Last week I wrote about how I was curious what the first paycheck of the year would look like in light of the fact that things changed, primarily on the health care cost (unfortunately, there was no salary increase involved *sigh*).
To recap, we changed the plan option and also reduced our FSA contribution level, both as a result of the fact that we are not planning on having a baby, which was why costs were higher in 2011, and hopefully not having any other unplanned major medical expenses. I wanted to see what the net effect would be on the paycheck and the results are in.
It basically resulted in around a 2% net increase in pay.
Which is sort of what I was expecting.
Not very exciting.
Unfortunately, what we’re spending it on is as equally un-exciting. We’re really not spending it.
I haven’t bumped up my retirement contribution level in over three years, since we haven’t had any raises in that long. This doubly hurts because the company used to match, but cut that out at the same time they froze salaries. Especially in light of Sam’s recent article on where people should be in terms of retirement savings (note: we’re not close to Sam’s numbers), I wanted to increase our contribution.
So I did. From ten to eleven percent. This eats up about 70% of the ‘extra’ money.
The rest I want to use as a backup savings to our FSA card, in the event we go over for any reason, that we have money to back this up if we run out of dollars before the end of the year.
So, while I was excited to see what the paycheck would be, in the end it turned out pretty much on spot what I had expected, and the results are kind of a yawner, unless you are excited by extra savings and retirement contributions.
Which I guess I am and hopefully a few readers are too 🙂
What changes have you seen in your first paychecks of the year?