This week's Top 2 Tuesday is one that's near and dear to my heart. I have struggled a lot with spending in the past, but now I feel (pretty) disciplined about budgeting and money after doing my research.
1. You need be a millionaire by retirement (and you can be)
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Not only is this something I've learned, it's something I know I'm going to have to do in order to retire comfortably. At the age of 25 one should contribute $300/month to retirement. Given the interest (not to mention employer matching!) you will have $1,000,000 by 65.
Use the AARP Retirement Calculator to determine your own goals.
2. Cash only
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I am a big subscriber to the Dave Ramsay financial theory: If you don't have the money, you don't buy it. My goal is to never use credit cards again. It's not worth it! It's all about having a ton of savings to pull from when you need it.
I have been using a cash-only spending plan for over a year now. I follow a pretty strict monthly budget but I do allow myself an occasional splurge-- when I can afford it. The key to a budget, like a diet, is to give yourself room to splurge occasionally.
I can't wait to read all your money knowledge nuggets, so head on over to Taylor's and link up!
Oh yes, you contributing to retirement so young you will easily be a millionare! And cash is king! Love Dave Ramsey!
ReplyDeleteBoth of your "two" are so true!
ReplyDeleteMoney and me have a fairly healthy relationship. I like to automate things (retirement, show fund, etc) so that I don't have to think too much about it.
And PS... how is the diet going? A post of tops/ tricks/ yummy foods that are good for you would be so cool!
LOVE Dave Ramsey, too:) Great tips!
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