I got an e-mail from HR today about a payroll savings plan. Basically you decide how much you would like to save from each paycheque and it will be automatically deducted and transferred to the plan.
The interest rate on this program is .50% which is less than what I get from my savings account in my bank. As this is not as good as my current rate I won’t move my savings over. Which means that this would be an additional ‘expense’ line.
I’m at my limit now, or at least I feel that way, so if I make use of this option I would be taking $10 – $20 per cheque away from my debt payment. Does it make sense to do this?
Do you have a bit of financial math that helps me figure out the right choice? If you do please share in the comments!