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Dec 10, 2020    |       23 comments

Lions, Tigers and Bears…oh my!

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Or rather taxes, insurance and decisions, oh my! I have decided to move forward in with the new job offer and return to the corporate world. I have spent hours upon hours looking at it from every angle, wanting to make a wise decision for the long term.

My research has included direct conversations with my current contract employer and soon to be corporate job employer. I have mandated getting things in writing. And I have scoured the internet for reviews on this company and financial implications of this new financial arrangement.

Your encouragement on my last post was truly appreciated but even moreso, the suggestions…like what about a “work from home” stipend and so on. As of last night, they are moving forward on beginning the processes and the paperwork. We agreed on a transition period for me to complete existing projects or give existing clients time to find a replacement. But I will not send out notice until I have a deal in hand.

New Tax Bracket

It’s been a very new feeling for me to be so “woo’d” by a company. Working for them on a contract basis for last almost 5 months has given both me and them a very good view of each other. Needless to say they have been pleased and I really enjoy the work, the autonomy and the team I will be working with (same one I am working with now.) From the upper management to the people on my team, they have all expressed a desire to have me stay past our initial December end date. And that it’s really going to happen is, well, really flattering.

We did a brief but mostly, straightforward salary negotiation. I knew the salary range of others they were interviewing, but knew my skill set and experience was far advanced. I made a request higher than I expected and then we ended up at what I had in my mind as my bottom line.

The financial implications are more than my brain can handle right now…we are definitely moving to a new tax bracket. And all I can focus on is staying wise in my decisions, not inflating our lifestyle and PAYING OFF DEBT.

Transition Plan

I’m really grateful for the delay in the change…it’s going to give me time to wrap my head around everything, make wise tax decisions and have a solid plan before I get my first paycheck.

The plan now is that I will go part time with them beginning January 1, at my new salary but on an hourly basis. Once I am confident my clients are taken care of and then I will transition to full time. It truly is the best of both worlds and they have been very understanding of my desire to be fair to all my existing clients. I do not want to leave them hanging right at the new year.

I’ve got a lot more research to do on tax with-holdings, retirement savings and so on. And what do with my newly formed ROTH IRA. Can I have both a traditional 401K and a ROTH IRA. Can I contribute to them both? What is my max contribution? So many questions and frankly the resources I am finding via Google searches are not written for dummies. I need dummy proof advice. My thought is that I may need to consult an accountant to make sure I make wise and correct decisions.

Dec 9, 2020    |       8 comments

Going Easy on Christmas…

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Each year, we set aside $100 per child, $100 for my husband and me, and $150 for family/friends for Christmas gifts.  It’s always seemed like a lot to me and it’s an amount that works.  This year, we’re cutting down the budget due to upcoming furloughs.  We saved enough but have decided to move some of the funds over to the upcoming paycheck shortage category.  There will be no gifts for my husband and me and no gifts for family/friends.  Each child will receive $50 in gifts.

 

On paper, this seems very straightforward.  Times are tight, spending should be as well.  Not a big deal right?  Well…

 

Like I’ve said before, I grew up in a large family.  My parents had 7 children and despite the fact they never had two cents to rub together, they somehow came up with $100 for each child back in the ‘80s.  Looking back, I’m amazed they did this every year.  It didn’t matter how tight things were, we knew we had $100 and we carefully crafted a list that equated to that amount.

 

My kids don’t know we spend $100 on them each year.  I’m not even sure they’ll notice the pile is smaller this year than last year but I can’t help but carry some major mom guilt.  We have the money.  We’ve been setting it aside monthly all year.  We still don’t know how long the furloughs will be but I’m planning for worst case scenario.  The reality is, we have an emergency fund that hasn’t been touched in 4 years.  We’ll probably be just fine adjusting categories and cinching down on the types of foods we buy at the grocery store but in tough times, I’m financially conservative.  I don’t like the thought of possibly cracking into the piggy bank on the emergency fund.

 

My husband is supportive either way.  He understands my concern but he lives firmly in the ‘everything is going to be OK’ camp.  He has some huge jobs coming up in February that should make up for any furloughs but you know what they say about a ‘bird in hand’.  I’m leaning toward a smaller Christmas this year and leaving the money in the Christmas account.  If everything ends up fine, I can add it to their birthday budget next year or we can do something special as a family after those big jobs are wrapped up and paid.

 

So much of my angst comes from the example my parents set.  Christmas was always a big deal, current economic situation be damned.  I want that for my kids.  I’m sad about it.  But I’d rather give them financial stability in the long term.  No, avoiding $200 in Christmas spending won’t do that, but add it to all the other decisions over the next few decades and it absolutely will.

 

Anyone else going easy on Christmas this year?

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