Comments on: 5 Year-End Financial Tips to Make 2009 Your Best Year Ever

By: aio-holic

aio-holic — Thu, 15 Jan 2009 01:46:07 +0000

Wow….
It’s a cool information about finance… 100% I agree with the statement..

By: pays to live green

pays to live green — Thu, 01 Jan 2009 22:32:55 +0000

Great list of financial tips. I agree completely with all of them and this is the perfect time to ensure you finances are in good shape. I really like you tip alot on making sure to take advantage of retirement plans like your company’s match on 401k’s and IRAs.

By: » Best of 2008 & December Link Love # The Shark Investor

» Best of 2008 & December Link Love # The Shark Investor — Tue, 30 Dec 2008 15:54:38 +0000

[...] Jeremy at Generation X Finance shares financial tips to make 2009 your best year ever. [...]

By: Craig

Craig — Tue, 30 Dec 2008 15:12:40 +0000

@BankerBryan and @Jeremy

Thanks for putting it into a different perspective I wasn’t thinking about. I can see how taking that extra little money each month and directly putting it into savings, I was going to wait for the one larger refund and place all of that in savings. In a ways I plan on using it for mental reasons as well. Everyone likes getting presents, or money. Even an expected refund is still unexpected income that you don’t plan, may help me budget better during the time. Although for next year I may start to switch methods.

By: Jeremy

Jeremy — Tue, 30 Dec 2008 14:47:23 +0000

You’re right, the base limit is still $5,000. I work with a lot of 50+ folks so I get in the habit of just saying 6k. I updated the post to reflect the current numbers.

By: ?

Tue, 30 Dec 2008 13:46:42 +0000

I thought the 2009 IRA limit is $5,000. It’s only $6,000 if you’re 50 or above.

By: Jeremy

Jeremy — Tue, 30 Dec 2008 01:12:38 +0000

Good point, Michael. And to address your first comment, that’s another great observation. I guess the bottom line is that by implementing the right strategies up front, you can reach a point where you don’t have to worry about spending money on the things you enjoy.

By: Beyond Paycheck to Paycheck

Beyond Paycheck to Paycheck — Tue, 30 Dec 2008 01:09:15 +0000

Furthermore, if you have any debt (especially high-interest credit card debt), the amount you’re forfeiting by over-withholding is actually the top interest rate you’re paying – not just the rate you could get from a savings account.

By: Jeremy

Jeremy — Tue, 30 Dec 2008 01:02:53 +0000

Craig, like Bryan said, that added cash flow by only withholding just enough for taxes can be put to work immediately rather than sitting in the IRS coffers for a year or more until you get it back. True, it might not amount to much, but even $50-$100/month extra can immediately be used to go into a high-interest savings account or as IRA contributions.

I know that some people over-withhold as a way of forced savings, and I guess that works for some. But if you have the discipline to use the money that would otherwise be going towards overpaying your taxes and put it to work on your own, it is a far better option.

By: BankerBryan

BankerBryan — Tue, 30 Dec 2008 00:58:48 +0000

These are some great tips. I especially like that Automatic Savings Plans are at the top – it takes some getting used to but if you can pull it off eventually you forget about it and you are able to save.

@Craig – I try to limit my withholding to only the amount that I will have to pay in taxes for two reasons. One, you don’t earn interest on the money while it’s sitting in the IRS’s hands and Two – The IRS is earning interest off of my money while it’s in their hands. I’m already paying taxes I don’t want to give them any more.