What makes them so good is that many employers add 25 cents to 50 cents or even more to each dollar you choose to save this way. This is free money. If your employer offers a deal like this and you're not taking full advantage of it, you're an idiot (Well, I'm sorry, but c'mon: if your local bank decided to give out free money to attract deposits- say, $500 for each new $1,000- there would be riots in the streets, so eager would people be to get in on it.)
Andrew Tobias, The Only Investment Guide You'll Ever Need (2005 edition)
I loved this for 2 reasons. First, it's totally true. Second, I love the way he says these things. It's like reading something I would have written! Interestingly enough, my team recently had a conversation about how many people at our company are not putting ANY money in their 401(k)s. (Being in HR sometimes give you access to interesting data).
Our base match is 50% on the 1st 6%, and 75% after 7 years. The match money is yours after you've been with the company for 3 years. My coworker has told people before "this is money with YOUR name on it". I know times are tough, but nearly everyone can save something. Please, please, please, sign up if you are eligible, even if it's just 1%. You must then make a deal with yourself to raise it when you can. For example, when you get a raise (I know that's a big if for many companies), raise your contribution by at least 1%, more if you can swing it. If your income is low enough, the government will even subsidize your saving with the Saver's Credit. Investing in your future is a great thing to do, and a company match really helps multiply your money.
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