I’m not big on new year’s resolutions, but if I had to list one thing I wanted to accomplish in the new year, it would be to get my finances in order.  There are quite a few things I want to get in order, but these two take priority.

1. Be COMPLETELY debt-free.  I should be free of credit card debt by the first quarter of this year.  All my student loans should be paid off by the first half of this year.  I can’t wait!
2. Invest at least $4000 a year in a Roth IRA.  I’m at the point in my life where I’m financially stable enough to do this.  I just need to make sure I do it every year.  I’m completely positive I’ll have at least $1 million dollars one day.  And YOU can too.

The following is from moolanomy.com:

In “7 Costly Retirement Savings Mistakes to Avoid,” I had mentioned that waiting too long is the number one mistake. I am afraid I didn’t demonstrate it well, so here is a different look at the concept.

Assume that in each scenario, the investment grows at 10% per year*.

* Based on historical data, investment gain averaging 10% per year is feasible.

• Investor A started saving and investing $4,000 per year when he was 25 years old. By the time he was 35 years old, he had already saved $82,000. When he is ready to retire at the age of 65, he will have accumulated $2.1 millions dollars.  (That’s right.  $2.1 million!!!)
• Investor B didn’t start early. When he saw that investor A had accumulated $82,000, he wanted the same for himself. At the age of 35, he started savings and investing $4,000 per year just like his friend. When he turns 65 years old, he will only have $800,000. In essence, a decade cost him over $1.3 million dollars.
• Investor C also wants in after he witnessed his friend success, but he wants to have as much as investor A when he retires. To catch up, he has to invest $10,700 per year just to keep up. In short, a decade cost him $6,700 per year.
  

Do you have any resolutions for the new year?