time and perspective
I should be able to say at a certain time whether or not I’ve done what I’ve aimed to do by that time. Otherwise, I can just keep going and going with my mice and (wo)man made plans, and never really hold myself accountable. So far, I only have one time-specified goal, and that is to pay off all of my old credit card debt by August 2008. I have done the math over and over, and I really think I can do it - perhaps I’ll even finish early.
But I don’t have a target goal for Roth contributions. Granted, I haven’t even opened it yet, because I’ve got it in my financial schedule to do that in August. But I think it would be better if I already knew when I opened it exactly how much I planned to contribute and exactly how much I planned to put in there by next April. I’m going to have to get down with a calendar, a calculator and the back of an envelope and work that out.
I already know that I’ll have my minimum emergency fund amount saved by the end of July. What I haven’t determined is the month and year when I figure I should have the other $3,800 in my emergency fund account. Honestly, I’m not as compelled to save as aggressively for the emergency fund, though. I’m more concerned about starting a separate savings account for the down payment, closing costs, and moving incidentals on my house. So far as I care, my emergency fund can stay at $1,000 until I’m in my house, or at least until the old credit card debt is paid. Perhaps I’ll just put whatever unexpected money I receive in the emergency fund. Of course though, I’ll have to come up with a amount and date for my down payment fund. Dang!
Between paying debt, saving with this summer’s IRA and this fall’s 401K, and saving for the house, maybe, just maybe, I’m trying to do too much at once. Maybe I should start the Roth next year instead, and just contribute to the 401K (ENOUGH TO GET THE FREE MONEY) while I pay off debt (AGGRESSIVELY) and save (SLOWLY) for the house. I want it all! Even if there’s only a little in each pot, I want to do it all!
I need a financial planner to help give me some perspective so I can put the right emphasis on the right things. But just like trying to research Roths, I’ve found finding a planner who wouldn’t try to push me towards a particular product difficult thus far. *grumble…* I’ll keep looking, though.
