Q2 Goal

So reading Budgets Are Sexy today inspired me to set out a goal or challenge for myself. I've decided that I'd like to save $25K by the end of Q2 (end of June). It seems like an aggressive but a doable goal. It's nice to put it down in writing and have a reason to save.

I've been pretty good at the little things this month. Cooking more at home. Stopping my aggressive Oren's habit. But not so good at the big things. A Spanish class. A deposit for a trip in April. Oy vey. I have to get better at cutting out the big things too!

Here We Are Again

At the end of another year! Wow. This year has been very successful personally. I have focused a lot less on my financials this year, but since I've devoted a lot of time to setting up different systems, things kind of run on autopilot now.

I definitely spent more on travel this year than I expected to, but it was so worth it. I'm pretty pleased with how my spending maps to my life priorities, actually.

I am hoping that the new year brings a new job, and new challenges. As well as similar rewards or even more than the type I've been earning.

So far, it looks like 2012 is going to be as busy as 2011 (especially the back half) has been.

Wishing all savers and spenders alike a happy, healthy and prosperous 2012!

Update

Wow, this last month has been really crazy. Both financially and otherwise.

First, the IRS audit. My business expense was rejected by the auditor. I found a great, relevant tax course case, and my accountant encouraged me to fight the finding, through the proper channels. This would mean talking to the agent, then his supervisor and if I didn't get anywhere, filing an appeal and then meeting with an agent in person. All of this would have meant I had to write up my findings and basically act as my own lawyer/rep. I was ready. And then life happened. And I realized I had already spent a lot of time on this audit and that my resources would be better spent elsewhere. So I gave up. I paid the $2K to make it go away. Of course I'm not done. I'll probably have to re-file NY taxes for that year, too. In the end, I'm glad that it's over and I do not have to think about this anymore. Also, the IRS agent I spoke to was SOOOO nice. I hated him (of course) until I spoke to him. He actually encouraged me to provide him with the case I had found, but I just kept telling him I did not have time. I think he even offered me an extension.

Second, the market. I have no idea. One day I am poor, the next I'm back up to where I started. All of this up and down just means that I net out about even from what I can tell, not really making or losing money.

Third, job. I've decided that I am very bored at my job. I am getting pretty far along interviewing for a new one, so we'll see.

Fourth, it's that time of year. With any luck by the end of this month I will be in possession of a bonus check. Considering how lean but successful we were this year everyone is expecting a bigger one than last year, so we'll see. Crossing fingers.

Market Recovery

So this week was really helpful in regaining some of the paper losses I've suffered in my taxable and retirement accounts over the last few months. My taxable account is only a few thousand short of the highest balance I've ever had. Woo -- hoo!

Audit Results

So today I came home to another fat package from the IRS (why so many papers always from them?). This one I was eagerly anticipating. It was their response to my response to their totally ridiculous audit. The main point of their audit was totally unfounded, which was validated by the fact that in their response to me they did not even MENTION the initial reason why they supposedly audited me and just focused on my business expense deduction which they did not allow. They also assessed a penalty of 20% and charged back interest. Overall, it was about 2K additional tax. At this point I am so over it and am just going to pay the stupid 2K and move on. One would hope they would be over it at this point too, but they also included a handy little form asking me to extend the statue of limitations on the tax year in question which should expire April 1 until June 30th. I don't plan on signing this, but I'm consulting my accountant on the question.

The only redeeming factor to this whole nightmare was that I uncovered a mistake in my favor, which lessened the amount of additional tax that I have to pay.

Shedding Those Pesky Zeros from Bank Acct. Balance

The title of my post is pretty much how I feel these days. I'm due to write up my quarterly net worth statement and I am less than excited to do so. This is the first quarter I will have lost money in years. Cést la vie I suppose. Not like I've been doing much saving on my own to make up for my market losses. I feel like if the market is going to wipe out all of my savings, I might as well have some fun with what $ I do have! Next quarter should be better, because as of October 1, I have paid all of my social security tax for the year. That means an automatic raise of several hundred dollars during Q4. And we are inching towards bonus time (thank the gods).

I feel I have made some progress on fighting back the other force of evil trying to suck $ from me, the IRS. I put together a kick ass package for my audit, and there is no reason that I should not be receiving a check for overpayment from the IRS. I actually discovered that I double reported my dividends for the year in question, so I should get back a few hundred dollars. If they do not accept my business expense explication I will so appeal that finding. There is no reason for them not to, but with the government coffers running low I'm sure they are tasked with sucking every last penny they can from the populace. I'm going to fight for my rights and not let them intimidate me.

More Ugh

I have been having a bit of a pity party for the last week, ever since I came home to a big fat package from the IRS saying that they were looking at my 2008 tax return. This is highly annoying because the reason they say they are looking at my return is absolutely ridiculous and totally does not apply to my situation (they think I have been paid by a foreign embassy). But, in the process I am now going to have to defend my deductions (it's really just one big one) and there is the chance that I could lose. In which case I could have to pay interest in addition to the tax owed, and who knows maybe even penalties for good measure. Not to mention the annoyance of having to gather all of the paperwork required for this. And consulting an accountant who is VERY expensive. This whole ordeal could cost me $5k or god forbid more. Which on top of the 15K or so I have lost in the market eats up a lot of my savings for I guess the last two quarters or so.

I feel so wronged by the financial gods. I save, I invest, I plan and then the market dives, the banks don't pay any interest and now the IRS is harping on me.

Well, if I do end up paying a big tax bill, I will simply have to scale back. I was contemplating another trip in November, so I'll kill that idea. I was also thinking about having a cosmetic procedure done (judge away, I don't mind -- it's non-invasive and totally unneccesary but I want it). You know -- that whole stimulating the economy thing. But if the IRS wants to claw back my $, then the US government will have to find another consumer to do some shopping.