Getting The Most From Every Dollar You Earn
It’s just but right to get the most of your hard-earned paycheck. But how? Whether you are into income investing or any wealth building strategy, it’s crucial to consider expert advice to bolster your knowledge about your venture. The endeavor is not as easy as keeping your fingers crossed. Don’t be too confident, you still have a bigger fish to fry…
More than 63 percent of America’s workers would experience financial difficulties if their paycheck was delayed even one week, said a recent online survey published by Cliff.com. If you are one of those living “paycheck to paycheck,” it’s essential for you to make the most of every dollar you get.
The American Payroll Association and ADP, leaders in payroll service providers, offers the following tips, as posted in Cliff.com, to help you amass the most from your paycheck:
1. Pay Attention to New Tax Laws
If you don’t have enough taxes withheld, you may be in for an unpleasant shock at tax time. On the other hand, if you received a large refund last year, you may have had too much money withheld at work, giving Uncle Sam an interest free loan at your expense.
2. Manage Your Medical Costs With Advance Planning
Many insurance plans allow your medical/dental insurance premiums to be deducted from your paycheck before taxes are taken out. In addition, Health Care Flexible Spending Accounts let you save tax dollars on planned out of pockets medical expenses. Check with your benefits administrator to see if these options are available.
3. Be Smart About Your 401(k)
It’s your responsibility to pay attention to how your 401 (k) contributions are allocated. Also find out if your company gives a percentage to match your 401 (k) contributions. If it does and you’re not contributing the maximum amount that your employer matches, you’re giving up “free money.”
4. Use Direct Deposit To Help You Save
Although we all try to save, many Americans save less than 5 percent of their annual income. Direct deposit is an easier way to manage your paycheck deductions and continue saving for a rainy day. By setting up separate allotments into your checking and saving accounts, you’re more likely to live within your budget while still ensuring that a portion of your paycheck is automatically added to your savings.
