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Where does it all go?

April 27th, 2006 at 05:53 pm

I'm currently at a point where I feel like I am completely broke. I'm sitting in class right now and I'm going over my finances. I've been using Microsoft Money for the past couple months to track my expenditures. I currently have about 6 months of records in.

Since I feel like I have no money to spend right now, I asked myself "Where does it all go?"

I noticed that, yeah, my Food: Dining Out was pretty high. But, for the past 2 weeks, I've turned that around. I've been trying really hard to pack my lunch and cook dinner more.
I then noticed that I was spending a lot at Walmart & Target. This was all clothes and other household stuff (also known as JUNK). But I also noticed, I haven't gone shopping for clothes or JUNK in almost 3 weeks.
Pretty much, I noticed that although I've MAJORLY cut back spending the last couple weeks, I still haven't gotten ahead at all.

Then I realized...those darn taxes are still kicking me in the butt. I ended up owing a total of $694 to the government. For me, that is a LOT of money. Almost a whole month's income!!

These taxes just really messed me up. I finally decided to get my finances together and I've been working so hard to save money. And now I have nothing to show for it.

I now see the benefit of budgeting money for things. Had I set aside money every month for my taxes, I would not be in the position I am in now.

6 Responses to “Where does it all go?”

  1. baselle Says:

    Could you tell us more about your tax situation? It just seems so weird that as a 19 yr old college student you'd have taxes. Smile

  2. boomeyers Says:

    You are learning from your mistakes and from life. This is a good step forward in your financial maturity!

  3. Somerlyn Says:

    Tracking expenses does give us a clearer picture of what we are doing, a way to look back and adjust our actions for the future. Taxes for a 19 year old does sound not right. My 19 year old had money coming back (157.00). Who did your taxes?

  4. LittleGopher Says:

    Remember, by cutting back your expenses, you were able to take care of your tax bill (I agree, check into why your taxes are so high.)

    So now, try to continue with being vigilant about your expenses. You'll be able to fund your savings, as well as set aside some for periodic expenses, like your taxes.

    As it is said, today is a new day. Bit by bit, you'll make progress. You are one smart 19 yr old to be getting a handle on your finances. It will only serve you well!

  5. mjrube94 Says:

    You sure do have something to show for it! You have money to pay the taxes, which you wouldn't have had if you didn't cut back! Hang in there...it does get easier over time...

  6. Nina's Mom Says:

    I am self-employed as are my two daughters in their 20s. We try to put away 1/3 of our self-employment income and pay quarterly. Remember to keep track of any expenses you may have since they get taken off before figuring the 15% self-employment (Social Security) contribution.

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