JACKSON, MS (Mississippi News Now) -
Congress' fiscal cliff and tax rate hikes for the wealthy were all we heard about at the start of the year. What we didn't hear about was the average Joe's losses. Every working American will see, if they haven't already, a social security payroll tax rate increase in the form of a 2% loss in their paychecks.
"You know you're looking at a cell phone bill, possibly you're looking at not having as much to spend at the grocery store," said Vicki Hart, Wells Fargo Bank's District Manager for Central Mississippi.
Hart said 2% may not sound like much but that's $50 less a month if you make $30,000 a year. If you make $90,000 annually, expect $150 dollars less to work with monthly. To calculate your losses, you take your annual gross salary and multiply by .02 and divide by 12.
Instead of letting the drop in pay get the best of your wallet, Hart said get ahead using this time as an opportunity to manage your money wisely. Wells Fargo provides a free online service at handsonbanking.org that provides savvy money saving strategies. Another suggestion is to meet with a banker and cut back where you can.
"Look at rolling up your credit card debt to save you some money, automobile refinance rates are good at this point, homeowner refinance rates are really good," said Hart.
Sherry Rainey, the Regional President of CredAbility said making minor modifications in your spending can add up and help you reclaim the new gap in your paycheck.
"Maybe brown bag it rather than eat out for lunch every day and see that money grow," said Rainey.
Most banks have online tools to help you get your finances in focus. One resource is Well Fargo's handsonbanking.org. Also, CreadAbility is a non-profit organization that offers free budget and credit counseling services nationwide. You can contact CredAbility at 1-800-251-2227 and go online at www.credability.org
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