Comments on: I Just Got a Raise at Work. What Should I Do Now?

By: Vanessa

Vanessa — Tue, 26 Jun 2018 18:16:28 +0000

Thanks for sharing! There is so much to reflect on after getting a raise. It’s a great time to check in with goals!

By: Suzanne

Suzanne — Tue, 26 Jun 2018 18:15:27 +0000

This was a good read! A raise can be tempting and become “lifestyle creep” or an opportunity to turn the corner on debt.

By: What's the best way to get a raise? - The Financial Scoop

What's the best way to get a raise? - The Financial Scoop — Mon, 14 May 2018 02:57:08 +0000

[…] So what should you do after you get a raise? […]

By: Aaron

Aaron — Sun, 01 Apr 2018 02:24:41 +0000

In reply to Bernz JP.

My “big raise” was tied to a promotion. 3-4% is definitely closer to what I’ve experienced in the past.

Nice job rewarding yourself with the gym membership! I’ve been contemplating using some of my raise to budget for healthier food. For some reason, vegetables can be much more expensive than Taco Bell!

By: Aaron

Aaron — Sun, 01 Apr 2018 02:18:46 +0000

In reply to Michael @ Financially Alert.

“Lifestyle creep” can be a real temptation! I still need to adjust my direct deposit distributions since the raise. I find myself considering a phone or laptop upgrade on payday… Until I manually transfer that money over to my emergency fund account. (“Out of sight, out of mind” would be much easier!)

By: Aaron

Aaron — Sun, 01 Apr 2018 02:12:09 +0000

In reply to Real Money Robert.

“Every dollar should have a purpose,” right? If you don’t revisit your budget, it’s too easy for all of that raise to become discretionary income…

By: Aaron

Aaron — Sun, 01 Apr 2018 02:11:16 +0000

In reply to BusyMom. That sounds like an excellent mindset! I think having some percentage-based guidelines can be helpful to make sure spending doesn't get out of hand... but no need to increase your spending just because you got a raise!

By: Bernz JP

Bernz JP — Fri, 30 Mar 2018 21:13:42 +0000

Wow! 10-20% raise is hefty considering that an average worker’s raise is only 3-4%. That’s probably more like a promotion. You’re right about calculating your new monthly take-home pay first and make sure you factor in the taxes and other deductions. There’s nothing wrong with rewarding yourself for your success and hard work. I rewarded myself a gym membership when I had an excellent raise several years ago, and it was well worth it.
Great advice also on reviewing your 401k contributions. That is long-term planning at its best.

By: Michael @ Financially Alert

Michael @ Financially Alert — Mon, 05 Mar 2018 19:00:12 +0000

Aaron, this is great advice! When you get a raise you can both celebrate and double down on your future. It’s definitely a great time to revisit the budget when you get that raise. The quicker you can re-allocate the new found money into an automated investment, the less likely you’ll have lifestyle creep as you mention. And, the best part is that you really won’t care. 🙂

By: Real Money Robert

Real Money Robert — Mon, 05 Mar 2018 17:50:51 +0000

This is a great post. I especially agree with the section that outlines revisiting your budget. If you get a substantial raise, revisiting your budget is an absolute must! In fact, any time you have any permanent financial change, you should revisit your budget and adjust accordingly.