Automatic Millionaire Plan implemented!

It was a challenge getting the allotments established but as of last Friday, everything is in order. Ten percent of my pay deducted for TSP, federal government version of the 401k. $100/pay period for my Vanguard Roth IRA. $106.20/pay period for the 2012 furlough fund (at the rate Congress is moving, there will be a shut down of the federal government this March). $50/pay period to reestablish “Baby Step 1” under Dave Ramsey’s plan. $50/pay period to reestablish $1,000 for auto insurance deductible (I’m responsible for expenses up to $1,000). Although not formally part of this series of allotments, I also set aside $100/pay period for car maintenance.

And come late April I’ll set aside $100/pay period for the “new family member” fund (need to purchase supplies for my vegetable garden, hence the delay).

As you can tell, I live on a rather strict budget. But to achieve my goals, I must make some sacrifices.

Implementing the automatic millionaire plan is easy. Once you establish your plan, you don’t have to think about it. Now that’s a personal finance plan anyone can do!

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2 Comments

  1. Kirsten said,

    March 8, 2011 at 10:34 pm

    Good plan! You just have to work enough years to really get a good foundation in it.

    Two thoughts:
    As a home owner I set aside $100 a month for home maintenance, and I also set aside $100 a month for medical (medicines, insurance deductible, co-pays).

    Both Dave Ramsey and Suze Orman say you should:
    1) first pay into your TSP/401k up to the amount your employer will match. Then
    2) switch over to putting the maximum you are allowed into a ROTH IRA. I don’t think your ROTH will max out at your allocated amount.

    And I agree with you putting it in Vanguard. Best financial company I’ve ever found!

    Good luck with your plan.

    • March 9, 2011 at 7:40 pm

      Yes, home maintenance. I wish I could find the “extra money” to set aside for that. Too many things to fund.

      I do set aside $40/pay period for medical for me and $40/pay period for the dog (yes, his medical expenses can be costly at times, and I don’t have pet insurance. Don’t think I could get coverage now since he is 11 years old, and will turn 12 in June).


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