YNAB You Need A Budget

[mahnshooth]

So, I have been skimming ahead in the book and saw something in chapter 3 that made me think. I can't remember what it was called...a ladder for something, but anyway step 1 was putting up to your company match into your 401k and then step 2 was eliminating your debt.

I have built up a sizable amount of debt that my wife and I have been paying down as fast as we can. I am currently not putting any money toward my 401k. My company matches up to 5% in company stock (which is not worth much at the moment...keeps going down in fact but I think I can move it to other places once I have it.)

So, my plan has been to get rid of the credit card debt and then start up the 401k and other savings. This was saying that the 401k should come first. Now, the way I am looking at it is that the interest rates on the cards are much higher than I could get in returns on money in the 401k...not taking the company match into consideration.

Am I crazy for thinking this way?

[J.Mann]

So, I have been skimming ahead in the book and saw something in chapter 3 that made me think. I can't remember what it was called...a ladder for something, but anyway step 1 was putting up to your company match into your 401k and then step 2 was eliminating your debt.

I have built up a sizable amount of debt that my wife and I have been paying down as fast as we can. I am currently not putting any money toward my 401k. My company matches up to 5% in company stock (which is not worth much at the moment...keeps going down in fact but I think I can move it to other places once I have it.)

So, my plan has been to get rid of the credit card debt and then start up the 401k and other savings. This was saying that the 401k should come first. Now, the way I am looking at it is that the interest rates on the cards are much higher than I could get in returns on money in the 401k...not taking the company match into consideration.

Am I crazy for thinking this way?

The company-match is the reason why you should fund your 401k up to that point. because that is a garantueed 100% return. no credit card can do that.