California is bankrupt.  In an effort to raise money for their state, they are raising fees.  It makes sense from a government standpoint when you consider the bottom line.  However, what about the citizens of the state who have been affected by the economy and now have to pay for the state’s inability to manage their finances?

Higher Fees

Just last week I had to pay $379 for driving 35 miles in a 25 mph zone.  Is it just me, or has this fee gotten a little extreme?  Then, a few days later I had to renew my registration at the DMV and the fees had doubled.  There went another $400.  The state of California is not the only one causing citizens to pay more money.  The taxes you will pay next year could potentially be higher than normal.  How should you prepare?

Getting Ready To Pay Taxes

First, stay flexible.  Try to avoid a situation that locks you in, when you might want to get out.  Next consider paying more in 2010.  By 2011 there is a good chance that rates could be a lot higher.  Also, be smart about your investments.  Look at them from a tax perspective.  And, always rethink something before making your final decision.  If you do this it will benefit you in the long run.