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Indecision

November 27, 2009

I can’t decide what I want to do with my money.

One day I set some nice reasonable goals for 2010, the next day I become obsessed with maxing out my 401k.  I can do it while maxing my Roth, but my total yearly cash savings would be about $7000.  After the wedding & honeymooon.  Or I can contribute a more modest 15% and have significantly more cash savings.

The problem is, I really want to do it all.  I want to save $21,500 for retirement (401k + Roth) and also save something like $20k cash.  This is obviously not possible.

As much as it pains me to admit it, I probably should focus more on cash next year.  Maxing out my 401k sounds great, but I am going to need a newer car eventually and I want to have some money that we can use for a home.    And 2010 is going to have some one-time expenses.  Maybe 2011 will be my year.

By the way, I know I’m supposed to do the right thing and write about what I’m thankful for.  Can I do that in 2 weeks?  I’m going to feel a lot more thankful in two weeks!

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5 Comments leave one →
  1. Carrie permalink
    November 27, 2009 12:37 pm

    My BF and I have been talking about this a lot lately. I really, really wanna max out both next year, but we have lots of things to save for in the future so we might have to cut back on our 401K next year. 😦 I’ll definitely be maxing out my Roth next year, but my 401K might be closer to $11K or so. Sometimes you just gotta save for the now instead of the future!

  2. November 27, 2009 2:07 pm

    Man, I totally hear you on wanting to do it all. There is so much to save for that it seems nearly impossible to save for it all!

    It is a tough decision between the 401Ks and the cash savings. Do you have a Roth that you’re saving into? If you’re maxing out the Roth I’d say forgo maxing out the 401k and go for the cash savings for the wedding and all that.

    Just my 2-cents. =)

  3. November 27, 2009 7:03 pm

    Hmmm, maxing out a 401(k) sounds really good. Could you be happy with saving half cash and half in the retirement vehicles?

  4. November 27, 2009 7:35 pm

    @carrie – We’re in the same boat I think. We have to balance!

    @SS4BC – yeah, I have a roth. The wedding is (mostly) saved for, but the honeymoon, car and future home are not.

    @revanche – yes, very sensible idea. The thing about retirement is there is a limit, so it feels like… there is something concrete to strive for! Cash has no limit!

    I’m going to work out what 1/2 1/2 would be. That seems so reasonable!

  5. November 28, 2009 1:36 pm

    I totally understand, I always flip flop between adding more money to savings, putting some in a CD, buying stocks, saving for retirement….but at least we’re thinking about this right? I mean, thank god I’m not out there at 4 am shopping my tail off for black friday “deals”.
    You’ll figure it out, do whatever you want in the moment – savings either way is still savings!

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