CALLER: My employer matches 6% on my 401k. I max it. That’s $7,000 free every year. DAVE RAMSEY: Make sure you’re debt free first! CALLER: I’m passing up $7,000 to pay off a 4% car loan faster? DAVE RAMSEY: Debt-free feels amazing! CALLER: $7,000 a year feels pretty amazing too. Turning down a 100% return to feel good is not a financial strategy. Every dollar matters.

@UziCryptoo 6% being 7K free every year means that you are putting over 116K into your 401K every year. That would go over the maximum. So this story is bullshit.

@Filthy_Cubone @UziCryptoo Yep that’s how it works. 6% is 6% of your annual salary. So if you make $100k, that’s $6k. Astounding the financial illiteracy that people have.

@Filthy_Cubone @UziCryptoo Most times they match 100% of a percentage of your salary. In this case 6% of the salary. If you make 100k a year and put in $6000 (6%) then the company will also put in $6000 (6%). It’s not 6% of what you put in..

@Filthy_Cubone @UziCryptoo That’s not true it’s a 6% match of your salary not your contributions! Meaning if you make 100k per year and contribute 10% of your salary 10k than the company would match up to 6% therefore you would get an additional 6k contributed making your total contribution for a year 16k