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The 401(k) challenge...

January 19th, 2009 at 02:04 am

has begun in earnest. I received my paycheck stub earlier (which had no pay), and I just doubled checked my 401(k) website and saw that my full contribution has gone through.

I did not do 100% however. I rolled it back down to about 80%, because I think it'll make me feel better knowing that enough money is going to make sure that my insurance is paid. I assume that it is even if I did 100% and my paycheck stub seems to confirm it, but I still want to play it safe.... Besides, 80% is plenty anyways.

As for my budget, well, I admit it's slightly unnerving seeing my emergency fund dip in noticeable chunks at a time. I mean, I know it's temporary, and I can also stop this anytime I want. But, I guess it's just the psychological mindset of it all. It's amazing how when you get used to a certain level of funds as backup, you no longer see it as some kind of "free extra money" but more like "necessary survival money". Kinda funny like that eh?

5 Responses to “The 401(k) challenge...”

  1. Koppur Says:
    1232333204

    I think it is a brave thing you are doing, just from my own view. I'd freak seeing 80% of a paycheck going to one thing, even if I knew I had enough saved elsewhere for everything.

  2. creditcardfree Says:
    1232334306

    Good luck. I hope it works out like you plan. Your job is safe even after the switch, right?

  3. Broken Arrow Says:
    1232334900

    Yes, I'm fairly certain my job is secure. However, there are no guarantees, and all this transitioning is part of the reason why it's making me a bit jittery doing all this.

    But then again, when else would someone be doing what I am doing, except when transitioning from one 401(k) to another?

  4. monkeymama Says:
    1232375832

    I've seen plenty of married folk do this (bank an entire second income to their 401k). But I am not sure I have ever seen a single person commit most of their pay to their 401k. Doesn't make it right or wrong. I think it's very wise!

    No other reason to do it unless you knew you were quitting and wanted to max out.

  5. Broken Arrow Says:
    1232388143

    Never met a single guy doing it eh? Does that make me "special"? Do I get my own special bus? Big Grin

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