80¢ raise

[MrBates]

Makes sense.
Say I'm already giving 5% at what I'm making now.
When i get a raise, that 5% increases because my gross pay increases.

I've never thought of it that way. Like a bigger slice of pizza. I'm definitely getting the Mercedes fully loaded then.

 

[clean hairy]

Hookers and Blow

Hate to see the women you can find who will work for 80 cents an hour!

 

[MyTripisCut]

Yes, a driver in progression WILL get the raise as well. It's only really an advancement of a portion of your next progression raise.

Nope

 

[Wally]

The price of groceries is up way more than this raise.

 

[IVE GOTTA PACKAGE 4U]

The price of groceries is up way more than this raise.

Food shopping got very expensive

 

[Wally]

Food shopping got very expensive

Milk just went up around 45 cents for a half gallon. Forget about beef.

 

[IVE GOTTA PACKAGE 4U]

Milk just went up around 45 cents for a half gallon. Forget about beef.

$15 or more per pound for steak.

 

[DriveInDriveOut]

$15 or more per pound for steak.

You would just burn it anyways.

 

[IVE GOTTA PACKAGE 4U]

You would just burn it anyways.

SOB

 

[Wally]

You would just burn it anyways.

Expensive carbon.

 

[Over70irregs]

Do it when you get your raises and you don't notice it as much

Up Roth percentage?

 

[IVE GOTTA PACKAGE 4U]

Up Roth percentage?

Absolutely

 

[over9five]

$15 or more per pound for steak.

Steak prices are insane.

 

[IVE GOTTA PACKAGE 4U]

Steak prices are insane.

Who would have thought lobster would be cheaper?

 

[Just A UPS Guy]

Let me answer @542thruNthru question.
Say you made $1,000 each week and you contributed 10% to 401K; that would be $100 each week. Now if you got a $100 raise, your check would now be $1,100 each week, minus 10% to 401K which is now $110. So, you are only giving $10 of your $100 raise to your 401K. Your check would be $90 more each week and you would certainly spend it each week.

On the other hand, if when you get your $100 raise, you were to raise your contribution to say 15%. That would amount to $165 (15% of $1,100 = $165) towards your 401K each week. So, your check would be $35 more each week than what you were used to before the raise; and your 401K would see $65 more each week.

So, by doing nothing, you only contribute $10 more to your 401K. But by changing your contribution %, your contribute $65 more. And if you do that at a time when you get a raise, you don’t feel the increase to 401K because it was money you weren’t used to making before the raise; and the cherry on top is that you would still see a $35 raise on each check take home pay.

Your math is solid, except, when applied to our real-world situation it's a bit ambitious. We don't get 10% raises, more like around 2%.

So, you throw in some OT and you have about a $40 raise. Up your contribution 1% and you can see both 401k and your wallet grow, but it's far less dramatic than your example for sure.

That said, put it in a 457 or something similar so you can get to it if needed before you're 59.5 without penalty. The company doesn't match anything, so you don't lose anything by choosing your own investment track.

 

[DriverNerd]

I upped my 401k 2% last week.

 

[NAHimGOOD]

 

[IVE GOTTA PACKAGE 4U]

Your math is solid, except, when applied to our real-world situation it's a bit ambitious. We don't get 10% raises, more like around 2%.

So, you throw in some OT and you have about a $40 raise. Up your contribution 1% and you can see both 401k and your wallet grow, but it's far less dramatic than your example for sure.

That said, put it in a 457 or something similar so you can get to it if needed before you're 59.5 without penalty. The company doesn't match anything, so you don't lose anything by choosing your own investment track.

A 457 plan is for government and non profit employees.
You can take withdrawals from your 401k at age 55 without penalty if you are retired.

 

[Boston25]

wait... everybody? Even drivers who are still in progression?

Yes

 

[Boywondr]

Blow it. That’s an extra 3 gum balls out of the 25c machine

Every hour.