J.D. Roth from Get Rich Slowly is doing a series on the basics of personal finance. Monday's topic: Pay Yourself First. I can't get enough of this stuff, because it reminds me that I am not the only one working on these things and it reinforces the priorities and goals I have set for myself as normal. Since most of my 20 something peers *seem* to be living it up all the time, I really like this positive feedback from the personal finance intertubes! Works for me. :-)
When I got my current job, I set up my ING Direct account to take out 4% of my paycheck each time I was paid. That was the foundation for my emergency fund. It was difficult because I wasn't budgeting, though. So, even though I was technically paying myself first, I was still sort of paying myself last, because if I was short at the end of a pay period, I'd take that money back to my checking account. I guess I earned a teensy bit of interest on it, but it didn't really do me much good.
Fast forward 10 months: I've had a Total Money Makeover, and am rocking my zero-based budget. Well, there are a few speed bumps now and again, but still, I'm going to term this rocking out. Now when that money magically appears in my emergency fund, I don't touch it again.
I do not currently contribute to my company's retirement fund. This was a very difficult decision to make, but Dave Ramsey kind of pushed me over the edge on it. For one thing, getting out of debt is my priority. Money not sent to my retirement fund can get me closer to achieving my goal of eliminating my credit card debt. I currently do not get any match whatsoever for my retirement contributions, so I am not leaving any free money on the table by not contributing. I think that I might become eligible for a match at my one-year anniversary. If that is the case, I will definitely change my contributions so that I at the very least get the company match. I am not going to max out my retirement contributions FOR NOW, so that I can maximize my debt reduction. Finally, this is just my decision for right now! As I work towards paying down my debts, I'll be able to save more for retirement (and other things). And when I do begin contributing, I'll do it automatically, by paying myself first.
This post is linked to Works for me Wedensday! Go check out the other fabulous tips people have posted at We Are THAT Family's blog.
When I got my current job, I set up my ING Direct account to take out 4% of my paycheck each time I was paid. That was the foundation for my emergency fund. It was difficult because I wasn't budgeting, though. So, even though I was technically paying myself first, I was still sort of paying myself last, because if I was short at the end of a pay period, I'd take that money back to my checking account. I guess I earned a teensy bit of interest on it, but it didn't really do me much good.
Fast forward 10 months: I've had a Total Money Makeover, and am rocking my zero-based budget. Well, there are a few speed bumps now and again, but still, I'm going to term this rocking out. Now when that money magically appears in my emergency fund, I don't touch it again.
I do not currently contribute to my company's retirement fund. This was a very difficult decision to make, but Dave Ramsey kind of pushed me over the edge on it. For one thing, getting out of debt is my priority. Money not sent to my retirement fund can get me closer to achieving my goal of eliminating my credit card debt. I currently do not get any match whatsoever for my retirement contributions, so I am not leaving any free money on the table by not contributing. I think that I might become eligible for a match at my one-year anniversary. If that is the case, I will definitely change my contributions so that I at the very least get the company match. I am not going to max out my retirement contributions FOR NOW, so that I can maximize my debt reduction. Finally, this is just my decision for right now! As I work towards paying down my debts, I'll be able to save more for retirement (and other things). And when I do begin contributing, I'll do it automatically, by paying myself first.
This post is linked to Works for me Wedensday! Go check out the other fabulous tips people have posted at We Are THAT Family's blog.
0 comments:
Post a Comment
Let's keep it classy, commenters. :-)