We’ve said it dozens of times before, but it’s unfortunately still true: inflation is brutal right now. You can try to reduce expenses to put cash back in your pocket, but something that doesn’t get talked about often is fully using the benefits you already have. If you don’t know what you’ve got (or if you’re not using them), now is the time to find out!
Here are Five Fast Facts about maximizing your money through your benefits:
- 🤦♂️💸 No Brainer - Not using your existing benefits is skipping out on free money. The most obvious example of this is an employer matching your 401(k) contributions. That is LITERALLY free money - you put some in, and your company does, too.
- ⚕️ Health Savings Accounts - If you’re healthy (and especially if you’re young, too), it may be better to pay lower premiums on basic health care and instead put money into an HSA or FSA (flexible spending account). These are like bank accounts that you can use to pay those minimal health care costs when they happen. Some companies will match the money you put into these, too, and some may be pre-tax.
- 🏫 Education Stipends - Lots of companies will pay for their workers to take courses, get training, or somehow beef up their qualifications (often even on company time). It could lead to raises in your current role, or to more advanced opportunities in the future. DO THIS.
- 💰 Raises Or Stocks - It’s a worker’s market right now, with many companies desperately short staffed. This means there’s a chance you could negotiate a raise for yourself, or maybe snag some extra company stock. Just be honest about your self-evaluation, and make sure you’re proving the value you bring to the table! And go for a win-win rather than a “victory” over your company; no reason to make things toxic, especially if you’re staying.
- 🌴 Retirement Contributions - If you’re already contributing to retirement accounts like we mentioned above, increasing those contributions could be another way to maximize your long term growth. Some accounts are pre-tax, some are not, but there are usually limits on how much you can put away each year so you’ll need to find out what those are. If you’ve maxed out your company account, you can open others outside of your company plan, too.
🔥Bottom line: Most companies have their open enrollment around this time of year, so it’s a good time to be asking these questions. Find out what benefits you have and see what you can take advantage of that you’re not already using. There may also be things that you won’t use that you can opt out of and save even more money each month. Every little bit helps! Be sure to work with a financial planner to understand your options and risks.
What are the best benefits your company offers?
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