Understanding Your Take Home Pay
Sample 1: Dan just started working full-time and he is included on his parents’ health insurance plan. He withholds the maximum amount he can, so he won’t have to pay any additional taxes at the end of the year. Review Dan’s paystub below and determine where he may be spending money unnecessarily and how he could use those funds to maximize his savings. Q: How can Dan maximize his savings? A: Dan could maximize his savings by doing some over time so he could get more money to put into his savings. Sample 2: Rachelle just accepted a new job as an office assistant and will have her paychecks directly deposited with a portion going toward a 401(k). She also anticipates putting in a lot of overtime—and receiving overtime pay—as she learns her new job. Review Rachelle’s pay stub below to determine what she could do to build her 401(k) and increase what she is contributing to savings. Q: How could Rachelle build her retirement and increase her savings? A: She could put in $20 out of her paycheck into her 401(k) and for savings add an extra $10 Sample 3: Taylor works part-time for a construction company. His employer doesn’t offer health insurance, retirement savings or flexible spending accounts but his parents help him with medical expenses. He would like to save as much money as he can so he can buy a new truck. Review Taylor’s paystub below and determine how he could maximize his savings. Q: What could Taylor do to maximize his savings? A: He could work a little more over time and put in and extra $20 |