This week the City of Danville published the names, addresses, and amounts owed of everyone in town with delinquent real estate taxes. Instead of joining in with the many voices who say that these people deserve public shame and embarrassment, I’d like to approach it differently. We should all exercise at least a modicum of compassion before passing judgment on people who we don’t know anything else about except that their taxes are past due. I seriously doubt that the majority of real persons on that list intentionally decided to not pay their taxes, though a few may have. Most people have good intentions when it comes to paying their bills, and in general just living their lives. For these people perhaps one thing lead to another and the tax bill simply got put off repeatedly until it was just too overwhelming to deal with. This is the case with so many otherwise good people who don’t have a good spending plan or budget to make sure all their bills get paid on time.
Here’s a simple tip to keep your name from appearing in the paper. Start a special savings account for the sole purpose of paying taxes. You know how many times you get paid between now and when the tax bill comes in. Figure out how much you need to save every payday in order to have the money available when you need it. Direct Deposits and Payroll Deposits can be setup to automatically send a portion of your paycheck to this special savings account so that when the bill comes at the end of the year, the money will be there to pay it. The same account could be used to save up to pay for homeowners insurance, school tuition, or anything that you only pay once or twice per year.
Another option is to take out a loan to pay taxes. That’s probably a good option if your name is already on the list! Either way you go, loan or savings, take the time to sit down and map out proactively how you plan to spend your money in the coming months. Then stick to your plan!