Election Day

The election day is here. Our new president will have his hands full with this crazy economy and whether to raise taxes or not. My take on this is that no matter who gets elected, taxes will be raised. That stimulus payment back in the Spring has to get paid for in some way. This new $700 billion bailout plan must be paid for by someone. As the old adage goes, money doesn't just grow on trees. So what to do. Some analysts say increase 401K payments, some analysts say start a 529 college fund, some analysts say insurance funds...what if you are quietly living, making a decent income but really don't have the funds to put someplace. Well I like the story of the tortoise and the hare, slow and steady wins the race. So here's my plan, add a savings account in a small denomination $50/paycheck that will be used to pay any additional taxes this next year. If it is easily accessible in a regular 3% savings account, then if it is needed in an emergency prior to tax time, we can get at it. Hopefully this won't change our plan too much and we will be able to adjust our spending levels by this much. If by May this is going strong, my intention is to add this %age to my 401K deductions to gain the tax benefits of less income. My philosophy is to firs test to adjust the spending then make the permanent change. Just remember going directly into the 401K means you can't get at that money without penalty until you are 59 1/2 years old...so make certain before making the adjustment.

Happy Savings on this election Tuesday.

God Bless.