I’m in a little bit of a panic about retirement. I’m way behind where I should be at 35! If I had a guarantee of a steady income for a while to come, I could relax. But I don’t; I have a guarantee of two more years, at a rate of pay significantly below my rate this year. And I’m actually looking at a lifestyle crunch, because while my student loans will be paid off, that’s all I did this year: pay my loans and live. I only managed to save a couple thousand on top of that. So it’s a damn good thing my cost of living is going to drop in Indiana, because my pay will be dropping and I need to get really really serious about this retirement thing.
I’m starting a 401(k) at my new job in July, and I’m going to have $1000 a month held out of a (gross) $4000 paycheck, which is, I know, a lot, but seems necessary because I’m playing so much catch-up. I’m not sure exactly what my take-home will be like, but I’m guessing it’ll be around $2000, once the 401(k), taxes, health insurance, etc, are removed. I’ll have monthly fixed expenses (rent, utilities, phone, car insurance, grocery budget) of $650. That leaves a lot of discretionary income to save for travel, future housing costs (down payment fund), medical expenses, gas/car stuff, clothing, and just plain fun…except that if I’m going to fully fund a Roth IRA for 2014, I’d need to keep back $900, which would leave me with only $450 for all those savings goals plus slush/fun money. Not a lot.
Conclusion: I need more income, and that income needs to not disappear into the black hole of the slush fund. It needs to go directly into a savings account that I use to buy Roth shares whenever it hits a certain amount, say, $250.
So, here’s a goal for the remaining 7 months in 2014: $5500 in extra income, all of which will be directly routed to the brand-new savings account I just set up, no excuses, no exceptions!
Other income I intend to route this way, if I can pick up any of this:
–interest from savings accounts (not likely to be much, but still….)
–honoraria for speeches (I’ll be lucky if I can land one of these this year, but….)
–ebay and amazon and craigslist
–freelance editing (I hope this will be my main source; I need to start getting some gigs though)
–promotions, like “open a new credit card or checking account”
I’m starting it out with $68.96 I just made through a combination of ebay and usertesting.com. Only $5411 to go!