Thursday, March 06, 2008

Raising my 401k and my small raise

Last week I wrote I just increased my 401k percentage. In that post I talked about my raise and my 401k increase.

I feel that I should clarify what I said. I didn't get a small raise. I got a pretty nice raise actually. However, I took the job paying more money in order to pay for school. I won't see any of that money since it's going straight to tuition. My regular expenses also went up which the raise will cover. That includes my rent, my garage for my car and my cell phone bill.

Then I raised my 401k percentage. Once I'm done with school, I'll raise the 401k by a few more percentage points. I'll also take a look at my first paycheck at my new salary. If I have more money than I anticipate, I'll divert it to the 401k. I know most people would take care of their retirement account first, but school is more important right now. I don't get financial aid or student loans. I'm paying cash for school. Some of the classes are reimbursed and some are not. So I need all of the cash I can get to cover tuition.

I'll be done with school in either December of this year or April of next year. Once that happens, my 401k will become my number one priority.

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