There are a few proven ways to increase your take-home income such as getting a raise or even a promotion. However, these things happening suddenly without notice seems rather unlikely. There are a few things that you probably aren’t doing that could help increase your everyday take-home pay.
Negotiate a Raise
While raises and promotions can be touchy subjects among employers, it is not a bad idea to negotiate a raise or even a promotion within your company. Many employers adjust their payment according to market rates. So, if the market rate for your job is high, you may have a basis for asking for a pay raise. If you are up for a performance review, be sure to research the market rate as well as pay rates among your career throughout the country so that you have grounds to negotiate a pay raise.
Know your Health Insurance Coverage
You may be able to make changes to your healthcare plan to increase your take home income. Those who require minimal healthcare, for instance, may be better off with a higher deductible. By eliminating any unneeded coverage, or coverage that often goes unused, you can significantly increase your take-home income month-to-month.
Deferred wages, like 401(k) contributions, are not taxed. The more money you put into 401(k), the less money you are taxed on. While this will lower your initial take-home income, it will lessen the taxes you have to pay and it will brighten your future as far as retirement goes.
On the same note, you can also eliminate your 401(k) contribution entirely. Although saving for retirement is recommended and having a 401(k) contribution is generally a good idea, if you need money for financial goals now, eliminating your 401(k) contribution may be the way to go.
Adjust your W-4 Exemptions
Many people adjust their taxes so they receive a sizable tax refund every spring. However, if you adjust your W-4 exemptions, you will bring home more money paycheck-to-paycheck. Your spring tax refund will not be as hefty, but your pay out will be seen in your income. You can use the IRS calculator on the IRS website to determine what your withholdings should be.
Don’t be afraid to find a new job if you feel you could be paid more elsewhere. New studies have shown that many people change jobs every four and a half years or so. Although people are employed, they are constantly trimming and polishing their resumes and putting it out there in hopes of more pay. Obviously, if you are getting paid more, your take-home income will be significantly more. It isn’t recommended that you quit a job unless you already have another one to replace it. Also, keep in mind many places of work put a hold on pay, so you may have to save money for bills.
Some workplaces do not allow overtime, but others do. If you work overtime, or on the weekends, many places allow for overtime pay. Most employers pay time and a half for any hours over 40. During the holidays, many employers pay double to triple time if an employee offers to work on a holiday like Thanksgiving or Christmas Eve.
Many people work overtime, but they never see the money for it. They don’t even realize they are working over 40 hours during the week. By keeping track of your hours worked, it is possible that you may be able to cash in on some overtime pay.
Many people have work-related expenses that they are not getting reimbursed for. However, many employers offer reimbursement for things like travel, meals, clothing, tools, etc. If you request reimbursement for these things, you will increase your take-home income greatly. Not all workplaces offer reimbursement though, so be sure that if you are buying something for work and planning on getting reimbursed that your company will actually provide the funds back to you.
There are many other ways to increase take-home income such as incentive programs, company perks, cashing in vacation time and even getting a second job. Whatever the reason may be, if you are looking to increase your take-home income, there are various ways to do so. Be sure to way all of your options and pick the best for you.