Taxes!

 

It's that time of year, again. Last year, I owed a little over $1,200 in taxes. So, I was given the fabulous opportunity to pay the government $1,149, each quarter for all of 2024. I was fairly certain that I would not owe over $1,000 for 2024, as I had the benefit of my 401K contributions to reduce my taxable income. 

However, in my field, due to bonuses, etc., I went ahead and made the 2024 estimated tax payments. So, now I will be getting approximately $4,000 back. It's irritating, but I'd rather get the money back than pay penalties. 

2025 Goals

Look at me! Two posts in one month!!!  Here are my goals for 2025.

1. Pay mortgage down to under $120k. I currently owe just over $135k

I am paying an extra $500 a month on my mortgage. I also hope to getter a bigger year end bonus and apply a portion of that to the mortgage this year. 

2. Increase contribution to 401k to 10% from 8%

I currently am contributing 8% of my $168k salary. I expect a 5% raise to $176k. I will increase my 401k contribution to 10% of my new salary. 

3. Increase savings account (Marcus) to $50k, currently at approximately $40k 

I've always had anxiety over job loss. I hope to keep a $50k savings account for my emergency fund and household expenses. 

4. Max out Back door Roth Contributions

5. Lose 30lbs

6. Read 12 books

7. Take one trip

8. Exercise and move more.

What are your goals for 2025?

Net Worth Update January 2025

 

Here's where the numbers stand.

Savings
$19,132 Ally Savings Account (Saved for Roof Replacement)

$40,817 Marcus Savings Account 

 $85,892 Retirement- Roth IRA
 106,141 Taxable Brokerage (Retirement)

$22,779 Former Employer 401k

$16,435 Current Employer 401k

$15,000 Private Investment 

$5,000 Private Investment 

$32,361 Bank Account 


Home-
$428,100 per zillow

              Total (not including home): $343,557
              Total (including home): $771, 657

Liabilities-
Mortgage $135,193


             
                   Total (not including mortgage): $0
                    Total (including mortgage): -$135,193
 


        Total Net Worth(not including mortgage/home):  $343,557                                   
        Total Net Worth(including mortgage/home): $636,464

Net worth, not including mortgage/home, increased by $71,971 from April 2024 (last net worth update)
Net worth, including mortgage/home, increased by $71,942 from April 2024 (last net worth update)

Notes- home value decreased by almost $10k. 

Taxes 2024

 

I owed an additional $1,249 in taxes for 2023. I did not have the benefit of 401k contributions so all of my W2 income was taxed. I also had almost $2,500 in interest income. I ended up paying approximately $30,300 total in taxes in 2023. 

That's definitely a lot of money. I am on the hook for quarterly taxes for 2024.  I don't think I will owe much, if anything, in 2024 as I will have the benefit of my 401k contributions to offset my taxable income. 

This was a good lesson to plan for taxes. I don't know anything about tax shelters or ways to decrease taxable income, other than retirement contributions.  I would like to research this topic so I can have a better understanding of planning for possible future tax bills. 

Anyone have a surprising tax bill this year?  Anyone ever have to look into (legal) ways to decrease taxable income? 

Net Worth Update April 2024

 

I haven't done one of these since July of 2019!

Here's where the numbers stand.

Savings
$18,499.26 Ally Savings Account (Saved for Roof Replacement)

$45,774.85 Marcus Savings Account 

 $66,213.02 Retirement- Roth IRA
 $85,219.88 Taxable Brokerage (Retirement)

$20,147.23 Former Employer 401k

$3,900.32 Current Employer 401k

$31,831.52 Bank Account 


Home-
$437,500-per zillow

              Total (not including home): $271,586.08
              Total (including home): $709,086.08

Liabilities-
Mortgage $144,563.81


             
                   Total (not including mortgage): $0
                    Total (including mortgage): -$144,563.81
 


        Total Net Worth(not including mortgage/home): $271,586.08                                      
        Total Net Worth(including mortgage/home): $564,522.27

Net worth, not including mortgage, increased by $197,023.08  from July 2019(last net worth update)
Net worth, including mortgage, increased by $388,219.27 from July 2019 (last net worth update)

Savings Accounts

 

I have 2 savings accounts, one with Ally and one with Marcus.  My Ally account is paying 4.25% and my Marcus account just sent an email stating that the rate was raised to 4.40%. I remember when I opened my Ally account and I THINK it was paying 0.6%.  It has increased 7X since I opened it!

My Ally account has over $16,000 in it and I earn approximately $57 a month.  

My Marcus account has over $38,000 in it and I earn approximately $135 a month. 

That's almost $200 a month in passive income!!!! 

I want to find additional ways to increase my passive income.  I want to make money while I sleep!

I only have my savings accounts, my brokerage account and my retirement accounts as passive income. 

What do you do to earn passive income?  Comment below! 

2023 Goals

 

I haven't really sat down to make any goals for 2023.  I know it's August, but I figure it's never too late. 

1. Contribute $15,000 to retirement with the goal of having $145,000 by the end of the year.  As it stands today I have approximately $138,000.  I do no yet qualify for my firm's 401k plan. 

2. Pay the mortgage down into the $140,000s. 

3. Donate $1500 to charity.   

4. Increase savings to $57,500. 

Do you have any goals for 2023?  Please share in the comments.