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This will be my last week working full time in my office. As of next Sunday, I'll be part time in the office and part time at the urgent care job. That change comes with a nice bump in pay. My best estimate right now is that my 2017 income will be about 20% higher than 2016.
A chunk of that difference will end up in my 401k, of course. And there will be more taxes to pay on a higher income. But after all of that, I will still be bringing home a decent amount more than I have been.
Another benefit, which probably won't happen until April 1, is that our medical bills will drop significantly as something we've been paying out of pocket for will be covered by the new insurance plan. Instead of $185/week, we will just have a $35 copay. We don't spend it every single week but even if it's 40 weeks/year, that's a savings of $6,000 over the next 12 months.
So theoretically, we should be in great shape once the new paychecks start rolling in. My plan at this point is to replenish some savings that got depleted toward the end of 2017 and continue to aggressively repay the student loan we took out last summer for DD's tuition. We have one final year of college to pay for as well. We'll be taking out another loan because it needs to be paid upfront. We can't just cash flow it throughout the school year. But again, we'll repay the loan aggressively, probably over no more than about 15 months.
If the surplus in checking is growing faster than we are spending it, I'll just pay down the loan quicker to get rid of it, especially since the interest rate is pretty high (6.31%). The sooner we get rid of that, the better.
I've been working on making this change for so long now and running numbers so many times that I'm just looking forward to it actually happening. One more week to go.
A chunk of that difference will end up in my 401k, of course. And there will be more taxes to pay on a higher income. But after all of that, I will still be bringing home a decent amount more than I have been.
Another benefit, which probably won't happen until April 1, is that our medical bills will drop significantly as something we've been paying out of pocket for will be covered by the new insurance plan. Instead of $185/week, we will just have a $35 copay. We don't spend it every single week but even if it's 40 weeks/year, that's a savings of $6,000 over the next 12 months.
So theoretically, we should be in great shape once the new paychecks start rolling in. My plan at this point is to replenish some savings that got depleted toward the end of 2017 and continue to aggressively repay the student loan we took out last summer for DD's tuition. We have one final year of college to pay for as well. We'll be taking out another loan because it needs to be paid upfront. We can't just cash flow it throughout the school year. But again, we'll repay the loan aggressively, probably over no more than about 15 months.
If the surplus in checking is growing faster than we are spending it, I'll just pay down the loan quicker to get rid of it, especially since the interest rate is pretty high (6.31%). The sooner we get rid of that, the better.
I've been working on making this change for so long now and running numbers so many times that I'm just looking forward to it actually happening. One more week to go.
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