My Millionaire To-Do List!

J. Money over at Budgets are Sexy has a Millionaire Dollar Club that currently has 153 pledges. Well I plan on being number 154! The only requirements to be in the club are that I create a millionaire to-do list that is realistic and that I check back every so often on it to make sure I’m on track. I’ve broadly discussed my savings goals in other posts, but it will be nice to get them here as I continue my journey to the double comma club! Here are my goals that I plan on achieving every year:

1. Max out my pre-tax 401k – This one is a no-brainer in the personal finance community. My current biweekly payroll 401k contribution rate should get this done during the month of November this year.

2. Max out my Roth IRA – I’ve already maxed out my 2014 Roth IRA during 2015 (since you have until April 15th of the following year) and it only took me three months. So now I’m onto my 2015 Roth IRA which I plan to max out as well.

3. Max out my HSA – My current biweekly payroll HSA contribution should get me close. Luckily my employer also contributes $500 to my HSA (which counts towards the employee contribution limit).

4. Pay off my student loans – I have less than $9k left, and the interest rate is only at 3%. I’m going to concentrate on funding my retirement accounts first, and worry about these later.

5. Never finance a car again – I currently do not even own a car, as I live in NYC. So I count that as a win for me! But I do know I won’t live in the city forever, so there will come a point in time where I will need to purchase a car again. And it will be a used car with cold hard cash!

6. Save at least 75% of every raise and bonus – I make quite a bit more now than I did fresh out of college, but I have tried not to let my spending increase as well. I do not subscribe to lifestyle inflation, and that has helped me funnel most of my raises and bonuses into retirement savings and the pay down of debt.

7. Once all tax advantaged accounts are maxed out for the year, begin funneling all savings into my after-tax brokerage account – I hope I run into this problem A LOT. I have an internal debate brewing right now about whether I should go the dividend producing portfolio route such as Dividend Mantra or go the more conservative, commonly accepted method of just dumping this money into Vanguard Total Stock Market index fund (but this debate is for another time).

Well there is my short, very attainable to-do list to become a millionaire. I’ve run the numbers and I should be able to get there by 40 if I stay in the same industry and career trajectory. This is a conservative estimate and if I can reach it any earlier, then SHABOOM!

Are you part of the Millionaire Club? If so, what are some of your more important goals to get there?

31 thoughts on “My Millionaire To-Do List!

    1. Fervent Finance Post author

      It’s a pleasure meeting Mrs. Think Save Retire! A lot of my list is commonsense in the personal finance community, with my own little twist. And hopefully I’m saying SHABOOM when I get there by 35 instead of 40 🙂

      Reply
  1. Steve Adcock

    I’m not a part of J$’s “millionaire club”, but yes, I’ve got my financial situation well under control in order to get there. Already got the requisite 401ks completely maxed out. Got 70% of our (my wife’s and my) combined income going straight into savings. In the next few years, we’ll be there, ready to rock and roll.

    It’s a fun ride!
    Steve Adcock recently posted…Lookie there! Spend money on experiences, not things!My Profile

    Reply
    1. Fervent Finance Post author

      You raise an interesting point – “while working for an employer”. While I’m more of a “rip the band aid off” type and will probably grind it out in corporate world until I get there, I’m pretty excited to learn about your new journey. Maybe you’ll even be able to convince me to jump ship earlier.

      Reply
    1. Fervent Finance Post author

      The club is one step in the direction of me perhaps becoming as transparent as you GYFG. Thanks for the vote of confidence!

      Reply
    1. Fervent Finance Post author

      I realized recently that I was happiest in college when I was making diddly squat for money, but had all the free time in the world to learn what interested me and hang out with friends. That’s what I picture financial freedom to bring me as well! Thanks for stopping by.

      Reply
  2. Andrew@LivingRichCheaply

    Great plan! My wife and I are getting closer to maxing out our 457 plan but aren’t there yet…we’d also like to increase our Roth contributions too. We don’t have the HSA option but heard that it’s a great vehicle to save as well. I’m not worried about my student loans either as the interest rate is so low. As for #7, I also wish that I was at the level where I maxed everything out. Personally, I’d lean towards putting in a Vanguard index fund. I never really got into dividend stocks, though I understand the allure since it gives you passive income. I’ve been looking into rental properties for cash flow (out of state since NYC is too expensive).
    Andrew@LivingRichCheaply recently posted…Does What School you go to Determine What You Can Achieve?My Profile

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    1. Fervent Finance Post author

      Thanks Andrew! Tax deferred savings really helps us while living in NYC since we get hit hard with state AND local income tax as you know. As for my post-tax brokerage account I’m at a crossroads with the whole index fund and dividend stock portfolio dilemma. My Roth and 401k are all in Vanguard index funds that I don’t mess around with. Eventually I’ll get smart and do that with my brokerage account as well. Let me know how the real estate hunting goes. I’m definitely interested in getting at least one property, but with this “9-5” I have right now, I’d rather just keep my money in the market – less hassle.

      Reply
    1. Fervent Finance Post author

      You don’t have to be a millionaire or even close to join. It just helps to get your plan out and in the open.

      Reply
  3. The Finance things in life

    I have all the confident that you will reach your goal. I feel like joining the club would be another incentive for saving and investing as you would have more eyes on you and everything would be open.

    Best of luck to you Mr FF.

    Reply
    1. Fervent Finance Post author

      Hi Elroy. Why do you say that dividend investing is tax inefficient? Qualified dividends are taxed at 15% for people in the 25% to 35% marginal tax brackets, which is much lower than the associated ordinary income tax rates. Also, mutual funds like a total stock market index fund still yields a dividend, although you would assume a lower yield than a portfolio built specifically for dividends. Thanks for stopping by.

      Reply
  4. Our Next Life

    This is a great list! And we’re all for whatever helps motivate each of us to stay on track. We’d love to join the list, but don’t share our numbers because we don’t plan to stay anonymous forever. 🙂

    Reply
    1. Fervent Finance Post author

      Everyone takes a stance on how open they are willing to be. Some are more open than others and that’s just fine. I do whatever I feel comfortable with. Maybe it’ll change down the road and I’ll share everything!

      Reply
  5. Chella

    Millionaire Dollar Club sounds like interesting but what engrossed me the most is creating my very own attainable and short to-do-list of how to become a millionaire. I think it is high time to a have a deeper thought of the most important goals in order to get there.

    Reply
    1. Fervent Finance Post author

      Yeah if you just think of the end goal, then it looks harder to get there. But if you define shorter, easier attainable goals, you’ll see yourself progress to that end goal. Good luck!

      Reply

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