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.