Wednesday, November 12, 2008

No More Social Security Payments For the Rest of the Year But...

I looked at my most recent pay check and discovered that my pay increased by $160.92. Why? This is because I've now paid the maximum yearly Social Security limit. For the final 3 paychecks of the year, my pay should increase by about $220 per pay period.


The bad news? Looks like my "temporary pay increase" is going to be eaten away by increased costs in 2009.

For example, I only signed a 6 month lease with my apartment in July due to the uncertainty of my job. I was just told my rent will increase by $20/month in January. (Happy New Year to me...) I'm probably again only going to sign another 6 month lease so I'm expecting another rent increase in July '09. (Total expected rent increase in 2009 = $360.) (I'm not even going to think about the possibility that I may have to move into a 2 BR for now.)

My car registration ($193) will come due on 12/8/08 and I currently only have $105 saved towards it.

Additionally, with benefits open enrollment starting soon, I'm expecting to pay another $10/month $17/month in increased health and insurance costs in 2009. (Total expected increase: $120 $204.) [Note: Open enrollment started at my company today. Like always, I've underestimated the increased costs.]

I socked away my most recent "temporary pay increase" in to my emergency fund. But with the anticipated increase in cost of living for 2009, I'll just earmark future "pay increases" it into a Cost of Living Adjustment Fund which will not count towards my savings.

Sigh... story of my life. Whenever I find extra money to save, it seems to go elsewhere. That being said, although it feels like I'm futilely running in place, I feel very good that I'm taking advantage of this temporary Social Security payment reprieve to plan ahead.

8 comments:

debtfree2009 said...

This is actually a positive. You weren't expecting the extra money but you were expecting the increases so this extra money just covers the dollars you were going to have to squeeze from somewhere.

Hopefully, it all works out and you don't have to go the route of a 2 bedroom.

Sharon Rose said...

Hi there-Well done for earmarking this extra money for future cost of living. The good thing is at least you won't have to find it elsewhere.

jpkittie said...

I am with the others - congrats on seeing now that you will have to set it aside... it will make it easier for next year when things do go up for you....

Shtinkykat said...

Thanks! I am grateful that I have this opportunity to save for future expenses. :-D

Miss M said...

Isn't it crazy how if you make enough money the government gives you a raise. I went over last year but it's going to be close this year, I really need that 6% raise. Hey are you in So Cal? I saw that you're a few hours drive from Vegas and was wondering.

Shtinkykat said...

I do indeed live in So. Cali! So funny how a fellow So. Cal. resident instinctively knows that someone else lives in So. Cal. based upon the driving time to Vegas. LOL.

Miss M said...

Yeah well the standard answer used to be 4 hours, the fact that it's now 5 hours to vegas shows how bad traffic has gotten on the 15! I've done thanksgiving in vegas, was dating a guy whose family lived there. It was pretty crazy, you're going to have fun. I'm in LA proper, near downtown.

graduatedlearning said...

hmm, how did you figure this, exactly? I'm thinking it has to do with the numbers here: http://www.ssa.gov/pubs/10003.html

perhaps the max you can give is 6.2% of $102,000 = $6324?

Or am I completely getting this wrong?