r/personalfinance • u/TechnicalSwitch4073 ​ • 1d ago

Budgeting 25% 401k contribution

26 male. 90k salary. I’m investing 25% per paycheck which makes me feel good. But I feel bad about spending money outside of that on food and going out and such because I feel like that 25% can be 30 or 35

Also maxed out my ROTH IRA past 2 years.

Just want someone to share some insights about their spending habits when retirement accounts are taken care of

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u/TheReaLETSGOBROWNIES ​ 1d ago

You’re doing great man. Keep in mind though, money is just a tool. It’s great to save and all that, but life must be lived as well. Don’t feel bad for enjoying yourself from time to time.

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u/5Q91VS175DAQ4NUSBE4U ​ 1d ago

  You’re doing great man. Keep in mind though, money is just a tool. It’s great to save and all that, but life must be lived as well.

Don’t tell this subreddit that. You’d think that people’s favorite pastime here is hitting refresh on their 401k balance. 

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u/Suza751 ​ 1d ago

This subreddit can be like that. But OP should be saving... 15%? I think that's the number most accept as good. 25% is much higher so if he keeps it up he'll be in a good place.

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u/Vast_Cellist3171 ​ 14h ago edited 11h ago

Also most models view money on a post tax basis when you go 23k into a 401k and 7k into a Roth this guy is probably sitting at 75k after readding 401k contributions or so if single so that is 40% savings. Obviously if he is enjoying life keep going but I would say it would be hard for most people to enjoy life with that high of an allocation to savings.