Roth IRA

Well – I finally did it. I opened an account with Fidelity tonight and am going to contribute as much as I can for 2007 and start this journey with the ‘miracle of compound interest.’

Ahhh saving money. It’s a love hate thing for me, and right now, I love it (Superbad quote there…ish). I started this year with many good intentions and am doing my best to stick to them. I purchased an audio book and the real book to coincide called “The Automatic Millionaire” which really inspired me to save for the future and become an automatic millionaire. I’m not going to give any tips as I am an absolute ‘noob’ at this, but have a read of http://finishrich.com/books/automatic_brandhome.php and I’ll think you will all learn something. From the year 2008 onwards I aim to max out my contributions to my IRA to gain the maximum benefits, and judging by the interest from the past 10 years, I would have a portfolio worth almost $4 million. Combining that with my wife, and we’ll be sorted! Now I just need to boost my knowledge of investments to make it a reality.

Basically I have cut my spending in half. Of course a brand new car didn’t help, but I have cut out unneccessary items, such as buying lunch out, buying new games every week, buying 2 movies a week etc.  This is a HUGE savings for me (almost pays for the car with what I save). I have also started some small investments in Dolby and Apple, and both are doing pretty well right now.

I hope to keep this up as I have made a promise to myself and budgeted out what money I will save in 5 years to ensure a safe and happy future without too many money worries. Money worries has always been the one thing I wanted to avoid when growing up, and I hope these are the right steps to take to avoid that!

To the future

(I hope Dannie becomes rich as a backup)