Definitely contribue the 3% that your employer is matching funds, that is like a lost raise. Unless you are making the same amount and more per your investment and you are saving a certain amount in taxes you can add that to your bottom line and see if it is worth it. I have all my 401k money in cash. Greebo has fallen to the ground at this point. I did not lose any money and have made 3-4%, besides not being taxed on the increase. Where the government takes half of what I own and earn. I am not contributing at this time until I pay my debt which is at a much higher rate. I look at other investments that have a much better return.