Money Milestone 2
Maximize your company's 401(k)/403(b) match
We’ll show you how employer matching works and why it’s one of the easiest ways to start saving for your future.
Continue Your Money Milestone Journey Here
A 401(k) or 403(b) is an automatic savings tool through your job that helps you build your future with little effort. If your employer offers a match, they contribute the same amount you do, up to a certain percentage. Starting early gives you a head start on retirement savings.
Start Saving Smarter
An employer match equals your contributions. That free money goes a long way toward your retirement savings.
Small contributions add up fast. Use our calculator to see how your money can grow over time.
The earlier you start, the more time your money has to grow on its own. Even a little now can turn into a lot later.
Why Maximizing Your Match Matters
Your employer match is an easy addition to your retirement contribution. Skip it, and you're leaving money behind.
Matching contributions accelerate your growth. Every dollar you invest compounds over time.
Maximizing your match isn't just about retirement. It's about creating strong habits for your future self.
The Deal on 401(k) & 403(b)
Many employers match between 3–6% of your contributions. Don't leave it behind. Start by reviewing your budget and see if you can comfortably match.
No budget? No problem. Head to our Budget page and get it done today.
Don’t stop at the match. Use it as your starting point. Set up a 1% yearly auto‑increase on your 401(k)/403(b) and keep growing your contribution until you hit the max.
Life changes. Your contribution should too. Revisit your 401(k)/403(b) each year and adjust your percentage to stay on track with your long-term goals and current financial situation.
Fun Fact!
401(k) and 403(b) aren’t just random numbers — they come straight from the IRS tax code.
401(k)
Named after Section 401, subsection (k). Added by the Revenue Act of 1978, this specific tax law allowed employees to defer a portion of their salary into a tax-advantaged retirement account.
How Much Could You Save Over Time?
The Power of Time
It’s true that 401(k)s and 403(b)s are meant for retirement, so if you’re in your 20s or 30s, it can feel easy to put this off. But here’s what matters most. The longer your money sits in your account, the harder it works. That’s the power of compound growth.
Annual Contribution: $6,000 /yr
Total Contributed: $270,000
Estimated Value at Retirement: ~$1.7M
Annual Contribution: $3,000 /yr
Total Contributed: $135,000
Estimated Value at Retirement: ~$857,000
Annual Contribution: $6,000 /yr
Total Contributed: $150,000
Estimated Value at Retirement: ~$380,000
Annual Contribution: $3,000 /yr
Total Contributed: $75,000
Estimated Value at Retirement: ~$190,000
What If My Employer Doesn't Match?
This milestone is all about taking advantage of free money. But if you’re a freelancer, business owner, or your employer simply doesn’t offer a match, it doesn't mean saving for retirement doesn't matter. It just means the responsibility falls solely on you.
Already contributing? Great — keep going.
If you haven’t started yet, don't panic; you'll focus on contributing once you are further along in the Money Milestones. For now, move on to the next Milestone: paying off all debt except your house.
Keep Making Progress
No matter where you are, real progress starts with knowing what Financial Freedom means to you and building a budget that supports it.
The Money Milestones are more than a financial to-do list. They’re your path to lasting financial peace and true Financial Freedom. Picture what Financial Freedom looks like for you and let it fuel every step forward.
No matter where you are on your journey, every goal starts with a plan. A budget gives your money direction and keeps your progress moving. Build it once, revisit it often, and stay focused on what matters most.
Real Members, Real Results
When I started thinking seriously about retirement, I began by contributing enough to get my employer’s match, then set my contributions to increase by 1% each year. It’s a small change I barely notice, but it adds up fast and keeps pace with any raises I get. Honestly, I used to believe the hype that people my age would never retire, but that’s just not true. Seeing my balance grow reminds me that the effort now means freedom later.
Find Your Money Milestone
Not sure which Money Milestone you're on? Find out how to make real progress by answering a few quick questions. Once you do, you'll have access to tools, tips, and articles designed to help you move forward every day. Find your Money Milestone to get started.
Additional Reads
There are several options you can take with your old 401(k) to make the most of what you’ve saved for retirement so far.
The first step to retirement planning is estimating how much income you’ll need to be financially secure in your retirement years.
While investing or retirement planning are areas that a financial advisor can help with, there are many other services an advisor can provide.