How far exactly does your paycheck go? These days, you get a hell of a lot less for your money than you used to, and people are trying to find creative ways to lower their outgoings and maximise their income to make the numbers work.
But asking for a pay rise isn’t the only way to get more for what you earn. Although if you deserve one, then by all means ask. But if this isn’t on the cards, here are a few ways to make things less expensive and make that salary stretch a little bit more.
Use Your Employer’s Pre-Tax Benefits
The first place you need to start is by looking at what your employer already offers. Many workplace benefits are structured in a way that reduces your taxable income. This means the government is effectively subsidising part of the cost. This can be via pension contributions through salary sacrifice, cycle to work schemes and childcare vouchers. These all work this way. Before spending your own post-tax money, look at what pre-tax benefit you can make use of and start there.
Check If You Qualify for A Salary Sacrifice Vehicle Scheme
If you’re in the market for a new car, then it might be worth checking if your employer partners with a salary sacrifice provider to offer you a way to get a brand new electric vehicle through your employer without having to pay for it up front.
The cost comes from the gross salary before tax and national insurance, and the result is a lower monthly payment than leasing the same vehicle privately, plus some options include tax and insurance too, bringing the cost down even more. There are a lot of savings to be had if you choose wisely and use this to your benefit.
Check What You’re Not Using
It’s always a good idea to check what your benefits are before considering asking for a pay rise, and uncover what you’re not using. It might be that you get private health insurance, life insurance, or you can access retail discount platforms or receive wellness advances. And a lot of the time, most employees don’t even know they’re entitled to them.
Sit down, have a good read through and see what you can use. Retail platform discounts especially, can account for huge savings over the course of your employment if used correctly.
Ask About Flexible Benefits
This does not apply to all employees, but some might have an option for you to use an allowance to direct towards other benefits you can get use of. There’s no harm in asking, and if they do, you might be able to adjust the benefits you are allocated and get more for what your employer is offering you. There will obviously be limitations, but things like additional annual leave, enhanced health cover or a transport benefit can often be obtained this way and help you out.
There are always going to be employee benefits that are actually beneficial and those that are simply a waste of time. But you never know if you don’t explore your options before asking for a pay rise. Once you know what you have available, you can make the most of them to your full advantage.
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