I'm procrastinating using YNAB. I know I can probably catch back up since we aren't too far into September. My husband did get paid so that is easy. I have already set up my normal way of paying bills. Thus it doesn't seem necessary. It feel like MORE work to use YNAB.
I still want to try. I'm just being honest. I'm procrastinating getting it done. Maybe this weekend? I'll let you know.
I do have one question. We make our Roth IRA investments out of our net paycheck received on the 15th of the month. Do I include these contributions as an expense? Or should I deducted them from income before I input that amount?
For those of you that use YNAB, what do you like most about using it?
Viewing the 'Income' Category
I'm procrastinating using YNAB. I know I can probably catch back up since we aren't too far into September. My husband did get paid so that is easy. I have already set up my normal way of paying bills. Thus it doesn't seem necessary. It feel like MORE work to use YNAB.
We downloaded YNAB this weekend. I've taken one class and entered in some things (primarily savings pots that already exist in our checking account). Tomorrow is payday so seems a good day to start using it! I think initially I'm going to be entering things the old way in my spreadsheet to make sure it is lining up with what I expect YNAB to do.
My husband and I did sit down last night for a discussion. He is now aware of our total cash savings, the current amount on credit cards (not paying any interest), the net income, our expenses and how much we are saving annually for retirement. He seemed very pleased to know all the details. He was a bit surprised that there wasn't as much extra as he thought. He admitted to spending thinking that with his raise there is a lot of extra. There really is plenty. To me, it's about not wasting the extra on lunches out. We need to make sure we are accomplishing what we want with our money.
It was a good start. We didn't make any decisions on buying anything new. No changes have been made to anything yet, which is fine. We'll get where we want to go soon.
The first month of YNAB will be interesting as I'm not entirely sure how much we spend on groceries or gas each month. I will do my best to make an educated guess. The nice thing is I do know how to save cash for non monthly expenses, such as an insurance bill. I already have that part of the budget figured out....well for some things. I'd like to do this for more items as we move forward.
What do you like best about using YNAB? Did anyone try using it and then give up?
I now have more information about the costs of tuition this semester, what can be claimed for the American Opportunity tax credit and how it will impact our taxes owed. And the good news is we will owe less in taxes as a result!
The bad news(good news?) is we have already had too much tax withheld to cover our taxes. A whopping $1775. Yes, most people rejoice at such things praising the government for providing them a tax refund. Unfortunately, I blame myself. I actually increased our tax withholding to compensate for the fact that we would no longer be able to claim the child tax credit (of $1000) for our oldest daughter and my husbands increase in pay. I didn't take the time to figure out about the college credits available and how that would impact our taxes. Oops!
The good news is I have changed our withholding to 10 for the time being. In order to avoid any more withholding we need to claim 18! My husband will need to do this in person, as I can't change the amount higher than 10 online. Once it is changed to 18 his monthly paychecks will be $518 larger! Money that I plan to set aside for the tuition bill in February.
Of course, I will need to change the withholding in January to make sure we do have money withheld in 2016! I haven't figured the correct amount to withhold right now, but trust me I will do a better job this year in getting it right. I will have more clear information this time around.
Do you know where you stand on your withholding and taxes owed for 2015? Is it possible you need to make changes due to a change in circumstances? Do you prefer a refund or just to owe a little on your tax return?
We received a payment for our temporary lodging expenses yesterday. The amount was $1550.50. This is less than the rent we actually paid for 30 days. But the Army made this payment based on their calculation for 10 days worth of lodging and meals. Works for me!
I can now make the final payment on our Citi Premiere card, which is under $800. That will make the balance zero. It should remain that way and we will get it closed in the near future.
I still have a running balance on our Citi Preferred card, maybe about $3K. This card has 0% interest, so I have been just paying what I can from paychecks. I will need to dip into savings soon to get it all paid off, which is fine. I haven't even used all the money the Army has sent yet.
I expect I can put at least $1500 on it today, and have another $500 available on pay day. Of course, we have our trip expenses, but some of that Army money is covering the trip. I'm finally feeling a little more in control of the cash inflows and outflows again.
It will be interesting to see how college and making payments feels in the next couple months! It's coming up fast.
The escrow check from our mortgage company arrived today. A nice fat check in the amount of $2,033.05. We are still owed $21.98 for cancelling our homeowners insurance. The insurance company sent that money to our mortgage company, but apparently it did not arrive in time to be included with this check. I'll be depositing it using my mobile phone!
We are still waiting on one more Army reimbursement. It should cover some of our time in our temporary apartment. I'm guessing that could take a couple more weeks.
One day soon all the money flowing out and in will settle down a bit. It has been a crazy year so far!
All of our items arrived at our rental home on Monday. I've nearly unpacked all boxes inside the home. I will need to find a cool morning for the few in the garage. We were even able to unpack quite a few boxes while the movers were on a break waiting for a second truck to arrive. That means they already hauled away all the boxes and papers we unpacked then. Actually kind of nice!
Unfortunately, not all of our items made it halfway across the country in good condition. I've seen a broken plate, broken (in half) candle holder, grease and debris on several of the mattresses, a hole chewed in the corner of our big wood desk (a mouse while in storage?), a broken bike reflector, damage to the bottom of our entertainment center that seems to have been already repaired using two stains and wax (and not in a good way)...and some other minor dings that I will live with and avoid mentioning.
It's payday! We also received a payment for the items we moved in our van. That payment is taxable, so the net amount was $734.51. I haven't logged on to see the rest of the details for how much the total was and how much was withheld for taxes. I think they withhold 25%! We'll get that back early 2016 when we file our taxes. Now we are just waiting for one more payment...the one that is for the temporary lodging. Maybe two more weeks at least on that one.
That's it for now. More details later when I have more time. I want to get back to the unpacking. Although I did appreciate the few minutes it took to write this post to get off my feet. Moving is tiring!
Most of our travel reimbursement from the Army is pending in our checking account today. This one is for our Dislocation Allowance, mileage and per diem for our actual driving trip to our new location. At least that what it looks like from the amount.
The amount pending is $4,656.55. Definitely plenty to work with to get our credit card paid off. I'll give more updates when it is all complete.
We are still waiting on the reimbursement from the Army. Maybe tomorrow? I know it will come eventually. It just takes patience on my part!
The good news is we finally got a daily itemized bill from the corporate housing company. My husband can turn this in to get some reimbursement from the military for our temporary quarters. They will only cover 10 days, but they include a per diem for food for those ten days with the assumption you are probably in a hotel and eating out for all meals. That extra food money will help defray some of the costs as well. I'm going to guess this would come to around $700 if we get it. It could be more, but I'm not going to pin my hopes on it.
Have a super Independence Day weekend!!
Yes, I do get the title is one of those oxymorons! I need to get some thoughts on paper about our savings and credit card debt. We are still waiting on reimbursement from the Army that will cover some of our credit card debt.
Currently, we have about $5500 on two credit cards. We just surpassed $3K on our newest card, Citi Prestige. We will get 50,000 Citi Thank You points that we can redeem for about $500 in gift cards. The rest of the debt is on our other Citi Thank You card.
We will need to pay the Citi Prestige in full when the statement closes. I think we have until very August to pay it, which I don't expect to be a problem. The Citi Thank You card is still on 0% interest through September. We will also pay it in full before any interest is charged. You won't see me paying ANY interest.
The cash we are expecting from the Army is about $5500. How good is that? There may be more if we can get our apartment complex to give us a daily itemized receipt for the first 10 days of our stay. I'm not sure it is going to happen, but we will keep trying.
I also went back to see how much money we took from savings during this process of selling and moving. Approximately $4800! Nearly $2900 was for a deposit on our rental home and rent for the first month. I have to keep reminding myself of that because it seems like so much money! I will be paying ourselves back for all this cash outflow as soon as possible. If I don't repay the actual deposit I'm not too upset on that since I expect we are good renters and able to get most of that back when we move on.
Oh and we are still expecting just over $2K from our escrow account. That should help get us back to where we were several months ago.
I seem to just need to keep convincing myself it is all okay. It' a little nerve racking to know we have $5500 on credit cards and are down $4800 in our savings. I suppose technically our savings is up because of our house proceeds, but I kind of think of that as separate. I wasn't borrowing cash from our home equity when we owned the house, I don't want to be borrowing from it now either.
Specific enough, or still vague?
My husband filed our travel voucher for our trip to our new town on Friday. We will get 23 cents per mile for our just over 1000 mile trip. This covers fuel.
We will get a per diem (a flat fee) for hotel and food expenses. My research says this will be about $875, but my husband things slightly more.
We should also get funds to cover moving about 1100 pounds of household goods in our van. My guess is that is around $1000 right there.
The military doesn't pay for selling a home like corporations sometimes do. Everyone always seems surprised by this. The military doesn't really support purchasing a home simply because moves are so frequent. The military does provide a Dislocation Allowance (DLA) and it is based on rank and if you have dependents. Our allowance will be $3,453.76. Crazy odd number huh? Not sure where they get these numbers!
There is a potential that we could get some funds to cover a portion of our rental apartment. This is called Temporary Lodging Expense and covers up to ten days. We aren't sure if it is only for hotels though. I'm also not sure if my husband has submitted this request for funds yet. And I don't know if the amount will just be ten days of our actual cost or more based on some predetermined amount. It could range from around $700 to $2900 if we are even eligible being in this apartment. Fingers crossed we could get a little bit as it would sure help!
Much of this money will pay off current credit card charges incurred during our move. This will leave us debt free. I'm also hoping there are enough extra funds to pay ourselves back for cash we used to make our rental home deposit, airline tickets and even that big repair bill on the house!
I'll report back once the funds are received and let you know the totals and how I used those funds. I'm hoping it's by the end of the week!
Hmmm...went to look at my husband's LES (Leave & Earnings Statement) for March with payment on April 1. And it's not there. I'm wondering if there is going to be a delay because of his change in location.
He will get paid...but now the question is when? I sent him an email to inquire. I guess I need to make a plan to use savings for the most important bills which for April 1 is just the mortgage.
I made another eBay sale. Item was $32.95, so my proceeds will be less than that. We also found a toy in my daughter bedroom to list online. I hope to make at least $10 on it. I might also have two skirts I could sell as well. I haven't decided on those yet though.
I took advantage of a couple Target offers this week that provided $5 gift cards. There is an offer to spend $20 on various health care type items, such as hair care, razor blades, lotion, sun care, soap, deodorant and more. Over two days I bought $40 worth of items, using $13.50 in coupons and received $15 in gift cards. In the end all the items cost me $21.50, and actually probaly even less since I used my Target Red card for the 5% off. I love it when deals, sales and coupons align!
My husband has been fully reimbursed for his portion of the move. We received one payment for the actual travel entitlements which amounted to $628.29. I used about $128 to reimburse cash taken out of our savings account, the remaining $500 went to cover some of the clothing purchased for my husband, gas for travel, and the one night in a hotel.
We received a second travel payment which was for moving some of our household goods. It was primarily all of his clothes and army equipment. It is a taxable payment and was reduced by 25% for withholding. The net amount was $365.90. I will also use this money to pay off some more money we have recently put on credit cards in the last couple weeks.
I feel better when money is flowing in!
There is still money flowing out, but for this post, I'm going to mention some money flowing in, which I like better!
I redeemed Swagbucks for $25 PayPal deposit that I hope to have soon. I received a $25 Target gift card from my sister in law...kind of a going away gift as she indicated I should buy snacks with it for the road.
I finally did enough surveys to redeem 1500 points for $15 with Pinecone which will be deposited into my PayPal account. I sold another item on eBay last night and have two more with bids that will end on Sunday. There are also another four items listed that have people watching. This may be the last go around with listings for awhile. At this point it looks like I sold over $300 worth of items. (That's gross sales not net unfortunately).
I had lunch with a friend and she mentioned how her son love to look at my daughter's art page on Facebook, which led me to mention art work leftover from her booth last year at the art festival. She came over and bought a piece for $15...this can be considered inflow for my daughter, but good for me as I will likely send less money with her on band trip!
And finally it's payday so that is a chunk of change to work with. We are clearly spending more than is flowing in. I couldn't pay the credit cards in full without dipping into some savings. Some of the charges are from my husbands trip to the east, which will get reimbursed by the end of the month. He also bought some new clothes before he moved too. And there was that speeding ticket! I am still grateful for payday it helps relieve some stress to see the balances go back down to zero on those cards.
Do you have some money flowing in?
Darn. I made an error last month inputting the paycheck into our excel sheet. I flipped two numbers around. I input $3759, instead of $3579. I thought I had an $180 more than I really had. I remember it seemed a little odd when I was paying bills and had more than expected, but I sure wasn't thinking it was not correct!
I found the error today when I was balancing the checkbook. It took me awhile to figure it out, since I could tell all the transactions were correct.
Do you balance your checkbook?
I worked for an hour yesterday on how to adjust withholding and increase our retirement contributions. It took awhile because I didn't agree with the numbers the IRS Tax Withholding Calculator was giving me. The calculator said to withhold 5 to get a $300 refund next year, it's actually 6 I need to withhold for that type of refund. If I did six the refund would have been much larger and that is withholding far too much. They did have our expected tax correct though!
I was also using Paycheck City to calculate the various net pay scenarios with different amounts going to retirement. In the end we are going to increase retirement by 2% of my husband's basic pay, to a full 10% going to the Thrift Savings Plan (TSP). This will be an increase of about $150 a month. We are going to keep contributing to Roth IRAs since we are still in the 15% tax bracket for our taxable income.
We are now contributing 17.5% of gross wages. I think this is the highest percentage we have been at, up from about 16% at one time. I should consider increasing it again to start getting closer to 20%. Especially while we are in my husband's highest earning years. There are only about 8 years left before he retires from the military. We want to make it count, right?
I feel so much better having taken care of these changes now, early in the year. It would be so easy to just say I was busy and then find ourselves owing a lot to the government, or not taking advantage of investing more.
Did you have to change your withholding this year to avoid paying taxes next year, or even over withholding? Did you increase your retirement contributions?
The military pays us an allowance (tax free money) that we can use towards housing. The news is that the military is getting an average of 0.5% increase. Clearly we are above average with an increase in our allowance of 11.3%! That is $183 increase. We don't have to use our full allowance for housing if we don't choose to. Currently, we have a mortgage on the home we live in. Our current payment is $1,311, increasing to $1355 because of increased taxes. With our new housing allowance at $1800 per month, we are well under the allowance.
It is very tempting to put that extra money towards the mortgage, but more than likely I will just save it for the move coming up in 2015. Yes, we have already started down that road...ranking our preferences based on the jobs available. I really want to stay in our current state, but the odds are against that I think.
Once the holiday and celebrations have past I will be working hard on figuring out our new paycheck amount and goals. One thing I need to figure out is how much as a percentage to send to retirement. It is probably time to increase it again with the raise in salary and housing allowance.
Anyone else out there in the military? Did you get a bigger than average increase in your BAH for 2015?
I opened a joint checking account with US Bank back in September to earn a $200 bonus. We easily met the requirements over a month ago, which was a direct deposit of $500 each month. I emailed once and didn't get a response...at all.
I decided to try once more before I went to the branch. What can I say, I'd rather deal with things online! Luckily this time someone responded. They confirmed I was offered the bonus promotion, based on the number I had given them and signed up with. The email indicated they could confirm I met the requirement. The next step was for them to forward it to their Customer Care Unit, which will further review the account. I should expect a credit or at least email response in 2-3 business days.
I hope the wait is nearly over. I haven't been impressed with the ability to connect with the bank online that is for sure. Otherwise, we have had no issues with our transactions and so forth. I expect to keep this bank account at least through the move next year, since it can be helpful to have a local bank branch during a home sale transaction.
Did anyone else get a US Bank Checking account offer? Was your promotion applied timely?
I was just notified by USAA that we should expect our annual subscriber distribution tomorrow. It will be $69.19. I don't know why I look forward to this expected, but not always promised source of funds.
USAA also reimbursed us for ATM fees last month in the amount of $6.45. There was also a whopping $0.03 of interest.
When I add those snowflakes/extra funds to a recent rebate received ($8), Pinecone survey payments ($9), and a used up $5 Target gift card, I have more than enough cash to make the final extra payment on the mortgage for the year.
This means we have met the goal!! Our mortgage balance will be just under $X15,000 after I make a payment of $97.67 tomorrow.
I'm so excited to have met the goal I set out to reach at the beginning of the year. It always seemed possible, but there was definitely work involved. It paid off!
All snowflakes we accumulate through the end of the year will be applied to our savings account. We spent nearly $3K recently on tires, brakes, new timing belt and a flute. That money came from savings. It is time to pay ourselves back. I will still track the snowflakes until year end for a grand total number.
Later this month, I will flush out new goals for 2015. I'm sure some goal will include the need to track snowflakes!
Did you think we would do it? Are you surprised or not?
Finally. My husband's promotion was in September. The pay took a few weeks to catch up and thus had back pay. I finally know what each paycheck will look like. I can start making some plans on how to allocate the money. That makes this math geek happy!
We have $500 deposited to US Bank once a month. It was a requirement of their checking account bonus offer. We should meet the requirement soon and get $200. Once that money is firm, I will cancel the $500 deposit. I don't need money going into all sorts of accounts for no reason! (Although, I'm remembering that it might be nice to have a bank branch when we go to sell the house...I'll ponder that before I make changes.)
I've done some more Christmas tasks and decluttering this weekend. I've written about it over on Your Organized Friend. Remember to scroll down and read any posts you may have missed.
Wow! I wasn't expecting it to actually happen, but one of the commanders actually reimbursed my husband for refreshments purchased on his behalf nearly two months ago. The outgoing commander still owes us $75 and that was mentioned to him yesterday.
I have deposited the check, and will make a payment in the same amount to the Wells Fargo Amex card where we just put the tire and brake purchase. It's true I could call it a snowflake, but I think we are good on that goal and this is money we wouldn't have spent if given the choice. Fingers crossed we get the $75.
I did discuss with my husband that these commanders should pay up front for costs of their own refreshments. It isn't right for lower ranking officers or soldiers to pay and wait to be reimbursed. He agreed and may do a better job handling it in the future!
I was able to eliminate quite a few things in my To File pile yesterday. Some recycled, most shredded. The rest needs to be put away in our main filing cabinet. That should take less than 10 minutes to complete later today.
One blog I'm following indicated today was the day to purge nail polish. I only wear it on my toes in the summer, so I have two bottles I trade between. Both were good last I used them. So that task can be considered complete!
Are you purging anything this fall? Are you donating or selling? Do you often have to wait for reimbursements? Do you have a way of keeping your paper files in check?
The flute refund now shows on our Amex credit card, so that is a relief that it all worked out. I didn't get a refund of shipping of course, but that I do understand.
I can finally see my husband's pay stub for the month of October. It all looks correct for the pay adjustment for the Sept 1 promotion. I look forward to seeing the one in November, as that will be even more clear!
I have a bid on an item that I listed yesterday on eBay. I actually hope it sells for a little more than the starting bid. The last one like it I sold did, but you never know with this item.
I received a $3 Pinecone payment.
See? All good news! What is your good news for today?
I had $12.66 in rewards on the US Bank Cash+ Visa that I redeemed the other day. These are primarily the result of getting 5% cash back on our cell phone bill. I didn't remember to match those, so now will need to make another mortgage payment to pay down some more principal!
The bills are paid. I have paid all but one credit card in full. No interest is being charged, and now that we finally got the back pay for promotion we can starting doing good things with the extra funds. I won't have all that figured out likely until the next paycheck at the beginning of November. Something to look forward to.
I made a donation to a charity last night for a walk we are participating in. We will need gas to travel and some cash for lunch while we are there. I feel good about that cause.
I also need to pick up the senior pictures! I have $50 deposit down right now, but need to pay another $100 to pick up the proofs and take them home. I could just look in the studio, but that seems like too much pressure.
Any snowflakes (extra money) come your way recently?
My very good friend from high school learned yesterday that her mother died suddenly. It was likely a heart attack. She was 63. My heart just breaks for my friend and her whole family. I know they will miss her so much.
The good news is financial. My husband's pay increase and back pay since September 1 for his promotion seem to have been processed. The check next week is much much bigger than usual. Unfortunately, I won't be able to see the specifics on the pay stub for two weeks, since their is only one pay stub per month.
I also have one bid on an item I relisted. And someone is watching another item. Would love them both to sell!
I did get magazines decluttered yesterday, but no new posts have been written on Your Organized Friend. I pull three recipes from the magazines and recycled them. I still have three I'm holding on to, since they have a lot of recipes I'm interested in. The blogs I'm following for the challenge indicate the the junk drawer and car should be decluttered for today. I might just be able to get those done.
Any tips on how to support a very good friend while she processes the death of her mother? I'm hours away. I expect likely lots of talking over the next days, weeks and months to come.
I accumulated $182.20 in extra money(or snowflakes) for the month of September. All the cash went to pay down the mortgage!
Here's where the money came from:
Also, it could have been higher if I was able to redeem some of my Southwest Rapids Rewards points. That would have been $200+. (See other posts for why I can't redeem...yet.) I also could have redeemed $200+ from our newest credit card Citi Thank You Preferred, but I'm holding off to determine if we will use this money for a new fridge.
I do have a Pinecone survey reward being transferred to my bank account and an Ooma $20 referral reward that will be counted as the first snowflakes of October.
I did make some financial moves that will generate some extra money in future months. I opened a Discover CashBack Checking account for a $50 bonus. I opened a joint US Bank Checking account for a $200 reward, as well as set up a CD at Navy Federal Credit Union which will net us 5% interest on $5,000 over then next year.
I'm happy with the snowflake progress of the past month and looking forward to those future rewards? Did you track your extra money earned this month? How much did you accumulate? Did you save it or pay down debt?
I can see my husband's pay stub for next week. He was promoted as of September 1, yet they have not yet changed his pay. I changed withholding for us online, that change was made. I requested online to send $500 to our new US Bank account. That change was handled, and just did that two days ago.
I realize I can't go in and change the pay for him like the other two things. Someone is NOT doing their job, and that irritates me!!
I gave a heads up to my husband, so hopefully he can get the situation moving along. I know he will get paid his new pay as of September 1, but WHEN is the question. If corrected for the next check, Oct 15, it will include all the back pay up to that point. I won't know the true check amount we can expect until Nov 1 at the earliest. I can estimate it of course, but I do like to know the specifics, like all number nerds do.
How long have you had to wait for a promotion to be reflected on your paycheck?
Did you see that ad for Net Neutrality? I put it up there to give awareness to the issue today. Please contact your state representatives!
In other news, I went shopping yesterday but didn't buy anything. I do expect to buy a couple new items, but I just didn't find the right items at the right prices. I did notice a lot of items 90% off a Kohl's. So tempting to buy some things for Christmas! So far I refrained.
I think our two new checking accounts are now open and the $5000 transferred from our money market. I hope to get the CD opened by the end of the week.
So with the promotion effective September 1, my husband should now be getting paid at a higher wage. Well apparently, there hasn't been enough time to make it effective for the paycheck he will get next week.
The check is actually going to be lower. But that is our doing. We decreased our withholding allowances to compensate for the higher income and tax owed this year. The paycheck will be less by $24. Not really a big deal, but definitely disappointing when you are expecting to see a bigger number.
My hope is that the pay will be processed in time for the October 1 pay period. This will mean the full months increase in one check. If it is any longer than that...well, I'm not going to be happy.
Today I am going to get those new accounts open and funded. I procrastinated yesterday and hoped to talk a little more about it with DH. In the end, he really doesn't care what I do.
Once I get the accounts up and running, they have a combined potential to earn us $500! Can't complain about that kind of money.
I was procrastinating on filling my laundry cabinets yesterday too. However, I finally got myself moving and did make some progress. I have a post on Your Organized Friend. Again, progress. Not completion yet.
Have you been procrastinating anything lately?
With the new promotion and increased income, I figured I should check out where that puts us with taxes. We are still in the same tax bracket of 15%. But 15% of more is still more taxes!
I also realized and kind of knew that we would no longer be eligible to claim child tax credit on our daughter that turned 17. That right there is $1000 more in taxes than we have had in the past.
I have estimated that taxes(after the credit for one child) on our taxable income will equal $4,891. So far in eight months we have only had $2,308 withheld and withholding another $450 for four months will still put us short. I went ahead and changed withholding from 8 to 7. This will have us withholding $488 each month for the next four months. I could have made it more, but decided it was okay to keep it where it should be for next year and we will just owe the government again this spring. I expect in the end we will owe $630.
I plan to set aside $105 for the next six months for this particular debt. This way it won't be a big surprise or burden at tax time.
Each pay period we will have $440 more income after all the changes. DH and I did discuss this last night and he is all for just sweeping the money into savings knowing a move, and college are in our future. Seems like the best plan for now. We may evaluate retirement at the first of the year.
Do you evaluate your taxes anytime during the year? Or only at tax time?
My husband received his promotion order yesterday. His promotion from Captain to Major is effective September 1. This means a pay increase which we will see on his pay mid September.
I feel like I have been waiting all year for this! I'm sure he feels the same but for different reasons.
This pay increase feels like a lot of responsibility for some reason. It is a gross increase of $1,150.20 per month. I need to figure how much more taxes we will owe, adjust withholding if necessary, decide if we should increase retirement contributions and really decide overall what to do with the increase. I sure don't want to just spend it away!
As far as retirement contributions go, we currently save 17.8% of my husband's gross pay towards retirement. Do I try to maintain the percentage, or increase the amount but not worry about the percentage of gross?
In the end, I think I will play with the numbers over the next week and try to see what feels the most comfortable. I also should talk with DH to see if he has any preferences on what to do with his hard earned money! I think he will opt to save it in some way and we have discussed that previously.
As I finish writing this, I had the idea that maybe the entire increase (minus taxes) will get saved, but just among various places. Retirement, regular savings, and maybe a taxable investment. A little to each of those may feel good.
I'll let you know what we decide and how it will look. If you had a large increase in income what would you do with it?
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