Dedication to helping consumers make smart insurance decisions


6 things to do when you get a raise at work

No comments
6 things to do when you get a raise at work -

When you get a raise at work, you feel not only great because your job performance has not passed unnoticed, but you also get a better sense of job security. Of course, this also means more money in your pocket, which can lead to irresponsible spending instead of taking personal accountability and invest in your future. What you need to focus on is creating good spending habits immediately.

First of all, you need to prioritize. Ask yourself if these key items you've been meaning to buy are really important. Go ahead and revel in your success conservative, but plan what you need to do before you woman with champagne want to make extra money.

Here are some simple tips on what to do when you get a raise at work.

1. Sit on it for a bit.

Before you begin making new purchases, take some time getting used to the dynamics of your biggest salary. One thing you will notice is that you get more taxed. The more money you make, the more money the IRS will take. For example, the sister of my friend got a raise from $ 10,000 last year, but his paycheck every two weeks only increased by $ 0. So wait and see how this new increase, you actually get to the house before making decisions.

2. Pay off debt.

Do you have credit card debt or student loans? If you have one, high-interest debt, accelerate your payments. Start with the highest interest debt and pay it first, or consider a balance transfer promotion at 0% APR, however, does not mean delay saving for retirement, so remember to always contribute to your 401 (k) and individual retirement account.

Without debt, you will be able to save more money. Not only will you improve your credit score, which can save you thousands in interest payments when buying a house or a car, but you'll also reduce stress, improve your physical health and feel a great sense pride. All this will motivate you to continue to spend responsibly.

3. Adjust your retirement plans.

After reviewing your debt and liabilities, it is time to take your pension plan. If you have more disposable income, you can start maxing out your retirement, especially if your employer offers a 401 (k) matching. By contributing to your retirement, you can not have extra money left for the newest iPhone or a big screen TV, but you will win the future financial security.

4. Review your insurance policies.

Have you all the basics of estate planning? Do you own a life insurance and disability insurance? If not, you are well informed about all the different types of life insurance available beyond any traditional term, whole or universal policies? Re-evaluate your insurance needs to determine if your current policies adequately cover your family's important when you experience a significant increase in revenues.

5. Except for the tax season.

If you are really looking forward to this tax refund, remember that the more you do, the more you are taxed. Having a higher income means that you can be in a new tax bracket and ineligible to take the credits and deductions you are accustomed.

6. Celebrate your success-frugally.

The journey to financial independence does not mean you have to deny yourself anything beyond the absolute necessities of life. Life is a marathon and constant hard work can lead to burnout. An evening of fun can go a long way towards keeping your sanity.

What is important is doing it in moderation. Buying a new gadget or vacation planning should depend on the size of your recovery and you have the budget for.

In short

Congratulations on your recovery! You clearly did a good job and should be proud of you. Celebrate modestly then get back to work for a better future for you and your family.

Have you had a big raise at work lately? Let us know what you have done with the extra money in your paycheck. fun and exciting stories are welcome too!

No comments :

Post a Comment