Lowering My 401k Contribution Rate

I’m working on paying down my debt so I had to think seriously about lowering my 401k contribution rate. Previously, I was contributing 20% which was putting a strain on me financially. As much as it’s hard to lower that amount, I decided to do it anyways. I lowered it to 5%, and I’ll have to double check what my company’s match policy is, but I believe that still qualifies me for the employer match.

That 15% difference will be going towards debt pay down. I’ll do a post soon of where I am on my debt situation, and possibly create some side bars so that I can see the progress each month.

Daily Expenditures:

$107.76 (Utility bills – this is the first bill that I’m using a credit card to earn points. I previously paid with a check by mail so that was $.49 cents each time. My utility company doesn’t charge me to use a credit card so I’m earning points on my utilities which feels good.)

$35 (doctor copay – again, I paid with a credit card. I’ll be trying to use my credit card more for bills)

Good Surprises!

After binge listening to the ChooseFI podcast the past week, I was feeling particularly behind on my savings today. I had sent in my rollover check last week and wanted to see if maybe it had hit my 401k account. Well, guess what?!!! It hadn’t, but I have $5,255.47 in my 401k account as we speak.

Apparently, I have been saving 20% of my before-tax income and I didn’t even realize it. I was so stunned and was trying to do the math, but wow, I’m just so freaking happy right now!!!

The $5,255.47 balance doesn’t include my rollover check which is ~$11k so that will be at ~$16k once my rollover check hits my 401k account.

I’m currently contributing 20% before-tax and it sounds like the FI community is pro-before-tax so I’ll keep it at that until I hear otherwise.

Daily Expenditures:

$56.59 for gas (This premium fuel and an hour and a half commute is killing me! I’m looking into a vehicle with a lower car payment and that just uses regular unleaded gas – more to come on that)

$70.81 for groceries (This includes ingredients for an apple pie and a pot roast. The meat cost me $35.37 which made me cringe, but I still figured that with all of it, it’ll still be cheaper than eating out. I’m horrible about leftovers so a yummy lunch will keep me more motivated to bring my lunch than eating out).

$48 for blog (This blog will keep me accountable while on this path to FI)