One of the provisions of the new stimulus package includes a payroll tax credit of somewhere between $400 and $800 for most taxpayers. For the average worker this will equate to an increase of about $8 per paycheck. I’m not here to bash the stimulus package because I really hope it works, but I’m not sure how much $8 a week is going to stimulate the economy. I realize something has to be done I’m just not sure this was a great solution.
With that being said what will you do with your $8 per week pay increase? Again this isn’t going to be much of an economy stimulator but wouldn’t it be a great time to start an automatic savings plan? Technology and banks have made it so easy to save money these days there is really no excuse not to start.
Most employers offer you the opportunity to divert money into different accounts. If you already have your check direct deposited then more than likely you can divide the money into different accounts. Just ask your companyÂ accountant or your payroll person to help you with this. Since you will be getting $8 per week extra you won’t miss the money if you set this up before it starts.
Another option it to setup an automatic savings plan with your bank or credit union. Most banks allow you to set this up with just a few clicks of the mouse. Again this is money you aren’t used to getting so why not start the automatic savings plan today? By saving $8 per week at a 2% interest rate (yes you can get this with online banks) for 10 years you will accumulate over $4,200!