September 5th, Payday! Retirement category is only 10% of my paycheck. Whats up with that?
I'll tell you whats up. The Retirement saving deduction needs to be trimmed back. Plans are already in the works to eliminate saving for retirement entirely for the next month.
The honeymoon is on the horizon. In less then one month my beautiful bride and I will be jumping on the kangaroo airline bound for Australia's east coast. We have been saving diligently for eighteen months.
Plan is to bump up the trip related budget by a few dollars USD just in case. Building a little travel expense buffer should guard us against any travel related emergencies.
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One Budget to Rule Every Paycheck
Sorry, there is no one budget that is plug-and-play compatible from paycheck to paycheck. Even when it appears the budget is dialed in perfect, its not. Each budget in and of itself can be pretty great. Then throw it away at the end of the month. Or blog about it, like me, then move on to the next one.
The Secret to a Successful Budget
Tweaking and adjusting every budget is required. Pride in your budget can only take you to the water. Personal discipline is required to get yourself to drink the budget kool-aid. Be accountable to yourself.
Let me tell you about this paychecks perfect budget. Then let me tell you about all the things that are screwed up about this budget.
Whats the Plan
Like G.I. Joe says "Knowing is half the battle". Identifying whats right and wrong about the budget helps us move forward into the next paycheck with confidence. It would have been great to add in Christmas savings months ago but I'm not going to complain. I will just change my budget in the future.
When I hear people complain I hear these words in my head. I'm not helpless and neither are you. If you don't like something, change it.
New and improved budget
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?
I enjoy money and bacon.
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