When Will You Begin Working For Yourself?

April, 2009
According to the Tax Foundation, April 23rd is the date when Americans have worked to pay all their federal, state and local tax obligations. Here in Washington our "Tax Freedom Day" arrives six days later, April 29th! The tax liability paid includes income taxes, social insurance taxes, sales and excise taxes, property taxes, corporate taxes, gift and estate taxes and finally other taxes, a catch-all or black hole in the universe much like miscellaneous expenses.

Have I mentioned that living expenses and lifestyle require more work hours, approximately 108 days of sweat equity? So you can see that by mid-August the average American tax payer will be free to work for themselves (after vacations and upcoming holidays are covered)!

These multitudes of obstacles keep us from establishing financial goals and preparing for future needs. The day to begin rewarding and paying ourselves is January 1, every year. Just as tax payments, food, shelter, insurance and discretionary income are dispensed regularly, so should our savings and investments. Remember, the dollars you send ahead today will grow and be delivered in the future.

Helen Sarver, CFP®, CDFA™
Ameriprise