If you don’t do this 1 thing with your 401k, you’ll kick yourself later.
Far too many young people that I talk to do not contribute to their employer-sponsored 401k plan. If your employer offers a match, it should be a no-brainer to contribute at least up to that match. It’s free money that your employer is offering you towards your retirement!
So why don’t some people contribute to their 401k at all?
Most tell me that they “can’t afford it.” They believe that the 3-4% of their salary being diverted to retirement savings will keep them from being able to pay rent or put food on the table. But I really want to challenge them to reframe that scarcity mindset to an abundance mindset.
What would really happen if your take-home pay dropped by 4%? If it truly would impact your ability to cover your basic living expenses, then it sounds like you’re not making enough money to begin with. Ask for a raise or look for employment elsewhere that provides the basic level of income you need to take care of your present expenses AND future expenses (i.e. retirement). Those employment opportunities exist, and you deserve to be gainfully employed. (At least until you reach FIRE of course!)
When you embrace the fact that an employer is offering this benefit to you, you allow money to flow into your life with ease. Take advantage of the blessing and believe that you deserve to take care of your future self by investing now.