Want to save 20% of your salary but can’t even 5%? Let’s read this tips from GoBanking Rates :-
1) 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 ABC’s 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
2) Freeze Your Gym Membership
Investing in your health should be a priority, but if you need to boost your take-home earnings, consider freezing your gym membership. There are plenty of workouts you can do for free, such as hiking, running, biking or following along with a YouTube workout.
Use the cash you would be spending on your membership to help you reach your financial goals, and unfreeze your membership if you want when you get back on better financial footing.
3) Put a Percentage of Your Paycheck Into a Money Market Account Each Month
It can be easy to spend your whole paycheck each month if you cash it out right away or put it into a checking account. To make sure you end up saving some of your paycheck, transfer a fixed percentage of each paycheck into a money market or savings account every pay period. Money market accounts typically offer higher interest rates than traditional savings accounts, so that direct deposit from your paycheck will compound even faster. For example, the SunTrust Advantage Money Market Savings account comes with a competitive interest rate for balances of more than $10,000 and offers easy access to your money whenever you want. If you’re just beginning your savings journey, consider the SunTrust Select Savings account.
Whether you regularly contribute 5% or 20% of your paycheck, the savings will add up faster over time than they would in typical checking or savings accounts.
4) Change Your Healthcare Plan
Along with taxes and retirement fund deductions, healthcare costs are usually deducted directly from your paycheck. 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.
5) 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.
6) Take Advantage Of Office Perks
Many offices now provide their employees with perks to attract and retain their workforce. If your office has an on-site gym or provides you with free snacks or meals, take advantage of these benefits. You can save a lot by quitting your gym and spending less on outside food purchases.
7)Differentiate Between Needs and Wants
You might really want a new TV or a trendy pair of shoes, but unless your TV is broken or all of your shoes are worn out, these purchases qualify as “wants” rather than “needs.” Focus on spending money on needs only, and keep the money you would spend on wants in your pocket (or savings account).
8) Decrease Fixed Expenses
There are certain expenses you have to pay every month, such as rent, utilities, cable, cellphone and car payments. While you will have to dedicate some of your paycheck to these expenses no matter what, there are ways to decrease the amount you pay.
If your cellphone bill seems astronomical, consider changing phone plans or shop around for a new provider. And while car payments are usually fixed, you might be able to save on your car insurance by shopping around for a new insurer.
9)Have a Savings Goal
It’s easier to prioritize saving over spending if you have a goal in mind. Whether you are saving up for a large purchase such as a car or house, or you want to make sure you have a healthy emergency fund ready in case of job loss or other unforeseen events, having an end goal will make you work toward it.
Putting funds in a CD account can help you reach your savings goal faster. You might consider opening a CD account with SunTrust, which allows you to select your term and has a guaranteed interest rate. You can also leave funds in for shorter or longer — SunTrust has terms ranging from seven days to 10 years — and you only need $2,000 to open a CD. Since interest rates are guaranteed and funds are protected by the Federal Deposit Insurance Corp., you’ll know ahead of time exactly how much interest you’ll earn.
10) 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.
How about that? Can you follow this tips?