Tuesday, April 03, 2007

feeling the pinch - 401k contributions

So I will admit it. I am a little scared. Since the open enrollment for changing and updating our 401k contributions just happened at work, I decided to go up another point. I made the change online yesterday but it is a little scary. I did some quick math and I can afford it but I will definitely be tight when it comes to pocket money.

However, there is an upside!. If I am able to keep myself at this percentage, I did some calculating that with normal pay increases and compounding it could increase my nest egg by a couple of hundred thousand bucks in retirement. Thats no small change. So I am hopeful. Of course, there are tons of variables in the equation, but I never really thought that I would be able to increase my deduction three percentage points in less than a 18 months. It has been the result of careful money management and being very diligent.

Now lets just see if I can make it work :)

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