Receiving a raise is either a good way to become frivolous with your money or to help you to further your financial goals. How it ends up affecting you and your financial situation depends entirely on how your spending acumen has been honed through personal experiences, training and upbringing. We are going to relay five different ways to spend a raise. Not all of them will help you to get to your retirement goals sooner, but we don’t want to leave anything out.
The first way you can spend your raise is to blow it on hookers and booze. This is a horrible option, but none the less, it is one that many people in your situation use so we thought we should mention it first. In movies like Wolves of Wall Street you see characters playing wall street brokers wasting their money, and their time, on large parties with strippers, wild animals and other frivolous things. Do not fall into this trap! It will consume you.
Another way people spend a raise is to treat themselves with something they don’t normally allow themselves to have. This can be a good thing in moderation. However, buying a Ferrari or going on a cruise and having nothing to show in the end is a poor man’s game. Many people get raises and still many more get them for large amounts of what seems like never ending money. But we all retire at some point and having a little or a lot left over can be the difference between happiness and just wishing you, would kick the bucket already. One way to splurge while saving money is to use the Moms Bang Teens discount as it will give you an instant $25 in savings. Now I know what you are thinking, “But that is a one time savings. How will it help me in the long run?” That answer is that this is a lifetime discount so you save every money you stay a member. Not a bad way to get your rocks off and keep your money if you were to ask me.
Of all of the different ways to save this next one is one of my favorites. You can take your raise and give it to somebody else in need. The site Go Fund Me has many interesting people in need of your cash. Giving a portion of your money away will give you a good feeling that is hard to explain, but definitely can be more rewarding than rewarding yourself.
Sometimes it is good to think of others when you have a windfall and who better to spread it around with than those you work with? It is actually customary in many countries for an employee to take their coworkers out for drinks when they receive a raise. Promotions are an even bigger reason to get on your coworkers good sides. After all you will have to deal with them now.
Finally, the best way to spend your raise is to save it for later. You will have to institute some self control with this one, but in the long run you can seriously save yourself some headaches in the future. By saving your money now in a tax-deferred retirement account you can more quickly obtain your goal of being financially secure in retirement.
So there you have it, five ways you can spend your raise, some good, some bad. The ultimate decision is up to you!