Priorities matter

Temptation is a difficult challenge. Regardless of who we are, where we live, how much we earn, or what we own – we are all tempted to acquire new belongings, and splurge on ourselves from time to time. Certainly there is nothing wrong with a day at the spa, or a new car, or any number of purchases that we might make for ourselves. But each of us has only so much legal tender to circulate, and where we spend that cash can have a profound impact on our future. In extreme cases, it can even cause us to relocate, by force if necessary.

There have been two high profile examples of poor financial decision making in the news this year. Okay, there have been lots of high profile examples of poor financial decision making in the news this year. But there are two that caught my eye, and I'm willing to bet that at least one of them caught yours, too. They are both income tax cases, and if you take the superficial view we could leave it at that. If you look more deeply though, these are both prime examples of successful men, with extensive means, who were unwilling, or unable to prioritize their use of resources. And both are paying a price for that failure.

Wesley Snipes was in the news often, well before his financial difficulties caught the attention of the public, or the federal government. An actor with an impressive resume, Snipes had successfully worked his way up to the heights of Hollywood, earning significant sums of money with his biggest hit movies.

Unfortunately, the government took the position that Snipes was not paying his fair share of taxes on that income. A contention that the courts ultimately agreed with. And so Snipes is in prison today, serving a three-year sentence for tax evasion.

Last week another highly paid professional was sentenced to prison for failing to pay taxes. This time it was an attorney, not an actor. Michael “Mickey” Sherman, a prominent Connecticut attorney who has been seen on a host of television news programs in the role of a legal commentator, was sentenced to one year in prison for failing to pay his full tax bill.

In both cases the tax bills in question were several years old. It may surprise some to learn that tax evasion cases are not filed quickly. These cases are built over a period of years. In many cases, with substantial fines and fees building up along the way.

The Los Angeles Times quoted Snipes at one point saying, “Everybody has tax problems,” and “Everybody's failed to file at some point in time.” A contention that I believe most of us would refute. But his example, and that of Mickey Sherman should give all of us pause. Prioritization is important when it comes to how you handle the contents of your pocketbook, and your bank account. Making the wrong choices just might lead any of us down a road we would really have rather not taken.