Monday, November 17, 2008

Not Stressing Over Property Taxes This Year

To say I was happy to get our property tax bill for our vehicles recently is a bit of an exaggeration. Let's just say, I wasn't upset when it came in the mail. Because this year, for the first time, I was diligent about setting aside an amount from each of Shane's weekly paychecks specifically for property taxes. I'm happy to say I over-budgeted by $100 or so.

Because our checking account earns interest, I'm not going to pay the bill until after December 15 (it's due by December 31), but it's a very good feeling knowing the money is there and that we don't have to scramble to come up with it like we have had to do in the past.

That extra $100? I'd love to add it as extra toward our van loan, and I may do just that. But October saw a lot of missed work for Shane because of rain and illness. So the extra money may end up going back into our general budget to keep us from having to dip into savings. Either way, it's a tiny windfall for us.

I plan to start over the first week of January with a new weekly "escrow" for property taxes. I think I'll keep my weekly set-aside the same in 2009 as it was in 2008. We've taken on a pop-up camper and an additional older car, but I think the amount will be plenty. If we fall short, it surely won't be by much.

Earmarking money from each paycheck is a great way to save for annual expenses and events like taxes and Christmas shopping, but why stop there? I think it would also be an ideal way to save for a sewing machine, a laptop computer, a vacation or even a new vehicle, all without being tempted to dip into your regular or emergency savings account.

1 comment:

Tug said...

That is too cool! I do all the books & budgeting at work, and I am terrible about it at home - I need to kick myself in the butt &