How To Protect Your Income

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How to protect your money

Financial stability is something many aim for. Knowing your finances are rock solid puts your mind at ease and allows you to fulfill other responsibilities. A recent study revealed that 61% of people in the US live paycheck to paycheck. It’s a tough pill but a wake-up call to be more financially proactive. So, here are five practical strategies to keep your income safe and sound. 

  • Start a business 

If you’ve got a regular job but you’re itching to boost your income, consider diving into the entrepreneurial world. It could be a side gig, an online venture, or even a full-blown business. The beauty here is that it’s like planting a money tree. Your effort can grow into an additional income stream, a real financial safety net. Plus, the tax perks and the growth potential are enormous. 

  • Claim tax credits

Taxes can be a pain, but here’s a secret most people don’t know about - tax credits and deductions. They’re like hidden treasure chests waiting to be discovered. These little gains can put extra cash in your pocket, from the Earned Income Tax Credit (EITC) to the Child Tax Credit. So, chat with a tax pro to ensure you’re scooping up every credit and deduction you’re entitled to. 

  • Maximize employer compensation 

Your job is not just about the paycheck. There’s more to it than meets the eye. Have you ever dived deep into your compensation package? It’s worth a look. Health insurance options, retirement plans, flexible spending accounts (FSA), and health savings accounts (HSA) can make a significant difference. Don't leave free money on the table; make sure you’re squeezing every bit of goodness out of your employee benefits. If you’ve got a third-party claim on your hands, you’re not limited to just the workers’ comp system. If someone other than your boss had a hand in your injury, you can file a workers’ comp lawsuit. Having an experienced attorney for workers' compensation cases can come in handy. 

  • Build your retirement accounts

Now, let’s talk about the long game - retirement. You have to plan for the future. And one effective way to do that is by building your retirement accounts. Think 401(k)s and individual retirement accounts (IRAs). These offer tax advantages and the magic of compound interest. It’s like planting seeds that grow into a financial forest. You’re securing your present and a solid retirement by contributing and taking advantage of employer matches. This step takes consistency and discipline

  • Use a health savings account (HSA)

Here’s a little bonus tip if you have high-deductible health insurance plans - the Health Savings Account (HSA). It’s like a double whammy for tax savings. Not only do your contributions (sometimes even matched by your employer) reduce your taxable income, but they’re also 100% tax-deductible. It’s a win-win. In 2023, you can put away up to $3,850 for an individual or $7,750 for a family in your HSA. Watch those funds grow without tax nibbling away at your earnings.