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Pay Raise

December 14th, 2013 at 04:52 pm

It looks like the military will be getting a 1% pay raise. For DH this is an increase of $62 per month or $744 per year. Inflation, according to a quick online search, is at 1% for the year. I guess this is good enough to not be back tracking, but it sure doesn't feel like much of a raise for the hard work my husband does.

This really should be the year he gets promoted to Major. He has already been notified that the board is meeting in early March to determine those who will be promoted. I will focus on that, which will be $1,116 more per month than he is currently receiving in Basic Pay. That is a 17.8% increase. There would also be an increase in our housing allowance with the promotion as well.

I'm thinking this 1% raise will just be saved for retirement. I will simply increase his TSP contributions by that amount. That will leave our net paycheck virtually the same...except for the increase in any housing allowance change.

I do need to consider the promotion in our savings plan, as such a large increase in pay will change our tax bracket. And I don't want to pay more taxes! We maximize our Roth contributions every year, but I may need to put some of that in IRAs to take advantage of the tax deduction.

Kind of a rambling post about the pay increases we expect, but just needed to get my thoughts on this down. Will you be getting a raise of any kind this year? Will you save it, spend it, or pay down debt?

7 Responses to “Pay Raise”

  1. beawealthywarrior Says:

    Those are some awesome raises, especially when u add them together. The main increases I will see will be my continued GI bill increase, increase in retirement pay and VA compensation payment. I will send all increases to mortgage Smile

  2. ceejay74 Says:

    I'm really not sure about raises; my company had a very rough year and didn't make our desired budget. NT's company did really really well and his senior co-worker, who our kids call "Uncle," is pushing for him to get a raise. But they like hoarding profits for their owners, so we'll see. AS's job gave her a big raise last year, so she might get a small one this year or none.

    I'd really like some, since our paychecks will be smaller with NT and I putting the max into our FSAs, and our bills will be higher with the raise in our association dues!

  3. Xtreme Thunder Says:

    I work for a local municipality (as well as live in it) and haven't received a raise since 2009. My wife and I are thankful to have a job. I totally understand the municipality is struggling as well, but sooner or later, something has to give as everything around us is increasing 2-3% a year.

  4. littlegopher Says:

    Raises... I vaguely remember those!

    We haven't seen raises for many years, about 6 years at least. I'm a public employee and my husband is in the private sector. And like many, we're receiving less with regard to benefits and/or it's costing us more for them.

    Luckily, we're ingrained to live frugally, and as Thunder says above, at least we've remained employed Smile

  5. FrugalTexan75 Says:

    If I stayed where I am, I'd get about a 1% COL raise. Who knows where I'll be (jobwise) after May... so may be a big raise or may be a cut. Only time will tell. Smile

  6. creditcardfree Says:

    Just so you all know, I sure don't take the employment or raise for granted. We are grateful everyday for a wonderful paying job and steady employment.

  7. MonkeyMama Says:

    I think it's unlikely I will receive a raise this year. IT would be the first time ever, but the writing is on the wall. If I do get one - it can 100% go to mortgage paydown or savings. The rest of our budget was breakeven with other increases and cuts in expenses.

    Like others mentioned, am overall getting paid far less than a few years ago (lost a significant benefit) but just happy to have a job in this economy! I think that is just our way of saying we are okay with no raises. I think it is awesome that you may enjoy such a large raise very soon.

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