Taxes, like a lot of things in life, are inevitable. And a fact of life is that you're going to have to pay them. When you get your pay stub, it can often be confusing to decipher which money is going where, and how much you really end up with in your pocket. It's wise to know what the country and state is doing with your money. Here's our guide.
This is the big number, your bi-weekly or monthly salary before any deductions are made. So don't take this number at face value. What you really should be interested in is what follows.
Your place of work will have a unique plan that determines which deductions will be taken out of your paycheck, which can include any retirement plan, employee benefits, and any other special items. They can range anywhere from 0 to 100%, so if you're unsure about these deductions, check with your HR advisor, who can go over these items in detail. This will also be outlined in your employee agreement under a "Deductions from Wages" section.
State Income Tax
The state you live in is going to tax you, and these percentages vary, but generally remain under 10%. (Tip: if you don't want to pay state income taxes and are looking for a new job, try out these states!)
Federal Income Tax
This is the big guy, coming from Good Ol' Uncle Sam. Federal income taxes are a huge revenue source for the US of A and are determined by the status you select in your W-4. The percentage ranges from a minimum of 10% to about 40%. Check your rates, here. (Make sure you fill that out, because if you don't, the default is the maxiumum payment.)
FICA: Medicare and Social Security
Acronyms are sometimes confusing, but have no fear. FICA stands for the Federal Insurance Contribution Act. Depending on the amount that you earn, FICA will calculate Medicare and Social Security deductions. The current FICA rate is 7.65%.
Also depending on what kind of benefits you signed up for, these deductions are for health insurance and retirement plans.
Ah, we've made it. This is all yours. Take it, and keep it in a safe place.
There you have it. Taxes, at the end of the day, are a good thing. They help pay for the things we need to run our states and our countries. So next time you get your paycheck, know that you're contributing to the health of your nation.
Want to figure out your own paycheck deductions? Try this handy paycheck calculator tool here!
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.