Budget Today for Taxes Tomorrow

Did you promise yourself last year that you wouldn't wait again until April 15th to pay your self-employment taxes? Do you wait and use next year’s income to pay the prior year’s taxes? If you haven’t already started to set money aside for your year-end and quarterly tax payments, then today is the day!!!

Here are a few tips that could help get your thinking straight on this: 

1) Set a Budget: Keeping a monthly budget can make a huge difference in whether or not you follow through on these promises to yourself.  It's important to get all your numbers laid out so you can see exactly what you are doing and can make clear-headed decisions that won't make you an accomplice in your own pain and stress. Cash Liquidity is essential in a credit-poor economy, but you must plan ahead and budget to build up ample cash reserves. Writing on Home & Business Budgeting for the New Economy is a primary emphasis of Numbers Speak Louder Than Words. 

2) Keep Your Numbers: Keeping your numbers on a monthly or weekly basis will free you up to not only save for your tax liability, but even more you will develop a keen awareness of the key indicators that could make or break your business. I can't stress it enough the importance of working towards having in-depth accounting. If you look only at the bottom line you will be missing out on the details that are specific to your business and industry. 

3) Move Your Money: Transfer the apportioned amounts out of your operations/spending account RIGHT AWAY. Put it in an account that you won't touch until it's time to pay your taxes. 

4) Get Help: Don’t do this alone. If this seems like a daunting situation, don’t do it alone. Get support-- voicing your goals and intentions to another human being increases the likelihood of success. “Book Ending” is a simple technique where you tell someone your goal or task before you start and then check back in after you have completed it.

Like it or not make payments or set aside this money as you go, so you won't get in a jam come April 15th. Drama and crisis is avoidable in this case (as it is in most cases)… not to mention the late fees and penalties. 

I know it’s easy to say, but harder to do. Let this year be different.

30 Day CHALLENGE- Log What You Spent

In the spirit of transforming in the New Year, I propose a challenge to everyone who wants to partake…

In the spirit of making a difference in our lives and in our world, for the next 30-days let's track our daily expenses vs. income and calculate the net for the month…

This is a practice of bringing heightened awareness to how you are relating to the money you already have, so that we know definitively what we are doing, observe the trends/habits/addictions, and move into a balanced budget where we begin touching our dreams.

1. Every day write down in a log, excel spreadsheet or quicken what you spent money on and what you made (when applicable).

2. Determine whether you are positive or negative

3. Check off the days on a calendar

4. Email me (or post a comment) each week as your progress, hit snags, rough patches. The trick is to keep picking yourself back up.

Tips: you can keep a little note pad or keep your receipts so you can remind yourself at the end of the day what you spent. Don't take it too seriously, have fun!, watch what shows up. Invite a friend to do this with you or share this with them and ask them to hold you accountable.

Honoring your commitments to your self is ground zero for so many things in life. Personal Integrity is the life spring of lasting peace and joy!

If you want a sample spreadsheet and/or financial sobriety worksheet email me at: info@thegreenbookkeeper.com

If you have any other tips or questions please email or post as a comment on the blog.

This can work for your personal finances and/or your business to bring you into greater awareness and transition you into making conscious choices that better serve your higher goals, dreams, family, community and on outward.

The greatest need in our financial system is oversight and accountability and that starts from the bottom up. We can make more with less, live brighter lives more simply, together, free of all the poor habits that no longer serves us.

Blessings ahead… Tye Kirk

PS. One of the greatest obstacles is the rationalization/misbelief that we will start saving when we get more money. As reported in The Millionaire Next Door by Thomas Stanley- that rarely ever happens. Start today with what you already have and build the habits and practices that lift you out of this what Paul Krugman recently referred to as "Deep Hole Economics".