Getting a raise at work can feel like such a relief after working diligently for so long. Being recognized for your work is great on its own, but when it comes with more money, it gets even better. If you received a raise recently, you might be unsure of what you should do with the extra money you now get. There are a few things you should consider before making your choice. We’ll go over what to do after getting a raise at work so you can make the right decision for your situation.
Take Care of Outstanding Debt
One of the first things you’ll want to do after getting a raise at work is to get rid of any debt you might still have lingering in your life. Whether it’s credit card debt, student loans, or a mortgage, getting that new level of pay can really help out. You may not be able to fully pay it off, but using some of that new money to make a dent in your debt will take a lot of excess pressure off your shoulders.
Put More Away for Retirement
It’s possible you already do this, but it’s a good reminder to take care of your future self. Saving money for the future is usually a good idea. You don’t want to have to work for the rest of your life, after all. Consider upping the amount of your paycheck that goes into your retirement plan after you get a raise so that you can support a better lifestyle once you do decide to retire.
Create an Emergency Fund
The amount of people that can handle an unseen emergency is unfortunately far too low. Life comes at you quickly, and you never know when you’ll need a rainy-day fund to keep you going. It’s tempting to spend as much of your new money as you can right away, but having an emergency fund can give you a lot of peace of mind in case something like an accident happens or there’s a medical emergency.
Buy Something You Really Want
It’s all well and good to be financially responsible, as that can bring about a certain sense of security and happiness. However, you also need to be able to enjoy yourself. A raise at works means that you worked hard and earned your new level of wealth. Go ahead and check out that fancy new television you wanted or plan the trip you wanted to take. If you can’t enjoy your new money at all, what was even the point of working so hard in the first place?
