The emergency savings fund rule of thumb is 3 months of income, but you should do whatever you are comfortable with. It is supposed to help provide liquidity if you lose your job, some family disaster strikes, or some other unforeseen event comes to pass that requires you to get access to cash fast. After you create this fund, you can usually leave it in some type of high yield checking or savings account and then forget about it. You want to add money to your 401k first up until you get the Militarie Gun Logo 2024 Tee shirt also I will do this full benefits of your company matching. Matching is just free money that the company puts in your 401k at some rate of how much you contribute. For example, if your company has 100% matching up to 4% of your income and you make 100k annual salary, you can contribute 4k and your company will put in 4k. This effectively makes your annual salary 104k with 8k being paid to you through your 401k. If the company’s matching was only 50%, they will put in 2k when you put in your 4k in the example above.
However, the Militarie Gun Logo 2024 Tee shirt also I will do this company matched amount usually vests over some period of time which means if you leave the company, you only get the amount you are vested in. For example, if your company has a vesting schedule of 4 years evenly distributed, then in the first example above with 100% matching, you would get claim to an additional 1k each year. You are also always 100% vested in your own contributions. So let’s take that example and say you don’t contribute anymore after the first year. If you leave after 3 years with the company, you would be entitled to 3k of the 4k match from your first year as well as your own 4k contribution plus whatever gains that 7k earned in the account.
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