money back from the US Treasury and/
you’re even saving automatically! Before
or your State’s Department of Revenue.
you know it, you’ll have a nice little nest egg
Why wait until the first or even the second
growing that is positioning you to be more
calendar quarter of NEXT YEAR to get
financially secure.
your hard earned money back? Why let
the government use your money for several
HOW MUCH MONEY SHOULD YOU
months without it earning dividends for
SAVE?
you? You may want to consider reducing
To be considered financially secure, an
any extra withholdings you’ve requested
individual or household should save at least
and increase your number of personal allow- six months’ worth of expenses. For example,
ances. Please only
a household that has
reduce your additional
$1,000 per month
earnings, or increase
of expenses should
Without
savings,
or
safety
net,
personal allowances
have at least $6,000 in
unexpected events can become savings ($1,000 multi-
to a level that will get
you to a point of zero
large financial burdens. There- plied by 6 months). To
taxes owed or a slight
reach this amount, it
fore,
saving
helps
you
and
your
refund back to you.
is recommended that
family become more financially at least 10 percent
These changes are
recorded on Treasury
of your net income
secure and independent.
Form W4, which is
should be saved
available from your
until the appropriate
personnel office or on-line at
amount of savings is reached. Net income
https://www.irs.gov/pub/irs-pdf/fw4.pdf
is the amount of your take-home pay after
It’s your money, why not have it available for taxes and other deductions have been taken
your use every time you get paid? You could out of your paycheck. Those “emergency
actually use a portion of it for your savings
or immediate” funds should be kept in an
giving you the advantage rather than the
insured account, held locally, where you can
government.
access your money, without charge, using a
Tip #2: Some employers allow a direct
free debit card.
allotment to financial institutions. Allot-
ments may only be permitted to the insti-
HOW TO BEGIN SAVING MONEY
tution they use for payroll, but at least this
To choose saving over spending, the
is one painless way to save each pay period
first step is to rethink how you view money.
without having to remember to make the
Money should not be viewed as what is
time to make the deposit yourself. After a
remaining after current needs and wants
couple of payroll periods, you may forget
have been satisfied. Pay yourself first is a
www.himpowermagazine.com 29