Plan for Your Taxes
I've got friends who live on a lovely waterfront property. In the past 5 years, their taxes have gone up almost 500%.
When we are thinking about our budget for a new house, we rarely think about the cost of property taxes. But we should. In areas where property values are increasing at double-digt pace, taxes may be increasing at astonishing rates too. You'll have to budget for such unforeseen circumstances, or get caught with your pants down.
This is where yesterday's blog on saving can come in. If you are always saving for the proverbial "rainy day", then you can't get caught with your pants down and unable to meet your obligations. If your taxes suddenly increase, you have the money to handle them, and can re-work your budget at your leisure. No pressure. No stress.
Of course, there are times when you will hit a financial crunch, and may not be fully prepared. But the bigger your nest egg, the more likely that you get through these challenges without too many scratches.
It's a beautiful Sunday out there in my part of the world. I hope you are enjoying yours.