My finances have fallen by the wayside.
The Good: *cricket chirps* I am not living above my means (just, er, very close to it). I also finally set up automatic payments to my student loan.
The Bad: Between all the costs for the apartment and the copious amounts of shopping and dining I’ve been doing, my emergency cash fund has been growing… rather slowly. For most of April and all of May I haven’t been able to save much at all.
The Ugly: Too ugly for words. Only numbers can tell the story.
Double rent for June: ~$1,700 (later I expect ~$300 back, but still!)
GMAT registration: $250
Hotel reservation for parents: $200+
Memorial weekend massage & shopping: $350
Dining out: I don’t want to look!
Conclusion: I’ve been a rather bad PF blogger, haven’t I?
The exciting news is that I will have access to a 401(k) come July. I am debating if I should aim to contribute the full $15,500 the 401(k) for 2009 – that’d be $2,583 a month, a very significant chunk of my paycheck. I probably won’t be able to save for anything else for the rest of the year.
However, given that I expect to return to school in the next few years, it behooves me to save as much as I can in an employer-sponsored retirement vehicle while I can. One year of maxed out 401(k) is $15,000+ in contributions… that can make a ton of difference later on in my life.
Maxing out the 401(k) in 6 months = a lot of money! But maybe this enforced savings is just what I’ll need to whip my finances back into shape.
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That is GREAT you’ll finally have access to it. I think you are right — it would be smart to focus on the 401k while you can, esp. considering you’ve been mostly cash focused (after the Roth) previously.
Hey – we all have off months, right?
I just got back from Vegas and looking over my budget this weekend was depressing…LOL. Maxing out your 401K in only half a year would be tough, but that would be awesome!! The actual max for 2009 is $16,500. It has changed since 2008. I always tell people to at least contribute what their employer matches – but it sounds like you are definitely planning on that plus some!
This was a busy month for you, so I wouldn’t worry if your expenses are a little out of whack. Just get back up on the horse for June!
Definitely put as much as you can in the 401K! I did the calculations & I save something like $350/month on taxes!
Just keep in mind that once the money is in the 401K, it’s there for the long term so if you think you might need access to it for school or living, it might not be the best place. Maybe try to put $1500 or so a month so that you are taking advantage of it but keeping enough liquid as well.
For your 401K only contribute the max your company will match and no more. Put any excess into your Roth. Don’t toss away free money from the company. That’s what my Dad taught me.
everyone falls off the wagon occasionally. don’t be too hard on yourself.
i think it’s a great idea to fully fund your 401k this year. you’ll significantly reduce your tax bill. and i’m guessing that during your two year business school stint, retirement savings won’t be a huge priority. saving more now means you won’t have to play catch-up later.
My ex-BF maxed out his 401(k) two or three years in a row and WOW, it made a huge difference!
hey, at least you’re keeping it real! we bloggers can’t go on preaching goodness all the time or we wouldn’t be real
as for 401k, i’m always biased to maxing that out every year, so my vote is to go for it.
Everyone has been having spendy months lately, I’m trying to get back on track as well. I haven’t slipped backwards per se, but forward motion has slowed considerably. At least you are enjoying life!
$16,500? I did not know that. Oops! That’d be $2,750 per month. Don’t know if I can make it…