Net Paycheck Depression

Today is payday and normally a day I do a little happy dance (well, not an actual one dance but it is why I sit at a desk for 40 hours a week).  But have you ever looked at the gross amount amount of your paycheck and compared it to your net amount felt immediate depression?  Yup, that happens to me.  I am not raking in the money but I make a livable wage.  Unfortunately after all of the deductions are taken out I am left with such a small amount that it is really kinda sad.  Without giving you the exact dollar amount of all of my hard work, here is a breakdown of things based on percentage of gross.

Federal Income Tax: 4.8%2015-05-01 15.23.56-2
Social Security Tax: 5.4%
Medicare Tax: 1.3%
State Income Tax: 1.7%
Dental: 1%
Medical: 4.8%
Vision: 0.5%
Long Term Disability*: 1.2%
Health Savings: 7.7%
401(k): 20%
Total: 48.4%

Yup, almost half of my pay is gone before I even see it.  Arguably some if this is by choice.  I choose to put 20% into my 401(k) and I choose to put money in my HSA every paycheck.  The amounts for these are fully my decision. The rest of the deductions though I have little or no choice.  When Mr. SFF lost his job last year we started going through my employer for our health care.  We chose the least expensive plan with a huge $10,000 deductible.  My payment is significantly less than what it could be but we are at more risk which is why I am also contributing to my HSA.  This is a gamble we were willing to take because my hope is that we can keep our out of pocket costs to a minimum so that my HSA balance can grow.

When I calculate my monthly savings percentages from my net paycheck I am not working with a lot of money to start with so I am happy when I can keep this percentage above 40%.  If only I were working with larger numbers to start with this would be a whole lot easier.  But I would rather have a flexible job where I am not miserable making OK money then working insane hours for a slave-driving boss.  So for now I am doing my best with what I have available.

 

* Up until last month the long term disability coverage was an employer paid benefit.  My employer recently made a change so I pay the premium making any potential benefits received at the time of a disability fully tax free.

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