So in imagining what this looks like for us, it had been very difficult to figure how out to get this to $1000 quickly, without selling one of our kids. But I think we got it now. Thanks to lending our money to Uncle Sam, and the opportunity to get it back, we will be able to get this done within the next month or so.
The other thing is that I’ve taken the opportunity to look at our federal withholdings, and I’m way over paying - I could’ve figured this out a while ago, but getting $5,000 back a year was nice. That will be changing, taking into account the W4 worksheet, I’ll be claiming one less than I’m allowed (just to be safe, and not OWE at tax time next year), and ideally, adding $400/ more a month to our income. Getting us well on our way to Baby Step 3. Now granted next year we won’t receive the refund that we will this year, but if I invest that over the next 12 months, I’ll hopefully be compounding some interest….and will have the money working for me and not Uncle Sam.
If you’d like to know how to check how your withholdings effect your paycheck you might find this site useful.
