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. 

Update on Job Application

 

I did not get the non-litigation position that I applied for a few months ago. I just found out on Thursday.  It was not unexpected and was definitely a long shot from the beginning.  There a few more non-litigation positions that I will apply for, hopefully, tomorrow.  I just want to stay in the same salary range, $140k to $160k.  My job is entirely too stressful, and it affects my mental health.  I have tried anti-anxiety and antidepressants and they do not seem to help very much. I'll keep pushing along and find the right fit for me.  

 

Hello.... Is anybody out there???? Wow, I have been gone a super long time!! I miss blogging!  I have been intermittently reading blogs over the past couple of years but have not been able to comment from my phone.  I hope all is well in the personal finance world.  I have so many updates to provide!  I'll be brief and start with the basics for now. 

I changed jobs in January.  I am working for another law firm.  My dream is to get into a non-litigation position. I hope one day I can transition into that kind of work. My base salary is the same.  $160k a year.  There is a non-litigation position I have been eyeing which would be approximately $220k a year. However, the position has been empty since at least October of 2022. I'm not sure why it has not been filled. It has been advertised 3 or 4 times. 

As of today, I have approximately:

$54,000 between 2 savings accounts. 

$121,000 total in my Roth and taxable brokerage account 

$17,000 in my 401k from my old firm 

$30,000 in checking. 

I owe approximately $152,381 on my mortgage. 

I pay off my credit cards monthly. 

Zillow has estimated the value of my house as $432,000.  

My net worth including my home is about $501,619. 

Where Does The Time Go!

 I don't know where the time goes. The last time I blogged was in September! It's March now and I have turned a year older. I have been at my new job for a full year. I just had my annual review and received a $10,000 increase.  I will now receive monthly bonuses for meeting my required hours and my quarterly bonus rate has increased. 

This job is very intense and I'm not sure how much longer I will stay.  My boss is very Type A and aggressive. It causes a lot of undue stress. I tend to work 13 hour days and every weekend.  I'm not sure that's worth $160k a year ($170k with a year end bonus). However, I did get over $18,000 in bonuses last year.  I am considering going on anti-anxiety medication due to the stress. 

The bright side is that I am now eligible for participating in the company 401K! I am contributing $10% and my firm matches up to a certain amount. I contributed $660 and the match was $100. 

Anyways, I am off to get some work done.