Porforis - I would just do the matching 4% for now, try and pay off those fricken school loans (my wife and I still have 9K ourselves). But most importantly, try and have 20% down when going into a mortgage. Otherwise you'll have to pay mortgage interest insurance, which isn't principal or interest - just a method to screw young people.

As for 401K's - I'm not sold on them. Look at the ass beating people have taken in the market over the last decade. People have lost half of their retirement. There's no money in government bonds anymore so really the only sure fire investment is in property - but then you have taxes eating into your appreciating asset.

Did you take some finance classes in college? My rule of thumb though is to pay down debt if you are paying more interest than what your investments are earning. Also, try and stay away from financing your vehicles. That is just money down the toilet. Mrs. D and I don't have vehicle payments, but a healthy mortgage.

Originally Posted by: Dakotat 

As for student loans, don't be in a hurry to pay them off. I went to college back in the 90s and am still paying off my loans. I don't care. The interest is tax deductible. The lessons I learned in college and the friends I made are priceless.

Originally Posted by: zombieslayer 

College is indeed priceless... and pricey. I think the big problem with student loan interest is that it's tax deductible, but it doesn't benefit me if I don't have enough deductions overall to beat the standard deduction. And even if it were tax-deductible in a real sense in my case, 6.5% interest that's tax deductible still beats out everything but the most insane investment returns, since government not only needs to tax your income, but they need to grab what, 25% nowadays in capital gains taxes, and then again on whatever you spend with what money you have left?

But yeah, I threw 4% in a 401k (which my company matched) and 4% in a Roth at my old company and I'll probably do the same once I'm eligible at my new job, I've got an emergency fund worth about 5 months worth of rent (probably about 3 months of rent, food, gas) which I could probably stand to make larger just in case of a car going out on me, but again that student loan interest is a killer and I'm in a hurry to get to the point of having a house before the interest rates go way up again. I'm not in a hurry to the point of working 60 hours a week and not doing anything for myself though, I absolutely, absolutely agree that you should focus on the PEOPLE that make you happy. I also think it's important in this day and age when everyone is constantly connected and worrying about work and friends and checking their email 24/7 to take even a few hours a week to just sit around and do nothing. Don't check your email, don't dink around on the internet, just find a quiet place and lounge around. But that's just me, some people like to be busy.

Originally Posted by: Porforis 

I completely agree on the doing nothing. That's why I try to spend an hour a day going on a pointless walk, often alone.

6.5% seems a bit high for student loan interest. See if you can refi it down a lot lower than that. I'm paying 4% and that's probably still too high.

Originally Posted by: zombieslayer 

http://www2.ed.gov/offices/OSFAP/DirectLoan/calc.html

Already looked into consolidation/refi, can't do it, or at least not in a way that I'd get any benefit from it. I'd gladly triple the monthly payments for a couple percentage points off but nope, government says you can't refinance for a term shorter than 10 years. Thank you, noble government for saving me from the evil banks. I could probably take out a loan from a local bank for this but as I understand it, I'll probably take a hit to my credit score. I absolutely love that in order to have a great credit rating, you need to regularly borrow money... But not too much, or too often.

I'm not really sure if I'd qualify as frugal, but I try not to eat out more than about twice a week, maybe three times. I used to limit it to about once a week. I don't have a data plan for my phone and don't text, I have cable internet but no TV, and otherwise try to avoid those things that tend to nickle and dime you to death. Lord knows I could save probably $1500 a year by not eating out at all, but at some point you've got to decide to not be TOO frugal... In my mind, if you don't treat yourself at least a little bit once in a while, that's as bad as working 60 hours a week when you're young because you want to get all sorts of stuff you'll never have time to enjoy. Balance in all things. :)

Originally Posted by: Porforis