Plus, I get to read interesting papers all day long and help other scientists articulate their ideas. Editing is a Type A introvert's dream.
But as I think I've shared before - if not here, at least on Twitter - this job pays $10K less per year than my previous one, and the benefits aren't as good. Thus, we'll have to completely overhaul our budget to accommodate the realities of my new paycheck. (Note: I wrote about debt payoff recalibration last year, too, when my paycheck increased. You can find that post here.)
A deep dive into my new gross vs. take-home salary
At $50K per year, my gross income will be $2083 per semi-monthly paycheck. I'm planning to shovel a substantial portion of that income into insurance, my 401K, and my HSA.
A few considerations:
-My benefits won't kick in until March. At that point, there will be 20 paydays left in the year.
-For my 401K, my employer will match up to $3K per year (it vests immediately, which is awesome). I want to take advantage of that and contribute $4500 of my salary for a total 2019 401K contribution of $7500.
-I intend to max out my HSA this year. That's another $7000. Between employer contributions and wellness incentives, I'll be responsible for approximately $5000.
I don't know exactly what my new paycheck will look like, but I used the SmartAsset Federal Paycheck Calculator to get a ballpark estimate:
Gross pay per paycheck: $2083
Taxes + FICA: $235
Health Insurance: $139
Estimated semi-monthly take-home pay: $1236
The adjusted monthly budget
If I've calculated all of this correctly, our new combined income will be approximately $5460/month, nearly $600/month less than what we were bringing home with my old job. But on the other hand, my student loan is paid off, so that's $200/month that we don't have to worry about anymore! (But on the other hand... our rent is going up by $100/month. Sigh.)
So here's what the tentative new budget looks like:
What does this mean for our debt payoff plan?
Basically, it just means that it's going to take a little longer to eliminate our last student loan, especially because we've reprioritized our goals a bit.
First, as I mentioned in my 2019 goals post, we've decided to build up our emergency fund to $10K. Between the high cost of living in our town, talk of a possible recession, and my growing mistrust of employers in general, I feel like we need more of a cushion in the event that one of us is jobless for a few months. I hope that won't happen, but I also want to plan for the possibility.
So that's the first step. We should be able to reach this goal by August of this year (unless we end up with a high tax bill... ugh).
Next, we'd like to get rid of our ~$2500 Thousand Trails loan, which carries a higher interest rate than the student loan. Again, we can take care of that by the end of the summer.
After that, we'll be able to pay $1500/month to Fortysomething's student loan. Taking into account bonuses and side hustle income, that loan will be paid off in 2021.