Spending Less 101 » Taxes

Ways To Save Money And Manage Personal Finances

John — Tue, 21 Jul 2009 21:15:44 +0000

In today’s declining economy, financial problems are becoming increasingly common. Every time you go to the grocery store, the price of at least one thing you buy has gone up in price since last week. Almost daily the price of gas increases. So what can you do when you are continually forced to spend more and more, but your income stays the same? How can you take control of your personal finances, save money and get ahead? First, you must be aware of where your money is going. Many people don’t realize this and without knowing it are spending what adds up to be a significant amount each month on little things. If you don’t normally ask for a receipt, start doing it now. Write down everything you are spending. Include cups of coffee, magazines, sodas, snacks and money spent eating out. Don’t omit anything. If you don’t know exactly where your money is going, you can’t make any affective changes, save money or take control of your finances. Second, make a budget. Put all of your expenses into one of three categories: needs, fun money and savings. Everything you need to have obviously goes in the needs category. Be honest! Only put it here if you really need it. This includes things like rent or house payments, gas, childcare (for when you are at work, not at a movie) and food. From your fun money come things you enjoy having but can live without, like gifts, eating out, cable t.v. and toys for your kids. Finally, there is your savings. Maybe you aren’t saving anything yet or aren’t saving enough. 65% of all people living in the United States aren’t saving enough for retirement. Maybe you have a lot of credit card debt and can’t think about retirement until you’ve paid that off. Don’t despair! Keep reading to find out how you can pay off your debt, save money and take control of your personal finances. Third, you have to be willing to make changes for your own good and the good of your family. Look closely at where your money is going and see what you can cut back on. Do you buy a $3 cup of coffee each morning? This adds up to $60 a month. Make your own. Start taking your lunch to work. Don’t buy the most expensive gifts. This article covers very briefly the basics of balancing your money. For details visit my blog by clicking here because there is so much more information vital for balancing your money, controlling your personal finances and becoming financially secure than I am able to put in this article. It describes in depth each of the three categories: needs, fun money and savings, as well as the percentages of how much you should be spending on each category. It tells you exactly how to get out of debt, no matter how much you have, and how to best plan your retirement. My blog also offers a variety of ways to save money.

Gina Clark writes on financial issues. Click here to learn additional ways to save money and manage your personal finances.

Get higher personal exemptions and standard deductions in 2009

John — Wed, 22 Oct 2008 00:20:44 +0000

The IRS will announce later this week that all Personal Exemptions & Standard Deductions will INCREASE, and Tax Brackets will WIDEN in 2009.

PERSONAL EXEMPTIONS and exemptions for Dependents will increase to $3,650 in 2009 –
($150 higher than 2008).

STANDARD DEDUCTIONS also will increase in 2009. How much? Take a look…

$11,400 for Married-filing-Jointly (a $500 increase)
$ 5,700 for Married-filing-Separately ($250 above ’08)
$ 5,700 for Singles (up $250 over 2008)
$ 8,350 for Heads of Household ($350 more than ’08).

No Economic Stimulus Check For Me

John — Thu, 17 Jul 2008 14:40:15 +0000

I finally got around to putting my actual numbers through one of the calculators and here is what it spit out:

Economic Stimulus Payment Calculator

You do not qualify for an economic stimulus payment

According to law, the economic stimulus payment amount that you would otherwise be entitled to receive is reduced by 5% of the amount that your Tax Year 2007 Adjusted Gross Income exceeds $75,000. You would have been eligible for an economic stimulus payment of $1200, but your AGI exceeds $75,000 by enough to reduce that amount to zero.

However, if your situation changes during 2008, you may be able to claim an economic stimulus credit on your Tax Year 2008 return.

Bummer.

$10,000 Tax Refund. WooHoo!!!!!

John — Fri, 04 Apr 2008 22:59:42 +0000

As I ponder the tax refund I am getting from the federal government, I am thinking that I could have done a lot with that money during the year in 2007. Why is it so many people get huge refunds at the end of the year and they are proud of it. I think the paradigm needs to shift. These people should be ashamed (as I am). I gave the government an interest-free loan, then, I had to prove that the money was mine in order to get it back.

I hope I got my point across. Everyone reading this should think about the tax refund you got last year. If you received more than $2000, you need to adjust the allowances you are taking on your W-4. The IRS offers an interactive withholding allowance calculator and a couple of work sheets on Page 2 of the W-4 form to help you figure out just what changes you need to make to your withholding amount. Bankrate.com also has a bunch of information on the W-4.

I want to receive a $0 tax refund next year…or as close to it as I can get.

Related Information:

http://www.docstoc.com/docs/201656/Interactive-Form-W-4–E-Sign-for-Free-at-wwwechosigncom
https://nessie.uihr.uillinois.edu/cf/comp/index.cfm?Item_ID=1056&rlink=674
http://turbotax.intuit.com/tax-tools/estimating_your_take-home_pay_form_w-4/article
http://taxes.about.com/b/2007/02/19/adjust-your-withholding-using-form-w-4.htm
http://www.unclefed.com/IRS-Forms/2001/HTML/p91903.html

If you still want a big fat check at the end of the year, send your money to me. I’d be glad to take out an interest-free loan with you.

** By the way, my tax refund is actually over $12K with state and federal put together. Stupid me.

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