Do you sometimes feel like your hard-earned paycheck isn’t stretching as far as it should? Fortunately, a few changes in how you earn and spend money help you save more of your paycheck.
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From decreasing the deductions taken out of your check to making small life changes to spend less and save more, we’re rounding up the best ways to hold on to more of your cash. Try out these tips and tricks to make your money stretch — they don’t require much effort.
Adjust W-4 Exemptions
If you’re getting a sizable tax refund, you’re actually missing out on money you could be getting paid upfront.
“The best way to boost your take-home pay is to adjust your taxes,” said Debbi King, personal finance expert, life coach and author of “The ABCs of Personal Finance. “Most of us are getting big refunds every year because we are having too much taken out each payday.”
If you take a minute to adjust your W-4, you can have some of that refund now to invest and grow instead of waiting for it all later.
Put Part of Your Paycheck Into an Account That Pays
You don’t want to lose out on free money when it’s available. When you get paid, you will need to put at least some of that money somewhere where it’s accessible. However, that doesn’t mean you can’t make the most of the rest, especially when interest rates are involved.
By using an interest-bearing checking account with a higher-than-average annual percentage yield, you can do more with your money. For example, if you use the 50/30/20 budget rule where you allocate 50% of your paycheck to needs, 30% to wants and 20% to savings, you can still earn more with both your checking and savings accounts. Whether you regularly contribute 5% or 20% of your paycheck, the savings will add up faster over time than they would in a typical checking account.
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Change Your Healthcare Plan
Along with taxes and retirement account fund deductions, healthcare costs are usually deducted directly from your paycheck. However, it’s not a one-size-fits-all where budgeting is concerned.
To lower your deductions, consider if you are actually using all the healthcare you have paid for and change your plan to one with a lower cost if possible. Be cautious when making adjustments though, as cheaper plans often mean higher deductibles.
Ask To Be Reimbursed for Work-Related Expenses
You shouldn’t have to pay for work-related travel or client meals. If you find these expenses are eating away at your earnings, verify your company’s policies on work-related expenses and consider asking your employer to reimburse you. Or, request a business credit card that your employer can pay directly.
It’s also good to note that many offices provide their employees with perks to attract and retain their workforce. If you work in an office and have access to an on-site gym or free snacks or meals, you can take advantage of these benefits. You could save a lot by canceling your gym membership and spending less on outside food purchases.
Save Your Raise
If you get a raise at work, maintain your current lifestyle and expenses, and save the difference instead of spending it.
“The most common mistake is that people let their spending increase commensurate with their new salary,” said Robert Johnson, chairman and CEO at Economic Index Associates. “For instance, people move into a bigger apartment or buy a more expensive car to reward themselves for receiving the raise. What happens is they are unable to improve their financial condition because they spend everything they make.”
Since you’re already used to living a certain way, it won’t be a lifestyle adjustment to put that new pay increase toward savings instead.
Opt Into 401(k) Contributions
In addition to automatically transferring funds into a high-interest account, you should also opt into a 401(k) plan if your company offers it. You should at least contribute the max employer match amount but more if you can.
This money compounds over time, so it’s one of the best ways to watch your savings grow. And since it comes out of your gross pay, you won’t even feel the deduction.
Track Your Spending
Consider using a budgeting app to see exactly what you’re spending your paycheck on. If you see that you’re spending a lot of your earnings on unnecessary things like a daily coffee from a coffee shop, consider scaling back on these expenses.
Avoid Unnecessary Bank Fees
You could be spending more than you’d like on easily avoidable bank fees. Many banks charge fees for using an out-of-network ATM, so only make withdrawals at your own bank or take advantage of the cash-back option when making in-store purchases. Your bank could also charge a fee if you don’t keep a minimum balance in your account, so make sure you know the criteria for fee waivers.
Join a Carpool
Commuting to work can cost you a considerable chunk of your paycheck. Carpooling with friends or co-workers is an easy way to save money. According to Paycheck Advance, carpooling can save you $200 on gas bills. Plus, if you’re able to take advantage of HOV lanes, you’ll save time on your commute as well.
Use Coupons, Online Promo Codes and Cash-Back Apps
You don’t have to clip physical coupons anymore to save while you shop. Use online coupon sites to find coupons and promo codes for many of your favorite retailers. And if you online shop, try to make purchases from retailers that offer free shipping year-round. The money you save on shipping fees means more money in your pocket.
Cash-back apps such as Upside are another effortless way to save money on everyday expenses. Once you’ve downloaded the app, search for cash-back offers at gas stations, grocery stores and restaurants near you. Then claim the offer you want and pay as usual with your credit or debit card or submit a receipt.
Shop With a Credit Card That Offers Cash Back
Whether you’re spending on “needs” or “wants,” make your purchases with a credit card that lets you get money back and ultimately spend less of your paycheck than you would with a regular credit card. However, it’s important to keep in mind that these credit cards often come with higher annual percentage rates, so only use one if you can pay your balance in full.
Buy Generic Products When Possible
Generic brands often cost significantly less than name-brand products, and for certain items, the generic is just as good. The best things to buy generic include cereal, spices and seasonings, diapers and medications, so consider switching from making name-brand purchases in those categories to a generic option if you want to hold on to more of your paycheck.
Pack Your Own Lunch
Buying lunch every day can quickly deplete your paycheck. If you spend $10 a day on lunch during the workweek, that adds up to $200 a month. While it’s okay to treat yourself to a lunch out every once in a while, aim to bring lunch on more days than you eat out if you want to save.
Unsubscribe From Streaming Services You Aren’t Using
If you have multiple streaming services across the same categories, you likely aren’t using all of them. Do you really need Hulu, Netflix and HBO Now? Are you listening to Spotify Premium, Pandora Plus and Sirius XM radio? Consider limiting yourself to one subscription service per category to easily save on your monthly expenses.
Only Buy Things With Cash or Debit
Putting everything on a credit card enables you to spend beyond your means without realizing it. When you only make purchases with cash or a debit card, it forces you to spend only the money you have and be mindful when you are running low on funds. You’ll likely save when you’re only buying things you can afford at the moment.
Always Make a Shopping List
Making a shopping list — and sticking to it — will not only keep you organized on your next shopping trip, but it can also curb impulse purchases. A survey by NPD — a company that offers data, industry expertise and analytics to clients — found that 72% of American shoppers who shop with a list never or only occasionally buy items that aren’t on their list.
Before Making a Purchase, Sleep On It
Another way to curb impulse purchases and save more of your paycheck is to take the time to think about a purchase before making it. If you’re online shopping, keep the item in your cart overnight.
If you’re shopping in a store, don’t buy unnecessary items that same day. Sleep on any potential purchase that could derail your budget. You’ll likely find that many times, the appeal of the purchase is gone by the next day.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 17 Stupidly Simple Ways To Save 20% More of Your Paycheck
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