Sunday, July 1, 2012

Monetary Goals

Since I'm getting a whopping $11.00 per hour raise - which amounts to $3,000 this year, which is cool since it is probably the largest raise I will receive in my life I'm kind of jazzed. It won't make much different in the end, but here's what I'm planning.

Save an additional $200 per month making it a total of $350.00 per month

Save $100 a month for the car

Continue to save $50 a month for my vacation fund whose sole purpose is to offset the cost of vacationing and make me not feel so guilty about shelling out a huge sum of dinero at once.

Save for a trip to Dallas/OKC during Christmas to visit my family there/little cousins since they're all grown up. I'm thinking fly into Dallas because it is cheaper, spend a day or two there, then rent a car and drive to OKC to visit my aunt/uncle, cousin, and little cousins. $350 there + $50 car 


fan of casey said...

Mike: On its face, getting an $11/hr raise would be huge -- but you must be confusing apples and oranges because I don't see how that results in 3000 more per year (which btw sounds more reasonable).

3000/year = 250/month more for most of us but because you are a teacher, you are working 10 months, so 3000 spread over that comes to 300/month more.

Assuming you are paying standard marginal tax rates of 7.65% FICA, you are in the 25% bracket for federal, and another 6% for state income tax, you would pay 39% of your raise in taxes.

So after tax left for you to save from your increase would be 61% of your 300/month more, or $183/month. That's less than the $200 additional you want to save, so you'll need to cut back $17 in other places to come up with $200 additional savings per month. This is do-able.

But in light of you moving in with your BF, I would think your household expenses will be increasing since you would want to help contribute towards running the household. These are costs you take for granted when you live at your parents' house -- so I would not be counting on saving most of your additional pay -- that is the price of your independence.

Aek said...

Sounds like a good plan. :-)

Mike said...

@ fan of casey: I meant $21 an hour. It was 2am when I was writing this!

fan of casey said...

Mike: Got it, you are now making $21/hour with your raise is what you are saying.

With your raise, I'm pretty sure my analysis is still valid -- the incremental amount left over after taxes is what you should count on. I know, that's pretty sad -- even after getting a decent raise, a big chunk goes to taxes.

Be thankful that your pink slip got rescinded.

your boss said...

i don't know how to tell you.. you are fired.

a jew said...

i'd invest that money buying a house in greece