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Smaller paychecks from now on.

October 20th, 2011 at 08:50 pm

So we got DH's new paycheck and it now smaller.

We started deductions for baby's dependent care flexible spending account.

We are deducting the full $5,000 between now and December 31 (we can spend the money until end of March). That way we can do another $5,000 next year. Deducting it pre-tax saves more than 1/3 of that money.

So it is a money-saving thing, but check is now smaller.

With dependent care deductions, flex health spending account and 401K being deducted the check seems so small. It is a psychological thing. I do understand these things are benefits that save money. It is just when you transfer money after getting a paycheck, you get a different feeling than you do when you get a smaller one.

2 Responses to “Smaller paychecks from now on. ”

  1. ceejay74 Says:

    Totally understand that dismaying feeling. Though I gross $160 more than NT, he nets about $170 more than I do, so it feels like I'm "losing" $330 from my paycheck (=$660 monthly). The difference? Dependent care FSA, and our daughter's healthcare premium (plus a couple other things I have to pay for pretax, which his company gives him for free: bus pass and healthcare).

  2. Jerry Says:

    That definitely leads to a tough hit, albeit probably only in the short-term. As long as the long-term things are being managed (like mentioned above with the insurance, transport passes, etc.) then it will all be fine in the long run. It does take some adjusting to, though, that is for sure!

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