Received an inflation raise of 6%. Woohoo!
This is extra nice because we have not personally experienced an increase in our expenses.
Extra extra nice because taxes were strangely *shrugs* on new income. I lost a $2K tax credit in 2022 but will gain it back in 2023. I will just leave Federal tax withholding as is. It's a little high, but I don't want to get too used to paying less taxes. We have nowhere to go but up. I did bump up state tax withholding a little bit.
After that, we are left with $400/month, which will exactly get us to the goals I was envisioning. Weird how that works out. I mean, it's like down to the penny. So I don't have to touch the new (2022) "breathing room" in our budget, to meet these goals.
I am bumping up monthly cash savings by $50/month. Making it an even $1K contribution. I don't foresee increasing this. With the exception of making this a full $1,083/month in the future. To cover IRA contributions (from my income). The old $12K IRA contribution limit (x2) is probably why I have that $1K/month figure in my head.
This leaves $250/month to throw at investments. Happens to be where we left off, and was the figure I wanted to hit this year. If I didn't have enough raise, I would have commited a flat amount from MH's income.
Oh yeah, and the other $100 will go to health insurance increases. For the past ~15 years, it generally goes up $100/month, every year. That is nothing new.
Still taking a breather, re: longer term goals. That said, I can tell you three things:
1 - Efficiency is too important to us. We won't be decreasing retirement contributions, accordingly.
2 - We don't want to increase retirement contributions.
I mean, I am okay with bumping up to the new IRA contribution limit (with MH's raise). & will have to re-evaluate (in the future) re: #1. Rather park our income in retirement funds than hand over to the IRS. But other than fiscal efficiency, it's not a goal of ours to put any more away into retirement.
It's clear after this period of "auto pilot" that we don't want to make any big changes.
3 - This will probably put our new goal at $800K retirement funds by age 50. Just doing the math.
This is what I had calculated before my raise. Extra investments (raise) doesn't move the needle much on a 5-year goal. Fair enough.
When will I circle back and start thinking more long term? Commit to these new retirement goals and memorialize in my sidebar? I think I am going to wait until college shakes out this calendar year. Let a little more limbo sort out. I just need to give it more time.
Overall, I am very happy with things. Being able to have more breathing room in the budget and to also be throwing a chunk into taxable investments again...
January 15th, 2023 at 02:18 am 1673749114
January 15th, 2023 at 09:30 pm 1673818212