I live, write, and garden in the PNW with my husband of 27 years, disabled daughter, college-aged son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!DH was finally told what his raise was going to be. He's getting a 9% raise! Combined with the 2% across the board cost of living raise they did in July when they did performance reviews, that means in 2021 he will be making 11% more than we started 2020 out with. Which is great after no raises for 3 years. DH says this puts him at $127,000 salary, although he is hourly so it can be over that with overtime. I believe he started this year at $114,400, so that's a big difference.
I'm not sure when it goes into effect. I am assuming on the first paycheck earned in January, but it might be sooner. It would be awesome if it was on tomorrow's paycheck, but no counting chickens before they hatch.
My base estimate is that we will have about $533 more net in the paycheck every 4 weeks and $808 gross. That's assuming taking out 1/3 for taxes and however it will effect the 15% taken out for retirement. It's a broad estimate. I won't know anything until I see actual numbers.
I feel like this is finally going to give us some room to breathe. We can get the Emergency Fund fully funded to six months expenses next year and fix some things around the house and seal the sun roof on the van that leaks into the seatbelt well. And then start saving up some serious money.
I've just felt like for so long we haven't been able to actually save for anything. I know a large portion of that is that we are slamming 15% into retirement and that technically is a form of savings, but it is a non-accessible form until retirement. And that's a choice we made, but it feels the same as it did when we were paying off debt. Tight and like we barely had our heads above water.
I don't know. Part of me thinks we should make sure we max out our retirement with this, but I just feel like if we go completely that route, I will buckle under it. The relief I am feeling at the news is so strong, like we can go on without burden, is more important than buckling it down so tightly again.
What I can't do is let the money fritter away through our fingers. So I will plan and plan and plan some more. And adjust accordingly.
December 10th, 2021 at 01:40 am 1639100408
December 10th, 2021 at 05:58 pm 1639159083
December 11th, 2021 at 09:11 pm 1639257060
December 12th, 2021 at 04:28 am 1639283284
December 12th, 2021 at 04:30 am 1639283432
December 12th, 2021 at 04:31 am 1639283486
December 12th, 2021 at 09:18 pm 1639343908
Whenever I get a raise, I do increase my retirement contribution a bit, but I also increase my take-home pay as well. But yes, if your emergency fund isn't fully funded, then it can be a good idea to contribute to that first, then switch the savings to retirement when the E-fund is topped off.
December 12th, 2021 at 09:27 pm 1639344444
December 13th, 2021 at 11:58 pm 1639439889
December 16th, 2021 at 06:47 am 1639637247