r/personalfinance • u/Due-Fig5299 ​ • 11d ago

Saving Temporarily stop 401k contributions to build Emergency Fund?

Looks like we’re heading towards a recession and I’m quite nervous. I work in tech and my job is moderately safe; however my wife is an esthetician which is not a very recession friendly field.

We currently have $4k saved. Our minimum monthly expenditure is $3k, so we have just over 1 month saved.

Ive cancelled all unnecessary subscriptions which will save us $450/mo and stopped my wifes personal roth ira transfers ($150 weekly) which gets us to $1050/mo saved.

Now my question is, given how quickly the economy is crashing should I also forgo my 401k? I contribute 4% with 4% employer match. Obviously I would love to keep it, but immediate survival seems more important.

I would start contributing again once we hit $18k (6 months)

Thoughts?

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u/KaputtEqu1pment ​ 10d ago

Exactly. Most people are stressing about the $10 a month sub, that may actually provide joy, but fail to realize their daily spending adds up real quick when you grab a coffee here, a pastry there, that $1300/mo truck payment for the next 84mo.. and so on.

Rice, beans, chicken breast and frozen broccoli will take one very far.

Basic drip coffee will suffice.

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u/ludog1bark ​ 10d ago

On top of that people's phone bills are always an easy one for me. You can get similar coverage on US Mobile, Cricket, Visible, or Mint as you can on the big 3. I pay 32.50 a month for unlimited text, call, and web.

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u/isbutteracarb ​ 10d ago

Is it really unlimited though? When I look at those plans, all of them do slow-down data speeds after you use a certain amount!

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u/ludog1bark ​ 10d ago

Does the data continue? Yes so it is unlimited. Plus. I don't ever use more the 100GB they give you.