Now it’s been a while since the last blog post. It has been a little bad because of Christmas holidays and some holidays but now we are back with posts every week again. Good progress and hope you have a good 2014 both financially and on other levels. I thought I would go through some of what will happen to your finances this year based on changes of various kinds.
You could say that all those who have jobs win the most in 2014. This is due to tax cuts, wage increases and other such. According to a calculation by Swiftbank, a two-child family on average will have $ 1,300 more to move with this month compared to 2013.
It is not really as fun to be a pensioner, parental leave, sick leave or student as you cannot take advantage of all these increases. At the same time, some of the grants and the like, which are based on price base amounts, are lowered because prices have remained steady or even dropped a little lately.
Better for you who work
Firstly, it is once again time for salary increases. This usually averages 3 percent. For someone who earns $ 25,000 a month, this would mean $ 750 before tax. Not so stupid. In addition, inflation is low, which means that you can expect to receive a salary increase that is greater than the increase in the prices of things. In other words, you’re going a little plus this year.
It is also time for some job tax deductions which will get you up to $ 350 more each month. The increase in the state tax break point did not stop since it was stopped, but it is still raised by 2 percent as it is standard every year. This means that you must pay state tax if you earn $ 36,160 or more. If you pay state tax, you also get some extra benefit from the job tax deduction.
Municipal taxes will increase slightly in parts of the country. About one-third of Swedes will receive higher municipal taxes, which dampens the effect of the job tax deduction a little. You can check it out if you are “hit”.
For those who are retired, there will be a slightly lower general pension as it is reduced by an average of $ 300. At most, the reduction is $ 470 before tax. However, you do get some increased grants and things that will probably make you go a little plus every month. For example, the tax is reduced by about $ 100 a month.
Grants and the like
When it comes to students, they receive reduced student support by $ 20. So you get $ 9004 every month instead of $ 9024. However, you who work a little while studying can rejoice that you can compensate for this by limiting the limit on how much you can earn before you can no longer receive study support has been increased by $ 30,000 to $ 172,400.
The housing allowance is increased for families with children. You with one child get $ 200 more, two children give $ 250 and three children 300 $ etc. For more info on this you can check out the Swedish Social Insurance Agency’s website.
The highest sickness benefit is reduced by $ 2 per day. The new figure is $ 708. In practice, such a reduction will be around $ 60 less in the wallet each month before tax. It is the same for the parental allowance, it is also reduced by $ 2 per day and there the new figure becomes $ 944. Even there, it will be about $ 60 less a month before taxes are deducted.
Rents tend to increase every year and also this year. They will rise by about 1.5 – 2 percent and that you will have to include in your budget for the year. For those of you who own your home, it might be interesting to know how the repo rate is doing and it will probably remain at 0.75% throughout 2014, so there are quiet pucks. Feels pretty calm about having a movable mortgage.
Entrepreneurs with, for example, trading companies become happy when the deductions are lowered so that there is a little more money left to put in their pocket (that category I fall into). The reduction is 2.5 percent and the new figure is 7.5 percent. The maximum limit for deductions is increased by $ 5000 to $ 15,000.
The alcohol tax is raised a little so that a bottle of liquor will be $ 1.90 more expensive, wine will be $ 1.40 more expensive and the beer can be 40 USD more expensive. It is not so much but maybe it is noticeable in the wallet for those who like to drink.