Can’t Afford a Vacation? Look to Your Paycheck for Extra Cash

Can’t Afford a Vacation? Look to Your Paycheck for Extra Cash

Careful Paycheck Management Can Finance Summer Fun

In tough economic times, it’s often difficult to find a way to afford a summer get-away. Many folks are skipping the usual week at the beach and instead are choosing to stay home and enjoy local activities. While this can be a lot of fun, most people don’t realize that with some astute paycheck management and a little discipline, anyone that gets a tax refund might just have enough extra cash to afford the luxury of putting their toes in the sand this summer.

For those that get a nice refund check from the IRS after filing their tax returns, it may be as simple as taking that money and putting it in a high yield savings account, then not touching it till it’s time to plan a summer vacation. While this might be the easiest way to handle it, other options can generate even more cash.

If you do get a refund every year, you might want to think about adjusting the allowances on your W-4 form. The free paycheck calculators at PaycheckCity can help you figure this out. Your tax liability and what you have withheld each year should closely match. If these two amounts aren’t close, an adjustment will enable you to have more money in each check, all year long. Opening a high-yield savings account, and employing a little discipline to deposit this “extra” cash every paycheck will not only afford you a nice summer vacation, it could also give you even more to spend. The added bonus here is that you have a savings program in place for not only summer fun, but also an emergency fund.

An additional spin on this idea, for those that are truly disciplined, is to use a credit card that gives you points or cash back. The idea here is that, again, you start by putting the extra cash into your high yield savings account all year. Then you use a credit card to charge all the expenses for the vacation. Do not spend more than you have saved, and be sure to pay the credit card bill in full from the savings account. This means that not only are you enjoying the additional cash from the interest rate on the savings account, but you are also getting cash back from all the charges you put on your card. And that can add up to some seriously sandy toes!

About Symmetry Software

Founded in 1984, Symmetry Software is a groundbreaking innovator in tax applications for the internet and corporate intranets. At its core, Symmetry is a software development firm with a high level of expertise in payroll withholding taxes. Our team of software engineers and taxation experts provide leading edge, regulatory compliant payroll software products.  For more information please visit us at www.symmetry.com.

Follow these links for more information about PaycheckCity, private-label Payroll calculators, the Payroll Point Tax Location Service or the Symmetry Tax Engine.