Monday, October 31, 2016

A mere 4 %


I continue to actively put together all of the pieces of my financial puzzle. I have estimated the monthly anticipated allotment for my impending retirement, effective March 1, which equates 52% of my current salary. A downside to early retirement has been to accept the 52% over the 75% that I would have received if I stayed in my now former career, as monies will be dispursed for a longer period of time. Since my monthly budget is based upon actual take home figures, I am using the lower of the 2 in establishing my monthly budget.

I drastically reduced an already modest household budget when we moved here to the city. I continue to seek ways to tweak it further, as utilities and cost of living expenses level out. For now, I can meet my monthly budget to the penny.

I immediately knew, however, that I'd need to return to some form of paid work with benefits, and am currently in the middle of a certification program to transition to a new career. I must have secured a position with medical benefits come Sept 1 2017, when my current medical benefits will expire.

I also immediately identified the need to continue to build savings for a possible future home, a replacement car (hopefully many years away as my current paid for vehicle is very affordable to run and maintain and only has approx. 53,000 miles on it), an emergency fund. In order to do so, the aforementioned new career's salary will be syphoned off to savings.

Additionally, I have been seeking alternative income streams, and have received confirmation of  the acutal numerical I can anticipate on a monthly basis. This figure alone, outside of any salary from a future job, brings my monthly income just 4% short of what my full time salary has been for several years. I await to see the actual figure, after any taxes are withheld, which willl naturally raise the gap to over 4% but I am happy with this as it will certainly end up, in total, to be well over the 75% retirement I would have received if circumstances were different. This new income stream is to be back dated, so as to commence for Oct.

Knowing the aforementioned, I can readily accept a lower paying, entry level position in my newly chosen field, knowing that my bases and then some, are more than covered. It's a huge relief to be so well positioned, financially speaking. Workplace stress and a toxic environment brought truely significant changes to my life, many of which I headed off at the pass.

I am much better on many fronts, as a result.


Sandie Apuzzo said...

I envy your financial accomplishments! With DH's temporary position coming to an end (no permanent position has been offered, though it was dangled like a carrot for weeks) I feel the renewed stress of being the only income. So glad that I have been very careful, while still not feeling deprived.

CTMOM said...

Sandie, I am sorry that your DH's temporary position will be remaining temporary. : ( Did he make any connections for networking? Have they indicated that they'd contact him again, should another position, even if temporary, open up? Single wage provider status is scarey, I totally understand. I am positioning myself so that if one or more of my additional income streams dries up, I can still meet my obligations.

During this stressful time for your family, it is important to continue to be prudent. Glad that you have kept deprivation at bay.

Sending some hugs your way: ((Sandie))

Lee Ann said...

You are such a inspiration. I'd love to be a neighbor to soak up all this information.

Belinda said...

Glad you are out of that toxic environment and making your new financial position work. :)

BlogReader said...

Sorry you were fired, but it sounds like you are ok with the outcome and that its for the best. Good luck!

CTMOM said...

Blog reader, not fired, after working under a difficult boss who frankly was doing illegal things as a supervisor I had the upper hand and consulted the union and union attorneys. On my behalf, I asked the union to ask the top of the organization to offer me a severance package. I could have simply quit or resigned. Due to my boss's actions, which stunned the top boss, I went on immediate fully paid leave last May with an additional 6 months full salary paid leave and medical ins for a full 12 months. I agreed in writing not to file suit, yes, it was that egregious.this is unheard of in my former field. I walk away unscathed, protected, with time to get some retraining coursework completed as I transition to a new field. I have yet to shed a tear over this. . disappointed at how that career ended, yes. But as I told my union rep, Karma is a real bit*h. What goes around comes around. I am aware that top boss, HR, and union are all watching former boss like hawks. Supervisors can't treat employees as I was treated. I had my first PSA flare as a result. 'enough said.

CTMOM said...
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Marcia in rural WNY said...

Sorry your leaving was that unpleasant. The woman who replaced me when I retired actually did file suit, and settled with the county, but it also cost her the rest of her career. She was stressed to the point of requiring medical leave, which extended for several months--she officially retires next month upon reaching minimum retirement age. She is unable to discuss the settlement but I assume she walked away with money sufficient for her trouble, since their actions were discriminatory. She was replaced by a less competent person who happened to be male, and shunted off to a low impact department for no apparent reason, from what I can gather. People are still getting away with terrible things and I was personally glad she sued.

Linda said...

Thanks for that explanation in the comments. I always wondered but hated to be nosy. Toxic work situations have been rough on my health before I left. You have done a good job with your finances.

Lili said...

That's awesome, Carol!
What you dealt with just wasn't worth the money, not when it affects your health and well-being. And now you've proven to yourself that the money wasn't so critical. Great job!