So I got a raise yesterday!

Not a lot, but every nickel counts around here. I built one of my company contracts to increase every 6 months vs yearly. (compounding the effect a little 😉 ) So every 6 months everyone gets a small raise, and so do I, as an employee of the company that I co-own I get a salary just like everyone else. I only pay myself 30 hours per week from the company regardless of what I work though. Sometimes I spend more time and sometimes less, in the winter definitely less

My semi-annual raise this time is $0.25 per hour, resulting in an after tax increase bi-weekly of $11.23 for the next 6 months. Woohoo! Since I get another raise in 6 months of $0.25, maybe a few cents more and I’m confident I’ll keep this contract for another year from now (until November 2015) I’ll gross 30hrs x $0.25 x 52wks + 30hrs x $0.25 x 26wks = $585 more over the next 12 months!

2014-03-25 16.57.04
Vroom, let’s go

Now that’s something to write home about. 😀 Okay I shouldn’t complain, I’m fortunate. I have a house! I have a job! I still get raises! I have it pretty good. Instead of letting that raise just disappear into my spending money I decided to increase the contributions to my travel savings.

I have two savings accounts that I use solely to save for travel. One named planned travel and the other future travel. I’ve labelled them such in my budget and on my online banking. Every Sunday scheduled transactions contribute to both accounts so that I’m always saving for whatever trip I’m planning next AND whatever trip is going to happen after that. So once I come home from a trip, I always have a little bucket set aside for the next trip and I just keep saving on! I really like the system, it helps me with the ‘travel-hangover’ where I come home and all the bills are paid but you kind of have to start from scratch towards the next trip. You know what I mean?

For the past 18 months orso I’ve been contributing $25 to planned and $10 to future travel every Monday. I increased my contributions to $13.75 and $28.75 weekly to roughly use up my net raise. I marked my calendar to increase my savings plan again with my next raise in May. Over the next 12 months that means $2,275 saved specifically for travel. An increase of $455 net for 2015 over the past year. 😀

I usually spend more on travel than $2,275 per year but increasing my weekly savings too fast won’t work. The smaller contributions are less noticable, painless and makes saving so easy that I barely notice it anymore. I might fool around a bit with increasing it every once in a while in increments of a quarter or 50 cents here or there. I want this savings plan to remain painless and unnoticed. It’s just part of what happens to my bankaccount and I rarely look at these accounts unless it’s time to plan something. I do need to increase my savings overall, this is a step in that direction.

So, have you gotten any raises lately, what did you do with them?

Published by Renée

I write about my life, travel and my financial up and downs on my blog, Nickel By Nickel, while contradicting myself daily. ;)

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