My Millionaire-To-Do List

I've decided to join other bloggers in the "Million Dollar Club," a challenge from J. Money at budgetsaresexy.com.  The goal is to have a plan, a realistic plan that you can follow through on, to become a millionaire sometime in the future.  I am a long way from that, but a plan is the first step and I know I can make it.  So here is my millionaire to do list:

How will I become a millionaire?

1. Max out 401(k) to get max match.  Result: $3,329+$1,332 (match)=$4661.
2. Increase Income by 10% (through this blog and other legal side work). Result: extra $3,329/year.
3. Pay myself first-10% of my income.  Result: save $3,329.
4. 10% of income in IRA; increase each year until max out IRA. Result: $3,329; until maxed out.

Side goals (as my income increases):

1. Pay off Student Loans ASAP
2. Purchase a home with enough down so that a 15 year fixed rate mortgage doesn’t exceed 25% of my income or the total is more than 2.5 times my income.

Thats $11,319 per year to savings/investments to start.  Whenever my income increases and/or my wife starts working again the amounts will increase proportionally or better.  Any left over money will go to debt payments; the student loans or the mortgage payment with a 15 year fixed rate.  

With a return rate of 8% a year our money should grow to $1 million by the time I am 55 (my wife will be 54) or in 26 years.  Wait another 10 years to retire with the same return? We should have $2.3 million to retire.  Ahh, the power of compound interest.  Gotta love it.  

When we hit our prime income earning years in just a few short years (and when we move back to my home state where the average teacher salary is $10,000 more a year) our plan will be in overdrive and we’ll hit a million dollars a few years earlier and hopefully retire comfortably (thats the point isn't it?).  It all starts now though.  Slow and steady wins the race right?

(I used Franklin Mortgage Be a Millionaire calculator at http://www.franklin-mortgage.com/millionaire.html to calculate when I will become a millionaire.)

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