How You Can Boost Your Savings With These Simple Tips
September 6, 2018
Are you looking to get the latest phone? Or would you like to put money aside for an upcoming vacation? It can be challenging to put a few bucks aside from each paycheck to get yourself a gift or give yourself a much-needed break. The good news is that there are some easy ways to get more out of your salary at work. Follow these employee engagement tips to maximize your paycheck, increase your take-home pay and give your long-term savings a boost.
Evaluate your health plan
You have choices if your employer is one of the 65 percent offering a High-Deductible Health Plan and a traditional health plan. And choosing the right plan can pay off, since an HDHP has much lower premiums than a traditional health plan.
When weighing the two options, use our HDHP/HSA vs. Traditional Health Plan Calculator and determine how much healthcare you typically seek each year. If you’re rarely sick, you can save money with an HDHP and its much lower premiums. Make sure to enroll in a Health Savings Account (HSA) if one is available to help you cover any costs you do have.
Take advantage of 401(k) and HSA matches
A 401(k) and an HSA are smart tools to use when planning for retirement, and 57 percent of HSA-enrolled employees contribute to a 401(k) and an HSA for retirement. For many employees, there’s money to be made when participating in these plans. For example:
- Half of employers match a percentage of their employees’ contributions to a 401(k).
- About two-thirds of employers contribute money to employees’ HSAs and Health Reimbursement Arrangements.
Review your withholding allowances
About 100 million taxpayers receive tax refunds as a result of over-withholding each year, since many employees elect to take home less money in their paychecks in order reduce the risk of having to pay in during tax-filing season. However, that means you aren’t collecting interest on the money you’re giving the government in advance of tax season. Use the IRS Withholding Calculator to determine the withholding allowance to make sure you’re bringing home the most money in the long run.
Inquire about telecommuting opportunities
Telecommuting is on the rise and can be a great perk for you, even if you take advantage of it just one or two days of the week. Consider working from home if your employer offers the option because:
- You’ll save money by using less gas and reducing wear and tear on your car.
- You’ll save time, since the average American spends 26.6 minutes driving to work each day.
If telecommuting isn’t available, you can also cut costs on your work commute by enrolling in a Commuter Benefits plan, which lets you set aside pre-tax dollars for work-related commuting expenses.
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