Laughing, Weeping, Living

Life happens. You laugh about it or cry about it, sometimes both.

Accounting

on March 19, 2013

I’m writing a really good post in my head right now, but it’s not ready yet. So I’m going to fill in with a couple sub-ideas that are going on.

A big task I have to do tonight, if I have time before bed, is balance the checkbook. Jeremy is going to get his severance pay in one big lump and it would be helpful to know what we already have when it comes time to divvy up what will be our last income for a while. We do have a bit in savings (Thank you, Dave Ramsey!). We put together what Dave calls the “baby emergency fund” back when we first started getting our accounts in order: $1,000 in a savings account that you don’t ever touch except for emergencies. We also opened a totally separate savings account for sinking funds, like saving up to buy new furniture, or a replacement car, or saving for home repairs that may come up in the future. Then when we sold our house back in January, we used some of the meager proceeds to buy Jeremy’s motorcycle then put the rest in the emergency fund so we would definitely have it later when we would need it. We didn’t have any emergencies along the way, which is good.

So we are by no means flat broke, which is a huge relief. But. We are looking at some serious outlays that do have me worried.

First of all, it’s time to file taxes. Unlike many people who look forward to this time of year, we dread it because we always have to pay. Jeremy was technically a self-employed contractor editing for Magnificat magazine, so his paychecks from there never withheld anything. The past couple years, even though we bumped up the withholdings on our other jobs’ paychecks, we still owed about $2,000 in combined taxes to state and federal. When we moved to New Mexico, Jeremy bumped his tax withholdings at his salaried position way up to compensate further, but I’m not too certain it was enough to eliminate our tax payment. All I can realistically hope for is that the damage isn’t too severe. Thank God the sale of our house didn’t close until January 2013. So at least we don’t have to deal with that right now. We just have to mess with filing in two different states.

Second, since we are breaking our 12 month lease early, we have to pay a penalty. We also have to pay back the promotional free month of rent we got for signing a 12 month lease. That is going to be significant. Apparently, losing your job and moving for health reasons aren’t good enough reasons to waive the penalty. The only thing that will do it is a letter from my doctor saying I must move for my health.

Third, moving itself is going to cost a pretty penny. The cheapest option of course is the least convenient. We still need to decide how we want to handle the move.

I think we will come out in the black after all is said and done IF we don’t owe a ton for taxes and IF we can convince the apartment manager to cut us break. It may be possible. Jeremy suggested we pray a novena to Saint Matthew. You know, the former tax collector. He was only half joking.

So if you’ve talked to me lately and were confused about why we’re moving–is it for the baby or for finances?–I hope this kind of clears it up. We are moving because we had been intending to move anyway, just not this soon. My doctor said we should move now rather than wait for the baby to be born. But I am concerned about our financial picture. I think it will turn out okay, but like I said, there are some “ifs” about it.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: