are high that I will still be there by February and even if it doesn't work out, there are tax benefits to the plan as well. It's hard to balance wanting to make sure you've taken care of retirement planning with wanting to make sure you also live your life now and have enough money take care of everything and everyone now.

    ReplyDelete
  4. Hopefully, you won't even notice the "missing" money after a few paychecks.

    ReplyDelete
  5. You can always change it if it doesn't work. But I think you'll do great even with smaller paycheck!

    ReplyDelete
  6. That's awesome! Whenever I increased my contibutions it hurt for a few months but then I got used to not missing the extra money out of my paychecks.

    ReplyDelete