You Got a Raise! Now What?

So, you got a raise! Now, it’s time to start putting that money to work for you. While your first thought might be shopping spree, consider instead these other options that will build your wealth and secure your financial freedom.

Have Realistic Expectations

Your raise may sound like a lot, but once you receive your paycheck, you may be surprised to find how little your take-home pay actually changed. Don’t make plans based on a quick mental calculation. Get the actual amount from your paycheck to know how the raise will actually impact you.

Make a Plan

Of course it’s okay to reward yourself a bit for working hard and getting a raise. But don’t just pocket the extra money and add it to your fun budget. Check your savings, credit card debt, and investments to see which areas can use a boost, and put your raise there. You can decide to put three months’ worth to pay down your debt, and then take a one month break to splurge. Consider your financial goals and how every dollar makes a difference toward reaching them.

Increase Your Emergency Savings

In an ideal world, you should have a three to six month cushion in your emergency fund. If you already have a sizable emergency fund, then you don’t need to worry about saving more with your increased income. Otherwise, saving more now will mean less stress later when an…

Sasha Harriet

Sasha Harriet

As content editor, I get to do what I love everyday. Tweet, share and promote the best content our tools find on a daily basis.

I have a crazy passion for #music, #celebrity #news & #fashion! I'm always out and about on Twitter.
Sasha Harriet

Latest posts by Sasha Harriet (see all)

More from Around the Web

Pin It on Pinterest

Share This

Subscribe To Our Newsletter

Join our mailing list to receive the latest news from our network of site partners.

You have Successfully Subscribed!