Tuesday, January 7, 2014

Contribution Distribution

As the new year has started, I’ve been thinking about the allocation of money throughout the year.  With any project I like to have a plan of attack before I start, and my finances are no different.  I know my financial goals for 2014 and I know that I usually set individual goals for each month as I go along.  However, I want to have a plan for how much and when I contribute to my different funds.

Obviously, I have to make the minimum payments on my loans, so that is a no-brainer.  I know that I’ll make more than the minimum over the course of the year, but the question is do I contribute evenly throughout 2014, or do I pay the minimums now while I max out my Roth IRA and build up my e-fund?

Until now I’ve been religiously paying down my loans with every penny I have while contributing smallish amounts to my e-fund and Roth IRA.  Now, I feel like it’s more important to be absolutely sure I max out my Roth and have contingency money on hand in case I end up finding a house and have to spend a ton of cash on moving.


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