How To Fund Your Roth… Painlessly

Separate & Automate Your Savings. A How-To Step By Step.

Do you want to start saving money? Then take yourself out of the equation. Make it an automatic thing every month that you don’t even think about. The absolute best way for you to start saving money is by separating and automating your savings. Separate, meaning you put your savings in a place that is hard to get to so you are not tempted to touch it! And automate, meaning you set up the technology available to you to work for you to transfer and invest money without a second thought!

Follow The Following

What you will find in the following post is a classic wealth-building strategy. Step by step, little by little separating and automating your savings will help you to start investing your money at every paycheck. You don’t have to think, you don’t have to act, and you don’t even have to have the time from here on out! All you need is to do is follow these steps and you will start saving a portion of your paycheck every paycheck!

  1. Go to Vanguard.com
  2. Log in
  3. Top menu bar hover over “My Account”
  4. Go to “Account Maintenance”
  5. Go to “Automatic Investment”
  6. Choose the desired fund you want to invest in.
  7. Choose the dates, amount and frequency you want.
  8. I recommend every paycheck place enough in your Roth to max it out yearly!
  9. Not sure what to place in your Roth? See THIS POST where I detail a great strategy.

Gather Little By Little

He who gathers money little by little makes it grow. The trick is to learn the gathering technique. Here is the gist, as soon as that money hits your account, a portion of it should go directly to paying you first. Put it in your Roth! Start with something small, you can do without $211.53 per paycheck. The following is how I came up with that number and why you too should put $211.53 per pay period to your Roth IRA.

$211.53 is a Great Starting Point

Let’s say you’re paid every two weeks, which means you receive 26 paychecks in a year. $5,500 is the max you can place in a Roth yearly, and that number divided by 26 pay periods equals $211.53 per pay cycle. If you are maxing out a spouse’s account, which you can and should do, then repeat steps 1-8 for them!

That was painless. Good on you for taking action! Keep grinding. First time to the blog? Check out my Welcome Page.

separating and automating your savings. Separate, meaning you put your savings in a place that is hard to get to so you are not tempted to touch it! And automate, meaning you set up the technology available to you to work for you to transfer and invest money without a second thought!
Somethings in life are meant to be separated, like you and the money you want to save. Other things are, well, inseparable.

2 Replies to “How To Fund Your Roth… Painlessly”

  1. Good to see another FIRE physician in the blogosphere! I have a question that’s too long. Can you email me? I don’t have a way to connect with you other than this comment box.

    1. Email sent! It is great to be a part of a great community! Thanks for all that you do for medical couples and spouses! I think we have a unique opportunity in medicine to help colleagues, family, and friends through learning and living basic FI principles everyday! Thanks for stopping by!

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