I was lucky enough to get some overtime in December and I thought I might finish the year off with a big pay cheque. The government intervened and I was taxed to the hilt and my final pay of 2013 was just about the same size as my usual pay.
Instead of following my new budget guidelines (as outlined in the post from December 26 entitled Week 4 – What Will Be In The 2013 Budget) I had to short out on the category of long term savings and the deposit to the yearly expenses account in order to make 1 last payment to my RRSP (registered retirement savings plan). I needed to make a deposit to maximize my tax return.
As for day 2 of my No Spend January I spent money. $17.00 for a haircut (tip included) and very necessary . That takes my cash total down from $135.00 to $118.00.
Tomorrow brings a big temptation. Shopper’s Drug Mart is having a 20 times the bonus points sale and I have decided that it is best if I don’t read the sale flyer. I really don’t need anything but bonus points are very tempting.
With 2013 fast approaching we are all thinking about our plans and goals for the new year. Please consider the potential changes to your pay cheques when planning. Canadians making over $47,400.00 gross will see increases in their EI (Employment Insurance) and CPP (Canada Pension Plan) deductions. The combined amounts will see your payroll taxes increase by $222.11. This information is available at http://taxpayer.com/federal/ctf-releases-nation-wide-new-year-tax-changes-2013
For the Americans who this cold night are standing on the edge of a cliff and facing stiff tax increases I hope your government can put something together. Your Republicans don’t seem to recognize that they lost the election and continue to fight and not care who gets hurt. The President does not seem to have any power or influence to force any sort of agreement. I have been following it but I just don’t understand why a deal can’t be reached or why the elected leader has no power to make something happen. The price of American milk could double if you fall off of this cliff because farm subsidies are intertwined in the whole mess.
It is very hard to plan when you don’t know what is coming so the emergency fund (1 month of expenses for me) becomes the highest priority. Debt reduction is the second goal as I fear that interest rates will rise. That forces retirement savings in to the third spot of importance even though saving for retirement is the goal I want to pursue the most.
2013 will be the year of needs and not wants.