A millionaire-to-do list… I don’t have such a thing, but if I did have a structure it would probably follow J. Money’s to-do-list.
I recently became curious as to the state of retirement account. A gal’s gotta make sure she is covered for such a thing in this day and age. For one, she will most likely outlive the male counterpart (I don’t see how since it’s truth be known that we stress more than the other sex). Second, many women do hold responsibilty to the dual-income household. Third, its just plain common sense that a woman should hold claim to her finances!
Well, I started thinking about how under par I am in this retirement category. And the thought strains my mind as I have no desire to retire at 65, but at a much younger year than that. Well, I don’t know exactly how or if I will reach retirement at a desired younger age. But one thing I know, is I gotta start somewhere. And the easiest place to start is maxing out my 403(b)!
Unfortunate for me, at this time I only dedicate 3% of my gross income to my 403(b). Yet the max 2010 contribution is $16,500. And my company automatically contributes 6% of base salary up to SSWB (social security wage base) .
How does one find $16,500 per year to maximize their retirement account?
5 ways to find the money to invest
Here are 5 ways to find the money to invest (For more ways to Invest for Your Future, check out Cooperative Extension System).
- Pay yourself first. To start this step, head to your company’s HR department and set up an amount to be automatically deducted. Even if it may be $25 per paycheck. Like I mentioned earlier, I have 3% of my gross income automatically deducted from my check.
- Invest your raises. Those annual increases… invest them. Up your automatic deductions with your HR department. I have not done this. *shame* And will be my next step – to figure the amount of my last recent increase and move it over to my automatic deductions. This will increase my contributions this leaves me roughly 73% away from maxing the 403(b).
- Continue Installment Payments. Pay off that car loan? Continue to ‘write’ that check, but put the money into your retirement account. This will take place after my debt is payed off. Wow, if I invested my car payment then I am 46% away from reaching my goal of investing $16,500! Note to self: pay off car fast!
- Collect loose change. Collect those pennies and put them in a jar. Then every same annual time point, cash it in and put the money into your retirement/investment account. I will consider, but at this time that loose change is used for summertime fun activities for my family.
- Make your own lunch. Get up earlier to make your own lunch. I do know this saves me a considerable amount of money by making my lunch compared to eating at the cafeteria. Own the Dollar found he could save $112,000 during his career by bringing lunch to work in a brown bag.
Think collecting loose change could lead up to the remaining $7,100 I will potentially need to max out my retirement account?
And if you need more inspiration to find money for investing into your retirement, consider reading Monevator’s Tin Pot Gold Mine post on Curt Degerman – lived frugally and invested to amass over £1.1 million with recycling tins as his only source of income.
Another post you may enjoy: Your Retirement Lifestyle