So, I’ve decided to revise my 2012 savings strategy…just a little bit. My usually indecisiveness has struck again, but this time I think it’s actually benefitting me. At least, I think it’s benefitting my long-term financial picture.
I‘ve decided that priority #1 for 2012 is fully funding my Roth IRA, as opposed to my original first priority of fully funding my Freedom Fund.
Why you ask? I really think that over the long term, starting to fully fund my retirement account while I’m in my mid-twenties is the best financial move I can make. It should yield me a higher net worth when I reach my retirement years while at the same time – because it’s a Roth – remaining pretty flexible. That is, if I really need the money I can get it. But I’ll do everything I can to avoid tapping my Roth so that I can reap the rewards of leaving the money in the account to grow over the next 30-40 years. I don’t feel the same pressure to leave money in my Freedom Fund, which is admittedly something I need to work on.
Speaking of my Freedom Fund, I’m still trying to fund it to three months of living expenses in 2012. In fact, I’m in the process of scraping extra money together to stuff into it right now. It’s just that cash savings isn’t priority #1 for 2012 anymore.
How are your 2012 goals going? Having you already changed or abandoned any? Please tell me I’m not the only one!