When it comes to what to do with the extra cash, what makes the most financial sense?
BUFFALO, N.Y. (WKBW) - According to the Department of Treasury, 90% of people will see an increase in their take-home pay under the new federal tax law.
For many Americans this new tax reform means more money in their paychecks.
The amount will depend on your income, pay-period length and filing status.
7 Eyewitness News took that question to Todd O'Geen, M&T Bank Commercial Branch and Vice President.
"When you get this increase, pretend like you never did and put it into a savings account," O'Geen said.
- Set up an emergency fund. "There was study done by the federal reserve back in 2017, that showed that 44% of Americans don't even have $400 set aside for an emergency," he said.
- Increase your 401K. The same study showed that many adults have no savings for retirement.
- Pay down debt. "Increase your monthly payments," O'Geen said.
- Open a 529 College Savings Plan.
Experts say the bottom line: if you can don't spend the money... save it.