If I am retiring today, clearly, my money is gone!
What can I do today so even if the market remains unchanged in twenty years, I can still sleep soundly?
I reviewed my Roth IRA account today (I never look at it as I have no access to this until I am old and gray at 59.5 y/o anyway) and I was disappointed to discover that the stocks invested four years ago has little value today. I did not even attempt to look at my 401 K as I know I will be equally dismayed. So, what else can I do today so I can increase my nest egg?
I am adherent to my financial plan (i.e. 16% contribution to 401k / 10% purchase on stocks/ no balance on credit card) but one thing that I need to add to my already frugal world is to pay additional $300 / month to a separate account consistently like I would pay the mortgage.
Sounds good, but what expenses should I cut back so I can allocate additional $300 to savings?
BUDGET CUT PLAN PER MONTH: TOTAL: $301
- SAVE $35 on MOVIES by substituting with $1/movie rental at Redbox/ New Release video box
- SAVE $ 80 on WEEKEND MEALS by cooking dinner steak specials every Friday
- SAVE $ 16 on STARBUCKS by eliminating Starbucks in my vocabulary. I have already reduced 3 cups/wk to 1 cup/wk in previous goal
- SAVE $100 on SHOPPING by avoiding Wolf chase Mall.
- SAVE $ 40 on CLEANERS by ironing my work shirts on weekends
- SAVE $ 30 on BOOKS by purchasing books online. I will miss Barnes and Nobles!
If I am successful, this will yield to additional $3,600/year OR $18,000 in 5 years OR $36,000 in 10 years. Tomorrow, I will open a separate savings account so I can start paying that account for the next 12 months and will let you know if I am successful or not
To my lovely daughters, who loves reading my blog - -Don't worry, we are not cutting back a cent on your monthly allowance, the trips to the Chinese /Japanese buffet and gazillion perks you all enjoy! ....Relax! .....Breathe!
