How to Ultimately Double Your Paycheck This Year
Where does your paycheck usually go? On bills, saving for a fancy holiday in the Caribbean you’ve always dreamed of or to help fund your child’s costs for college. The fact is most of us have already spent the money we receive from our paychecks before we’ve even been paid.
And often that can mean there is no money left over for a rainy day. We all like to feel more secure and know that there is money lying around should something come up.
But how do you double your paycheck? There are numerous ways to do this from asking yourself ‘why do I get taxed so much on my paycheck?’ to getting yourself a higher paying job.
Here’s all about making the most of your money.
Review Your Outgoings
We often spend our money on things we don’t need without realizing it. From subscriptions to TV streaming services like Netflix or Amazon that we don’t use enough to luxury goods when we could be using standard versions that are just as good.
Fixing this is quite easy. When you have a spare moment review all of your outgoings. Make a list of what your money is spent on each week or month or even for the entire year.
If you have a partner or older children be sure to include them in your review before you make any decisions about what to cancel and downgrade.
Also, be sure to use a budgeting app or digital bank if you feel the challenge of keeping your spending under control is too much. Budgeting apps or digital banks can show you spreadsheets and pie charts of what you spend your money on, dividing it into categories such as food and drink, entertainment and bills.
Many of these apps also have a pots or vaults system that allows you to put money aside each month for specific activities.
You can also round up your payments when you make transactions using your card. For example, if the next time you do your grocery shopping the bill is $4.95 then you can choose to automatically round this up to $5 with the extra five cents going into an allocated pot. You can even choose to donate this extra five cents to charity.
Trial Your New Spending Pattern
Once you have reviewed your outgoings you can make some decisions about how to proceed. Try to stick to the decisions you have made for at least one month or several weeks.
You should then review how you feel about the changes you’ve made to your budget and compare that to how much money you have saved
You may come to realize that some of the adjustments are not worth it and – for example – you would prefer to spend the extra few dollars each week on that luxury brand of toothpaste you use as it keeps your teeth fresh.
Review Your Paystub For Tax and Deduction Mistakes
Another way of making the most of your money is to look at your paystub. If you are self-employed or your employer doesn’t issue one be sure to remind them about what a paystub maker does in terms of making the payment and bookkeeping process easier.
Many people ask themselves or their employer ‘why do I get taxed so much of my paycheck?’ Nobody likes to pay taxes even though we have to but instead of blaming the government or the state you can investigate if you are paying too much.
Your paystub should have your tax code on it and include the amount of tax that has been deducted from your wage. Do a search using the internet to see whether your tax code fits your situation and the amount you earn.
If you think there is an issue then you may be on the wrong tax code. Be sure to speak to your employer or the IRS. You may even be able to claim the tax backdated.
Ask For a Payrise
This might sound obvious but as the old saying goes, you don’t get if you don’t ask. It is always worth trying to see whether you can get an increase in your wages. In order to do this, you need to consider your arguments carefully.
What have you brought to the team that merits an increase in your pay? Have you made any significant achievements in the last year that have helped your company increase its revenue or productivity? How long have you been in the job?
If your wages have stayed the same for the past few years then this might be a reason to ask for an increase.
Be sure to discuss pay with your fellow employees as well. This may give you a better perspective on where your wage fits within the pay scale of the company. They too might also be looking for a pay rise and so you could discuss tactics together.
The more employees on the same pay scale who ask for a pay raise the harder it is for the company to say no.
Look for a New Job with Higher Pay
If your company refuses to increase your pay and you feel that you are working harder for your money then you should be, perhaps it is time to move on.
It is always good to have an idea of where your pay and job fits in terms of the job market at the moment. Keep your options open. Network regularly as well as checking job sites like LinkedIn.
If you have friends from previous roles or the same company who have now moved on reach out to them. Find out where they now work and ask them what it is like. Key questions to ask are:
- What are the other staff who work there like?
- What is the rate of pay?
- What is the workload like?
Before you make the final decision about applying or accepting a job with a higher level of pay it is important to consider your current role. Although the pay might be higher you might have to incur other costs in your new role that mean the money you have to live on works out as less.
If the job is further away then you will have to cover the higher cost of fuel each morning for the drive there or public transport options. If the job is in another state or city then you will have to move house.
Housing options in your new city or state might be more expensive and you may find yourself paying more for a house or apartment but getting less in terms of the quality of the neighborhood and space or design that you want.
Avoid jobs that offer lots of voluntary time off. This might sound like a great perk but these vacations are unpaid. On average, an employee loses around $230 per paycheck without tax.
Take on a Second Job
You could always take on a second job alongside your current role. However, remember that this will mean working harder and you will have to consider whether working this hard is worth it.
Reviewing your weekly or monthly outgoings might be a better way of increasing your paycheck rather than simply trying to work harder to earn more money.
Remember you will have to find a second job that can be slotted around your present role and there might be clashes which will take careful planning to sort out.
The best way to double your paycheck through earnings is to take on a second remote job that you can do from the comfort of your own home. You will not be as tired as you would be if you were traveling to a second job straight after your first or working on weekends.
Moreover, a remote job allows you to work for any company anywhere in the world. You could pick a job at a company in a time zone that works for you. Some remote jobs – such as salespeople – are done on a freelance or commission basis.
This means you don’t have to worry about time zones or meeting certain hours. Your remote job can fit around your primary job giving you two incomes. Your second income could go entirely into savings.
Consider Setting Up a Blog or Online Course
Another great way to double your paycheck is to consider writing a regular blog. These can earn money through advertising revenue and cost very little to set up.
If you can get good at understanding Search Engine Optimization then you can ensure your blog ranks highly on Google or other search engines and this ultimately leads to you generating a bigger following.
For ideas on what topics to consider for a blog or online course think about what you are interested in and do a basic keyword search to find out what topics are currently popular.
Here are some ideas:
- Celebrity gossip blog
- A course designed to show you how to manage your life and finances more effectively
- A travel blog on your favorite locations
- An opinion blog giving your verdict on the latest news stories
Hire a Financial Planning Expert
Another way to ensure that you double your paycheck is to hire a financial planning expert or advisor. They can not only give you tips on how to reduce your overall outgoings they can give you tips on how to invest your money.
If you do decide to get a second job and are able to save this money then before long you may find you have $10,000 lying around. As interest rates are low at the moment keeping this in an average savings account will not be beneficial to you.
A financial planning expert can help you decide what investments are worth the risk and which ones are a safer option. They may even have some ideas that you have not thought of before or heard of.
Remember to always do your research and only hire a reputable planning expert. Ask about what qualifications they have, how many other clients they have and how long they have been in operation.
There are many shady financial experts who could advise you to invest in a scheme that is illegal or one where you end up losing all of your money rather than increasing it. Always remember they are there to give you advice and it is your responsibility to research any schemes, hedge funds or investments that they suggest.
There Are Countless Ways to Double Your Paycheck
It is easy to assume that the only way to double your paycheck is to find a better paying job or take on a second job.
In fact, although both these ways do yield results and there are many freelance and remote jobs available that make this process easier, they involve working harder than you need to. There are countless other ways to double your paycheck.
Hiring a financial advisor is a great way of reducing your tax bill and of finding suitable high-return investments that can make your savings go much further.
It is also worth looking at your outgoings to see whether you can make your money go further so that you have more money in real terms. Using a budgeting app or opening an account with a digital bank that has these tools built-in is a great way to get on top of your finances.
Trial a new budgeting regime and downgrading many of the products you buy in your weekly shop to see if it works for you.
If you are interested in learning more about making the most of your money be sure to check out the rest of our site.