March 01, 2018
You could have a great opportunity to boost your financial security in the next few weeks. Two developments could mean some extra money is landing in your bank account. I want you to hatch a plan right now for how you are going to make the most of any extra money.
Have you noticed your take-home pay has gone up recently? That’s a result of the tax bill that Congress passed at the end of last year. By one estimate, the average paycheck is about $130 more due to tax cuts.
And March is the beginning of the two-month rush to file your tax returns. I know many of you end up receiving a tax refund. In past years, the average refund has been about $2,000.
The question is: How do you plan to make the most of any extra money that lands in your bank account? Please don’t let this amazing opportunity pass you by.
My advice is to close your eyes right now and spend at least a minute thinking about what would make you feel more financially secure.
• Putting more money in your emergency savings fund?
• Adding to your retirement savings?
• Paying down a credit card bill?
• Tucking some money away so you can make a solid down payment when you need to replace your car a few years from now.
There is no one right answer. We all have different needs and goals. But what I see happen all too often is that when money comes in, you don’t make a plan for how to use it to boost your security.
Compare your most recent paycheck to what you were paid at the end of last year. Whatever the difference, I hope you will use 100% of it to make your life more secure. If you are getting paid $50 more a month that’s $600 a year you can use to build savings. If your take-home pay is $100 more, that’s $1,200 a year. For those of you who don’t have an emergency savings fund, I think it would be amazing to make the commitment right here that you are going to move that extra money into a separate savings account. You don’t have to wish you could save money for emergencies. You can do it! Starting right now. Just spring into action to make the most of any money coming in.