Currently have $30,000 in the bank account with no debt.
Can I just slowly max out my monthly retirement contributions and the rest of my monthly income would just be for my lifestyle.
I don't have dependents nor do I own a house or a car. In this economy would it be unwise to go this route or should I continue to build that $30,000 liquidity?
Right now I am contributing about $1,000, but I plan to go up to $1,200/month which would eat into my paycheck.
Is my savings enough for me to live paycheck to paycheck?
byu/GymratFitness_Swole inpersonalfinance
Posted by GymratFitness_Swole
4 Comments
Paycheck to paycheck means that you run out of money between paydays. All the way out of money. If you have savings, you aren’t paycheck to paycheck. So, you might want to rethink and reframe your question.
How old are you?
When you say “max out your monthly retirement contributions” how much money is that?
Do you have other assets besides the $30k?
High probability $30k isn’t enough but hard to say without knowing how much money you will save and for how long.
I would open a Roth IRA if you don’t have one. You can put $7,000 in for 2025 until April 15th and $7,500 for 2026. You can withdraw the amount of your contribution without penalty at any time.
>Can I just slowly max out my monthly retirement contributions and the rest of my monthly income would just be for my lifestyle.
You certainly can use your $30k to pay for expenses/lifestyle while you contribute more to your retirement.
Whether $30k is enough to max out your retirement contributions, only you can say. And whether that’s the best use of your money, only you can say.