Rethinking Finance: How I will give myself a 2% raise next year, and my boss won’t even know about it.

As a federal employee, my salary often has a direct correlation with whichever way the political winds are blowing.  This next fiscal year, it appears that the political winds are blowing once again against the direction of the federal worker- and there may be a pay freeze.  I could just sit and sulk and look at the job openings of the local companies in town, or I can try to take some matters into my own hands. Here is how I think I can give myself a raise- without my boss being none the wiser.

The first 1%

First, I am going to reduce how much I contribute to my Health Savings Account.  I know, I know what you are saying, “But what about the tax break?”  I get it, there is a tax break with putting money into my HSA, but I’m not stopping contributions altogether.  I am merely reducing my contribution to adjust for current needs.  Last year, I increased this contribution as my son had some extra medical expenses coming that year, and we wanted to prepare for that the best we could.  I am thankful I did that.  However, the coming year it appears those needs will be less, and in all likelihood, I don’t think I will need to set aside as much.  I will still contribute, but it will be a bit less as our needs have changed.  This will be about 1% of my net pay, thus 1% raise.

The other 1%

For the other half, we have fortuitously benefitted from the crazy housing market.  We bought our lovely home just when things were heating up, and as they are now red hot where we live, we will easily be within the loan-to-value range for dropping our detestable PMI.  Yes’sir- nothing I hate more than paying money for something I don’t need or want.  Dropping our PMI should also result in us saving about 1% of my net pay.

That’s right my friends, we are now looking at a possible 2% raise in the coming months if all goes well.  Take that federal budget!

This post first appeared on Rethink Redo Repair.

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