I recently took a home equity loan to purchase an investment property from a family member for cheap. With that loan, I took an extra 20k for improvements to the property and to use as an emergency fund.
I’m currently only putting 3% into my 401k. My employer matches 30%. I make 100k per year. Due to my financial situation, I really cannot afford to contribute any more at all.
My question is, should I start maxing out my 401k to get the employer match and then pay myself back the difference from the loan/emergency fund? Or should I put the emergency fund into a HYSA or something like VOO?
I would need to go back to contributing 3% when the funds from the loan ran out. By then, I should have that amount back plus at least 30% extra sitting in my 401k. Am I thinking about this correctly?