Friday, 1 February 2019

Should I trust the government?

There is a big fuzz about the lowered income tax. Almost everybody will have more money to spend in 2019. Repeatedly promised by the government. Is this actually gonna be true for us?


In
Our January after tax salaries were definitely higher; 44 and 117 to be precise. Arguably the 117 euro includes a 2% raise as well but this cannot explain the higher net salary fully. So at least part is thanks to the lower income tax. Can't be bothered to separate these out, we have a 161 higher income. Thank you government!

Out
The daycare got more expensive. But the tax return ("kinderopvangtoeslag") increased even more! 29 extra coming our way. Our child support ("kinderbijslag") goes up €14. I changed my phone contract, €4 in my pocket. Basic health insurance covers the same whichever company you take it from. So check the cheapest one each year! We could save €9. Total extra's: €217.

Minus
There is some bad news as well. Hard to predict exact numbers. But energy bills will go up, around €25/month. VAT tax will go up. if you would for example spend €10,000 per year (bye bye savings rate!) on taxable goodies, you'll pay around €300 more tax. So another €25/month. 

I am surely forgetting a few other things that will get more expensive. But I am confident we'll get out with more money to spend save invest.

Should I trust the government?
The government is not living up to it´s promise. Many stories appear of people being disappointed and I fully understand. But if you are a below-average spender you'll be just fine! Simply invest what is left at the end beginning of the month. 

Unfortunately it is not easy to convince the general public that switching to a FI spending life style helps much more than complaining about the few euro´s on the income side of things. Not complaining saves me tons of energy as well. Free to spend on the nice things in life!

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