Before taxes, it was a nice $5,600!!!
So what are we doing with this windfall?
- We always put 10% into his 401k so his company will provide a 6% match...
- then we pay our church tithing on the amount he earned...
- and then finally we watch Uncle Sam take out a HUGE amount for taxes.
What is a Slush Fund?
It's our stash of disposable cash that we will dip into throughout the year to buy larger purchases that we don't have a line item for in the budget, or that we do not have enough cash for in our various savings accounts to cover. In the past it has been used to pay for extreme car repairs to keep our emergency fund in tact; sometimes its used for clothes for Hubs, our annual computer upgrade (Yup, each year he gets to pick something "cool" to do to the computer that isn't a necessity. One year it was new monitors, another year a tricked out case with glowing lights... this year will be more practical, but also more money -- as we need a new processor and mother board and technical components); home improvements; new appliances; additional vacation spending money, camping or hobby supplies, etc.
At the end of January 2018, any money left in the account is transferred over to a specific savings goal since we will usually file our tax return early in February, and then have our next profit share check in March to use for the following year. This year its the car replacement fund. That's where we will be diverting extra funds to once our car repair fund is at least $1,000.00
Why do we operate this way?
Because we don't want to "count" on profit share for our living expenses or our necessities... If the company doesn't have profits to divide among the employees, there is a chance that check could be zero. If his company moves buildings, needs to buy office computers or other large items, its always taken out of the profit the store makes... and when the recession hit, you guessed it. Staff members didn't get checks... and so many of them were screwed.
Most of his employees were shocked to find that we generally have money left over from profit share when we get the next check a year later... but we're diligent in this area and we try to preserve the funds in this account, looking at it as not money to spend, but money that's there if we need it throughout the year. Yes, sometimes we add a little fun, and knock off some big projects --- but it's not used for living expenses.
Before the check arrives, we work out a game plan and make note of the 2 or 3 things we want to do FOR THE YEAR, and then we do them and leave the rest in the account until there is a need or want we both agree on.