Monday, March 31, 2008

One Month Later, the Snowflake Resolution

Yes, I know I waffled for an entire month on what to do with February's snowflake fund. I now have the answer: my tax bill.

I mentioned I went and had my taxes done last week. Expensive, but as a business owner, I'd rather pay someone who specializes in these things do them. After all, as a writer, you wouldn't hire me to fix your plumbing, right?

Anyway, my remaining tax bill is less than I expected (by about $700...yay!), though I still have to cough up a healthy amount. I figured out today that with the extra I've been saving since January and the amount I will save from my next check, when combined with the lingering February snowflake fund, it will be just a little more than what I need for my tax bill.

Needless to say, this will be wiping out my Tax fund, and I...uh...won't be able to pay my estimated (first quarter) tax due on time (yep, that is due the same day as last year's taxes...woo-hoo!).

It looks like this: I will cover my 2007 taxes on time, and I will just continue to save a little extra so that I get back on track for making my estimated payments this year, to avoid the underpayment penalty I had to cough up for not making estimated payments last year. (Note: the underpayment penalty I owe for last year is actually less than the amount I earned on my regular Ing savings accounts last year...and it's not like I have that much money in my savings accounts!)

So, while paying my tax bill was never something I considered for the February snowflake fund, it's how it's played out. I'll keep Uncle Sam off my back, and then work on getting fully current for the second quarter of 2008.

3 comments:

Fabulously Broke said...

Sounds like a solid plan

Anonymous said...

hey thats great at least you have fund to pay it, I haven't filed my taxes yet because I have to pay 4,175.00 and no emergency fund to pay it. I will wait until april 15 the last day to file in P.R.

kelly said...

Hi- I found your blog googling and maybe you can help put my mind to ease. I consider myself frugal, although I do very much appreciate nice things like $250 jeans and such. As my husband and I become more successful- I will splurge on items here and there. recently I splurged and bought 2- $200 purses and a $130 on a single top- and I feel sooo guilty!
Here's our situation:
We have no debt, make good money and have 50k in savings. Most people in our situation would think that we've got it made and we're well off. so why do I feel sick to my stomach about spending money? Also I should point out that I recently sold a bunch of my old clothes on ebay to help justify this splurge- but it doesn't seem to be working! I wish I could just relax and enjoy my recent purchases which I absolutely LOVE but in the back of my head I just keep thinking I threw away $550. So PLEASE help me to put my splurge into perspective. what are your thoughts?