After a long week, I was unpleasantly surprised to receive a thick letter from the IRS. My eyes instantly went to the $1500 + $79 interest that was listed as the discrepancy between what I filed for my 2009 taxes and what they felt was given to me in error. I texted my 'tax lady' and said I would be sending the paperwork to her the first thing Monday (today). Yes, the IRS will allow you to pay in installments. But all I kept thinking this past weekend was how inconvenient it would be for me to add this payment to my monthly bills.
I make a nice salary, especially for a single girl with no major expenses (kids, lavish living, designer clothes, etc.), but saving is something I truly struggle with on a regular. It seems as soon as I start saving, something comes up, the level of importance varies. Regardless, I am usually looking at the bare minimum saved. Add that to the fact my credit card is maxed, as I used it for my recent NYC and Puerto Vallarta trips. I already have a plan of attack to pay my credit card down in a few months, so another bill would not be a good look right now.
I can live low maintenance, but that can be so tiring sometimes. Stressing over bills and money is not good for this coco skin and my youthful mental complex. So I was elated to call and find out from the IRS rep that the notice I received was due to a computer glitch. I, in fact, owe them nothing. She called me back after our initial call to confirm that my 'case' was closed. This would further be supported by a letter in writing that would be sent out as well. I was so cautiously happy that I kept repeating everything she said to 'clarify' I was hearing her correctly. I mean everyone from Al Capone to most recently Ja Rule has been convicted of tax evasion. These are people with money to hire good attorneys. And they still could not side step the charges. The IRS does not play!
The lesson in this was I should have had at least this amount of money in my savings account. If not, at least had enough space on my credit card to pay it in one lump sum and repay my credit card. I live on the edge a lot when it comes to my finances. I push myself to the outer limits; it is not healthy or sane. Of course having to pay this amount of money may be uncomfortable, but it should not paralyze me with anxiety or fear. I am not a millionaire by any means, but I can at least live the life of reasonably paid thousand-naire. My goal is to have $1500 saved and 1/4 of my credit card paid off by the end of September. Here's to no new bills springing up!
That's the story of my life (living on the financial edge). You just gave me some motivation to save (instead of eat in the street)!
ReplyDeleteI truly enjoyed this blog. I highly recommend having a savings 3x your total monthly bills by the end of the year. That would be your "tough times" money. And to further discipline yourself you must pay something into this total amount from every paycheck. I believe this was a call to consciousness, when that call occurs, take it from your big sis, act immediately.
ReplyDeleteI have been saying over and over that you should save something no matter how little it is. During my working years I would have a big chunk of money here and there. I didn't start saving until after retirement but I always had a empty credit card. I hope you get to feel the high of having some extra money and not worrying about your next payday.
ReplyDelete