Salary Increases Mean More Savings

Today at work I received notification from my Manager on the details of our annual merit increase. I am pleased to report (and so is my wife!) that my annual income took a nice jump up.

However, that is not what I wanted to report. The extra bonus of this increase is that my savings amount as a result of my contributions and my employer matches to our pension plan and savings plan has increased as well. Every pay period, I contribute 2% of my salary to the pension plan and my employer contributes another 4% (a 6% total pension contribution). In addition, every pay period I contribute 5% of my salary to the Savings Plan and my employer matches with another 5%. I am now contributing an extra $800 per year to my savings.

With this additional money, I am going to continue on as I have been. The money from the savings plan will be accumulated until I want to transfer it to my RSP account. Nothing will change in terms of my pension, as there is not really a lot of choice.

Overall, it was a pretty good day from an income and savings perspective. This will bring me that much closer to achieving my goal of $300,000 in dividend paying investments.