Monday, February 9, 2015
Where would you spend your money if it wasn't going to property taxes?
Long headline, I know, but that's the gist of this week's rant. What’s your biggest bill every month? For most of us, it’s going to most likely be the amount of money you pay toward your mortgage, or your rent. Unless of course you’re driving around in a Lamborghini, then you probably have a higher car payment than I have a mortgage payment. But let’s just go with your mortgage payment. Now, depending on what you paid for your home, and how long you’ve owned your home, there’s a chance the amount of taxes you’re paying each fall may just exceed the amount you’re paying each month for the actual house. I was talking with someone who lives in a nice house, not a McMansion by any stretch, but a nice house, and I was shocked to learn they were paying $8,000 a year in school district property taxes. That works out to, oddly enough, $666 a month. I’m not saying the devil is at work here, but I will say the devil is certainly in the details. Imagine you have an extra $666 a month in disposable income. The first thing I would do is try squirrel away about half of it, but I’d almost guarantee I’d be spending the other half.