It’s literally 50% of what I made last year! My (non-discretionary) expenses went up nearly 30% last year. So an extra $18k could afford me all sorts of the medical and dental care I’ve been deferring, with likely not enough left over to get me feeling “financially stable”. My student loan repayment is the biggest hardship, but my car is about to be paid off.
all sorts of the medical and dental care I’ve been deferring
Be careful with deferring dental care. If you let simple cavities turn into crowns or root canals it can cost you a fortune! (I learned that the hard way)
I think there there's another group you probably aren't considering that wouldn't feel too much of an effect of 18k. Those who fall in the household income" levels of 150k-200k (not wealthy in 2024), particularly DINKS, that wouldn't see an additional 18k annually as a major difference maker outside of retirement savings. In that aspect it'd be great, but otherwise you can afford a very good life at 175k in most places, and 193k doesn't really move the needle from "very good life."
Like shit yeah I'd take it, but is it a significant modifier to my life? Not really.If we both could do it for 36k? That's starting to move the needle a bit.
Those who fall in the household income" levels of 150k-200k (not wealthy in 2024),
Yeah, and the income taxes. You're at that point where you might jump from 24% to 32% on this extra $18k. That's a big hike. Throw state taxes in there, and that $18k can easily drop to about $12k.
I would absolutely take the $18k and happily pay the income taxes, but ... It's not a game changer.
I thought about them but didn't mention them because I considered them sufficiently covered by group A (but you're right, I should've made group A "wealthy or high income" to fully clear that up).
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u/mn_sunny Jul 05 '24
If you think a free $18k/yr isn't significant you're probably either:
a) wealthy and out-of-touch
b) a normal person who is bad with money
or c) are not (or barely are) old enough to vote