Good news. Hubs is getting a raise! From what he heard, it is 2%. Unfortunately, he doesn’t yet know all the details as he was unavailable for the conference call to learn more about it. I’m sure he will get more info in the coming weeks. At least we know the raise is coming.
Earlier this week I finalized our open enrollment benefit options for 2019. The only significant change we made was ditching the vision coverage and decreasing our FSA. Hub’s company gives us $840, and we will only contribute $640, which is down from the $2,650 we put in this past year. Between the two, this still gives us $1,500 to offset our out-of-pocket expenses. Our health plan is considered a hybrid and works a little differently in that our family deductible and max out-of-pocket amount is the same. Once we reach $5,000, the plan covers 100%. The insurance also pays for 100% of preventative care, although this does not offset our deductible.
Hubs and I have been talking a lot about finances lately. Actually, probably more than usual! Perhaps it is a little fear-driven, but we want to increase our baby emergency fund by $5,000. Why now you ask? Well, at this point we are getting so close to the end of the journey that we cringe at anything getting in our way of completing it. We also have the concern of having elderly parents, with the potential of an emergency trip. This past week my 90-year-old father experienced a TIA (also referred to as a mini-stroke), so there is that concern. I guess right now we would both feel better having more than $1,000 in savings. We absolutely do not want to go backward and take on any new debt. We have come too far to let that happen!
So, what’s the plan to beef up the emergency fund? No worries, we won’t go crazy as we still have our eye on the prize of getting out of debt. For now, we have decided to send $300 every Friday to Citi and $200 per month to our Visa. Whatever funds remain will then go towards our EF until we reach our savings goal. We hope that between the 2% raise and also the decreased amount we are having deducted for our FSA, that it won’t take us long to reach it. After that, we will again go full force on eliminating whatever debt remains.
One more thing about the emergency fund. As to how we came up with that amount, we based it on Hub’s unplanned medical expense of a year ago when he needed a month off from work and the almost $5,000 for our driveway this past Summer. While no doubt some will argue that we survived these challenging expenses, those times added more stress than we would have liked. For us, having added peace of mind while we finish the journey is worth slowing down the snowball just a wee bit. The thing is too; there is no saying we can’t change our minds later and throw a massive snowball as we near that finish line.
Congratulations to your sweetie on his raise!!!
Yeah, sounds like boosting the emergency fund is a good idea. I wonder about ours, too.
Priscilla Bettis recently posted…Daddy, Organized
Thanks. At this point, we just feel it is best. Who knows, there is a chance that our debt may be paid off before we even reach that $5,000. Meanwhile, we will sleep better at night!
Dave Ramsey’s plan is great but it is geared to handle everyone from totally irresponsible people to rock stars like you. People that are focused and mature, and not many qualify as well as you do, should be free to adjust those guidelines when it makes sense. I think you are being very wise.
Well, thank you for this! We are uber focused and even with slightly adjusting the plan, will get there!
2% is nothing to poke a finger at-good for him. I still think the so called great economy is all bluster and no real substance on the ground. I am cautiously optimistic about 2019, but feel like that is because of my own resolve.
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We are happy with it! As for the economy, we will run with it as long as it lasts. We feel a tremendous urgency to get on top our finances once and for all.
Congrats on the raise!!! I agree with the person who commented above about the Dave Ramsey plan. It’s a fabulous plan and should be followed to a tee by people who are unable to control their spending. I think for people who have some self control, you can modify as needed to get the debt paid off. I kept a large EF while paying off my debt.
I completely agree!
Congrats on the raise. That sounds like a good idea to increase the EF.
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Thanks! Always happy for a raise! As the EF, Hubs and I both feel at this point that more is better.
Congratulations on the raise! I feel like given your situation, it would be the best thing to raise the emergency fund.
Congratulations on the raise! Great news! Sounds like you have a terrific plan for your EF, too.
We’ve gone back and forth on our emergency fund SO many times. Part of me wants to increase it by another $4K or so, as that would truly cover most big emergencies. But I also REALLLLLLY want to get out of debt! Ack!
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