fbpx
:::: MENU ::::

2012 Taxes

by

I have heard from my CPA friend and I am smiling big with gratitude!  Thanks to his guidance upon my ex’s move out, I made major withholding adjustments for the last four months of 2012.   As a result, I will owe less than $500.  I cannot begin to tell you what a relief this is!  And there’s more great news:  I can re-adjust my current withholdings because I was on track to get a refund for 2013!   Answered prayers my friends…answered prayers!  I was having near $900 PER PAYCHECK withheld!  I know I make a good income but losing $1800 per month hurts!  AND, let me just throw my shoulder out here patting myself on the back…I was STILL able to make payments toward debt and not incur any new debt.

I am a new person!  Truly!  I never thought I could do this.  Just a year ago I was spiraling out of control.  Bouncing checks!  Yes, seriously.  Only making minimum payments and sometimes scrounging to do even that!  I didn’t have money left after pay day and could not figure out why!  My debit card was flaming hot with the constant use!  And then I started blogging.  I slowly, SLOWLY started keeping track of every dime I spent and started downsizing my life in every possible way I could think of.  Remember when I went to the hair salon every 6-8 weeks for a $200 cut/color/style?!  My last salon visit was in December and I don’t plan to go back until June.  The examples are many and for those of you who have been reading since the beginning, you’ll surely remember the changes.  Have I hit major bumps in the road?  Uh, yea.  Like a surprise divorce!  And other smaller hiccups too.

I want people who are in debt to see my story!  I want to motivate others and, in turn, be motivated!  It has not and will not be easy but each of us can make changes to turn our sinking financial ship around.  Don’t be afraid and don’t wait another day to start this process.  You will find freedom like you’ve never known.


15 Comments

  • Reply margot |

    Congratulations! It’s exciting to see you winning.

    It might help other readers to read more often blog posts that are more specific about how you have made big mental shifts on these issues and how you cut expenses.

    I think that a lot of people in the US have come to see luxuries and necessities. They really can’t imagine living without certain beauty treatments or other luxuries. They think going without will be a painful hardship. Of course, it’s not. Humans are really adaptable, and once we make changes and get used to our new normal, we usually do just fine.

  • Reply Holly |

    Wow Claire….fantastic news. I can imagine the weight that lifts off your shoulders. As much as I’m loving watching your journey, at the rate you’re going, you aren’t going to be writing for this blog for very long 😉

  • Reply Meghan |

    Wow Claire! I look forward to seeing your numbers. Are you going to be able to put a chunk towards the BOA card by the end of this month or will it be reflected in April?

    Also, your blog and others have been a source of strength for me recently. I was under contract for a house but there’s a possibility that I may have to move to DC. I have been staying in a long-term hellish hotel situation and finally today applied for an apartment. Now I have to buckle down and pay my car down to where it has no negative equity and work towards paying it off. Ideally, I’ll be able to do this BEFORE my lease is up in a year so I can buy again. By thinking ahead, I found a place that will allow me to move across the country to one of their other properties without charging any fees. The old me wouldn’t have thought about the most economical option. I would have gotten myself stuck in another house. 😀

  • Reply Alice K |

    That is fantastic Claire – I can’t wait to see your April figures! I am still at uni and unfortunately are not making big inroads into my debt but reading your blog helps to remind me it can be done – and even small contributions make a difference.

  • Reply Mrs. Driver |

    Great job Claire! It’s so awesome to see the chains that debt throws over you slowly start to drop off. It’s like you are physically losing weight.

  • Reply Phaedra |

    Claire you are truly an inspiration! I bet you never pictured your life to be like this a year ago but WOW! That momentum will just keep building. It is exciting to watch!

    Did you start Financial Peace yet? I hope you love it as much I think you will!

  • Reply Adam |

    This is a cool post.
    It also just occurred to me that when you pay everything off you have listed., you’ll be TOTALLY debt free!
    Remember when you started blogging, you weren’t going to include the cars, or the house, just some cards.

    Now that the house and car story is different you’re on your way to being FREE!!!

    • Reply Claire |

      Yes Adam! I still can’t believe it that it has all gone this way. I find myself sort of “holding my breath” waiting for something negative to happen on the financial front b/c I feel too lucky. That isn’t a good attitude I know and I am working on it. I meant to send a response to your post when you shared that you are splitting your time bw Austin and SA but forgot to do so. I had to go to Austin for work last week and thought of you as I fought that traffic. UGH. Austin seems to have a lot of construction completed but never any relief from the congestion! Anyway, be safe in your travels!

  • Reply Lisa |

    I will also add my Wow! I just discovered this blog the other day thru surfing, and read your story beginning to now. Yes, Wow! What a relief and feeling of accomplishment this must be for you. And what a journey to be sharing. Thanks for letting us share it with you.

  • Reply Katie |

    YEAH, lady! I’m so inspired by your progress. I’m in a different place than you personally and financially (no debt, lower income, no kids yet), but you inspire me to make good decisions and keep a steady eye on our financial future. Awareness is power!

    Keep on rockin’ it, and I’ll keep reading. 🙂

  • Reply Claire in CA, USA |

    I will just say I agree with everyone on congratulating you! You are inspiring! My own situation is vastly different from yours (married 22 years, two older teens, income has gone down instead of up in recent years, debt has gone up as a result, so no end in sight, for now), but I still find so much inspiration in your story. Thank you very much for sharing so openly with the world.

  • Reply Denise |

    Congratulations and well done! I have to say, out of all the Blogging Away Debt bloggers, you are my favorite. Somehow your struggles seem the most real, and you seem the most honest with how you have dealt with those struggles over time. You DO inspire people with the changes you have made. Keep up the great work!

  • Reply Hannah |

    I’ve been here since mid- Beks. I loved her cause she was a San Diego girl like myself.

    I love your story because you kind of remind me of mom with the whole recent divorce and being in a way better financial situation because of it. Not the norm, because usually your worse off!

    You’re also totally straying from “Large income, bigger financial mistakes”.

    You’re doing great, keep going Claire!

  • Reply The Broke Girl |

    Congrats Claire! You really are an inspiration. I decided to start a blog on my debt reduction journey to help keep me motivated and accountable and I can only hope my story a year from now will be as successful as yours has been! Keep up the great work, you’ll be debt free in no time!

So, what do you think ?