For those who either did not contribute to 401k or contributed a small percentage and then started maxing it out, how did you feel when the new deduction amount was reflected on your paycheck?
I just got my paycheck with the deduction set to 20% of my pay to max at $18K if annualized. I haven't contributed to 401k at all in the past 4 years. Then in June I got a new job with $18K raise and decided to put all of it into 401k. I also have set up my HSA to max (if annualized) and that will start with the August 15 paycheck.
So my first two checks at the new job were without any deductions. Then one paycheck with 10% 401k deduction - my initial contribution, and now check with 20% of 401k deduction. It is $300 less then the last check. The next check will be even smaller once HSA deduction starts.
I am honestly sitting here and hyperventilating. The check looks so small. I planned my budget for August and I am about $250 short as of right now with not many places to cut down, though I will try. Also, I don't have a good grip on what my monthly expenses will be going forward - just moved to a new place and new neighborhood, only have one partial utility bill so far, haven't figured out groceries sales and such, plus still need stuff for the new place, etc.
I know that in worst case scenario, I can always reduce my 401k deductions. But I don't want to. I have emergency fund, but I don't want to use it. It is sitting in my savings account and has nice round numbers in it and I like nice round numbers with zeros.
I'll be fine financially for the time being, I do have money if I need to pad my budget, but I am stressing about it nonetheless. I can't be the only one who felt like this when first starting, right?
I plan on writing the case study in Ask a Mustachian forum, but want to wait few months to get a better grip on my expenses at the new place. Right now it is just a slightly educated guess and not useful for future planning.