W2 Bonus Season! Big Checks Are Always Nice!
Part of my overall compensation is my yearly bonus! I am extremely fortunate to earn a bonus each year for the company I work for. I am grateful of all the opportunities they have provided me and the compensation. I have busted my butt to get here, but grateful nonetheless.
My bonus has changed a bit over the years. There are two main things that have changed in regards to my bonus.
First, my bonus is now based off performance. Previously, everyone got the same bonus multiplier. Now, the higher rating you get for performance, the higher the multiplier. This means if you are a bottom performer (which I don't plan on being) that you can get half or even 0% bonus. Second, as I have continued to get promotions, my percentage bonus target of salary has also increased. Early on this percentage was small, around 18%, but now my target percentage is at 28% and continuing to grow if I get another promotion. Breaking Out My BonusI will receive my bonus check this Thursday. My bonus came out to be $46,845. Yes, I know for a lot of people that could be a years worth of salary. Again, I have busted my butt at work to get where I am at and I am grateful for having the opportunity to earn this amount.
Overall, this paycheck comes out to $53,390. The reason for this is my normal two week pay is added on top of the bonus.
Of the $53,390, here is a breakdown of where the money is going:
- Taxes: $10,901
- Social Security: $3,307
- Medicare: $773
- 401k: $3,154 (this will put me at the max of $19,500 for the year!)
- Net Pay: $35,085
With all the market volatility, I am going to look at putting a decent chunk into stocks and then the rest will help me float a the hiccup of the impact to my Airbnb business. Click this hyperlink to read more details of how everything that has been going on is impacting my Airbnb business.
Key Takeaways:- When negotiating salary, don't forget that you can negotiate your bonus!
- I like to frontload my 401k. This will bring much larger paychecks later on in the year. I am excited to say my 401k is now maxed out!
- Maxing out your tax advantaged accounts is a great way to reduce my overall Adjusted Gross Income (AGI) and helps me pay less in taxes. This is critical because of the amount of money I earn.
Market Volatility - What Stocks I Am Buying
The market has been extremely volatile the last month. With everything going on, there is a lot of opportunity for people who are positioned well to take advantage of it. The stocks being hit the hardest are the hospitality and travel industry (in my opinion). There are other sectors that I am sure are also being hit hard with everything going on. The hospitality and travel industry are the two that I feel are hit the hardest with everyone self quarantining. I also have had a direct impact I have felt with my Airbnb business that I have been operating.
Hard Work Got Me An Increase In Salary by $3,507! But Wait...There's More...
This year, hard work got me an increase in salary by $3,507! A lot of people talk about making more money. From my experience, the best way to increase your salary is by adding value and solving complex problems. That is what I have been able to do with both my W2 job and my real estate investments.
75% February Savings Rate - Here Is My Breakdown
Last month, my savings rate ended up at 75%! This marks one of the lowest savings rate months I have had in awhile, but I am extremely proud of it! There are months where you should always expect your savings rate to go down. Whether this is from a vacation or some extra fun you decided to have, you should celebrate every month!