Self-made millionaires are frugal and diligent; they have good habits and they stick to their goals.
Habits are formed by a goal-oriented lifestyle. Creating a budget or setting a goal is to avoid deprivation and encourage happier spending. Though life gets hard, habits help me stay on track and avoid impulse buying.
Here are my goals for 2021.
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“Fun fund” , $210.00 monthly
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I set up a “fun fund” to cultivate hobbies and feed my curiosities. This is money I set aside every month to eat out, buy wines and books.
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Household spending, $200.00 monthly
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This budget is for groceries mostly. I occasionally go over the budget if I had to purchase other household goods, such as toilet paper or paper towels. I sometime allocate some of the “fun fund” to support my household spending.
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Investments, 350.00 monthly
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This is an amount I could either invest in the stock market or set aside for later use.
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Emergency savings account, $100.00 monthly
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I have a 4-month emergency fund tucked away in a high-yield savings account. Anything more is a bonus that could help me pay for any unexpected expenses.
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Acorns, $7.00 daily
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Acorns does a great job helping me invest. I recently upgraded my risk tolerance to “moderately aggressive”. My current saving and investment are predicted to reach $300,000 by the age of 65.
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Roth IRA contribution, $500.00 monthly
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My goal is to max out my Roth IRA contribution every year, which is $6,000 for singles who earn $140K or less. My Roth IRA account is predicted to reach $790,000 by the age of 65.
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