HELP I’M BEING TAXED TO DEATH … or at least it feels that way sometimes. Each day I awake anticipating the mysteries of what the day might have in store for me and while it will keep me guessing, there’s always two things I have no doubt about: God has once again blessed me with a new day - and my government will come up with a new way … to add taxes to something else.

Most of us don’t really give much thought to the amount we pay annually in taxes and we tend to think of taxes in the context of our annual Federal Income Tax Returns. Or, for those of us required to file State Income Tax Returns, we pat ourselves on the back once we have completed this task (big job) with a sigh of relief, until the next tax filing season rolls around.

Business owners don’t fall prey to this folly, they know all too well the task is a regular aspect of doing business. I won’t go into that lion’s den today though, because we are talking taxes and not Business.

Have you ever stopped to think about how much of your hard earned dollars go to taxes? Do you think you know what your ‘tax bracket’ really is? For most of us, our most generous ‘guestimate’ is probably an understatement. I’m sure there are many of us who deliberately avoid any thought on the topic, for it would depress us to death. Those are some options folks - let me see … do I want to be taxed to death or depressed to death? Decisions, decisions!

Here’s a small sample of some of the taxes we pay in our (USA) country:

• Accounts Receivable Tax
• Boating License Tax
• Building Permit Tax
• Capital Gains Tax
• CDL License Tax
• Cigarette Tax
• City Tax
• Corporate Income Tax
• County Tax
• Dividends Earned Tax
• Dog License Tax
• Excess Earnings Tax
• Federal Income Tax
• Federal Unemployment Tax (FUTA)
• Fishing License Tax
• Food License Tax
• Fuel Permit Tax
• Gift Tax
• Gasoline Tax
• Hunting License Tax
• Inheritance Tax
• Interest Earned Tax
• Inventory Tax
• IRS Interest Charges (tax on top of tax)
• IRS Penalties (tax on top of tax)
• Liquor Tax
• Local Income Tax
• Luxury Tax
• Marriage License Tax
• Medicare Tax
• Per Diem Tax
• Personal Property Tax
• Real Property Tax
• Service charge taxes
• Social Security Tax
• Road Usage Tax (Truckers)
• Sales Taxes (Alabama taxes almost everything)
• Recreational Vehicle Tax
• School Tax
• State Income Tax
• State Unemployment Tax (SUTA)
• Telephone Federal Excise Tax
• Telephone Federal Universal Service Fee Tax
• Telephone Federal, State and Local Surcharge Tax
• Telephone Minimum Usage Surcharge Tax
• Telephone Recurring and Non-recurring Charges Tax
• Telephone State and Local Tax
• Telephone Usage Charge Tax
• Usage Tax
• Utility Tax
• Vehicle License Registration Tax
• Vehicle Sales Tax
• Watercraft Registration Tax
• Well Permit Tax
• Workers Compensation Tax

I don’t know about you, but I want to know where all that tax money is going? For those who have fallen upon hard times, they know all too well, it can’t be going toward any type of services we can collect. If you want some of those tax dollars back via government programs to the needy, you have to lose everything you own first. And for those whom find themselves that unfortunate, if they ever manage to get back on their feet - the government is going to come knocking, to ensure they get back everything you collected from them, and then some.

So just where are all those tax dollars going? I’m sure if you polled one hundred people, you would get at least thirty different answers, with explanations that all boil down to the same basic analysis … “I don’t know, I just pay what I’m told I owe.”

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How to create a budget you can live with and making necessary adjustments along the way:

You can create a budget that you can live with if you stick to it and you make adjustments as your needs change. Sticking to a budget is crucial, but not to the point of self-sabotage.

You are loaded down with bills to pay each month and wonder how you will ever begin a savings account for emergencies and other high-expense occasions.  In other words, where can you find that extra cash to put away for life’s emergencies, let alone savings? Many people are struggling just to meet their most essential needs with today’s economy.

With all the concerns over the current economic downturn, everyone is looking for ways to save money or stretch their dollars to go further. The sad part of this is most people are still fighting an uphill battle they are losing. Because no matter how much you try to cut corners, without a good, solid budget in place - your money will continue to slip right through your hands. Once you have a solid budget in place stretching your dollars will follow. Here are a few situations and suggestions to get you started in surviving this economy, or any economy for that matter:

When establishing your budget, plan for your savings first.  I know that might sound crazy considering how tight money is right now. But, you will build your bank account each month if you begin by paying yourself first. Before paying any bills, decide on a set amount that you will pay yourself. Anywhere from $5 to $20 a week — or whatever you decide you can afford, from each paycheck [up to 15%].  Don’t be stingy, but don’t be over zealous either. A modest amount to start with, then increase that amount with any excess. Then, deposit the amount into a savings account before paying any bills.

When you do this at the beginning of the month, your paycheck will not suddenly slip through your fingers.  If you wait until the end of the month, there may be nothing left to save.  Paying yourself first will give you a systematic way to make your money grow.  Regardless of your profession or your income, this system will work if you stick to it.

Another technique you may try when saving money is to empty your extra change into a jar or other container each day.  At the end of the month, roll the coins and deposit them into your savings account.  You might find yourself saving $30 to $40 each month just with your spare change.

Remember that good money management with budgeting is more than a mathematical formula.  It is closely tied to the ups and downs of living, according to the current state of the economy.  Remember also, your money management plan is subject to change if your life situation changes.  The object of a good budget is to make your money go the farthest by the most beneficial means, and in addition allow for savings.

Don’t get discouraged if your budget plan doesn’t work perfectly at first.  It may involve some revisions along the way until it fits your needs.  Make sure to review it often, adjusting accordingly, to ensure your budget is making the best use of your money! Once a person establishes a budget, they often fail to adjust it when necessary.  A budget is created using a set of expenses and income figures that are prone to change.  As these figures do change, it is important that the budget changes to reflect those adjustments.  There could be some major deficits left if this is not done appropriately and promptly.

Of course nobody forgets about Christmas or Hanukkah, but many people forget to consider budgeting for these holidays.  Therefore, adequate funds were not set aside for presents, food, parties, etc.  These items should be factored in and saved for throughout the year. With a little planning, you’ll be on your way to saving more money than you thought was possible!

Avoid the pitfalls of spending what you don’t have!

With all the advantages budgeting offers, is it any wonder that more and more people are relying on budgets to reduce debts and increase savings. However, even the best budgeters need to be careful in avoiding some common spending pitfalls:

Credit cards may seem like small pieces of plastic, however they can become your worse nightmare. At times they can be lifesavers, but more often than not, they become an ‘impulsive buying’ means. It is common for people to make unwise or impulse purchases, which they would have avoided otherwise if not for that handy credit card in their wallet.  The best solution is to simply stop carrying those credit cards and begin paying only by cash, check, or debit cards.  You may want to keep one card handy for emergencies, but it is probably best to keep it out of reach and out of mind. 

Lock the rest of your credit cards in your safe deposit box or home safe. Wherever you keep important documents is usually a safe place to keep those extra credit cards.

Impatience undermines discipline!

Another problem with budgeting is impatience.  Even those with the most detailed personal finance budgets can lose sight of the long term benefits due to impatience. There are financial goals set, but people do not have the patience to complete a savings program. For instance, an individual begins setting aside money for a new car; however, after a few months they discover the car of their dreams.  Rather than waiting, they make the purchase.  This could pose some serious financial strains.  Discipline is a must to prevent impatience from breaking your budget.

Finally, many people factor in transportation and accommodations for vacations in their budget, however they underestimate money needed for food, entertainment, and spending money.  Keep in mind almost all resorts and tourists areas are double or triple the cost of what you would normally pay locally.