11.32% could mean a lot of things.

Would you like to know what it means to me, today?

i got a raise!!!!!

yea. that's right. a big freaking raise. 

Effective April 3, 2010 my new annual salary will be $53,000 (it's currently $47,000). Whoa! 

After running some numbers - I'm guessing that will be about $160 more each pay.  Though, I now pay for parking on a bi-weekly basis (comes right of my pay) - so it will be an effective increase of about $145/pay.  There are a few things I could do with that money:
  • Pay off student loans faster
  • Increase my discretionary bi-weekly spending (entertainment, food etc)
  • Increase the amount I save to spend (my 'funds' ie. house fund, christmas fund ect)
  • Save more (RRSPs or Emergency Fund)
Given that I will join my company's pension plan this October (means automatic 5% deductions and 5% match to retirement savings) - I think I can wait on increasing my retirement savings - but other than that, I'm not sure what to do.

What do you think?

My mom suggested put 1/3 bi-weekly into my discretionary spending - to enjoy the fruits of my labour and to put 2/3s towards my student loans.

I asked Jordan and he immediately said pay off the debt.  I was surprised and said so - b/c he usually says that I save too much.  He said that he really wants to see me in a newer/safer vehicle and to do that, we both need to get our debts paid off.  He's love for me to spend more (discretionary spending) - but knows that it's unlikely I would put all the money towards it - so he'd rather see me pay the debt off.


so - what do you think?


  1. Yay congrats! That's a great raise! I'm with Jordan, put it toward your student loans. Maybe a bit toward your funds too, it's always nice to see those increase! Maybe split 80-20%.

  2. not awake enough to do math. Is that % over a period of years in the contract or for one year?

  3. @ Jolie - that's in one year! As of April 3, 2010 my salary will be $53,000.

  4. Congrats! That's a nice raise :) I agree with your mom, but only if you are going to be disciplined about it.

  5. Nice! Put the majority of it towards your debt and the rest to your funds. You will at some point in the near future spend from those funds, so it's kinda like putting it to spending anyways. Also you are already use to living on less discretionary income and seem to be happy/ok with it.

  6. Woooo!! Congrats on the raise Jessie! I'm so proud of you. =D

    I'm with Jordan. Pay off the student loans and THEN enjoy the fruits of your labor. =)

  7. how exciting :)
    You definitely seem to deserve it.

  8. Congrats! That's fabulous.

    I say put like 80% for debt. 10% on savings. 10% discretionary spending.

  9. Wow! That's awesome Jessie, especially in this economy. I agree with those that say you should put the majority of the extra money on the student loans, a bit more towards savings, and bit more to everyday expenses.

    Good luck! :)

  10. i would follow gails advice and continue to live off of your pre-raise income. have the new money go directly towards debt repayment. set up automatic transfers so that you don't get used to having the extra money. think of how fast your debt will fly away! that's what something like 3K in a year that will go directly onto the principal of your debts!

    congrats on the raise!

  11. wow. one year. been teaching 15 and the most we have had (I think) is 4%. Usually it's between 0 and 2%. Good for you!! Can't wait to hear how you allocate it.

  12. That is flippin' SWEET!!! Congrats!

  13. Wow congratulations - that is a massive increase! Well done...all your hard work and extra hours are paying off. You deserve it!

    What is your current car like? I'd put the majority towards debt and then fun and funds. I like your mum's suggestion - although the proportions are really up to you and what you feel comfortable with. You definitely want to be able to enjoy a little of that big raise :)


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