Broke-ish to Functioning: Step 9
Step 9: Increase Your Retirement Savings
If you haven't already, Start with the instructions:
Look at where we are now.
Your consumer debt is paid off.
Your emergency fund is stacked.
Your savings buckets are growing.
You have breathing room.
Now you can finally start putting more energy into something we have not focused heavily on yet:
Future you.
You Can Finally Live in the Present AND the Future
When you are living paycheck to paycheck, it is hard to think about what life is going to look like 20 or 30 years from now.
You are worried about Friday.
Not retirement.
But once your debt is handled and you have savings behind you, you have created enough stability to start thinking further ahead.
That is the whole point of these steps.
Now it is time to start increasing your retirement savings.
Retirement Savings Matter More Than We Think
A lot of Americans are still behind when it comes to retirement.
According to the Federal Reserve, 61% of U.S. adults had a tax-preferred retirement account, such as a 401(k), IRA, or Roth IRA.
Vanguard also reported that the median workplace retirement account balance was $38,176 in 2024, even though the average balance was much higher.
That difference matters because a few really large accounts can pull the average upward.
The point?
A lot of us have some catching up to do.
And that is okay.
We start where we are.
Start Increasing Your 401(k)
If you have a 401(k) through work, look at what percentage you are currently contributing.
Maybe you started at 3%.
Maybe you are at 5%.
Maybe you have not looked at it since you got hired.
Now is the time to check.
If your employer offers a match, find out exactly how it works.
Then, as your budget allows, start increasing your contribution.
You do not have to jump from 3% to 15% overnight.
Maybe you increase it by 1% at a time.
Then increase it again later.
Got a raise?
Increase retirement.
Paid off a debt?
Redirect some of that payment.
Got a bonus?
Send a piece of it to Future You.
Do Not Forget About the Employer Match
If your employer offers a 401(k) match, make sure you understand it.
For example, your employer may match part of what you contribute up to a certain percentage of your salary.
That match is part of your compensation.
Know what your company offers and what you have to contribute to receive the full available match.
Your Step 9 Goal
Log into your retirement account.
Actually, look at it.
Find out:
What percentage am I contributing?
Does my employer offer a match?
Am I receiving the full match available to me?
Can I increase my contribution by 1%?
You spent the earlier steps getting out of debt.
Then you built protection.
Now you start building wealth.
Your Turn
Do you know what percentage you currently contribute to retirement?
Drop your percentage in the comments — or comment “I need to check” if this post just reminded you that you have absolutely no idea.
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