Okay, back home again and time to get serious! Finished taxes for the year and looks like paying estimated taxes worked well for last year. Actually I’ll get some of it back… after selling two homes in the last three years, the second home was just above break even, and under the threshold for paying taxes on any gains. Keeping good records for home improvements and doing most of the landscaping myself really helped. I use Turbo Tax and it has been helpful to look back as well as forward to see where our tax situation will be. Now it’s time to work on debt reduction. I have several credit cards and have taken advantage of 0% balance transfers, as well as 0% financing. But one has to be very disciplined to ensure the payments are made on time, as well as paying off the credit cards before the 0% time period expires. In some ways it’s a challenge to “manage debt” in that manner… but it allows me to keep funds in a good money market account earning close to 5% interest. I don’t believe debt is always a “bad thing” because it can be used as a tool for a given time period. For most of us, car and house payments are a fact of life. But taking on more debt than one’s income can sustain is where you can get in trouble.  My goal over the next 6 months is to reduce all debt to a minimum.  After moving twice in less than five years, there is a lot of financial juggling that takes place. Moving expenses and setting up a new home or lifestyle is a major transition. Now we are in a place where we intend to live for a very long time… and that allows a positive focus on our personal and financial lives over time.   Psychologically, does anyone enjoy carrying debt? I think it bothers some people less than others. It’s still a “burden” in terms of owing money and ensuring responsibility for the debt is managed. Again, a short-term tool to help with life transitions and goals.  I think I’ll compute some debt to income ratios, and look at net worth… then begin tracking that on a monthly basis. But along the way? Keep saving and investing!Â
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