Author Topic: yearly salary increase in case study?  (Read 1598 times)

mac91red

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yearly salary increase in case study?
« on: February 04, 2016, 09:26:33 AM »
Am i overlooking where this potential is?  I've been fortunate enough to have a 3% increase every year along with promotions along the way.  I also am bonus eligible but I don't see that either. 

ysette9

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Re: yearly salary increase in case study?
« Reply #1 on: February 04, 2016, 10:10:46 AM »
I suspect you haven't seen any responses yet because your question is not very clear. What are you trying to find out, exactly? Case studies don't generally include pay increases but also tend to not factor in inflation. I suspect that to a first order of magnitude, these cancel each other out. Exceptions are for people who will end a training program and start earning significantly more in the near future (doctors, etc.).
Most people around here focus more on attacking your expenses, something you have more direct control over. Why don't you post some details and see how the crowd can help?

mac91red

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Re: yearly salary increase in case study?
« Reply #2 on: February 04, 2016, 12:09:28 PM »
Thanks for the feedback.....

I guess I am not worried about the 3% yearly increase as that is a wash for inflation.  My yearly bonus (10%) would be more important. Could I just include that in my gross pay then?  The bonus doesn't fluctuate. 

MDM

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Re: yearly salary increase in case study?
« Reply #3 on: February 04, 2016, 10:00:42 PM »
Case studies don't generally include pay increases but also tend to not factor in inflation. I suspect that to a first order of magnitude, these cancel each other out.
My yearly bonus (10%) would be more important. Could I just include that in my gross pay then?

You are both correct. 

OP is asking about the case study spreadsheet.  Monthly income should include (annual bonus)/12, just as monthly expenses should include average values for irregular but predictable expenses (e.g., non-escrowed property taxes, semi-annual auto insurance, etc.).

The time to FI calculation should be seen as "...a gateway drug to more advanced tax and FI calculation tools" as noted in http://forum.mrmoneymustache.com/taxes/the-mustache-tax-guide-(u-s-version)/.