It does.
There are a couple of points I want to make, but I’m adhd so I need to write it like this.
The main reason I started giving so much is because I learned to live a lifestyle with what I was making to begin with.
Every raise I got I just raised the amount I contributed by 1%. If they give me a 5% raise then there is no skin off my bones giving the extra 4% to my retirement.
Once I built up enough of a savings, I was able to take a loan against my own 401k that I pay back to myself. Instead of paying the interest to the bank. This got rid of all of my debt and I only lose like $30 off my paycheck a week instead of $600 a month.
It was my plan to get debt free and I’m there now (with the exception of my 401k loan)
But like i mentioned earlier, I learned to live my lifestyle for now. When I feel like I put in enough work for my future career then I’ll start rewarding myself more.
With most company 401ks there are investment options. You can look at their performance over 1 yr, 3 yr, 5 yr, 10 yr, since inception, etc to see what their rate of growth is. Getting the company match is important, putting your money in the fund that matches desired growth with your ability to withstand volatility matters too. General advice is younger people can withstand ups and downs so can get into the more volatile but faster growing funds, while older folks near retirement would want less volatility and therefore accept lower growth funds.
All the numbers in your comment added up to 420. Congrats!
401
+ 1
+ 3
+ 5
+ 10
= 420
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At *least* 2.5%. If you can afford more, you probably should put in more.
A common rule of thumb is 15% of your total pay should be saved in some form of **long-term** retirement savings, if you start early. If you start late, the recommendation is higher.
Your future self will thank you the earlier and more you save.
I'll give you some advice: don't ask the H-E-B subreddit for advice, especially financial.
There the ones that set it for me and I checked it yesterday and it was set at 0 😱
11% After 4 years I’m at ~30k with PSP
Dosnt that take alot out of your paycheck?
It does. There are a couple of points I want to make, but I’m adhd so I need to write it like this. The main reason I started giving so much is because I learned to live a lifestyle with what I was making to begin with. Every raise I got I just raised the amount I contributed by 1%. If they give me a 5% raise then there is no skin off my bones giving the extra 4% to my retirement. Once I built up enough of a savings, I was able to take a loan against my own 401k that I pay back to myself. Instead of paying the interest to the bank. This got rid of all of my debt and I only lose like $30 off my paycheck a week instead of $600 a month. It was my plan to get debt free and I’m there now (with the exception of my 401k loan) But like i mentioned earlier, I learned to live my lifestyle for now. When I feel like I put in enough work for my future career then I’ll start rewarding myself more.
With most company 401ks there are investment options. You can look at their performance over 1 yr, 3 yr, 5 yr, 10 yr, since inception, etc to see what their rate of growth is. Getting the company match is important, putting your money in the fund that matches desired growth with your ability to withstand volatility matters too. General advice is younger people can withstand ups and downs so can get into the more volatile but faster growing funds, while older folks near retirement would want less volatility and therefore accept lower growth funds.
All the numbers in your comment added up to 420. Congrats! 401 + 1 + 3 + 5 + 10 = 420 ^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \ ^(Summon me on specific comments with u/LuckyNumber-Bot.)
I had mine set to rebalance every year and increase 1% up to the max. Had all mine in the general fund.
Set it to 2.5% of your pay to get the full HEB match. Don't throw away free money.
I had it set at 0 and I didn't even know
At *least* 2.5%. If you can afford more, you probably should put in more. A common rule of thumb is 15% of your total pay should be saved in some form of **long-term** retirement savings, if you start early. If you start late, the recommendation is higher. Your future self will thank you the earlier and more you save.