Deductions/Taxes & Retirement categories are now included in the budget for your viewing pleasure. In previous budgets only the 'Take-Home' pay was presented. Now the budget shows the gross income and budgeting of every dollar!
Retirement saving of 15% is recommended by Dave Ramsey. Thats exactly what I'm doing since arriving at baby step 4. Curious if the savings is pre-tax or post-tax? My retirement savings is pre-tax. I don't think it really matters.
Deductions is a place in the budget where money drains away from your take-home income. I recommend that you review your deductions at least quarterly with your own eyes. I have deductions for employee parking, union dues, life insurance, federal taxes, medical, dental & vision.
Cutting out all deductions is not an option. As a union member the dues are a fact of life. The employee stock purchase plan (ESPP) is optional. I only add $5 each paycheck but this would be eliminated if I had debt. I'm required to pay taxes so those are fixed, or are they? The tax refund is a free loan to the government. Increase tax deductions on your W2 and bring home more each month. Early in my debt snowball I considered riding my bike to work to save the $20 monthly parking fee. I didn't but it was an option. How deep can you sacrifice?
Hello tiny paycheck
All the travel and time off from Paycheck 38 catches up. Take home pay of $848.70 is the smallest paycheck of 2016. The long weekend of July 1-5 was just what I needed to enjoy the summer. I met a lot of great people who are furthering my goal of saving the monarch butterfly.
Saving 15% toward retirement
Not noted in the below budget is the 15% of my income that gets squirreled away as a "deduction" from my gross income. Next paycheck I am going to add deductions to the budget and share my gross income numbers.
What are deductions? Deductions are all those little things, some big things, that erode away at the take home pay. I have deductions for:
Should I stop traveling?
Oh heck no! Mrs. Money Bacon and I have met our savings goal for Australia. We have saved $10,000 over the last seventeen months. So I guess in July 2015 I didn't make a big deal about saving for Australia.
Well guess what? We are going to exceed our saving goal and head to Australia with about $12,000! I'm sure we will spend less and the unspent money can carryover to a Spring Break trip.
I enjoy money and bacon.
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