We (25 years old) have one child and one on the way. I am the sole earner. I am not currently in a position where I think my job will go away, but we recently got to talking about the next year or two and we realized we have no liquid savings at all. Up until this point life has been essentially paycheck to paycheck, I recently however got a $5k raise which has been giving us an extra 200 or so a month after all other expenses. Debt is under control and being managed wisely (car payments and such) so there's no urgency to rush to pay anything off currently.
Currently I contribute my 9% to my works 401k since that's matched dollar for dollar.
I also contribute about $1k a year into our HSA account.
I'm wondering if I should scale back my 401k contributions for a year and put that into a liquid savings account until I hit a specific marker ( 3-4k) in savings then ramp it back up?
I know how valuable every dollar will be in retirement and how exponentially it will grow in the meantime. I just am wondering if having a liquid savings now would be a better plan in case of an emergency or God forbid a loss of income.
I'm just looking for some thoughts on the best way to arrange this.
Submitted March 07, 2019 at 02:51AM by NOT_REALLY_ACCURATE https://ift.tt/2H6Amrf
