I just looked at my budget and proceeded to dial back down my 401(k) contribution. I did it now because it takes more than a week before the new contribution setting will kick in.
This also means I'm just one week shy of meeting my challenge. So then, the question is why did I stop the challenge early?
For one thing, I just bought some suits. Yeah, it was a bad time to be making large purchases of any kind, but in all honesty, the suits were a great deal, a great investment, and I really do need business attire of some kind for work.
Another is that I underestimated how much my cost of living would be. This is something important that I learned during this challenge.
You see, my original calculations were based on the idea that I had lost my job and that I would slash all of my living expenses to the absolute bare bone. But for a short-term challenge like this one, I didn't see the point of dialing down my bills only to bring it back up.
More importantly, I did try to cut back somewhere, but realized that there isn't much to cut back to begin with. Everything on my expense is a "need", including a cellphone (the only line I have) and internet (needed to search for a job).
So, instead of cutting back somewhere, I am faced with the grim reality that my EF should be a lot bigger than I first imagined. Then again, it's better to realize this now than to find out the hard way, in the event of a real emergency.
On the bright side, I've accelerated my 401(k) contributions greatly for this year! That's the goal, and I think that goal has been a success overall.
Once I move on to the new employer and 401(k) in March, I will be plowing full speed into replenishing the cash reserves. My EF right now is down to my minimum comfort level and I really, really do not like having it this low.
Ended my 401(k) challenge
February 12th, 2009 at 01:58 pm
February 12th, 2009 at 02:09 pm 1234447781
I hear you on being at the cutting edge of the bone already. We're going to be cut about a third with Hubster's unemployment checks so, it's going to be interesting as to where I'll find to cut since it seems we're close to the ragged bone already!
February 12th, 2009 at 04:05 pm 1234454735
February 12th, 2009 at 05:01 pm 1234458071
February 13th, 2009 at 03:45 am 1234496736
We budgeted $400 for the month for food, gas, and anything that wasn't a monthly bill. Your amount could vary. It was a challenge, but not as hard as I thought it would be.
February 13th, 2009 at 04:37 am 1234499825