You pay much less in taxes :)
It’s been an interesting ride here the past 4 months in the Money household… We’ve gone from an average of $150k in salaries down to about $80k. And throughout it I’ve come to appreciate a lot things I’ve since forgotten. Like, that nothing’s ever permanent. Or perfect. Or always fun, for that matter. All of which is okay of course, but all things that I needed to be reminded of.
Also that I can’t just buy whatever I want without thinking. Not that I used to do that all too often, but still. A good reminder to consciously stop myself before each transaction and double check the importance. In a way, it’s like I’m 21 all over again. Only now with a family, bills, and responsibility ;)
I also feel like I should be freaking out a lot more than I am. Though perhaps everything I’ve been doing over the years has since afforded me some grace and peace? Can you really get *that* freaked out when you’re sitting on a net worth of $350k? (Or, soon, $400k?) I do believe you can, but it surely helps having a foundation from which to start your leaps off again.
What I’m certain of, however, is that I’m still very much happy and even getting used to living with this lower level of income now. It’s not preferable, but I’ve come to accept my new place in this salary bracket now, and will consider everything above and beyond as “extra.” While I have no doubt our income will once again soar like a great Hawaiian tidal wave, we can only count on the money we have TODAY. And be thankful for at least that :)
And with this new life comes the benefit of having to pay much less in taxes too! In fact, I’ve put in so much over the first few quarterly payments (since they were based on last year’s numbers) that I actually *no longer need* to pay any more for the rest of the 2013 calendar year, haha… It’s as if I’ve received a nice raise for the next two months since I now don’t need to allocate any of my earnings until January comes :) Something I’m sure all you self-employed ballers can appreciate.
The reality, of course, is that this is NOT preferential at all. Sure, I get a reprieve from sending the gov’t so much of my heard-earned money, but everyone knows it’s better to earn a lot and pay more in taxes than it is the opposite. Which I’d been so accustomed to doing for the past few years…
But, it is what it is, and we now adapt to our new lifestyle and balance sheets until we edge back into the “good ol’ days.” And I’ll admit I like the challenge of doing so too. It’s a lot easier to rest on your laurels when times are good, than when they’re bad. Our excuses won’t hold much weight when it comes to paying the bills ;)
So, a silver lining to everything, eh? And with a new chapter comes an entirely new playbook too. In this case, re-working the hustles and *paying attention to the details* AKA the pennies.
In fact, I think I’ll throw on some Silver Linings Playbook action today and get myself in the spirit of the game again :) That was one hilariously entertaining flick, and it never hurts to compare yourself to others and put things in perspective! Which this movie is *perfect* for ;)
Photo cred: Images_of_Money
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!