If someone was to offer you a dollar for every dollar you save, would you do it?
If you answered yes, great! If you answered no, I’m worried about you. The last thing you want is to be a broke investor like me and leave over $1,500 on the table. How did that happen? I’ll spill the beans.
As most know, companies are now offering 401k retirement plans. Usually, a company will allow you to contribute to a plan and then they will match you for whatever you put in. You can stand to earn anywhere between 3-6% match on whatever you put in. That’s equivalent to giving yourself a 3-6% raise.
The company I started working for in March 2017 is no different. Their plan is 100% match on the first 4% and then a 50% match on an additional 1%. The thing is, I didn’t see myself working there any longer than a year. Well, this March will be 2 years there.
The reason I was so hesitant to put in is because of a previous experience I had at another company I contributed to. I started saving 5% of every check, thinking that no matter what, I can walk away with whatever I put in plus more. Come to find out when I left that employer, I had to have worked there at least 2 years before being fully vested.
Without learning more about this new employers plan, I assumed it would be the same situation. However, that didn’t prevent me from starting to invest in my own Roth IRA to apply the 50/25/20/5 Budget Guide. Fast forward several, several months and I came to realize that at the new company, you are fully vested from day one!
Another broke motion performed by The Broke Investor. Hole in one! Since tax season started on January 28th, 2019, I decided to get my tax refund as fast as possible. This is when I realized how much money I left out. Looking at my previous deposits to the Roth IRA, I included 4% and the results came out to over $1500 of money left on the table. Ouch!
A good thing to do is learn from your experience, a better thing to do is learn from OTHER PEOPLE’S experience!
As always, Keep Growing, Keep Investing. The Broke Investor