So what is everyone doing to adjust their budgets for the 2% increase in social security tax? I remember cringing when I first heard 2 years ago that this was "temporarily" going into effect. I knew I'd quickly get used to the extra money each month and knew at some point it would come to an end. I thought it might only be for 1 year, not 2 years. Of course by now the extra money has become part of my monthly budget. Huge increases in health insurance premiums over the last 2 years and high gas and food prices made using the 2% a necessity. It wasn't "extra" money for me to stimulate the ecomony, it was money I needed to live each month.
For me it will mean about $110 less per month. With the $98 a month increase in health insurance premiums starting this month and the extra tax, I'm now trying to figure out how to cover an over $200 drop in income, basically. Back to the drawing board to see where else I can cut an expense. I have 2 in the works - starting next month - a change in health insurance companies, which should lead to lower monthly prescription costs and the change I still have yet to make on DH's cell phone plan. In October/November I just didn't have the $100 extra to purchases the minutes card and then DS left on his trip and I really need him to handle the transfer of making sure DH get's his same phone number. He handled DD's when we switched her to T-Mobile and it was a total hassle, but he finally got it straightened out, only because he kept at it with T-Mobile because he knew it could be done.
How will this 2% increase affect you and your budget?