Recent Divine Discussions

Thursday, June 28, 2007

Bonus

I received my bonus today. And it is $400 more than I estimated. They didn't take out as much taxes as they did last year. Last year my bonuses were bulldozed by a 52% tax. Well this time it's only 32%. Interesting. I don't understand why my bonuses and my salary have such a different tax bracket. There is only a 16% tax on my salary.

Oh well. Thats the government for you. N-T-WAYS............my mind is racing of what I should do with the extra $400. I have already done my budget and have my plan laid out. So do I revamp the budget and factor in the extra moola?

Decisions, decisions, decisions!


I think I will take a $100 of that $400 and put it in my laptop fund. I'll take the rest and deposit into my spending fund.

I like the whole idea of having a fund for a big purchase you would like to make. Gives you time to think about the purchase and be more rational in what you buy. There are certain things I want for my house that are not exactly on the "need" list. I want an exercise room with an elliptical and a treadmill (at the least). I also want a sleigh bed. I have a bed right now but I WANT a sleigh bed. Instead of just buying these items on the spur of the moment after I buy my house (Lord knows I'm capable of doing it too), I can set up funds and save for them. This way I won't be likely to charge the purchases and then not pay the balance in full.


4 comments:

Wanda said...

Hey Dimples,

My bonuses get hit by big tax withholdings too... 40%+.

But I think bonuses and salary are supposed to be taxed at the same rate, only the -withholding- is different. (Check out mymoneyblog.com)

I know this year I got back more than $2,000 in tax refunds, probably all due to my summer bonus last year.

So... I think you'll be getting some of your bonus back next April.

Dimples said...

@ Wanda

I just checked and your right. My withholding is what massacred my bonus. The other stuff were taken out at the same rate as my regular salary. As long as I get it back then thats cool. And thanks for the link. He/She has some great information on taxes.

Krystal said...

Congrats on the big bonus!

I think it's a great idea you take $100 of it and put it into your laptop fund, but maybe put the rest of it in your EF or your down payment fund? I don't know, that's what I would do with the extra money I think.

Dimples said...

@ krystal


I was thinking about doing that but I wanted to splurge on myself with a lil of the bonus. Me and my girls are having a spa day on Saturday so some of that $300 will come in handy.