Tag Archives: Tax Saving Strategies

Tax Deadline is Drawing Nigh: Contribute to a Traditional or Roth IRA

If you’re anything like me then you hate filing taxes so you’ve waited until the very last minute to do them.  Most individuals are anticipating a refund this year….yay for them.  However, if you find yourself owing the IRS, don’t panic…at least not yet….there’s still time to do something about it.  Why don’t you consider contributing to an IRA?

An IRA (Individual Retirement Account/Agreement) is a very popular tax advantaged strategy that has been used for years in tax planning and is a great way to save for retirement.

IRAs have not always been known as IRAs.  Several modifications and legislations have taken place to get it to where it is now.  In a future post, I will go more into detail about the history of IRAs and how they came to be.

There are several types of IRAs to choose from depending on your situation; however I will just touch on the two most popular ones….Traditional and Roth IRAs.

Continue reading Tax Deadline is Drawing Nigh: Contribute to a Traditional or Roth IRA

Emergency Fund: Having one is Essential

“OMG, it’s seems like everything is breaking down all at once!”  This is the very statement I made to myself the other day when I had to shell out $400 dollars for an unexpected car repair.

It seemed like only yesterday I had just replaced the lid switch on my washing machine.

Normally this would have caused me undue stress, but fortunately this was just a temporary inconvenience that was resolved rather quickly.

Why?  Because I had a nice, well-funded, Emergency Fund in place.

It’s nice to sleep at night knowing that I have a stash set aside for unexpected expenses.

What one would consider an emergency is purely subjective. I think a good way to gage whether something is an emergency is to evaluate whether it is an unexpected expense with unexpected being the key word here.

For example, I wouldn’t use an emergency fund to pay for a set of new tires for my car.  That would be considered an expected expense. However, I would use an emergency fund to replace a tire that might have blown out all of a sudden.

How much should you save? Continue reading Emergency Fund: Having one is Essential