ADHD and Credit Card Debt
I'm going to come right out and say it. Like forks and an outlet, credit cards and ADHD are two things that do not go together. Having ADHD makes you...
3 min read
Now that you have an emergency fund and your debt is paid down (or off, it’s up to you), it’s time to start saving for your retirement.
Let me guess: you don't think that you will ever retire. You won’t have enough money, you can’t plan, and, again, you are invincible. Hello, ADHD brain! I am here to say you are going to want to change the way that you work as you age. Maybe that will look like working less, but at some point, it will look like not working at all.
Because you will absolutely get old, and at some point, you will have to stop working. So let’s plan for it!
–IRA (Individual Retirement Account). This is a pre-tax account that you put a certain amount of money into. Essentially, this means that the government returns the taxes that you paid on the deposited funds at tax time (hello, tax return). You then pay taxes on that money when you withdraw it after age 59½. If you withdraw the funds before that age you pay a 10 percent early withdrawal penalty, so you want to make sure that an emergency fund is set up so your retirement money can stay there.
–Roth IRA. In my opinion, this is often where your money wants to be! The money you deposit is taxed now so that you don’t have to pay taxes later. This is helpful for quite a few reasons; I go in-depth on that in this podcast. Learn the nitty-gritty about how much you can contribute here.
And now comes the fun part! It’s time to save for that vacation.
It’s time! You have worked so hard to get to this point. So dream big, because you get to start pre-funding upcoming goals. Some ideas include:
–Saving for a down payment on a house.
–Setting aside money for yearly vacations.
–Redoing your basement, landscaping, kitchen…
Set up separate savings account for each dream and decide how you want to allocate your money. Saving towards your ‘Why’ is what it is all about and it is fun. Watching the money add up is far more satisfying than those new shoes!
Don’t forget to pat yourself on the back. Your mindset is changing, and your budget reflects that! Your financial fortress is strong. You are sleeping better at night, knowing that your budget has your back.
And you are ready for a financial advisor! Book your free call here, and let’s maximize your money mojo together.
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Together, we can make money fun.
Tracie Tooker
Hey, so I am planning for me savings and my goals. I have several categories of savings. Savings for: bike parts, car repairs/maintenance, emergency fund, and saving to buy a house in 5 years. I have a tetirement account through work that I will address next year. My question is: do I open up 4 differeny savings accounts plus one for incidentals? If so do I spread it across different banks? I don't know if my bank will let me open so many savings accounts.
David DeWitt
It's really a matter of what makes your brain happy. If it helps you keep things clean, then I'm all for multiple savings accounts. I definitely like having a separate for emergency fund- and that should be your priority before you save for the other things! Your bank should let you open more accounts - if not, you could definitely use Capital One. Also, I've heard Ally now has an account where you can break up the account into different sleeves. The most important thing will be setting up the system to be automatic once everything is in place. Good luck, and nice to hear from you!