Before deciding how to spend your income, you need to determine what you can work with. Most pay stubs usually break down gross pay, deductions, earnings, and net pay. The net is the amounts you get in each check after deductions and taxes.

When it seems your paycheck isn’t stretching as it should, there are some changes you can make on how you earn the money to save more and help you when verifying income for a car loan. This includes adjusting healthcare plans, tax withholdings, and 401(k) contributions.

Below are some ways to get more from your paycheck

Adjust Tax Withholdings

When you begin a new job, usually you fill the IRS form W-4 for the employer to know how much to withhold for tax. This form asks about the allowances you want to claim. Higher allowances mean less is withheld from the paycheck, and less withholding increases your net income. However, if you have less withheld amounts, you might owe money when filing taxes. You can adjust the W-4 form in the year to modify the withheld amount on your check. In some companies, human resources software makes changes than filing paper forms.

Adjust Your Healthcare Pans

Healthcare costs are directly deducted from the paycheck, along with retirement fund deductions and taxes. You can change to more affordable schemes. Be cautious since cheaper plans might mean higher deductibles when making such adjustments.

Also, you don’t need to pay for client meals or work-related travels. If you find such expenses consuming your earnings, verify the company’s policies and consider asking for reimbursement or request business credit cards.

 

Set-up Direct Deposits

If prone to overspending when the salary is cashed, it’s best to arrange with HR to have all or part of the payments deposited to a savings account. When you directly deposit some amounts, you set aside savings that you can’t spend. Also, choose accounts with high-interest rates for the money to accrue valuable dividends. Later, consider withdrawing some to reinvest to mutual funds or certificate of deposit.

Update the 401(K) Contributions

Contributing to a company-sponsored 401 (K) has various benefits. First, most firms have employer match programs where they contribute $1, or $0.5 for each $1 that you contribute upto some amounts. Moreover, the contributions are not taxed. This means what you put in the 401(k) is what they deposit, without charging withholding on the amount upfront, though you pay taxes when you withdraw during retirement. Therefore, increasing the 401 (k) contributions means more to your paycheck.