This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Why are millions of employees throwing away free money and not saving?
It’s less sexy to save money. It’s sexier to have a nice car, house, enviable travel itineraries, the latest fashion, and the latest gadgets. Most Americans are addicted to consuming, which is why we barely have any cash in our accounts, are up to our heels with debt, and can’t cover low-cost emergency expenses without a credit card (but even if we could, our credit cards are often maxed out. or have low credit limits due to sketchy credit profiles).
According to The Wall Street Journal, we’re even addicted to consuming education, which is why student loan balances now surpass credit card balances.
We don’t know how to consume less. Every day, we’re enticed into consuming more without considering the reason or consequences.
Some friends of mine never contributed to their 401k. Instead, they contributed their funds to recreational activities, entertainment, dining out, and everything but investing. They never had enough money, we’re always living paycheck-to-paycheck, and we’re consistently running up debt that they had no clear plan to pay off.
Americans have grown more accepting and comfortable with debt. We don’t mind living with it for the rest of our lives. It’s a part of our culture now.
Nearly a fifth of consumers who responded to an online poll said carrying credit card debt from month to month is a responsible way to manage their finances, according to the National Foundation for Credit Counseling.
We often put off investing for meaningless expenses and unnecessary debt that never benefits our financial futures.
The 401k Dilemma
Only 50% of employees are utilizing their 401ks, and only 36% of individuals are on track with their retirement savings, according to CNN Money.
What the f*ck is going on, people?
Employers offer a VERY clear incentive:
Hey Workers! We’ll throw money your way if you invest in your 401k through our matching program.
Yet, only 50% of people are utilizing their retirement plans. Why is this? Most of the time, the problem stems from not connecting with our future selves; we’re so stuck in the present that we can’t envision how our lives might look 20–50 years down the line. Those years will come quickly, though, so we need to prepare financially. It’s a well-known fact that human beings now live longer with modern technology, innovation, and medicine.
If you’re not taking advantage of your 401k, get enrolled today. At the very least, invest the minimum amount to get the free employee matching.
I recently wrote the article, “I’m Not Sure I Should Max Out My 401k Anymore,” which explains why you may want to rethink your investment strategy for this account but, at the very least, still invest the minimum amounts to get the free money.
Which leads me to my next point: If we’re so stressed out about money, why are we willing to throw away free money?
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.