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Do you know what today is?

It’s the 15th!

And that, my friends, marks a very important day for those of us paid biweekly. Yep, it’s payday!

And guess what? It’s my first paycheck of the year that doesn’t have a 401k deduction taken from it.  Meaning I maxed out my Roth 401k for the year!!! FOR THE VERY FIRST TIME EVER! :)

Yep, I’m very proud of myself.

Of course, as a grad student, I wasn’t able to contribute to a 401k (I wasn’t even able to contribute to a regular Roth IRA for reasons that still boggle my mind).

Last year was my first year as a full-time employee, and while I contributed, I didn’t contribute anywhere near the max because I wanted to make sure I saved enough for my down payment on my house.

This year, I set a goal to max it out, so I’ve been contributing a whole 25%(!!) of my paycheck each week to my Roth 401k.  And of course, since it’s a Roth 401k, all contributions are taken out after tax, meaning my paychecks are less than 50% of my gross, after all is said and done.

Now I can breathe a little easier for the rest of the year. It sure was nice to see that inflated (to me) paycheck today. Especially, since I have car problems that I need to address sooner than later :P

I know I got started late compared to some of my peers, what with my foray into grad school and all. If I look at Tony’s retirement savings, I start to feel bad, like I need to “catch up.”

But I also know that it’s better late than never.  According to a study by Vanguard, only 9% of people contributed the maximum in 2009.

I’m glad I have the saving diligence to be part of that 9%. {I’m nowhere near the “higher income” level that the majority of maximum contributers reside in the article. I’m just a tightwad ;) }

Another interesting fact from the same article:  Across every income group, women saved at rates that are about 5% to 8% higher than those of men.

2 Responses to “I’ve Reached a Personal Finance Milestone!”

  1. kc says:

    Great Job!!

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