Taxpayers, I love Money Day! This is the day of then week when I “touch” my money. Today is Money Day.
This has been a tough money week with many unforeseen expenses like exploding items and broken iphones and a side swiped car. Wow. It happens. Rather than bury my head under my pillow this morning, I got up, opened my laptop and faced Money Day.
When times get tough and we need extra cash for week’s like the week I just had, the one hard rule is – don’t use the money in tax savings. Tax savings is an account that is not my money. It is money I have set aside that I owe the IRS but just haven’t paid over yet. If I choose to use this money to cover this week’s emergencies then I am behind in what I owe the IRS and will either have to play catchup or owe the IRS money at year end, eiether way, not ideal. So again, I will find any other way to make up my cash shortfall before I use my tax savings.
I have also found that if I allow myself to use my tax savings once, then I do it again and again over the year as cash flow issues arise. This becomes a bad habit and a slippery slope to an expensive payment plan with the IRS (and ofcourse extreme stress and anxiety!). So don’t go there! Tax savings is for taxes ONLY!
So what to do? Well thankfully I do have savings set aside as well as a zero % interest credit card for emergencies. Pay what I owe for the week, close the door on an expensive and miserable week and look forward to next week which I am sure will be better! (I am an optimist!)
Find additional savings tips andf resources at www.wendybarlin.com
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