Baby Step 4

The fourth baby step to take when looking for a strong foundation in finance is to invest 15% of your household income into Roth IRAs and pre-tax retirement.

Remember, these are personal budgeting ideas that I think are great, but that are just ideas or guidelines.  If you can’t afford to put a full 15% in an IRA or 401k plan, then put a little less.  15% is the goal, but work up to it if you need to.  The point is to have a set amount of income put aside for your future.

Ramsey said one thing that I thought was particularly poignant.  He said, “Getting older is going to happen.  You must invest now if you want to spend your golden years in dignity.”