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Originally Posted by Erin  Isn't it easier to just stop paying into the 401K? I would love to save money, but it makes no sense to save until we are out of debt. Once we have paid off everything but the mortgage, THEN I will start saving for retirement, vacations, a bigger house, etc. |
Actually paying into that 401k is very beneficial to you. First off if you look at your stub the money is taken pre-tax thus bringing down the amount of taxable income you have for the IRS to tax. If you don't opt for the 401k then your taxable income is higher and the IRS gets more and odds are you would still not see that money because they would suck a huge portion of it out anyhow.
Plus the added advantage is the free extra money you get. With my firm they do a matching up to 4% that we put into it with 2% percent of their money. So while I contribute 4% of my bi-weekly paycheck I actually get 6% put into my account bi-weekly.
Also a 401k is a good way to ensure you will be able to eat when you retire.