Lesson 9 - Can I afford to contribute?

3 MIN READEditorial Policy

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

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.

Related Articles

Subscribe to our Retirement Roadmap newsletter

Retirement isn’t just a destination. It’s a journey, and we’re here to help you. Our newsletter delivers succinct and timely tips, reviewed by Financial Advisors, to help you navigate the path to financial independence.

By providing your email above or subscribing to our newsletter, you agree to our Privacy Policy. You also elect to receive communications from Human Interest.


The (k)ickstart™ program is administered and offered by the recordkeeper, Human Interest Inc. ("HII"). HII's subsidiary and registered investment adviser, Human Interest Advisors ("HIA"), receives a fee based on assets under management. As such, HIA will earn more in asset-based fees if a plan participant increases their contribution in connection with the program.