Every year about this time, since I started making a high income (yeah I know, brag, brag,..) I’ve always enjoyed a little year-end bonus that the government bestows.

If you make over $97,500 this year you probably already know what I’m talking about. The Social Security Old-Age, Survivors, and Disability Insurance (OASDI) stops taking money out of your paycheck once you’ve hit the the income upper limit ($97,500 for 2007 and $102,000 for 2008).

That means that you get an additional 6.2% of your money coming back to you, rather than to the government. The higher your income, the earlier in the year you start receiving this ‘free money’. I usually start seeing this money in late Oct to early Nov, and look forward to it each year.

What to Do with All That Money

Getting an extra 6% raise, even if it’s only temporary, is a pretty nice thing. But don’t fritter it away!! There are lots of things that you can do with it.

• Up your 401k Contributions
• Max out your IRAs
• Pay for those Christmas presents IN CASH
• Donate it to some good charities (that are definitely needing it this time of year)
• Put it into an education account of some kind
• Pay off your Highest Debt Snowball balance

Reflect on your Good Fortune

The first year that I actually went over the contribution cap, I couldn’t figure out why my paycheck was hundreds of dollars more than I though it should be. I actually called the HR and Finance department to tell them they’d made a mistake in paying me (not wanting to have to pay back the overpayment at some random time when I don’t want it to).

They calmly explained to me the whole concept about Social Security tax contributions had maxed-out. I’d never heard of the concept before, being new to things like that. It give me a "I’ve finally Made It" feel-good moment.

If you’ve reached this point, take a minute to congratulate yourself. You’re earning about three times the national average (The national average wage index for 2006 is $38,651.41) if you see some money back before the year end. Good Job!

Redouble Your Efforts

However, don’t get too full of yourself too fast. High pay brings high expectations. Now’s also a good time to step back and see if you’re still performing ‘up to snuff’. It’s easy to coast once you get to a certain level in your career, but keep in mind that having a job, and a well paying job, is a privilege, not a right. If you feel like your performance isn’t all it has been, make an early new years’ resolution to bring your game up.

Remember the Others

You’re at your position hopefully through your determination, skills, and abilities. But don’t forget that everyone usually has a dollop of luck that helps them along too. Others sometimes don’t have that luck. Don’t forget that if things were just a little different, it might be you and yours without a home.

During the upcoming season, I’d challenge you to do just one thing extra that will help someone else. It doesn’t have to be big, but do something more than you did the year before. And next year, do a bit more, and soon, maybe the whole world will be a better place for us all.