As you’re opening your first paychecks of 2013, you may think for a split second, ‘there’s been a mistake’. Unfortunately, it’s no mistake: Social Security tax has increased its withholding from 4.2% to 6.2% and this is making a dent in paychecks around the country.
According to this article on Yahoo, Roberton Williams, a tax economist and the Sol Price Fellow at the Tax Policy Center in Washington, said the expiration of the payroll-tax cut will leave the average American household with $18 to $20 less to spend each week, or $900 to $1,000 a year.
Although upsetting, placing the blame on the government won’t change anything for the time being. There are however, other ways to make this dent in pay bearable:
- Instead of eating out 1-2 a week, try to schedule and plan meals on Sundays. Eating out is that ‘go to’ vice when we’ve had a busy day and are just too tired to even think about what to make. A little planning go a long way and put more money in your pocketbook.
- Try cheaper brands for things like toilet paper, paper towels, diapers, and more. We all have things we prefer to splurge on, but it can make a big difference to plan ahead on what brands you can be flexible with.
If you need help making your money count with this recent payroll tax increase, feel free to contact us at Integrated Insurance Concepts. We can make sure you stay financially free in 2013, even if you have to cut corners in some areas. Contact me at firstname.lastname@example.org for more information.
By Doug McMurry, Owner of Integrated Insurance Concepts in Arizona