You must have noticed that of late you are bringing home less money. This is mainly because the payroll taxes have increased since January. This has affected most of us in a negative way. It has been found that since the payroll tax increase, many people have reduced the number of times they used to go out for lunch. There are many ways by which we can beat the payroll tax increase. Let's take a look at some of them:
Avoid using debit or credit cards
A recent study has found that people who use cash spend 20% less than those who are more addicted to using cards while shopping. So, if you could reduce or avoid using credit cards and debit cards, it will not only help you spend less but will help you avoid debt problems later on. You can carry cash when you go out to shop. It is human nature to think twice before parting with cash!
Bargain on your household bills
You need to master the act of bargaining. Almost everything is negotiable in this market. You should just know how to pitch for it. So, the most important thing that you should bargain is your household bills. You can contact your utility providers individually and negotiate with them for better terms and conditions. You can even ask your insurance agent to reduce the premiums or else you can even consider switching to some other insurance company.
Avoid product warranties
While you purchase any item - sports goods, electronic items, etc., you will be asked to go for warranties. It does not make much sense to go for warranties in case of every product. Technology is developing everyday and your present purchased products will become obsolete when the time comes to use the warranty. So, it is better to skip the warranty. You should only go for warranties in case of high end products like a washer or a PLASMA TV.
Carry your lunch to office
One of the easiest ways to save money is to carry your lunch and a drink to office. It has been discovered in a survey that around 82% office goers spend $21 on coffee on average while 89% spend more than $36 on lunch every week. So brining lunch and a beverage from home will help you save quite a lot of money. You can even carry a bottle of water from home rather than buying it!
Lower your taxable income
You can lower your taxable income by contributing more to any of your tax-deferred retirement plans like 401(k), 403(b) or 457 plans. You can even contribute more toward the heath savings plan, if any, offered by your employer.
Hope the above mentioned ways will help you beat the payroll tax increase.