All Posts Tagged: pay raise
“I’m going to save more money this year.”
Sound familiar? It’s a common resolution people make when January rolls around, and — like many New Year’s resolutions — it often goes unfulfilled. Nonetheless, I applaud the impulse and hope that the following ideas may make it easier to achieve the goal of saving more.Automate the savings. Try directing a portion of your paycheck to a savings or investment account automatically. Once you make the commitment, this can be easy way to save regularly without having to think about it. Adjust your W4. If your annual income tax refund is consistently large, you may be withholding more than necessary for the IRS. Yes, you get the money back each year, but it’s money that could be in your pocket all year instead of Uncle Sam’s. The added funds in your paycheck could then regularly build your savings, perhaps with interest, depending on your savings plan. (NOTE: You may want to consult a tax professional regarding this option.) Reassess your expenses. Are you really watching all the channels on your cable subscription or reading all the magazines that are delivered to you regularly? You may have an opportunity to adjust or reconsider some of these recurring bills and then redirect that money to savings. Bank every $5. Whenever you get a $5 bill, put it in a special envelope or container. Once that stash overflows, deposit the funds into the account of your choice. (Or consider trying it with $1 bills that accumulate at the end of the day when you empty your pockets.) Save the windfalls. Whether it’s a tax refund or a bonus from work, deposit unexpected sums of money as you receive them. Or if that’s too challenging, consider depositing half. Pretend to pay down more debt. If you’re in the habit of making a monthly payment on a car loan or to pay off a credit card, why not redirect that regular payment to your savings once the debt is paid off? Act like you didn’t get a raise. If your paycheck gets a welcome boost, reward yourself by socking away that extra money each pay period. You may be able to continue to live on your “old” salary while gaining peace of mind that you are progressing toward your savings goal!
These steps may require some creativity and discipline, but I believe the goal of saving more money is usually worth the effort.Read More ›