Do you pay yourself first??

[lexi_kaye]

Yes and no. I do automatically have amounts taken to each savings account each pay. And, 6% to 401K automatically (matched by company). Despite my current debt situation, I feel it stupid not to put the 6% in my 401K being I will get 6% free from my company. And, the savings acts like my emergency fund. Except, that I periodically rob it to pay down my credit card debt. Every couple months, if I notice it is starting to get high (around $1000), I take most of it out and pay down my credit card I am working on at the time. Then, the money starts building up again. It has worked for me so far. I know I should keep an emergency fund, but others tell you you should not save if you have higher interest rates on your debt that you would earn on savings. So, this is my compromise. Currently, I have over $1300 in savings, but with the car inspection looming near, I am waiting until that is done and over with and sure I don't need to dip into savings for repairs. Then, I will lump most of that into my credit card I am working to pay off right now. I know I could always charge some major emergency if I have to, but I really don't want to have to go that route.
But, here is where the no comes in, I also have my budget extremely tight. Leaving myself very few dollars each pay for myself. I usually can go out to eat with friends about once every two weeks, and really spend no other money on myself right now. Not until the credit card debt is more manageable. I have been very agressive in paying it off. But, it has taken me years to get this angry at my debt and to realize what it took to pay it off. For literally, years, I paid the minimums on my credit cards and saw the balances stay the same. Then, the bf had job setbacks and he brought financial troubles to our relationship and I footed the bills for several years. So, when things turned around, I decided that I didn't want that debt looming over me anymore. Literally, I will bet it was about 8 years with pretty much the balances staying the same, perhaps I even charged a little at Christmas each year, etc. Not really using the cards much, but once in a while all the same. Now, they are off limits totally and my snowball amount is finally enough to start making a little bit of a difference. At this rate, it should be about another 2 years and all my credit card debt should be gone. YEAH! Wonderful when I see how far I have come. I am now even looking at ways to make more money so I have more of a snowball!
When things finally get back to normal, I do plan on more going into savings and investments, and that will be automatic withdrawals so I don't even miss that money.

[autoxer]

Originally Posted by Roupey03

What are the penalties for taking money out of a ROTH IRA? There is no penalty for withdrawing your contributions, but the earnings are taxed as income & if you are under 59 1/2 years old there is an additional 10% tax penalty.

Do you have to make monthly contributions? No, I do a yearly contribution.

What kind of returns can I expect from a ROTH IRA? That all depends on what it is invested in, but you can choose from many mutual funds or even stocks if your Roth IRA is with a brokerage.

Could I take just 1,000 dollars lump sum and stick it in a ROTH IRA? Yes.

I wouldn't use a local bank for a Roth IRA account. I would choose a larger brokerage for a better choice of investments & better guidance.

[Ima saver]

I do have the vanguard star fund and it only took $1000 to open it. It is a great fund. I am not sure if it still has the $1000 minimum! I wish we had a mutual fund expert on here that could tell us. Most banks will not charge anything to open a roth ira.