Hi New this year the contribution limits for your 401k. Are going up. So what should you do, how much should you put in the four oh one K. If anything, I've got the answer in my top three financial moves to make right now to set you on track for the rest of the year. Let's go move number one. Take advantage of these new four oh one K. Limits. You can now funnel $22,500 into your 401k. This year. That's up from 20,500 employees 50 and older can contribute an extra $7500 which is also up from last year. Big advice here. If you can adjust and maximize your contribution right now, your company probably has some kind of portal. It may be better to spread it out throughout the year than contributing more later. If you can't adjust your contribution to meet the maximum limit at least make sure you're meeting the minimum to get the full amount of matching funds from your employer. See how much they're matching at least get up to that, that's free money from your lawyer. Move number two. Use your bonus if you're one of the lucky people who got *** holiday bonus and you're not sure how to use it. Take that money to pay off debt. Use the snowball method, pay off your smallest debt. First working up to the largest and finally move number three pad your emergency fund. I get this question *** lot. How much should I have in savings? *** good rule of thumb is to have between three and six months worth of expenses saved. So if your monthly expenses are, let's $3000 *** month, you should have between nine and $18,000 in your emergency slush fund. I know it's hard, but that is the goal. There are *** lot of different online calculators that can help you figure this out for your family, like this one right here from nerdwallet dot com. You just plug in your rent, your mortgage payment, your utilities, your car payments, all of it. It'll spit out *** number. I'm gonna put this one and *** couple of others we found on rossen reports dot com. Hope it helps back to you.
Rossen Reports: How to take advantage of new 401(k) rules
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Updated: 4:14 AM CST Jan 13, 2023
Rossen Reports is talking to the experts, finding out the best money moves you should make right now to set you on track for the rest of the year. Move #1: The contribution limits for your 401(k) are being raised. Take advantage of the new limits. You can now funnel $22,500 into your 401(k) this year. That's up from $20,500. Employees 50 and older can also contribute an extra $7,500, which is also up from last year. If you can, adjust and maximize your contribution rate now. It may be better to spread it out throughout the year than to contribute more later. If you can't adjust your contribution to meet the maximum limit, at least make sure you're meeting the minimum to get the full amount of matching funds from your employers. Move #2: Use that bonus. If you're one of the lucky people who got a holiday bonus and you're not sure how to use it, take that money to pay off debt. Use the snowball method: Pay off your smallest debt first, working up to the largest. Move #3: Pad your emergency fund. A good rule of thumb is to have between three and six months’ worth of expenses saved. So if your monthly expenses equal about $3,000 a month, you should have between $9,000 and $18,000 in your emergency fund. There are a lot of different online calculators that can help you determine this. You plug in your monthly rent or mortgage payments, utilities, bills, etc. and it will give you the amount you should be saving. Here are a few online calculators that we found:NerdwalletMint WalletBurst Your bank probably has one on its website as well. Here's one from Flagstar and one from Ally.
Rossen Reports is talking to the experts, finding out the best money moves you should make right now to set you on track for the rest of the year.
Move #1: The contribution limits for your 401(k) are being raised. Take advantage of the new limits. You can now funnel $22,500 into your 401(k) this year. That's up from $20,500. Employees 50 and older can also contribute an extra $7,500, which is also up from last year. If you can, adjust and maximize your contribution rate now. It may be better to spread it out throughout the year than to contribute more later. If you can't adjust your contribution to meet the maximum limit, at least make sure you're meeting the minimum to get the full amount of matching funds from your employers.
Move #2: Use that bonus. If you're one of the lucky people who got a holiday bonus and you're not sure how to use it, take that money to pay off debt. Use the snowball method: Pay off your smallest debt first, working up to the largest.
Move #3: Pad your emergency fund. A good rule of thumb is to have between three and six months’ worth of expenses saved. So if your monthly expenses equal about $3,000 a month, you should have between $9,000 and $18,000 in your emergency fund.
There are a lot of different online calculators that can help you determine this. You plug in your monthly rent or mortgage payments, utilities, bills, etc. and it will give you the amount you should be saving. Here are a few online calculators that we found:
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- Your bank probably has one on its website as well. Here's one from and one from .
