Finances On Cruise Control

Many of my posts have been more short stories than updates on my finances lately.  Allow me to apologize.  Though, I have a really good reason!

I’m not in debt.  I paid off my last debt (my car) in December 2008.

I spend significantly less than I make every month.

My 401K is rising consistently.  I’m right on track to max out this year.  Is it hard? Yeah!  That’s a huge chunk of change every MONTH that I’m not getting (albeit my taxes are much lower).  Do I want to go blow all that on clothes and dining out every month?  Yes!   But I don’t.  Gotta keep your eyes on the prize…

Another nifty thing I do is caculate my federal & state taxes down to within a couple dollars for the year so my tax returns (or payments) are very small.  I try to keep the amount I will owe or pay to less than $30.  Yes, I’m one of those people that does not believe you shouldn’t give free loans to the government (which is what you’re doing when your tax returns are outrageous).

There you  have it!  I’m not struggling too much with anything.  I’m just at a very peaceful, calm state with my finances.

It feels great. 🙂

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  • I’m so jealous. I can’t wait for that to be me. =)

    I’m pretty sure it will be within a few months of paying off the debt, but I just can’t wait. I’m neatly counting the months.

  • That’s so great. It must feel so nice to have everything under control like that.

    And I’m really impressed with the tax thing. I have no idea how to figure that stuff out!

  • Same! I’m with SSBC!! I was trying to calculate how much I’ll make once I finish and start working. It’s still going to be tight with T out of work. But at least hopefully I can start saving again, and be able to manage irregulars like insurance (and flatmates who don’t pay their share on time…).

    One of my best friends seemed surprised that two people couldn’t live on $500 a week. Well, you can, but that’s living on the edge – you can’t cope with ANYTHING that crops up, you’re not saving, and if there’s any debt to be dealt with, it’s just not doable! But you know, she lives at home and probably will till she gets married and what not, so she doesn’t know what it’s like to buy groceries and pay bills. I’ll forgive her 😛

  • Sigh…I can’t wait to be debt free. We have been working on paying off our debt since August 2008 and have paid off $16,000, but we still have around $62,000 to go. It seems like it will take FOREVER to get that much paid off.

  • just curious- how do you calculate your taxes in order to minimize the tax return you get? I’m one of those that gets a large return every year and other than with automatic withdrawal for RRSPs (I’m in canada), I dont have anything else that’ll reduce my taxes…

  • I read this and immediately felt bad about not contributing more to my 401(k)… because I know I can.. Boo.

    Really though, I’m saving for a house, so I guess I’m putting that on top of my priorities for now.

    Congrats on having everything in order! You’re living proof that a 20 something truly can have her life (and finances in order!) So excited for you!

  • Good for you!

    I have a question – Do you and Lloyd have a joint budget, or do you keep them separate? How do you split bills… is it even, or is it based on salary?

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