Just started my job two years ago out of college - have my Roth 401K set up for a 10% contribution but money has been getting a little tight and I am living more “paycheck to paycheck” than I would like (understood it isn’t really paycheck to paycheck). If I pause on the contributions for ~6 months will this really screw me later on down the line?

For context there is about $20K in there currently and I’m 24.

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It won’t screw your per se, but have you explored why money is tighter? If you’ve noticed lifestyle creep, this is more likely to negatively impact you in the future if not addressed now

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D2 - Welcome to CA where I just paid $100 in gas for a Nissan Altima. My F150 was close to $300.

Afford what you can afford. Easy to say but hard to practice. You’ll have to be your own judge.

I wouldn’t say 6 months is going to derail you, but keep in mind these will be some of the most valuable dollars you’ll invest in your lifetime - both from a lesser market value and timeline perspective.

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I would aim to have around 6 months of expenses in an emergency fund and after that prioritize saving for retirement. Maybe take the 401k down to 5%? Although I’m not sure how much you’ll feel that on each paycheck

You need to contribute something, always pay yourself first, before your day to day expenses. You can reduce your contributions but please don't eliminate them, especially if you get an employer match.

What’s your company match? I’d at least try to contribute enough to max out the match because that is “free” money. If the match is based on a percentage, like 25% of your contribution up to 6% of your salary, the you are getting 1.5% from the company and you could lower your contribution to being home 4% (for the time being). The other option you could do is stop contributing to the Roth 401k and contribute to the regular 401k. This way your contribution would be tax deferred your taxable income would technically be lower resulting in more net take home funds.

Instead of Roth go traditional. Drop from 10% Roth 401k to 6% traditional. Your paychecks will jump considerably and you are still saving for the long term

No, won't hurt anything. If you're worried about it you can always roll over the Roth 401k portion into a Roth ira after you leave this job

Never stop contributing even if it’s for 6 month. Lower the percentage if you need extra money but losing time on your retirement is never a good idea. I lost my job during Covid and was 24. My retirement will not recover from the lost time of my unemployment. Contribute what you can but do not stop contributing.

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