Congrats! It’s a significant achievement when you get a raise at work and makes you feel like a valuable part of your company. Enjoy the success of your hard work and remember it’s essential to continue to grow your net worth. Now, let’s put that extra income to good use!
Figure Out Your New Take Home Amount
After you get a raise, don’t start spending your money. Review your current financial situation, as this is the perfect time to plan for your financial future. First, calculate how much you are going to take home. For example, if you get an annual raise of $3000, that doesn’t mean your additional take-home pay will be close to that. To determine your net pay increase when you get a raise at work, subtract your old paycheck from your new paycheck. This will help you find out the difference in your monthly take-home.
Clear Current Debt
If you are trying to get rid of debt, a raise could be the best time to enhance your efforts. Start with the high-interest debt. You will feel gratification just knowing you are moving in the direction of being debt-free.
Emergency Fund
Develop your emergency fund. Create a separate savings account that will become your emergency fund. This account is only used to cover the expenses of an emergency. If something fails in your house, your car is having issues, or if someone in your family loses their job — you will have the money to rely on. When you get a raise at work, save your earnings by investing in your future.
Retirement
Contribute to your retirement fund. Even if you just increase your monthly retirement contributions by one percent, it can impact your stability for your future planning. Make your payments automatic, so you don’t have to worry about transferring money each month.
Enjoy Your Hard Work
When you get a raise at work, it is a cause for celebration! Identify your new financial opportunities and a fatter paycheck. When you put your hard earned cash towards long-term benefits, you’ll see your money grow and on your way to planning your financial future. Here at DEXSTA, we want to help you with your future financial goals. Call, visit us online, or stop into one of our branches. We look forward to serving you.