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First Roth IRA Contribution of 2010 – Even Small Steps Are Worth Celebrating

I expect to have some freelance earnings this month. So, I’ve decided to put $250 into 2010 Roth IRA. It feels good to be still contributing to retirement – albeit a much reduced amount - even when I’m laid off. It’s a small (but still significant!) step towards the $5,000 2010 Roth IRA limit.

There are thousands of articles out there on why you have a Roth IRA (and I have written extensively on my love of the Roth) – all I can say is, it really does become a habit. Now one of the best things about a new year is the fact that I can contribute more to my Roth IRA.   

It’s easy to start and fund a Roth IRA and begin saving for your future. In fact, you can do it with as low as $50 a month. That’s less than $2 a day. You can do it. Every little bit you can save counts.

In 2009, I maxed out the Roth IRA on the first day of the year. I knew this year was going to be different, but that doesn’t mean I shouldn’t make the effort. It might take me 20 small steps $250 to get to $5,000. But that’s okay. Even small steps are worth celebrating, because those small steps are going to get you to where you need to go. 

  • SS4BC - I COMPLETELY agree that you should celebrate the small steps! =D

    Way to go on your 2010 Roth IRA journey. ReplyCancel

  • WellHeeled - Congratulations to YOU on resuming your Roth IRA contributions! I wouldn't call yours a small step at all. Thanks for stopping by and commenting. :) ReplyCancel

  • Mandi - Good job. I've never been able to max out my Roth in one lump sum so all I have are small steps. But those small steps fully funded my Roth in 2009 and they'll do it again in 2010. After all, it's not a race.

    Congratulations. ReplyCancel

  • Kim - That is fantastic! I have been thinking about opening a Roth IRA since I don't become eligible for my company's 401k plan for at least another 6 months. I have about $2,000 (I think) in my Vanguard 401k from the job I worked from 2007-2008, but other than that, nothing. I've been thinking it might be a good idea to contribute to a retirement account that is not specifically associated with the company I work for…especially since at age 25, I will probably work at several companies before retiring! ReplyCancel

  • Carrie - i just keep mine set up to automatically transfer in $208.33 after each paycheck. i've been doing it for years now and it makes it so easy. ReplyCancel

  • Melissa - Props to you! I am completely in love with my Roth as well. It holds the majority of my emergency savings, because last time I had to withdraw money, I made the call at 4PM (after the wire cut-off) so they mailed me the check…and it was in my hand THE NEXT DAY. My high interest savings account takes three days.

    After a six month hiatus of contributing to my Roth, my first monthly contribution of $100 will happen on the 15th. If the year continues to go smoothly, I'm planning to make some additional extra contributions on a quarterly basis!

    Congrats on your small steps. Love you blog. ReplyCancel

  • Little House - You couldn't of said it better. Small steps still get you to your destination! I really have to get a Roth IRA set up this year. That's my next goal. ReplyCancel

  • Moneyreasons - Nice! I won't be able to start funding mine until March. while we don't live paycheck-to-paycheck, it always gets tight in December (4 birthdays, Christmas, and a fall/winter vacation).

    I'm with Melissa, I'm going to use my Roth as was intended, but also as an Emergency Fund.

    Good idea starting to fund yours now! Plus you can always pull it out if you need too… ReplyCancel

  • Small Steps Will Lead To Lifestyle Change | Well-Heeled Blog - [...] few days ago I took my first “small financial step” of 2010 – contributing $250 to my Roth IRA. On Monday, I will take my first (and very painful) “small exercise step” of 2010 [...]ReplyCancel

  • WellHeeled - The Roth is definitely fantastic – and since you contribute with after-tax money, you won't be taxed when you decide to withdraw the money when you retire. I am all for retirement vehicles that are not attached to specific employers. ReplyCancel

  • SeeJaneGetRich.com - I am so happy to hear that you are still making contributions even though you are unemployed. And I agree that when it comes to the Roth every bit counts. I am a huge huge fan of the Roth and will be making my contribution soon. When you make contributions that are small how do you avoid being hit with transaction fees that take a chunck out of your contribution? ReplyCancel

    • WellHeeled - I have mutual funds, so I don't have transaction fees like ETFs would. However, I think most mutual funds have a higher yearly expense ratio than ETFs. ReplyCancel

  • Financial Samurai - Oops, didn’t see this article of yours WH until today. Well, I guess you know my thoughts on the conversion to a ROTH IIRA. I’m not against a ROTH per se, as it’s much more important to have a IRA than nothing at all.

    I’m focusing on the conversion process, so well done. Why not just do traditional IRA though?
    .-= Financial Samurai´s last blog ..Be A Sloth and Don’t ROTH – Why Converting To A ROTH Is A Mistake! =-.ReplyCancel

  • What I’m Reading 1/15 - [...] First Roth IRA Contribution of 2010 – Even Small Steps Are Worth Celebrating @Well-Heeled Blog [...]ReplyCancel

  • Roth IRA Rocks: 6 Reasons Why - [...] 6 months after I made my first contribution, I maxed out my Roth IRA for 2010, meeting one of my new financial goals for this year.  That [...]ReplyCancel

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