In order for me, The Frugal Student, to become a millionaire, I (and my husband) pledge to do the following (each year):
- Now that both my husband and I are students, we are not eligible for the saver's credits...
- Therefore we are contributing $625 per month to our Roth IRAs (this is 15% of our salaries).
- I am also contributing 3% to my pension (the max I can).
- We also now have access to a daycare FSA allowing us to deposit $5000/year tax free and FICA free for the little frugal baby's daycare.
- We have not done well on selling stuff so we shall be changing this around to try to find something to earn $10 extra a month towards our EF. This will increase surveys, being part of experiments and possibly selling things.
- Living frugally.
1. Contribute to the traditional IRA if it will make us able to use the saver's credit at the max of .5
2. Contribute $200 per month to our Roth IRAs depending on the saver's credit to determine where the money will be deposited
3. Sell stuff on eBay, craigslist and Amazon - $10/semester ($20/year)
4. Live Frugally - $1000/year (put into my EF
Using CNN-Money’s millionaire calculator with a conservative interest of 6%, I will see a cool $1 Million in approx. 35 years and 7 months! So now you see why we have a goal to beat. I am not waiting till I am 65 to become a millionaire.
So what is the next step? We will follow this plan until life changes and we will update as we go along. If anyone has any ideas, feel free to throw them at me.