Tuesday, April 15, 2008

More than you ever wanted to know about my money















Usually April 15 is the worst day of my year. I am stressed and stretched to get my taxes done. The last few years, because I have to make estimated payments for my taxes, I am behind on my taxes. This started in 2003, when I recorded my self-employment tax wrong, and ended up owing 2000 more than I thought I did. So, I write up a payment plan and send it in with my taxes, knowing I owe a lot more money to the IRS. I pay most of it off, then find some way of getting credit to pay the rest of my taxes off from the previous year so that I can get on a payment plan for the next year, because my extra money was going toward paying back taxes. It was a vicious cycle.

Also, when I moved here to Colorado Springs I had other transition costs. My wardrobe was not suitable for a formal, high-end church. I had to spend between 1000-2000 to get my wardrobe up to date. My couch broke, so I bought a new one. I had lots of repair costs to my car before I decided that it would be less expensive to get a new one. I was getting paid more in Colorado Springs, and falling deeper in debt.


Slowly I have been working my way out of that hole. Part of that is due to my mother's guilt. My mother did not have a lot of money when we were growing up, and so she was not able to contibute much more than a little spending money toward my sister and I's college education. Thus, when she got a workman's compensation settlement that she was going to pay down our student loans with some of the money. I asked her to pay down my taxes, and a few small, high interest retail credit cards (Firestone, Casual Male). It helped me catch up a little.

Then, on December 31, I got married. Several folks were generous, and we had some extra money after the wedding. We got a few toys with the money, but Jen and I decided to put enough money into savings to cover a vehicle deductible and split the rest of the money to pay down some bills. I paid off much smaller than previous years amount in January to the IRS.

When I did our taxes this year, through saving up since January, paying more on my estimated taxes, and the fact that I am married, I was able to pay our taxes in full this year. AND I KNOW I FILLED OUT THE FORM RIGHT WITH TURBO TAX. So, this April 15, I am not necessarily happy, but I am thankful. And a lot less stressed. Because taxes are paid in full, and we still have money in savings and money in the bank. My credit rating is higher than it has been in years, and I feel like I am finally having a little more financial discipline. And, I can see the light at the end of the tunnel with my car payment and my student loans.

Oh...and did I mention that since I have not had a ticket in four years I was able to transfer Jen onto my car insurance and ad renters insurance for the same cost as I previously had for just my car insurance. When I came to the Springs 5 years ago the staff told me if I got another speeding ticket they would not be able to carry me on their insurance. Now my driving record is clean. Yipee.

I have had a few breaks to get me to having a peaceful, easy feeling on April 15 this year, but I do feel good. I owe less. We have money in savings. And although I do have my small addictions that cost me more than they should (books), I feel good because I have recovered some of my financial discipline. Jen and I both eat out less. We ride together and save money that way. Financially, it almost like we have breathing room. We have even been able to cover our car repairs this winter. God has blessed.


4 comments:

reliv4life said...

yipeee!! I am very happy for you, my friend!

rubyslipperlady said...

This is awesome and never too much when it's encouraging like this news.

Nick Northrop said...

Great news. It is always a good feeling to know thing are getting handled. Money is one of the toughest this to be a good steward of. There are just too many competing interests trying to get at it. But I have found that a budget and discipline are the ONLY way.

Kimberly Cangelosi said...

You hear so many stories of financial woe these days, it's refreshing to hear an encouraging story like yours! I'm finally, at nearly 30, seeing a light at the end of the tunnel when it comes to debt. I've got all my credit cards paid off and now it's just a relatively small school loan and medical bills and then I'll be home free! Ross has been a big help because he's gung ho about being debt free and he cheers me on. I hear you about the book addiction though! And tv shows on DVD is another hard one for me!

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