If you’ve just received a raise at your job, congratulations! This is great news and it definitely merits a celebration. But once the excitement of the raise wears off, you may start to wonder what you should do with all that extra money. Should you save it? Invest it? Spend it on something fun?
What you should spend your money on if you’ve gotten a raise
There are a lot of different options to choose from, but in this blog post we will focus on what you should spend your money on if you’ve gotten a raise.
Invest In Stocks:
You may have heard that now is a great time to invest in stocks. The stock market has been very volatile but it is also doing well in some aspects and experts are predicting that it will continue to improve overtime. If you’ve received a raise, this is a perfect opportunity to invest some of that extra money into stocks.
Save For A rainy Day:
It’s always important to have a rainy day fund saved up in case of emergencies. If you’ve gotten a raise, now is the perfect time to start saving for a rainy day. You may want to aim to save at least six months’ worth of living expenses so you will be prepared for any unexpected costs that may come up.
Pay Off Your Loans:
If you have any outstanding loans, such as student loans or credit card debt, paying them off should be a top priority. The sooner you can pay off your loans, the less interest you will have to pay. If you’ve received a raise, use some of that extra money to make a dent in your loan payments.
Resist Impulsive Purchases:
It can be tempting to spend your raise on something fun, but resist the urge to make any impulsive purchases. You may want to wait a few weeks or even months before you make any big purchases so you can be sure that you are making a wise decision with your money. It’s important to remember that just because you’ve received a raise, it doesn’t mean that you have to spend all of the extra money right away.
Remember That Investments Is Better Than Gifts:
When it comes to deciding what to spend your raise on, remember that investments is always better than gifts. Gifts are great and they can definitely bring joy to the recipient, but they will eventually be used up or go out of style. Investments, on the other hand, can appreciate in value over time and provide you with financial security in the future.
Buy Cryptocurrencies and NFTs:
If you are looking for something fun to spend your raise on, you may want to consider buying cryptocurrencies or NFTs. Cryptocurrencies, such as Bitcoin, have been gaining in popularity lately and they offer a great way to invest your money. NFTs, or non-fungible tokens, are also becoming more popular and they can be a fun way to show your support for your favorite artists or causes.
Invest In Bonds:
Another option you may want to consider is investing in bonds. Bonds are a low-risk investment and they can provide you with a steady stream of income over time. If you’re looking for a safe way to invest your money, investing in bonds may be the right choice for you.
Use It As a Down Payment For Bigger Payment:
If you’ve been thinking about buying a house or a car, using your raise as a down payment is a great way to get started. Having a larger down payment will help you get better interest rates and it may even help you qualify for a lower monthly payment.
Save It For Retirement:
If you’re not sure what to do with your raise, you may want to consider saving it for retirement. Retirement is a long way off for many people, but if you start saving now, you will be able to take advantage of compound interest and build up a nice nest egg over time.
Save for Both Short and Long Term Goals:
No matter what you decide to do with your raise, remember to save for both short and long term goals. Having a mix of short and long term savings will help you stay financially secure in the future. It’s important to have a plan for your money and to make sure that you are investing in both the present and the future.
When you get a raise, don’t forget the less unfortunate people in society. If you want to do some good with your extra money, you may want to consider giving it to charity. There are many great charities out there that could use your help and giving back is a great way to feel good about yourself. You may also be able to get a tax deduction for your donations, so it’s a win-win situation.
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There are many different things you can do with your raise, so it’s important to take your time and make a decision that is right for you. No matter what you decide, be sure to save some of your money for the future so you can continue to build up your wealth.
Josh is an entrepreneur and financial expert with over a decade on Wall Street as an economic strategist. His career started in finance, progressed to owning multiple business, and now shares his insights and life hacks with readers of DailyWisely.com.
Josh's work and authoritative advice have appeared in major publications like Nasdaq, Forbes, The Sun, Yahoo! Finance, CBS News, Fortune, The Street, MSN Money, and Go Banking Rates. Josh currently shares his financial expertise in investing, wealth management, capital markets, taxes, real estate, and personal finance on his personal finance site, Top Dollar Investor.
Josh graduated from Cornell University with a degree from the Dyson School of Applied Economics & Management at the SC Johnson College of Business.
Josh is the owner of Top Dollar and Daily Wisely, the former focusing on personal finance and wealth building strategies, while this site focuses on living well and enriching content that Josh curates with his team.