Jun 15 2010

Rent before buying a house in a new city?

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I had this question buried somewhere in my last post, but I wanted to have more discussion on it:

If you’re moving to a new city where you aren’t completely familiar with the area, do you jump right in do you jump right in and buy a house and hope for the best, or do you rent for the short-term while you figure out all your options?

It does take a little while to find a house and have it inspected and deal with closing n’at. So you’ll have to live somewhere and a hotel probably ain’t gunna cut it.

Last year, we moved to an apartment across town for a few reasons. It was cheaper, it had a washer/dryer, and it was in an area that we thought we might want to buy someday. We wanted to give the area a test drive.

Sure, we could make the trip across a few rivers (Pittsburghers, gasp with me!) to visit, but that’s annoying.

Turns out, we love this part of the city. It’s really nice and has a lot to offer. It’s also really expensive. Bummer.

Whenever we move to Indianapolis, we will almost certainly need to rent a place for at least a short time, if not a year or more. The only way I see that not happening is if one of our relatives will be vacationing somewhere exotic and will want us to housesit. Heh! Not likely.

So I want to hear from you. If you’ve picked up and moved to a new city, did you buy a house right away? Did you get a rental for awhile?

OH AND STAY TUNED: Later this afternoon I will be posting a 24-hour giveaway. It’s a gift card — who doesn’t love the flexibility with that?


Jan 25 2009

Maximize your money — review your tax exemptions now!

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The Money Life Network is launching a series on jump starting your own economy. This is the first post. By the way, I’m just a tax payer — not a tax professional. Do your own research and consult with someone who really knows what they’re talking about, mmk?

Do you look forward to a large federal tax refund every year after you file taxes online? I don’t. Instead of getting a big refund, I’d rather get a small (less than $200) refund, or owe a small amount.

Our take-home pay is a little bit more this way. It also means that we’ll avoid giving the government an interest-free loan while they wait around to give us our money back!

I’m sure you’ve heard about how the folks in California might get I.O.U.s instead of their refunds right away, since the state is so broke. I don’t know if that would happen on the federal level, but why risk it?

Some people prefer to have a large tax refund each year instead, so that they can apply the check toward debt reduction, savings or a large purchase. Otherwise, they argue, the money in each paycheck would just be absorbed into their daily spending and could be frittered away.

No matter how you view your federal income taxes, now is an excellent time to review your withholding to make sure everything is as it should be.

If you’ve gotten married, divorced, or had a baby in 2008 you might want to change your exemptions. Also, if your child became a legal adult, you’ll no longer be able to claim him or her. You might want to “unclaim” him or her now, otherwise you could end up owing quite a bit of money to the government.

Use this calculator to estimate your federal tax obligation for the upcoming year and to see what an appropriate number of exemptions would be. If you like, you can look at the form W-4 to determine your exemptions. I think using the calculator is a bit easier to understand, though.

For 2008, we claimed one exemption. For 2009, we’re claiming four, although we could possibly do five and still be ok. Thanks to the birth of our son (yay, Johnny!!), our tax obligation for 2008 went way down, and we’ll get to keep an extra $150 or $200 each month now. I’m making it a point to be disciplined with this little surplus, and we’ll apply the amount to our car loan.

I earn a little bit of money from my blog and freelancing, and I’m going to set aside about 25 percent of each check I receive to cover my taxes. If I expect to earn over a certain amount during the year (I think it’s $8k, but don’t quote me on it), I’d need to pay taxes quarterly.

If you earn money from your blog, it’s a good idea to keep track of it as you go, rather than try to figure it all out at tax time. Visit MrsMicah to get some free spreadsheet templates to keep track of that money.

For upcoming posts in this series, you won’t want to miss:

  • Monday January 26th: BibleMoneyMatters.com will be delving into the topic of setting up your first budget.
  • Tuesday January 27th: FreeFromBroke.com explains why we need a high-yield savings account.
  • Wednesday January 28th: PTMoney.com helps us make some extra money (to put in that savings account).

 



Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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