The article emphasizes the importance of saving for retirement early, ideally aiming for 15% to 20% of your paycheck. However, it also acknowledges that younger individuals may face financial hurdles like the need for emergency funds or the burden of debt. Using a Reddit example of a 26-year-old in NYC earning a modest salary, the article suggests that while contributing to a 401(k) is vital, attending to immediate financial obligations should be prioritized to ensure overall financial stability before increased retirement contributions.
You may have other financial goals you need to tackle before you can afford to allocate 15% to 20% of your pay to retirement savings.
If you don't have a fully loaded emergency fund, for example, that should take priority over a 401(k) when you're 26.
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