Comments on: Patching up shortfalls can mean postponing retirement savings

By: Kinchan

Kinchan — Thu, 16 Jul 2009 23:17:23 +0000

Mr. ToughMoneyLove makes a good point. The whole idea that people have really cut things to the bone is laughable…especially when today’s generation has no clue how to live frugally, i.e. as Mr. ToughMoneyLove points out. When times are tough and jobs have been lost, it may be that the only thing you can afford is a roof over your head, a basic grocery budget that consists of staple items from which you can make meals from scratch, a landline phone, and basic utilities (no Internet, no cable TV). That way you just might be able to keep your savings plan in place (which includes emergency, emotional, and retirement savings) and continue to pay off debt. You might even have to sell the cars and take the bus.

By: Mr. ToughMoneyLove

Mr. ToughMoneyLove — Sat, 27 Dec 2008 16:34:06 +0000

I read the Post article as well. I found myself asking “where are the budget details?” Too many people write and ask for advice, saying that they have cut everything to the bone and therefore need to do something radical, such as stopping 401k contributions. Upon further examination, we learn of multiple car payments, cable TV and cell plans, $600 food budgets, ballet lessons, etc. So when I see these questions, I remain skeptical until I see the budget details.

By: Rich

Rich — Sat, 27 Dec 2008 07:16:37 +0000

Giving up an employer match would be extremely hard for me to do. But there is a psychological thing about seeing your credit card balance go up, especially if you’ve been working your tail off to make it go down.
I think I would do everything in my power to save $250 a month before I cut my contributions below the match rate though.