Back In The (Investing) Game

The 2015 pay increases at work were finally released, and will start this week (I get paid weekly, so I’ll see it on next week’s check). First let me say how absolutely lucky I feel to work at a company where annual pay increases are an automatic thing. The job I was at for the longest time out of college, pay increases were a very rare thing (I think the only ones I ever got were when I was promoted). Even working at a big retailer, pay increases were associated with performance reviews, and they did everything possible to minimize or eliminate them. At my current company, I’m pretty much guaranteed a 1-5% raise each year. It isn’t an across the board rate; Everyone’s increase is different, and depends on how the year went, how our parent company feels your current salary falls into the overall company guidelines, and I’m sure performance.

This year was better than last: I’m getting a (almost) 4% pay raise! I was bumped from $45,750 to $47,500. And, as promised, I turned right around and filled out the paperwork to direct that raise into the company’s 401(k) plan. Our 401(k) plan is set up on percentages, so I couldn’t just say that I wanted $1,750 to go into my 401(k). So I rounded things up to the next whole percent, and am putting 4% away for retirement. Taking 4% of $47,500 means I’ll actually be investing $1,900 over the course of a year, which is a little more than my actual raise was. But the difference amounts to less than $3 per week, and since it’s all pre-tax, it isn’t going to be such a big deal.

Of course, we’re already two pay periods into 2015, which means what I contribute to the plan will be closer to $1,800 than $1,900 for this year. Still, that puts me well on my way towards my goal of investing $3,000 for retirement in 2015. Plus, I’ll have an additional 6% of my pay from my employer being invested. Not where I should be at 36 years old, but it’s a start in preparing for my future. And my cash-flow remains pretty close to what it was in 2014, which means I’ll still be able to focus on paying off debt. I’m looking at you, student loan!

All in all, I’m feeling pretty positive about how 2015 is starting off. How about you?

– Cindy W.

Comments

  1. Woo! Also, we now make the same amount 🙂

    1. That’s funny! Sometimes I wish it were so much more, especially when I see all these other PF Bloggers making six figures at their day jobs. But then I think, it really isn’t too bad of an amount. It covers all my needs, and then some, and is enough to give me some options and help me prepare for the future. I can’t complain!

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