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Another big jump in available tax shelters this year for our family...

401k from $15,000 to $15,500
2xRoth from $8,000 to $10,000
Also, with our new child we have $2k per year into another Roth like vehicle... Coverdell.

So that will be $27,500 for 2007 for our family. Only a few years ago in 2001 (1x401k+2xRoth) was $14,000.

It's going to be tough, but as FIRE Wannabees I've got to come up with a budget plan to make it work! Need to come up with an extra $4500 with no increase in pay expected...

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whyohwhyoh


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2xRoth from $8,000 to $10,000

I believe that the limits for 2007 are still $4000 per person for Roth IRAs (unless you are age 50 or above).

-4
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I believe that the limits for 2007 are still $4000 per person for Roth IRAs

Thanks for pointing that out. Not sure how I overlooked that.

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whyohwhyoh

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So the ROTH is going to $5,000 for 2007?

Are you switching age brackets?
http://beginnersinvest.about.com/cs/iras/a/iracontribution.htm
http://www.zero2rich.com/2007-roth-ira-contibution-limit.html

If you have hit 50, then you can do catch up contributions, but $5,000 is the limit in 2008 from what I see, and 2007 is still $4,000.

You might try shopping at Target for groceries. I tried that last week and I am pretty sure I saved about 20 bucks even though I normally take advantage of every special in the store at my usual store. 20 bucks a week times 50 weeks = $1,000 bucks that will help towards your $4500



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It's going to be tough, but as FIRE Wannabees I've got to come up with a budget plan to make it work! Need to come up with an extra $4500 with no increase in pay expected...

Are you tracking your spending?

When I put our spending into Quicken for the first time, I found a lot of easy ways to save money. (I'm spending HOW MUCH on books? I can go to the library instead. Dining out? I can subscribe to Menu-mailer and eat at home instead. Etc.)

(I know you probably already knew that...but just in case.)

Vickifool
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Are you tracking your spending?


One of my goals this year was to start tracking spending using Quicken or some other means. I purchased Quicken and started to set it up, but even with all the new auto entry subroutines I was still not motivated. I did use it religiously from about 1995 to 2000.

Regardless, I have been working on reducing recurring spending this year, and managing cash flows better to realize better returns on contingency funds. We already LBOM, so finding huge savings is tough, but if you can carve away at lots of little things that won't adversely affect our standard of living, then benefits can be realized.

So we only need $2,500 extra this year to maximize our tax sheltered savings. This should be doable.

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whyohwhyoh


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