At the beginning of the month, I was looking at a nice sum of money coming in that was well above my needs, and I was really hoping to pay off the last of my smallest student loan with the extra money.
I got paid out for the vacation days I had built up at work, I got a paycheck from my new job (which I wasnt expecting until may) and I got a paycheck from my old job as well. All of these things led me to have the highest earnings ever in march, as well as the largest difference between income and outgo. The only thing I needed to do was pay the income tax that I calculated in february and I’d be good to go.
I also knew that I needed to pay state income tax, (for only one of my jobs – my home state does not have an income tax), but I figured that it would be a few hundred dollars, still leaving me with plenty of clearance to wipe that other loan off of the books. I was pretty jazzed, because as I mentioned, I havent been having a lot of successes in that field recently, and this was going to be the firecracker that kicked me back into gear.
After I checked my state taxes though, I found out that it was not to be. I had to pay them over $1200! I cant believe that people even bother living in states with an income tax – what a bunch of hogwash! Due to this setback, I wont be able to pay off the whole balance of the loan, but I’ll be able to knock out about 40% of it.
Unfortunately, this is the government, and there’s no telling how jacked up something can get when you deal with them. I paid my taxes on the cc (ready to pay it off immediately) and waited. Unfortunately, the state decided that they didnt want the money can cancelled the transaction. I still haven’t figured out why they did this, but by the time that tax day rolled around, they had not been paid and I still couldnt figure out why. After quite a few phone calls (no one wanted to talk to me – how many calls would it take you to accept $1200?). I had to go through and pay it again (though I got charged a $2 late fee). Thankfully this part of my life is over and I can move on.
Another thing that is worth mentioning: This wasn’t a HUGE deal because of all the actions that I’ve taken with my finances to this point. I didn’t need to put it on a credit card, I didn’t need to scramble for cash, I didn’t need to pick up extra hours, and I didn’t lose any sleep over it. Even just a year ago if I would have gotten a bill for that much, it would have toppled my progress right back down the hill, and I may have stopped trying.
Thankfully, I can just take this out of my cash flow and be done with it. If not worrying at all about a $1200 bill isn’t enough reason to stabilize your finances, then I don’t know what is.