You see, I hadn't saved nearly as much as I should have in 2010 to help cover the taxes I would owe as a result of taking in over $50K in 2010 from writing online.
The various places that pay me, like Amazon, Google, Examiner, and others don't take taxes out like a "normal job" not online usually does, so it was still an adjustment getting used to this entrepreneur's life, even though it's my 5th year into it.
I assumed that Christmas 2010 would bring me the thousands of dollars in sales that it usually does, and that I'd be able to write the government checks for more than $11,000 like I did in 2010 for the 2009 tax year income.
God pulled out a miracle in the midst of my irresponsibilitySo there I was, having saved up only $4,000 by tax time when I needed more.
First thing that's great was that I got a new CPA to help me cut my tax bill and stop overpaying. Instead of overpaying the IRS around $14,000, he got my tax bill down to around $10,000.
Well, I was still short, so I ended up paying my city taxes for my business, giving the feds $1,000 and requesting an installment plan, and then putting $2,139 on my American Express through Official Payments for my Ohio state taxes.
Trying to make that fast money online...With $2,139 on my American Express card -- one that I usually pay in full each month -- I worked like a mad-woman to try and increase my income in order to get that money to pay that bill of in full.
It's true that desperation is a great motivator to help you explore new ways to make money online. (More on all the ways I fought to increase my income online in a forthcoming post.)
In the meantime, the end of April 2011 came and went -- and my online income still hadn't increased as much as I wanted, but like a miracle from heaven (indeed it was!) I clicked on the "select charges to pay later" in my American Express account, half expecting the nothing option I usually see, and this time I saw the $2,139 as one of the options to select to pay later.
I chose it and saw it transfer out and then back into my account, so I called AMEX and they said blessedly, yes indeed that I'd only have 2% of that charge added to my current coming balance to pay.
Of course, the interest on anything I delay paying is much more than 2%, so I plan to keep up my money-making ways online and get all the debt paid off ASAP -- AND send estimated payments to the IRS throughout 2011 so that I won't owe them anything anymore.
The one thing I've learned from this crisis is to seriously calm down with too much impromptu spending, but also continue to take risks and start new websites and write, write, write (and record, record, record) and learn, learn, learn and never stop growing.
I can't help but marvel at how when I'm desperate for cash and feel God leading me to yes, go plop that $50 seed on the stage at church anyway how He really comes through just like his "test Me in this" passage promises. (Yes, I know that's old school and we're grace-filled on the tithing issue these days...)
Find more details about how the $11,000 in 4 months in 2011 breaks down here, showing who paid me what:Make fast money online: How I made $11,660.32 in the first 4 months of 2011
And stayed tuned for more tips on what I did online when I was desperate to make money, and just how much specific places paid off...