It happens every year, so I know that I have to get used to it, but it still hits me in the gut, every January. The time where my paycheque drops suddenly, due to taxes.
Again, as I have said before, at the beginning of the year, more taxes are taken off of my paycheque than at the end of the year, significantly more.
This is due to the fact that the government wants their money sooner rather than later (go figure).
This also means that as I near the end of the year, as in the last quarter, my paycheques get steadily larger, even though my gross pay has not increased.
Yet, January comes and wham I am back to the highest amount of taxes taken off each year. This hits me hard and I have to suddenly go back to my frugal and miserly budgeting ways.
The only difference is that this year, I have significantly lower expenses than last year. So, if I have to cut back significantly, I am only cutting back on my savings targets.
While this is a bad thing, this is nowhere near as bad as not paying a bill or even a loan of some kind.
So, sure I am in a better position, but I am still worried about things moving forward and how that will go.
After all, I did not go through all this, just so I can survive on a lower income, I did this to leverage my current income and get myself ahead.
I intend to save as much as I can, or at least make my savings targets each and every payday. I will treat this as a debt, for it is a debt, it is a debt that I owe to myself, and my future family.
Yet still the payday drop is gonna hurt.
As always: Keep your head up, your attitude positive, and keep moving forward!