Paid myself first

pay pump Paid myself firstLast year was the first year I’ve ever managed to pay myself first! Almost every book tells you to do that, to take a certain percent of your income and sock it away before you pay the rest of your bills. We all know we should, but it is so hard to actually do it!

I’m incredibly pleased to report that I actually saved about 12% of my gross income last year. That is a true first for me. 38 Years old and I’ve finally started doing what I should have been doing since I was twenty. Oh well, that’s water under the bridge. The important thing is that I did it, and I didn’t really miss the money.

OK, I did miss the money, but not as bad as I thought I would.

Now, I’m changing jobs May 1, so I have a bunch of financial moves to make. These are pretty interesting ones I think. Lots of options open up during a job change. I’m planning to open a new self-directed IRA for the 401K money from my current employer. I favor Roth IRAs for regular saving, but this is already tax-deferred and I’m going to leave it that way. I’ll invest it in a couple funds for this purpose. Unlike many, I do think individual investors can do very well hand-picking stocks (and I’ve done very well doing just that), but I like to buy and hold in my retirement accounts. Currently I plan to use UDPIX (Ultra DOW 30, leveraged for double-DOW returns … or losses) and DODFX (a stellar international fund) to grow this money.

I’ll be making about 20% more at the new job, which I’m going to split 50/50, allocating 10% of the increase to max out my Roths and to get the max company match in the new 401K. The other 10% will go to accelerated pay-down of my remaining debt. In the last year I’ve paid-off five credit cards, and only have one remaining balance. I plan to retire that debt within six months.

Technorati Tags: , , ,

Share and Enjoy:
  • services sprite Paid myself first
  • services sprite Paid myself first
  • services sprite Paid myself first
  • services sprite Paid myself first
  • services sprite Paid myself first
  • services sprite Paid myself first
  • services sprite Paid myself first
  • services sprite Paid myself first

Related posts:

2 comments to Paid myself first

  • G

    Great article. I enjoy reading your blog and also have recently accepted a new job. I find myself in a similiar situation. I added a link to your site on my blog, if you could add my site to your links I’d would appreciate it.

  • I am new to your blog and I enjoyed this post. The fact that you have paid off 5 credit cards and are on the way to paying off your last is great. Keep on the right path to financial security and freedom.