Monday, April 18, 2011

Visualizing My Budget

Well, this helps explain why I struggle with my spending. Last year I made $21,000. But I spent -gulp- $9,000 on taxes. I knew I was paying taxes. But I never put the pieces together to visualize just what a chunk of my income that is.

Income tax (including FICA) is one-third of the total tax. Property tax (not counting the acres of woodland) is the big chunk. I'm clinging to the comforting thought that property taxes, including that huge school tax bill,  support my own neighborhood.  I love my log house in the woods. But if I had a mortgage, I'd never be able to afford those taxes on this salary.