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?
Anybody who works for a living, we ALL got pushed off.
ReplyDeleteNow that Obama doesn't need people to vote him back in, the "incentives" go away. The public is so easily bamboozled, isn't it?
Between this, hitting the Alternative Min. Tax ceiling and not being able to itemize deductions this year(due to not enough deductions on our part), we'll probably end up owing a small amount in April instead of our small refund. I need to let the dust from Jan.'s income/withholding to settle first to see where things stand for us.
I am with Sluggy. I need to see what the new paychecks end up looking like before I can really adjust. My hours vary a little, so at this point I don't know what things will look like. G-man's check has night differential, Sunday differential, a change in the FSA cap, a change in health insurance amount (although that is small). He is SUPPOSED to get a 0.5% cost of living increase (oooohhhhhh), which doesn't start until April.
ReplyDeleteI am just going to have to wait. I am already preparing myself that extra money to pay off debt is probably not going to happen. I think my rally cry for the year will be "Do the Minimum!!!"
I'm dreading to get our first paycheck of the year. I think we will be about $45 short from this change plus about $130 from medical insurance. We will have to adjust quite a bit:(
ReplyDeleteIf I figured correctly (that's a big if) I will be short $80 a month and that is before our insurance goes up again in April. Daughter has been pestering me to get rid of cable and get netflix, so that for sure will be going, we are buying a Roku. Scary part for us is dairy prices, being from WI we are born and raised on dairy and its hard not to have those in our diets. Sigh!
ReplyDeleteI'm still unsure exactly what impact there will be to our paychecks. I received a raise way back in September, but had other payroll deductions that phased out, so I'm waiting for my January 15th check to understand how it will change our net pay. *fingers crossed*
ReplyDeleteI am too scared to look. I guess I will have to ask payroll what the bottom line will be. I need to be super frugal. I don't have a problem being frugal, its just hard on my kid! I mean, she is great, but things are expensive these days!
ReplyDeleteI am waiting to see DH's check(he makes more than me) and we will go from there. Between that and the raise in our health insurance I made sure I really cut the budget in a few categories so hopefully it wont be as bad as I imagine.
ReplyDeleteI don't like getting a refund anyway(something about the govt getting my money interest free) but I still have to figure out college deductions and everything else. Thank God my mom is a retired IRS agent