Income Tax Calculator from Money Saving Expert
The clever people at Money Saving Expert have put together a income tax calculator to show you how much income tax you will be paying in 2013/14 and more importantly how much income you will have left over.
Here is how the income tax calculator works below. With the example of a £18,000 salary, the calculator shows that one would pay £1,712 in income tax, £1,230 in National Insurance and that the overall take-home salary would be £15,058.
Click on the following link to try the income tax calculator
The income tax calculator allows you to calculate your actual take-home salary for the year. Once you know how much is going into your bank account, you can start to allocate your income specifically towards rent, food and other expenses. Getting your finances in order can also help your calculate your disposable income so you can put some money away for that dream holiday you’ve been thinking of.
How much of your salary should you save?
Saving is very important too because we never know when an emergency will strike and we will need the money we’ve put away for a rainy day. According to nomoredebts.org, an American website helping citizens manage the finances, this is how we spend our income:
Clearly most of your savings go to pay for housing such as rent or a mortgage. Food and transport are also things taking up your take-home. The findings show that not on average, only 5% of salaries is kept for savings. Most financial experts suggest saving 3-6 months of your monthly salary for an emergency fund, this is around 25%-33% of your wage. But obviously, we all have living expenses and cannot save as much as we’d like to.
For ways to save on everything things around the house, see our following blog posts:
By Daniel Tannenbaum
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