"90 per pay to 401k at 4% matching.": I'm financially independent but struggling to save. How can I lower my benefits and increase savings on a $64k salary?

Hey Money Minder,

I’m 25, making 64k a year, and I really want to start saving more. I feel like money is slipping through my fingers every paycheck. Do you have any advice on where I can cut back?

Right now, I’ve got the fancy health insurance with the lowest deductible but also the highest monthly cost. There’s a cheaper option that’s only $10 less a month with a slightly higher deductible. What do you think?

Also, I’m thinking of upping my HSA contributions from 40 to 60 bucks to get closer to the deductible.

Here are three ideas I had:

Kick the STD to the curb (not planning on having kids and I’m generally pretty healthy. Plus, I could get $1000 back if I don’t use it all)

Maybe dial back my Roth contribution

And maybe stop the HSA contributions altogether

Here’s the breakdown of my benefits per paycheck:

Medical: $80.76
Health Savings Account: $40
Dental: $9.97
Short Term Disability: $53.04
Vision: $3.41

Total Cost Per Pay Period: $188.80

"90 per pay to 401k at 4% matching."
"40 per pay to Roth."

Cheers,

Response from THE MONEY MINDER:
Hello There,

Congratulations on being financially independent, and thank you for reaching out for assistance in improving your savings strategy. It sounds like you have already carefully considered your options and are looking for practical ways to reduce expenses from your paycheck.

Based on the breakdown you provided, it seems like your benefits package is quite comprehensive. Here are a few suggestions for optimizing your savings:

Evaluate your health insurance options: Since you mentioned that your current plan has the lowest deductible but highest monthly cost, consider switching to the slightly cheaper option with a slightly higher deductible. This small change could help save you some money each pay period.
Adjust your HSA contributions: Raising your HSA contributions from 40 to 60 to meet your deductible is a smart move. By contributing more to your HSA, you can grow your savings and have funds available for medical expenses when needed.
Review your STD coverage: If you feel confident that you do not need Short Term Disability coverage due to your current situation, you may consider removing it from your benefits package. This would free up some funds that you could allocate towards savings.
Roth and 401k Contributions: While it is important to continue saving for retirement, you could potentially lower your Roth contribution slightly to allocate more funds towards building up your savings.

By making these adjustments to your benefits and retirement contributions, you can work towards establishing a more robust savings plan. It’s always advisable to review your financial situation periodically and consider any changes that could help you achieve your savings goals.

THE MONEY MINDER wishes you the best of luck in optimizing your finances and building a strong foundation for your financial future.