January 2010: Net Worth Update and Paying Estimated Taxes
January 30, 2010By MoneyBlueBook
The first month of the new year was a good month for me financially. Now you must be wondering to yourself - how can that possibly be - especially considering that my calculated net worth dropped in excess of $15,000 for the month of January. Well, because I only show a singular snapshot of my financial picture in each of my monthly net worth updates - they generally don't reveal sufficient cash flow numbers to offer one a complete picture of my true financial health from all appropriate angles. Thus, the balance sheet numbers reflected on these reports can at times be somewhat misleading, as in this particular case. At first blush, my January numbers would seem to suggest that this particular month was a disappointing one. But truth be told, in terms of earnings stability and projected future income potential, January 2010 was yet another reliably steady month for me.
For January 2010, the combined income accumulated from this personal finance blog, the revenue generated by my other online affiliate ventures, and the part time income I earned from my small legal practice as an attorney - all saw slight increases. However, much of the income stats were gobbled up by the hefty estimated tax payments I had to make to the federal and state government during the month. Because I operate my small business and solo legal practice using a cash basis form of accounting, I don't spread the estimated quarterly tax payments evenly throughout the year, but rather record them on
Read the full article »
