I had mentioned this in a previous post, but the next couple of months are going to be a little on the financially tougher side. We are going to have a huge tax bill come April. We will owe at least a couple of thousand of dollars in taxes to the government as my boyfriend is self employed, and therefore, pays all his taxes at the end of the year. We are also looking to get a another vehicle for him as his current car is giving him a lot of problems. Depending on how much that is, we may have to take out a small loan to be able to purchase the car and not wipe out all our savings after we pay his taxes. I am just going to have to put off buying a car for a little while. My beat up Toyota will just have to last. We have even toyed around with the idea of moving to a one car household. This would mean keeping just my car and driving my boyfriend around everywhere. This would be a huge inconvenience for us though since we work in different places and have decided that unless we were in extreme financial difficulty, we would not do this. We will do it if need be but knock on wood we won’t.
For at least the next couple of months, I am going to be redoubling my efforts to find more side income in order to combat the extra expenses. I am also looking at our monthly expenses and what we can cut in order to save money. By far, our biggest expense is our monthly food bill. I have a real soft spot for Trader Joe’s. I usually go by twice a month and spend around $50 in groceries. If I continue to do this, I am going to have to set a strict budget of $20 per visit if not cut it out completely. I also have a bad habit of going to the grocery store in between the week with the intention of buying only one or two things and then I end up buying $20 worth of groceries. Obviously, I need to get rid of this dumb habit. I hate to say this but we have definitely fallen some from our proposed weekly budget that we set aside for “extra” expenditures and we need to get back on the bandwagon.
The time period after the holidays is usually a slow time financially for a lot of people we know as people pay for all their expenses from Christmas. I also knew these months would be a little tougher, and therefore, have not been looking forward to it at all. I am thinking of just paying off all the taxes off in one swoop and having that monkey off my back. Then we can start saving again. I have an aggressive savings goal that I want to hit by next year and there will definitely be some effort made.
Are you make sacrifices for your financial well being? If you are self employed, have you already set aside money for the taxes?