The only day better than Friday is Pay Day -- and this payday, according to The Treasury Department, 90% of the workforce should be seeing a bump in their paycheck! Let's take a second to give a shout out to The Treasury Department.
After President Trump signed the $1.5 trillion tax overhaul plan into law, employers were given new limits on how much money should be withheld for income taxes. And today is the deadline for this to officially take place. So look at your paycheck and see if you are one of the many who received a little extra padding in your wallet.
So what will you do with your extra spending money? According to CNN, many of the 300 readers who responded to this question stated the increase was too little to make a meaningful difference in their lives. Don’t believe it!
Even if your pay increase is only $40 a month, I would encourage you to make that $40 work for you by investing into your 401k.
If you had $0 in your 401k as of today and you decided to invest that $40 each month for the next 420 months (35 years), you would have invested a total of $16,800. With just a 7% annual rate of return, that $40 a month over 35 years becomes $68,844!
Let's take that would-be chump change and give it a chance to make some real difference for you, as a contribution in your 401k. Yeah, I'll say it. Make it "Trump Change."