There is one thing I’m not planning to follow on the Dave Ramsey plan, which is to stop contributing to my 401k. At this point in my life I’m 28 and have never saved for retirement (#brokeAF). My company offers a 3% match when you contribute 6% as well as a profit sharing contribution of 1% per year. Using the handy as Bankrate – Retirement Calculator , if I continued saving only the minimum until retirement I would have $2.2M in my account by 65. If I waited until my student loans were paid off to contribute (say 2.5 years), I would only have $1.7M by the age of 65.
If I did stop contributing, I would only pay my loans off somewhere around 6-8 months earlier than expected but cost myself HALF A MILLION DOLLARS!! I’m sorry but who the hell would give up $500K to pay off loans in a shorter period of time?! That doesn’t even make sense! Maybe piece of mind for some people is worth $500K but not this broke B! So there you have it; I’m still keeping my minimim 401k contributions around during this debt fiasco (sorry Dave Ramsey – you’re still my hero).