Can you afford to contribute to your 401(k)?
Learn how a little may go a long way.
Your financial situation is unique
It can be challenging to save for the future when you have existing financial obligations. But it's important to remember that 401(k)s are designed for long-term growth.
Small contributions can add up
Even small, consistent contributions now can lead to meaningful results in the future.
Example: Let’s say you earn $1,000 per paycheck. If you contribute 3% of that amount to your 401(k), it would only be $30 per paycheck. That may seem like a modest amount, but it's a step in the right direction.
Adjust your contributions depending on your situation
At Human Interest, you always have the flexibility to change your contributions as your circumstances change!
Leverage the power of compound growth
Compound growth is a return that includes both the initial principal and the accumulated growth from previous periods. These returns are then reinvested in your account and can then generate returns of their own.
The more your savings compound, the more compound interest you’re likely to earn—and the more likely your money can grow. The slower the interest on your debts is compounded, the slower your debt can grow.
Read more: The power of compound growth in 401(k) plans
Article ByClaudia Newman
Claudia Newman manages the Retirement Education team that helps onboard employees to their Human Interest plan and explains the benefits of a 401(k) plan by offering live training. She has been working in the 401(k) and retirement plan industry in several capacities, including relationship management, sales, and back-office support since 2010.