IRS.gov has all this info online. Roth limit for 2011 is $5k if you're under 50 years of age, $6k if you're over. Individual circumstance may lower your allowable contribution, depends on your filing status and your AGI.
IRS.gov has all this info online. Roth limit for 2011 is $5k if you're under 50 years of age, $6k if you're over. Individual circumstance may lower your allowable contribution, depends on your filing status and your AGI.
also from IRS.gov:
Yeah Dave Ramsey is ok...his advise is a little rudimentary, so if you're a completer personal finance noob than Dave Ramsey is for you.
I would start off (if you have a smart phone, or are on the web) to sign up for Mint or speak to a free credit counseling agency.
As far as Dave Ramsey is concerned his best advise revolves around the baby steps, which are as follows:
Step 1 – $1,000 to start an Emergency Fund. Step 2 – Pay off all debt using the Debt Snowball. Step 3 – 3 to 6 months of expenses in savings. Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement. Step 5 – College funding for children. Step 6 – Pay off home early. Step 7 – Build wealth and give! (Invest in mutual funds and real estate).
I think the 1st step is the most important, and you can go from there. The deal is Dave Ramsey's program is over $100.
A previous edition of this book helped me, but I do need to credit Mom and Dad: http://www.amazon.com/Complete-Idiots-Personal-Finance-inYour/dp/1592578837/ref=dp_ob_title_bk
Some more advice--and sorry if some was covered as I'm kinda jumping around:
Set up some kind of regular investment program--on your own or through your employeer. Don't wait until you have some extra money. Right off the bat build some kind of savings program into your regular budget. It might be $50 a month or whatever, but it's a start. I have a monthly program that automatically takes a set amount from my checking account and puts it in my investments. It's called dollar cost averaging, and I think it works. Keep at it and water that little tree. One day, it will be a nice nest egg. When you get a raise, up your monthly investment. Need help? The big investment houses can help. The more you make, the more they make. (And like others have said, if your employer offers matching, take them up on it--free money is free money.)
Also, look at your expenses. No, really look at them, line by line. Personally I am surprised how many people I know who live hand to mouth yet still have iPhones with full data plans. I'm sorry, but do you really need to spend $150+/month so you can update your Facebook status 24/7 while you have zero in your IRA? Chop that to a regular $50/month phone bill, and you just funded your regular investment program.
Saving money is lame, but so is bagging groceries when you should be retired.
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