Thursday, February 18, 2010

2009 Tax Return...

I finally filed my 2009 taxes and I will receive a decent return. I will get back a little more than I expected so I am going to be able to fulfill my $10,000 short-term savings goal. I currently have $7,000 in short-term savings with HSBC. I will transfer another $3,000 once I receive my return and keep the entire $10,000 balance out of reach. I also have $2,000 in an Emergency Fund at a local bank.

I don’t have a clue right now how I am going to fulfill my $20,000 long-term savings goal but once the $10,000 short-term goal is met, I am going to shift my focus completely to debt reduction.

3 comments:

YBP said...

i like that. Once I get to my $10,000 short term goal I think I might do that as well ( Have about 1-2000) in a money market account at my local credit union.

Love the blog by the way!!!

Aaren said...

May I ask why you're getting a return? As in, was there a one-time event that lead to a credit or deduction or whatever that caused you to get back more than normal, or is this the result of underwithholding during the year? Because if it's the latter, keeping more of your own money may help with some of your other goals, like your $20k fund and how quickly you're able to see progress.

Chitown said...

Aaren,

I usually get around $3k back so it is a matter of not withholding enough.

My income in the last 2 years has gone from $55k to $67K to $72K and I started repaying my student loans. I didn't mess with the status quo of claiming 2 deductions, myself and my home because of too much fluctuation in income. Once things settle down, I may make a change.

Since I never had reserves, having to pay the IRS was something I never wanted.