Here is my financial plan for the rest of the year:
· Decrease my 401(k) contribution from 20% of my salary to 4% of my salary (the maximum my employer will match, dollar for dollar).
· Stop investing $100 each month in a loaded mutual fund at Wachovia because the sales charge eats up any return I might achieve.
· Instead, invest $100 each month in a no-load, no-fee index fund at TIAA-CREF.
· Lower my federal tax withholding exemptions in anticipation of a higher tax due to my reduction of 401(k) contributions.
· After deciding on a new apartment, re-evaluate my budget and make changes to the $300 I automatically save each pay period for a car, which when I buy, I will buy in cash. Once I have enough for a car and insurance, start saving for a downpayment on a house (someday) and for my future kids’ education. And my own travel. And other stuff.
· Open a Roth IRA at ScotTrade and invest in another no-load, no-fee fund. Try to manage to max this out every year.
· Get a new job that pays more and put any extra money into the 401(k).
That’s the plan. We’ll see what really happens.
Wow….I really wanted to follow what you were saying, but it all came out as gibberish to me. We have to sit down some day and you have to explain all this to me, so that I can actually start saving some money.
wow. 20%. you must get paid a lot 🙂
I wouldn’t say that. I just don’t have a lot of expenses now. But I will in a few months.