I need to adjust the way I calculate my liabilities for the January 1, 2006 Net Worth Update. I was not including taxes for the side income. I think I need to set aside 30% of the side income for taxes. In addition, I need to include unpaid monthly bills.
Here's a fun question:
You've just won $1 million in the lottery. What will you do with the money.
$________for__________
$________for__________
$________for__________
$________for__________
Well, considering at least 40%+ would go to taxes (*sigh*), that leaves me with just enough money to pay off mortgage and other debts. But I would feel the need to give a portion to charity as well, so we would be close, but not quite out of debt. Still, owning a home free and clear in Silicon Valley would be a great feeling!
ReplyDeleteI'd probably use some of the money to get a better phone system and an unlisted number since I'm sure 'relatives' and money managers would be calling all the time.
Thats easy...2 chicks at one time.
ReplyDeleteLOL at Anon...
ReplyDeleteIn no particular order,
House
Retirement
Travel Around The World For 1 Year
How about a post on what kind of tax deductions you take for your side incomes?
Oh i take all sorts of tax deductions for side income.
ReplyDeleteFrom depreciation value of computer/car, ink cartridges, gas mileage, cost of copies, costs of buying anything that has to do with office supplies (file folders, paper, pens, you name it), postage stamps, car maintenance costs, meal costs, high speed internet as well as the land phone line (for fax machine) monthly bills, wireless phone monthly bill, all the computer/work related equipment costs (ex. I bought a USB storage drive and I'm deducting its cost) to any office furniture I buy.
Actually, I use these items and services for personal use too, but because they're vital to efficiently do my side job, they can be deductible.