Taxes

[merithyn]

That's kind of the point, though. It's savings that you can't touch. Aren't there CDs and Money Markets that are the same? You have to let them ride a certain amount of time before you can cash them out?

I'd just put it in a savings account that is harder to reach. Takes several days if I ever want to pull money from my ING Direct account which serves as a good barrier.

Okay. Others choose to use their taxes.

[garbon]

Sure, I think that's okay as a temporary thing to actually do but I'm not sure I'd go advocating such a backwards approach to savings.

[garbon]

Also I always thought the point of making a CD was for the better interest rate, not because you were trying to prevent yourself from accessing money. That was the downside of having a CD.

[Valmy]

Okay. Others choose to use their taxes.

Yeah ok.  If garbon suddenly needs cash because life throws him a curve he just has to wait a few days.  The others have to possibly wait months while they are accumulating interest on a loan they had to take out.

[crazy canuck]

I dont mind paying income taxes - they are based on an objective value - my income.

Like Malthus my blood boils at my property taxes which are based on some flight of fancy of what a willing buy might pay for my place.  Like Malthus I would be quite happy selling it for that amount although I highly doubt any buyer would pay it.

[Malthus]

Only three pieces of money-management advice I've ever consistently followed:

(1) however you can, accumulate a surplus and hold it in a reasonably liquid form, aside from your other savings. This is to cover any emergency that (will) come up. 

(2) set up some sort of system to automatically deduct money from what you earn for savings every month, and live as if the remainder was your actual income.

(3) attempt to anticipate future major expenses (new car, vacation) and set up from your savings specific funds for those future expenses.

Seems moronically simple in theory, but hard to do in practice.

[crazy canuck]

Only three pieces of money-management advice I've ever consistently followed:

(1) however you can, accumulate a surplus and hold it in a reasonably liquid form, aside from your other savings. This is to cover any emergency that (will) come up. 

(2) set up some sort of system to automatically deduct money from what you earn for savings every month, and live as if the remainder was your actual income.

(3) attempt to anticipate future major expenses (new car, vacation) and set up from your savings specific funds for those future expenses.

Seems moronically simple in theory, but hard to do in practice.

Hey, we got the same advice.  We have been fortunate enough to follow these rules from the time we got married - even when the amount we were able to set aside each month was only 50 bucks in the early lean years.

[Malthus]

Hey, we got the same advice.  We have been fortunate enough to follow these rules from the time we got married - even when the amount we were able to set aside each month was only 50 bucks in the early lean years.

Heh me too. They have served me reasonably well.

[CountDeMoney]

second, people tend to use their refund check to pay for their vacation or otherwise treat themselves in some way--it's kind of looked at as a form of found money.

Which is retarded.

Back when interests rates were better, it was doubly so, as you'd basically be letting the government earn the interest on the money you overpaid.

When I'm employed, I usually put the refund or most of it towards the principal on my mortgage, knocking it down.
When I'm not employed, I use it for food.

[garbon]

second, people tend to use their refund check to pay for their vacation or otherwise treat themselves in some way--it's kind of looked at as a form of found money.

Which is retarded.

Back when interests rates were better, it was doubly so, as you'd basically be letting the government earn the interest on the money you overpaid.

When I'm employed, I usually put the refund or most of it towards the principal on my mortgage, knocking it down.
When I'm not employed, I use it for food.

I'm not sure I understand how that is here nor there on whether to increase one's withholding.

[Grey Fox]

This year my tax return will be use to pay my dad taxes. (that he incurred because of me)

[CountDeMoney]

second, people tend to use their refund check to pay for their vacation or otherwise treat themselves in some way--it's kind of looked at as a form of found money.

Which is retarded.

Back when interests rates were better, it was doubly so, as you'd basically be letting the government earn the interest on the money you overpaid.

When I'm employed, I usually put the refund or most of it towards the principal on my mortgage, knocking it down.
When I'm not employed, I use it for food.

I'm not sure I understand how that is here nor there on whether to increase one's withholding.

It's not.  I just felt like fucking posting it there.  IS THAT OK WIFF YOU

[garbon]

Sure but why did you quote me?

[CountDeMoney]

Sure but why did you quote me?

Because it was there.

[KRonn]

I usually get money back from the Feds, and have to pay the state. Last year I didn't owe the state, got a little back. I should be getting back a couple thousand from the Feds, mortgage interest, property taxes and medical costs will help there.