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A 2015 Challenge I don't want

January 9th, 2015 at 08:49 am

That punch-in-the-stomach moment when you learn that your paycheck income is reduced, and you don't have enough $$ to pay in full one loan so you can have a comfortable surplus. 2.6% reduction from 2014's paycheck. What about COLA? What about our rising property tax and vehicle taxes? Maybe we'll end up with an income tax refund again. I'd rather have the taxes withholding and some other things settled than struggle 51 weeks of the year.

I really need to have a talk with my spouse. I can see some necessary changes:
1. My kid will have to adopt the schedules and routines I've been nagging him about because I will have to get at least a part-time job.
2. We may have to restructure a loan, or pay one loan off in full by liquidating what's left of our cash.
3. The spouse may have to play with contributing to some retirement to get smaller tax amounts deducted from the paycheck.

To save money we'd have to spend money, and that paradox eats at me. I'm very sore at my brother. I suppose I should be thankful he died before my kid's passport was approved and that the two nations where my kid holds citizenship take their sweet time processing "emergency passports" where it's no use trying to take him with me. I'd have 3x the expenses to pay back...

Looks like a family meeting and several brainstorming sessions are in order... After the semiannual insurance is paid, though. What's not on the table, liquidating any assets whose annual return exceeds the annual interest rates charged to us for our liabilities.

9 Responses to “A 2015 Challenge I don't want”

  1. CB in the City Says:

    Sorry to hear this! I'm sure you will work it out, though!

  2. ThriftoRama Says:

    Hugs to you. This is tough. My income is a roller coaster and the taxes are always going up, which it makes it hard to plan.

  3. PauletteGoddard Says:

    I've been playing with the Tax Withholding Calculator, although I can only guess at tax withholding, pay, et cetera because I don't see any of that. One idea I'm playing with is paying the car loan in full in June 2015, liquidating the CDs to do it. First though I'm going to sit with DH to see if there's a way we can maximize what he takes home.

    January is one of the worst months for us budget-wise because of the annual inspection of the furnace, car insurance, and gas bill, and electricity bill: the sizes of these expenses aren't as large in the other months. In my spreadsheet I do have a partial cumulative sum adapted weekly for loans, mortgage, utilities and insurance -- expected expenses. We have $60 less per pay period coming in, and if we had $282.21 less going out each month that wouldn't suck as hard.

  4. creditcardfree Says:

    Our income went up with the recent promotion and 1% raise, but now we are moving to a state that is going to tax some of that income! It might not feel like a raise at all, so I can relate.

  5. PauletteGoddard Says:

    @creditcardfree I'm guessing at where you'll be moving to and thinking the state may border a nation or have a coastline or in some cases, like ME, WA, AK, TX or CA, both! I know it's not WA because we don't have a state tax. Some state at least partially below the 36th parallel? If we'd moved like we'd have to if my spouse kept his job, we might have state tax, plus electricity bills up the wazoo for heating and for air conditioning, plus probably a snowblower. But our expenses are up because he has to drive into work now. My husband's a Midwest person. He moved out here and likes the three seasons (soggy-cool-grey, dry-cool-grey, dry-hot-blue). I can relate having to revise goals indeed.

  6. VS_ozgirl Says:

    Sorry to hear about your bad news, we know all about this one, and yes brainstorming will be required when there's a big change like this. Wishing you luck

  7. rob62521 Says:

    So sorry! Hope you have a successful pow wow with all involved.

  8. FS Says:

    Bummer. Sending you lots of good vibes. You should try churning some CC.

  9. Bluebird Says:

    I'm so sorry about the income reduction, that really stinks! But you'll adjust and make it through!

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