Is automatic deposits ($1,500/month) into my Freedom Fund. Seriously.
I’ve been so lax with spending (all the study sessions at Starbucks, the-I’m-sick-of-studying-must-unwind sessions at Ross, the I-need-delicious-food sessions at brunch, etc.) that I can’t even imagine how I manage to save anything.
And now my AAA renewal is due.
I’ll be 25 in less than a year and a half. By that time, I’d like to have saved $35,000 in my retirement accounts. Which means, ~$12,000 between now and then. I could be aggressive and save more (up to $40,000 should be feasible, and maybe even $50,000 if I’m EXTREMELY disciplined), but I’ve realized… I want to go travel, take a couple months off before business school, maybe try my hand out at marketing for a nonprofit, improve my foreign language skills, and send my parents on a little vacation (maybe Vegas? I can book them a couple of nights at a nice hotel and buy them tickets to a show).
Those things take money, money that could go into retirement accounts, but that’s A-OK. Mom always told me that money is meant to be spent – on the people and the things that truly matter.
On a side note, I wonder if the 401(k) or Roth IRA limit will be raised for 2009… I say the 401(k) will go up to $16,000 and Roth IRA will stay put at $5,000.
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Take a little time to live your dreams! It’s equally important as being financially secure. It’s about balance. You’ll never regret it!
I think Roth IRA contributions are supposed to change in increments of $500 based on inflation. So that would mean that we would have to have 10ish% inflation before we get the bump. I’m hoping that we don’t see that type of inflation this year, but you never know!
Hey, I agree with FruGal…you should take some time for yourself! At 25, with the amount of savings you have…well, you’re already ahead of most of the population in your age group. I think you are doing a fantastic job!! I have a widget on my site that I think you should check out. It’s called NetWorth and it allows you to compare your financial situation with others in the same age group, occupation, educational background, etc. Check it out and let me know what you think!
And don’t feel guilty about a Starbucks or a healthy breakfast. As a student, these are your lifelines
We all need to treat ourselves once in a while.
And P.S. my CAA is due this month too so I feel your pain. But I have used the service for a flat tire once so you just never know!
All the best,
Pushing30
My Mom says the same thing about money. She’s instilled in me my love for Nordstrom (esp shoes!), travel and books. Since I started my first full-time job a mere 2 months ago, she is the one who always tells me to buy something nice for myself, blow my first full paycheck (both her and my Dad did this when they had their first jobs out of college and which I have not done yet) or go out to a fancy restaurant and treat myself to a yummy cocktail and an appetizer or two with a girlfriend.
I just set up my automatic deposits for my savings account and will be automatically contributing to retirement starting in September when I become eligible! You are doing fantastic, keep it up.
cool
Have you tried Babbel.com for those foreign languages? I love this site soooo much…
You can also find tons of free podcasts on the web,so improving the language skills doesn’t have to mean spending.