Yesterday we looked at the employer paid benefit premiums that can suck money off your pay cheque without you even realizing it. Today I want to look at some of the other deductions.
$15/month for social club
I'm sure there would be a way out of this if we needed to - but this is money that goes to team lunches, coffee, and other events in the shop. For the fuss it would cause to not pay it (and then to not participate in activities) I won't even ask Jordan look into it.
$35/month for parking
$288.46/month for pension
$150/month purchasing shares at work
I think we would all agree to leave my pension alone - so I'll do that. For parking in my city, $35 is SUPER cheap (some people pay $$$'s). I could look at transit, but the costs in time and money would far exceed the cost for parking. Also, I hate transit.
Then we come to my shares.
If I someday want to become a senior owner of the organisation I will need to have purchased a certain amount of shares. It is a significant part of our culture here to invest in the company. The shares are a good value, and are not publicly traded. I consider this savings as part of our long-term retirement planning/saving.
So...I'm not going to cancel any of these things - but I think it's important to look at every now and again to make sure that you're aware of and comfortable with your employer dedications.
As we're looking to our 2015 budget and where we're spending money - I thought it would also be a good idea to look at the money that is spent before we ever see it, the money that is deducted straight from our pay cheques.
First up - benefits! A lot of folks think that health care is free in Canada. It's not.
We do have basic health care services (doctor visits, emergency room visits) that are paid for through provincial health care premiums and some provinces - like mine - pay for those directly (we pay in taxes I'm sure). Many employees also have benefits through their work - but often time employees and employers split the costs of those benefits. These sometimes include long and short term disability insurance, extended health and dental, and life insurance.
The premiums that I want to look at are the extended health and dental - they are the most $$.
We currently have family coverage from both of our employers for both dental and health care which costs us $277+/month...a month!
When Jordan was looking at dental surgery we knew this was the right plan for us, but now that it's over - it's time to reassess.
If we switched to single coverage from both employers - but kept extended health for Jordan (b/c it's free through my employer) - we would save $185!!
Okay...but do I need the extended health care offered through Jordan's employer?
Right now I have about 4 physio appointments a week - but that will only last for a couple more months. Those cost $75/visit and my benefits pay for $60/visit...Jordan's pay for $15. That's $60/month that wouldn't be reimbursed any longer BUT we would still be saving $26.90 (rather than $86.90).
I can't see a reason to keep extended dental - it's not needed to pay for regular dentist visits/checkups...it's really only necessary when you need big dental surgeries and what not. The kicker here though - is that it's a bit of a risk. If we move from family to single dental premiums, we can't change it again for a 12 month period following the change.
So...what do you think? Is it worth it? Should we switch to single? That $125-185 (depending on physio) would sure help in the month budget!
There's nothing like the impending holiday shopping that inspires me to look in on all of our points/rewards card balances and see if we can get a few gift cards to help with shopping or straight out gift-giving.
I checked in with Aeroplan points and thanks to my recent work trip to Washington, DC - we had just enough to get a $100 Costco Gift Card. That should arrive early November which is great!
Next I looked in on AirMiles...we have over 5,000 dream miles of them but unfortunately they no longer carry gift cards; so I'm at a bit of a loss there. For anyone familiar with their programme, they are pushing their AirMiles Cash over the Dream and a lot of the Dream benefits are now gone.
Well...I'm not sure what we're going to get yet with those miles...as their don't seem to be flights available or accessible either...so we'll have to see.
It's started....the 2015 budgeting process. I'm sure all of you are going through similar processes - trying to identify what worked, and what didn't.
One of the big things for Jordan and I this year was finally getting our day-to-day spending account sorted out so that we both had debit card access to it. This involved moving our 'work horse' account from a joint chequing to a joint savings account and the benefits have been huge! We're both more accountable to the $400/week limit; and while we both still go over from time to time (okay, often) and use our credit cards; it's helping to build the right spending behaviour.
A week ago or so I did a post called 'Where has all the money gone' - I went a bit further for this exercise and looked at our spending since I started tracking - back to mid-2010. The chart of that is below and shows you exactly how we spend every year. I did leave out the wedding in this chart b/c it's not going to happen again.
You can see that buying the Kia in 2014 really did impact what we were spending in gas since we had moved and my commute increased even though Jordan's decreased when his job changed...and you can see when we bought our house in 2011 and our home maintenance spending spiked. For some categories, I don't think our spending changed (like entertainment) so much as our tracking got better.
The problem is that we run out of money before we run out of things we spend money on...that's what I need help with - where I would really appreciate your advice...it's prioritization time.
I have two columns right now - what's realistic...what we can afford and what we would budget ideally based on past spending habits.
I should mention here that our income does not include ANY commissions, raises, or added $$ when I cap out on CPP/EI maximums in August.
A few notes on the Monthly Spending category in our draft budget. It is meant to include everything in dark grey above- Gas to Medical expenses. For 2014 we budgeted $1,600/month and my mom suggested that rather than go straight to $2,000 to be realistic - we try to wean ourselves off more slowly. So we're thinking of budgeting $1,800 as a more achievable number.
You'll also see that we don't have the Escape payment budgeted for in the draft - that money has been added to the LOC Debt category b/c I expect to have the Escape payed off by the end of 2014.
Everything from retirement, to planned spending is under Bi-Weekly Savings - including two new goals.
We would like to start tucking $$ away for a down payment on a truck once the LOC is paid off and we would also like to start planning to develop our basement. Right now I'm thinking Jordan's commissions could go towards the truck/basement but again - would love peoples thoughts on this.
So there it is - out in the open for judgement and recommendations.
oh! Don't forget when looking at the Streetwise retirement savings numbers - I save 5% of my pay which is matched to a total 10% for my pension at work and I also save $75/month to purchase shares at my company which we consider to be part of our retirement planning.
Jordan's benefits finally paid for his teeth (we're still waiting on my benefits) - and in part because of that, and in part b/c of his pay raise, and in part b/c of the contents portion of our recent hail insurance claim we were able to make a $3,500 payment on the Escape.
We now owe just $5,000. Wahoo!
I love paying it down - even more so than the LOC b/c with the Escape...you can't spend the money again.