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Upped the first 401(k)

November 28th, 2012 at 03:04 pm

After considering where we were headed tax wise this year, I decided to have DH up his 401(k) contribution to 30%. I suspect that with bonuses and overtime that will max out his 401(k) contributions next year (we might even have to dial it back next year to avoid being too high). He's ecstatic since he loves to watch that number go up.

I have decided that since the credit cards are at 0% apr, I will save the cash to pay them off and just pay them off completely all at once. It will make it easier to plan with his income jumping around. We are already over a third of the way there for one of the cards and depending on overtime and bonuses, could have the rest in two months or less.

DH's June bonus will wipe out any remaining credit card debt (even if we pay nothing more) so that is why the priorities are shifting to saving cash and saving for retirement. When I worked a temp job, we always had 3 months expenses in cash and I would like to get to the point where we have 6 months which we have never had before. Once I have seen a month of his income with the higher 401(k) amount, I should be able to develop a goal time for that.

3 Responses to “Upped the first 401(k)”

  1. SecretarySaving Says:

    Great job. 30% sound really good!

  2. Ima saver Says:

    You are doing great!

  3. snafu Says:

    I suggest you also review the holdings in DH's 401K so see if any tweaking would be helpful. If you have space in a retirement plan of your own, you could make a contribution which can be a major benefit for you w-aay in the future.

    Great going in having funds to pay off 0% CCs. If DH's employment feels secure, you might think about a financial plan for sums exceeding 3 month EF since savings accounts cause you to lose buying power due to inflation. Have you noticed the price increases in the food stores? Gas feels like a rollercoaster here, I no longer plan the sum it will take to fill the tank.

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