The plan: $500 to Roth IRA and $550 to Money Market Fund. The rest will go to car insurance and credit card payment. Including the above contributions, I’ve put in $1,000 for the Roth IRA and $2,050 to the Money Market Fund. Granted, a grand of the MMF contribution were from pre-2008 earnings/savings, but still.
So the big secret (well, not secret) is that even though I started saving for retirement early, I still don’t see how the heck am I supposed to accumulate however much money that will last me in my dotage. I don’t even know how much I need to save. I just know that it is a Very Very Big Number (VVBN).
So, to up my odds of getting to VVBN, I’m shoving money in saving accounts. But that’s because I can. I’m sure that there will be times in the future when it’ll be difficult to save aggressively… new computer, major car repairs or purchase, maybe grad school tuition, recessions, illnesses, down payment, family obligations, etc.
I just hope that by starting a couple years earlier than the norm I’ll buy myself some breathing room down the road.