What not to do after getting a raise

What not to do after getting raise - Career Advice

So you just got a raise and you have all these different thoughts going around your head on what to do with it. If the first thing that comes to mind is “now I can buy a new car” or “now I can take an expensive trip to Fiji”, stop right there. Think about how will this benefit your financial status. While it’s nice to accomplish some of these lifestyle goals, they can do more harm than good.

Here are some tips to help you manage your increased income so that it benefits your quality of life:

  1. Don’t brag – a common mistake people do after getting a raise is letting everyone in the office know about it. Sharing this with your coworkers has its way of backfiring at you. It can invoke jealousy and it will surely annoy your employer.
  2. Keep it professional – have you been waiting for this raise for a long time and your first instinct is to be all presumptuous about it? This is when you annoy your employer the most. Instead of acting entitled to your new raise, keep it professional and keep on doing the good work.
  3. Split the raise – the moment you got the raise you thought “what can I buy with this money”? There is nothing wrong with spending a little bit of your increased income on yourself, but be smart about it. Split the raise 50-50, spend one half on yourself and put the other half to the side. Don’t go crazy with it because it will just cause more problems.
  4. Pay off your debts – whether it is your mortgage, credit card balance or student loans, your first priority should be paying off these debts. After getting a raise, try to pay off your highest debt. It’s proven that doing this will bring you relief and set you on the right track for the future.
  5. Increase your savings – if you don’t have any debts or you already paid them off, create a savinngs account. This is probably even more important than paying off your debts. Make an account that is not easily accessible. This way you won’t be tempted to spend that money and it will be saved for when you actually need it, for example, if you lose your job or decide to switch careers, those savings will certainly come in handy.
  6. Plan your future – finally, the most important thing of it all is to have a good plan for your future. If you don’t want to live paycheck to paycheck, this is a must. Reassess your budget, plan for taxes, and calculate your future raises so you know what to expect.

 

Everyone would like to live like a Rockefeller from time to time, but think about how will it affect your future. Following these steps can help you free yourself from financial stress and be set for the future.

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