![]() Using a credit card gives you more consumer protections than a debit card and you may get rewards too: cash back, or airline or hotel points. Digital payment apps - ApplePay, Venmo or CashApp - can also work like paying cash. By paying cash, you could in some cases, wind up paying 3% less than the purchase price. Some merchants will charge you less for paying cash to avoid credit card transaction fees. Using cash instead of credit can help you stick to your budget and stay out of debt. Figure out how you plan to pay for a holiday purchase before you buy it. If you just can’t afford to save more right now, just make sure you don’t overspend. Some such accounts are paying as much as 3.5% interest with no minimum balance, according to. The Federal Reserve’s interest rate hikes this year have resulted in higher rates on many online-only savings accounts. A part-time job in retail or a restaurant or doing some holiday decorating for a fee may help you come up with more money to save. With recent layoffs and worries about a looming recession, getting a temporary job may help a lot. ![]() Yet a new survey from Betterment at Work finds only 59% of employees currently have an emergency fund - a 7% drop from last year, leaving 41% without any sort of safety net. Having easy access to cash to cover unexpected expenses is also critical. But with only one pay period left for 2022, you should make contribution changes immediately. That’s free money!īoosting contributions to a traditional 401(k) plan can lower your adjusted gross income while padding your retirement savings. If you can’t afford to contribute the maximum amount to your 401(k), many financial advisors say to put in at least enough money to get your employer’s matching contribution, if it’s offered. You can contribute up to $20,500 to a 401(k) plan in 2022 - or up to $27,000 if you’re 50 or older. Increase your 401(k) plan contributionsĪ 401(k) retirement savings plan is one of the most highly sought-after workplace benefits. The deadline for fourth-quarter payments is Tuesday, Jan. If it’s too late to make a withholding fix that way or if you’re self-employed, you can send an estimated tax payment directly to the IRS. You may have time to make a change to your withholding for the last pay period of the year by submitting a new W-4 form to your employer. You can also do a “paycheck checkup” by going to the Tax Withholding Estimator on the IRS’ website to review the amount of tax withheld from your pay. Keep in mind that even if you got a tax refund last year, with no stimulus payment for 2022 and a less generous deduction for charitable gifts, you may receive a smaller refund in 2023. The IRS says one way to see if you’re on track to pay the right amount of income tax is to pay the same amount as you did in 2021 or, for higher-income taxpayers, maybe a little more.
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