Do you have trouble saving money? Do you live paycheck to paycheck?
Here is an idea that can help.
Have your employer direct deposit part of your paycheck into a separate account.
For example, assume you have a weekly net pay of $500. Take $10 a week and have it direct deposited into your savings account and put the remaining $490 into your regular checking account. Forget about the $10, you probably won't even miss it. After one year you will have saved $520 plus interest. Keep this up for two years and you will have over $1,000 socked away.
Take this idea a step further and set up a total of three extra accounts. Divide up your $500 paycheck. Deposit $10 in an emergency account, $10 for a Christmas savings account, and $10 into a regular savings or investment account. Each time you get a raise, put 20% of your increase in net pay towards your extra accounts.
Saving money this way is easy because it allows you to mentally separate your paycheck. Think of the extra accounts as a withholding tax to yourself. It may take a few weeks to get used to it, but you will learn to live without the money that is being "withheld" from your check.
This method of saving can get you ahead of the constant grind of living paycheck to paycheck. Give it a try!
Wednesday, February 28, 2007
Sunday, February 25, 2007
Tax Refunds (Part 2)
Big tax refunds are considered normal. Truth be told, they are a refund of what you overpaid on your tax bill for the year.
Do you overpay your electric or gas bill? How about your phone bill? Well, you shouldn't overpay your tax bill either.
Do you feel this is the only way you can save money? Will you spend it if it is in your normal paycheck?
If so, here are a couple of ideas that you can set up for yourself to "withhold" the money to you instead of Uncle Sam.
1. If your employer allows you to direct deposit your paycheck into more than one account, set up an account to have an equal amount deposited each pay into this separate account.
2. Set up a second account with your bank and have an equal amount automatically transferred to the second account each payday.
Either way, you won't see the money in your normal account. Ignore the fact you have a separate account set up. Instead of loaning the government money interest free, you will be putting it into your account to use later. You won't have to wait for a refund each March. It will already be there waiting for you to use anytime you want.
To calculate how much you should have withheld for yourself, have your tax preparer estimate your taxes for the upcoming year and change your w-4 with your employer. Take the extra amount that resulted from your w-4 change and put it in your second account. You are still having the money withheld, but this time it is to yourself.
Do you overpay your electric or gas bill? How about your phone bill? Well, you shouldn't overpay your tax bill either.
Do you feel this is the only way you can save money? Will you spend it if it is in your normal paycheck?
If so, here are a couple of ideas that you can set up for yourself to "withhold" the money to you instead of Uncle Sam.
1. If your employer allows you to direct deposit your paycheck into more than one account, set up an account to have an equal amount deposited each pay into this separate account.
2. Set up a second account with your bank and have an equal amount automatically transferred to the second account each payday.
Either way, you won't see the money in your normal account. Ignore the fact you have a separate account set up. Instead of loaning the government money interest free, you will be putting it into your account to use later. You won't have to wait for a refund each March. It will already be there waiting for you to use anytime you want.
To calculate how much you should have withheld for yourself, have your tax preparer estimate your taxes for the upcoming year and change your w-4 with your employer. Take the extra amount that resulted from your w-4 change and put it in your second account. You are still having the money withheld, but this time it is to yourself.
Electronic Filing with Turbo Tax
If you electronic file with Turbo Tax, be careful on what payment option you select.
At Turbo Tax, you have two options to pay your electronic filing fees. DO NOT select the option of having it automatically deducted from your refund. It will cost you an additional $29.95 to file your 2006 taxes this way.
Choose the payment by credit card option.
If you owe taxes, file it by mail....what's the rush?
At Turbo Tax, you have two options to pay your electronic filing fees. DO NOT select the option of having it automatically deducted from your refund. It will cost you an additional $29.95 to file your 2006 taxes this way.
Choose the payment by credit card option.
If you owe taxes, file it by mail....what's the rush?
Monday, February 12, 2007
Employee Loyalty
People have a tendency to be loyal to the company they work for. And most do not want to hop from job to job. Those that leave on their own generally do so for a better opportunity, more money, or to get away from a bad boss.
While some companies discount the power of loyal employees, the smart companies embrace the idea. Experience in the job is invaluable. When something goes wrong, an employee can draw on that experience to quickly rectify the situation. The bank of information that they carry with them makes them much more efficient than a new employee. This cost is never quantified, but common sense will tell you that it can be significant.
Unfortunately in this era of lean and mean, experienced employees are seen as a big liability. Companies would rather pay a younger worker less money and lower benefits than to continue to pay more for an experienced worker in the same position. While they think they are saving money, in reality they are typically losing customers and productivity at an alarming rate.
A strong, dedicated workforce is a key ingredient to improve the overall health of a company. Sure you may pay more in wages and benefits (you get what you pay for), but would you rather lose productivity and customers? Treat your employees right and they WILL be loyal to your company and everyone will benefit.
While some companies discount the power of loyal employees, the smart companies embrace the idea. Experience in the job is invaluable. When something goes wrong, an employee can draw on that experience to quickly rectify the situation. The bank of information that they carry with them makes them much more efficient than a new employee. This cost is never quantified, but common sense will tell you that it can be significant.
Unfortunately in this era of lean and mean, experienced employees are seen as a big liability. Companies would rather pay a younger worker less money and lower benefits than to continue to pay more for an experienced worker in the same position. While they think they are saving money, in reality they are typically losing customers and productivity at an alarming rate.
A strong, dedicated workforce is a key ingredient to improve the overall health of a company. Sure you may pay more in wages and benefits (you get what you pay for), but would you rather lose productivity and customers? Treat your employees right and they WILL be loyal to your company and everyone will benefit.
Saturday, February 10, 2007
Corporate Warfare
Are you sick and tired of power hungry, big ego, out of touch people ruining the company you work for? Are you fed up with having money taken out of your pocket to make the rich even richer? What can you do about it?
Here is a tactic that may pay some dividends.
Write a letter to your top five shareholders. Explain to them what is wrong with your company and why.
Don't think they will listen? If you had millions invested in a company and disgruntled employees are complaining to you with facts on why their investment is under performing, wouldn't you listen?
You don't want to identify yourself in the letter because the employer will likely retaliate against you. Sign the letter as a concerned employee. Be genuine and stick to the facts. Stay away from name calling and write the letter intelligently.
The shareholder is THE boss. The CEO and Board of Directors must answer to this group of bosses. Keep them informed and it will help keep your senior leadership in line.
Here is a tactic that may pay some dividends.
Write a letter to your top five shareholders. Explain to them what is wrong with your company and why.
Don't think they will listen? If you had millions invested in a company and disgruntled employees are complaining to you with facts on why their investment is under performing, wouldn't you listen?
You don't want to identify yourself in the letter because the employer will likely retaliate against you. Sign the letter as a concerned employee. Be genuine and stick to the facts. Stay away from name calling and write the letter intelligently.
The shareholder is THE boss. The CEO and Board of Directors must answer to this group of bosses. Keep them informed and it will help keep your senior leadership in line.
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