Earning more money feels great…until you realize how quickly it disappears. Between taxes, spending habits, and lifestyle creep, keeping more of what you make requires intention and discipline. If you don’t currently have a plan, that needs to change.
Specific Ways to Keep More of What You Make
Not sure where to begin? Here are a few best practices to help you keep more of your hard-earned income, build your net worth, and make your money actually work for you.
- Start With a Smarter Budget
A budget doesn’t have to be a punishment. Think of it more like your game plan for where your money goes. Without one, you’re likely leaking cash on things that don’t really matter to you.
Start by tracking your spending for a month. Where is your money actually going? Then divide expenses into three categories: needs, wants, and goals.
- Needs are non-negotiables like rent, utilities, and groceries.
- Wants are everything from takeout to new clothes.
- Goals are things like paying down debt, saving for a house, or investing for retirement.
If your “wants” category is taking over the rest, it’s time to rebalance. You don’t need to eliminate fun – you just need to make sure your spending reflects your values and long-term priorities.
- Automate Your Savings Before You See It
One of the easiest ways to keep more of your income is to never touch it in the first place. That’s where automation comes in.
Set up automatic transfers from your checking account to savings or investment accounts. Treat your savings like a bill you pay to yourself – something that happens first, not last.
You can also automate retirement contributions to a 401(k) or IRA. This not only grows your wealth, but also reduces your taxable income in some cases, which brings us to the next point…
- Be Proactive With Tax Planning
Taxes are one of the biggest – and most overlooked – ways your money disappears. And while you can’t avoid taxes entirely, you can be smart about how you manage them.
Contributing to tax-advantaged accounts like a 401(k), IRA, or HSA reduces your taxable income and lets your money grow tax-deferred or even tax-free, depending on the account type. If you’re self-employed, explore SEP IRAs or Solo 401(k)s.
- Watch Out for Lifestyle Creep
This one’s sneaky. You get a raise, and suddenly your $40 dinners turn into $80 dinners. Your basic car becomes a luxury one. That apartment you used to love? It’s replaced with a mortgage that eats up half your paycheck.
Lifestyle creep is what happens when your spending rises just as fast as – or faster than – your income. And it’s one of the biggest reasons people making six figures still live paycheck to paycheck.
The trick is to lock in your current lifestyle when your income goes up. Instead of upgrading everything, increase your savings rate. Put the difference toward your investments, emergency fund, or long-term goals. That way, you’re actually building wealth instead of just spending more.
- Work With a Financial Planner to Stay on Track
When your goal is to keep more of what you make, it helps to have someone in your corner who sees the bigger picture. A financial planner can help you design a system that reduces waste, lowers taxes, grows your investments, and keeps everything aligned with your goals.
They’ll show you how to prioritize your spending, protect your assets, and plan ahead. This works whether you’re saving for retirement, buying a home, or just trying to escape the paycheck-to-paycheck rat race cycle.
And if they specialize in tax-efficient investing, even better. That means more of your gains stay with you, instead of going to the IRS.
- Take Advantage of Employer Benefits
If your company offers benefits – use them. It’s money on the table that you don’t want to ignore.
This includes things like:
- 401(k) match: Contribute at least enough to get the full match – it’s free money.
- Flexible Spending Accounts (FSAs): Use pre-tax dollars for medical and childcare expenses.
- Commuter benefits: Save money on your daily transportation.
- Tuition reimbursement: Get help paying for continuing education or certifications.
Too often, these benefits go unused simply because people don’t take the time to learn what’s available. Don’t leave this money behind. Check your benefits package and take full advantage.
- Control Impulse Spending
Impulse spending chips away at the money you could be keeping. The solution isn’t deprivation. It’s awareness.
Use the 24-hour rule: If something’s not planned and costs more than a set amount (say, $50 or $100), give yourself a full day to think it over. You’d be surprised how many “must-haves” lose their appeal with a little time and space.
Keep More of What You Make
You don’t need a higher income to build wealth – you need better habits. When you start treating your paycheck like a tool instead of a reward, everything changes. Use some of the tips we’ve highlighted above to evolve with your finances!
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