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.