The first property tax bill hit my mailbox yesterday. It is the first of many. We have the money to pay it and now I have a plan to pay it again next year. The issue is I developed my plan too late in this year. I wasn’t able to get there in time, but I will for next year.
It is now a two part plan for myself. The first is to use the high yield savings account I set up earlier in the year. Put away enough money to pay the taxes and insurances every year and then hope the interest can grow enough. The second is to keep it all separate.
I am in the process of managing two households and two businesses. They all need to pay their own way. The one problem is one household has much larger expenses than all the rest and it is the one not generating any income, and it’s main source of income is still behind the eight ball when it comes to taxes and insurances. The frustrating part is that it wasn’t until I decided to do the 1031 exchange.
The thing about life, and business, is there is no perfect timing. I am not the one that made it so all of this would happen at this time of year. That happened by happenstance. My effort to increase the income of the company happened to coincide with tax times. So, now we take the hit and then we build back up. In the end increasing the company revenue by 20% is worth it, but in the short term it took the savings that was earmarked for taxes.
That is the biggest trouble. By the end of next year we will be in a much better position. We will have the money for taxes and insurances all saved and squared away, and it will have grown interest in that time.
David Huzzard Writes 