How To Reach An Audacious Savings Goal By 'Squirreling'
- 3 years ago
Business Insider personal finance contributor Alexis Rhiannon opened her Roth IRA in her 20s and has managed to max it out every year.
That is, she's maxed it out every year ever since she began using a strategy she calls 'squirreling.'
To meet any annual savings goal, like an IRA contribution--or anything else--just divide the full amount by 52 weeks or 365 days.
Then, set up an automatic transfer from your checking account for that amount to go into your IRA, or any other account you can't access easily.
After all, the annual ROTH-IRA contribution max for 2020 is $6K if you're under 50, or $7K if you're over fifty.
That means you need to save $116 or $135 a week, or $16.44 or $19.18 a day.
If that's too ambitious, you can always lower the amount, but you can still make great headway.
That is, she's maxed it out every year ever since she began using a strategy she calls 'squirreling.'
To meet any annual savings goal, like an IRA contribution--or anything else--just divide the full amount by 52 weeks or 365 days.
Then, set up an automatic transfer from your checking account for that amount to go into your IRA, or any other account you can't access easily.
After all, the annual ROTH-IRA contribution max for 2020 is $6K if you're under 50, or $7K if you're over fifty.
That means you need to save $116 or $135 a week, or $16.44 or $19.18 a day.
If that's too ambitious, you can always lower the amount, but you can still make great headway.