Tuesday, May 20, 2008

Raises, what to do with them?

This is more of a personal posting but Id just like some thoughts.

So I found out today that our school district is getting a $1000 pay raise next year. I will also get a $1000 bonus in December.

I am trying to figure out how much more per month I will get and I think that since I am in a 25% tax bracket I will get about $700 from each. Per month the raise and bonus comes out to about $120 more a month.

Since I am done with my certification and I will be getting paid on a 12 month schedule starting in September (I was paid in a 13 month schedule last year), including everything I will make about $700 more a month than I am now. I also will have my car paid off in 2 months which is an extra $870. An extra $870 a month when Im already putting $500 into debt and maxed out my Roth is balling (Save that for retirement and in 40 years and 8% interest is $2.9 million)

Crazy budgeting me, I will still max out my Roth and put the rest into debt. (I was seriously considering putting $2,000 into a 403b with no tax difference, but debt is more important right now). I just need to stop eating chinese buffet...