The Money Coming In For 2014

Money-10A budget is more than what you will spend.  The first part of the budget should be to determine how much money will be coming in.  The only way you can create a spending budget is to know the total amount of funds you have to work with.

In 2013 I could count on a pay cheque that averaged around $1,300 every 2 weeks.   With 26 pay cheques in the year my net will finish out as $34,500 for the year.  There were occasional little bits of overtime that bumped that up this year.  I received a $400 tax return for 2012 in 2013 so that brought my net income (if you count the $50 I got for my birthday and the $50 I got for Christmas from my parents) to an even $35,000.

$35,000 is a darn lot of money and it is pretty obvious that I frittered quite a bit of it away during 2013 but I am only looking forward now and not wasting time and energy examining my mistakes.

I only plan around how much my take home pay is and not my gross.  I can’t do too much about how much taxes I pay.  I contribute to the max of my work pension plan match and that is taken from the gross.

In 2014 I think it is safe to assume an average biweekly take home pay of $1,350.  I will be receiving a raise of 50 cents per hour in the spring and I have averaged that in to my average biweekly pay of $1,350.  With 26 pay cheques and a ban on overtime that will mean that my net for 2014 should be $35,100.

I was able to contribute to my RRSP during 2013 so I have calculated that I should receive a tax return of $1,000.  I may get a bit more if the accountant determines that my youngest son has extra tuition tax credits that he can’t use against his own income.

My older son owes me $1,900 plus interest from an emergency loan I gave him in the fall of 2013.   I am not sure if I will be repaid the entire amount in 2014 but I am sure I can count on $1,000.

That would bring my total estimated funds available for debt repayment, investment, paying bills and wasting to $37,200.  (I have included a $50 birthday gift and a $50 Christmas gift from my parents in that total).

The Canadian government allows us to make contributions that count as tax credits against our 2013 income until March of 2014.  I have only ever used the RRSP deposits in the year I made them and I have never used January through March contributions against another year but I may this year.   I have not contributed very much to my RRSPs this year and I could use the extra 3 months of donations to increase the size of my tax return as I plan to put the tax return directly towards my debt.

The first line in the budget is set.  My 2014 income will be $37,200.  This could increase slightly if more people get pregnant and I am able to get some overtime or decrease dramatically if cuts happen at work.

Adding up the money coming in is the easiest part of the budget.  Balancing the bills with the debt while still saving and having some fun is the hard part.

Projected 2014 income            $37,200.

Projected debt as of January 1 2014

HELOC                                       $11,450.

Car loan                                      $11,750.

Total Debt on January 1,2014  $23,200.

Tomorrow a list of bills and expenses and repairs and things I think will break and need to be replaced in 2014.   It is a very long list.


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7 Responses to The Money Coming In For 2014

  1. “but I am only looking forward now and not wasting time and energy examining my mistakes.” Jane, I just love your attitude. We are focusing on the same things – accept our mistakes, move forward, and try not to make the same ones again. Here’s to great success in 2014!

    • janesavers says:

      I will be following your debt reducing efforts and trying to keep at mine. Best of luck to both of us in 2014 but when you have hard work and a plan that is better than luck.

  2. Judy says:

    I have recently started using the software “You need a budget” (YNAB) to get a handle on where my money is going, and more importantly to plan ahead where I am going to spend my money. You enter your pay cheque and then give every dollar a job. If you have a bill of say, $150 coming up in 3 months, you can budget $50 per month and the money will be there when you need it. It is excellent. You can try it free for 34 days before you decide whether or not to buy. Or you can watch some of the training videos to get a feel for it. I think it might help you. I know I am really enjoying it, and rather than being a chore, budgeting has become fun, and a real eye opener. And it is flexible. If you go a little over on your grocery budget, for example, you just take it out of one of your other discretionary categories. Maybe your fun money. It is like a virtual envelope system. Check it out.

    • janesavers says:

      I work on a zero budget and assign every dollar to a bill or account. I like things that keep me interested so I will check it out.

  3. Alicia says:

    Keep in mind with your son’s tuition credits, that there are only so many that can be claimed per year. My father always took the max $5,000 from me, for NINE years, and I still have $41,000 federal taxes sitting around. I think that also says how much I’ve paid in tuition over the past few years…

    I love how everyone is getting ready to start the new year off with new goals, and tweeks to budgets. It fill my budget-voyeurism quota :)

    • janesavers says:

      I have to share the extra tuition credits with my son’s father. That is why we have our taxes done at an accountant. I also want my son to have some to carry over for the years when he starts earning more than a student’s salary.

      I love seeing every ones financial plans for the new year. It gives me inspiration to be tough on myself.

      I do have to tweek my budget budget because most of my bills went up this year and my income didn’t budge.

  4. Pingback: Weekly Favorites, Gratitude, and Giveaways #129 | Budgeting In the Fun Stuff

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