HOW DO I BETTER UNDERSTAND MY PAYCHECK?
One of the fun parts of being a financial planner is getting to field and answer questions from clients and readers all around the country. In these Work Your Wealth episodes I’ll be taking time to address and answer questions I’ve come across from readers and clients throughout my career. Today I’m answering the above question.
HERE’S WHAT YOU’LL LEARN FROM THIS EPISODE:
- What I see when looking at your pay stub and how I use it to leverage and understand what’s happening with your money.
- What to look at first when analyzing your paycheck to avoid confusion.
- The difference between your gross pay and your net pay.
- The importance of knowing if you’re paid monthly, biweekly or twice a month and how it impacts your budgeting.
- What exemptions are on your pay stub and how it saves you taxes.
- How your withholdings impact your paycheck and your annual tax refund (or amount owed).
- What to aim for when electing your withholdings.
- How (and when) to adjust your W-4.
- The importance of knowing what state and local taxes are being withheld.
- Who FICA is and why they take so much of your money.
- What you pay in taxes as a sole proprietor and the impact on your cash flow.
- Where to find employee benefits that you may be missing out on.
- How to determine what you’re contributing to your employer sponsored retirement plan.
- The tax advantages of a Flexible Spending or Health Savings Account.
- Other employee benefits that can help you improve your financial situation.
- Which deductions you can and can’t change.
LINKS WE MENTIONED ON THE SHOW:
- Analyze Your Paycheck like a Financial Planner Blog Post
- Schedule a free 30-minute consultation with me
ENJOY THE SHOW?