Don't BLOW your IRS refund & May rebates! Get WISE!
- Thread starter D-Locc60
- Start date
I havn't even gooten to file yet since the bank is lagging on sending my student loan statement. When I do get my shit i will probably at least buy one crazy expensive thing for myself and put away the rest. I spent the last year putting away all this money and knocking my debts down only to probably be losing my job in the next month or so and all my savings is just gonna go to sustaining myself till i get another job. I'll probably be back in the Navy by years end, the economy fuckin sucks right now
D-Locc has some great words of wisdom...I invested my money when i was just 19, and flipped it to well over 10 g's ( started with a couple of hundred) Needless to say after 911 i got laid off from my job and took the money i invested out, and poof all gone....Never was able to re-invest anymore money, especially now that i have 3 kids (one on the way) and married now...I need all the money so we can pay our bills and that equals to no money left over to invest....I was stupid instead of looking for a job instead of taking my money out so the money could basically increase i got lazy and spent it all............Be wise!
When "Hu$tle530" states that you shouldn't be getting refunds and you need to adjust your allowances, he's talking about the W-4 form that is required by you to fill out by your employer. You can adjust your W-4 at anytime with your payroll dept, as many times as you want during the year. This form adjusts what YOU want taken out of your paychecks as far as Federal and State tax deductions. You don't have to let the Fed or state take a dime out of your pay. Claim "exempt" on that form and you get all your money. This doesn't cover Social Security and Medicare Taxes, those are automatically taken out.
Just remember, you still owe the tax on your earnings come tax time. If you're getting big refunds back and you don't make much money, you probably could get away with paying very little if any at all to FED and State.
Most importantly, if you're disciplined enough to save. I would recommend not having taxes taken out. Unfortunately, most people aren't disciplined.
Example: I am married with three kids so i claim 5 on my w-4 and have money taken out each check, say $100 fed tax and $35 state every half month. That adds up to $2400 Fed and $840 State over 24 paychecks. Instead, claim "exempt" on your w-4 and this money is "extra" net pay to you on your check. Put this "extra" money in a money market account at your bank earning say 4% interest. Now this isn't exact because your putting money in throught the year, but 4% of $3,240 is about $130. That is $130 you made on keeping the Fed's money in your account. Then at tax time you pay them their $3,240. This is a broad example and not exact, but it is favorable to you if you do it correctly.
It may not seem like much, but this is how people are able to retire comfortably. If you're able to control your spending and learn the how to invest for the long term you'll be better off in 20-40 years. It's never too late.
Just remember, you still owe the tax on your earnings come tax time. If you're getting big refunds back and you don't make much money, you probably could get away with paying very little if any at all to FED and State.
Most importantly, if you're disciplined enough to save. I would recommend not having taxes taken out. Unfortunately, most people aren't disciplined.
Example: I am married with three kids so i claim 5 on my w-4 and have money taken out each check, say $100 fed tax and $35 state every half month. That adds up to $2400 Fed and $840 State over 24 paychecks. Instead, claim "exempt" on your w-4 and this money is "extra" net pay to you on your check. Put this "extra" money in a money market account at your bank earning say 4% interest. Now this isn't exact because your putting money in throught the year, but 4% of $3,240 is about $130. That is $130 you made on keeping the Fed's money in your account. Then at tax time you pay them their $3,240. This is a broad example and not exact, but it is favorable to you if you do it correctly.
It may not seem like much, but this is how people are able to retire comfortably. If you're able to control your spending and learn the how to invest for the long term you'll be better off in 20-40 years. It's never too late.
More ways to save at tax time and take advantage of opportunities your employer offers.
401K matches. This can be huge. If your employer offers any type of match for 401Ks, DO IT! I know not everyone can afford to do it, but if you can carve out just a little bit each check to do it, it goes a long way.
Example: I make $30,000/year and my employer offers a 50% match for up to 5% of my salary. I agree to do 5%. I put $1,500 into a 401K and my company puts in $750. This $750 is FREE money! I've now got $2,250 in a 401K, hopefully earning money. Even if my 401K goes down 10% (-$225) in a bad market I am still ahead over $500 ($2,250-225=$2,025) because my contribution was only $1,500. You don't pay money on your 401K earnings until you begin withdrawing this money at retirement or whenever.
Important-this saves you at tax time because the money you put in your 401K reduces your taxable gross income. Instead of you paying taxes on $30,000 of income at year-end, you pay on $28,500 ($30,000-$1,500).
I gotta run for a few and will post more, but if you got kids and pay daycare and don't take advantage of Medical & Dependent Flexible spending accounts you're throwing away more money.
401K matches. This can be huge. If your employer offers any type of match for 401Ks, DO IT! I know not everyone can afford to do it, but if you can carve out just a little bit each check to do it, it goes a long way.
Example: I make $30,000/year and my employer offers a 50% match for up to 5% of my salary. I agree to do 5%. I put $1,500 into a 401K and my company puts in $750. This $750 is FREE money! I've now got $2,250 in a 401K, hopefully earning money. Even if my 401K goes down 10% (-$225) in a bad market I am still ahead over $500 ($2,250-225=$2,025) because my contribution was only $1,500. You don't pay money on your 401K earnings until you begin withdrawing this money at retirement or whenever.
Important-this saves you at tax time because the money you put in your 401K reduces your taxable gross income. Instead of you paying taxes on $30,000 of income at year-end, you pay on $28,500 ($30,000-$1,500).
I gotta run for a few and will post more, but if you got kids and pay daycare and don't take advantage of Medical & Dependent Flexible spending accounts you're throwing away more money.
Yeah BIG D knows his shit, I starting putting away %6 and my company matching it,..... into my 401k a year ago and the bitch is at $4000 already thats even with this sluggish market as of late......
I tried for over a year to get a BUSINESS / INVESTING Forum but no such luck, some of u need to go bump this post so Nemo adds it to the siccness.......
http://www.siccness.net/vb/showthread.php?t=208590
I tried for over a year to get a BUSINESS / INVESTING Forum but no such luck, some of u need to go bump this post so Nemo adds it to the siccness.......
http://www.siccness.net/vb/showthread.php?t=208590
