Where did the money go?!
(My guess: Online shopping and takeout.
Happens to the best of us.)
Instead, you better give your money a job.
She recommends creating a system to use your raise toward your financial goal.
you’re able to use it to pay downdebt.
If you choose this route, tackle the debt with the highest interest rate first.
Focus on paying off debt with interest of5% or morefirst, then work your way down.
If youre not in debtand even if you areyou may want to consider funneling your money toward yourretirement savings.
Karabaic recalled a big raise she once got: from $30,000 per year to $39,000.
Half my raise went into my retirement, and I still felt like I was getting a big raise.
She created a win-win by increasing her discretionary income and bolstering her future financial security.
Or, you might use your raise tosave.
Have a healthy emergency fund already?
You may have a different goal in mind, like upgrading your old vehicle or saving for a home.
If youve already maxed out your tax-advantaged retirement contributions, you may want to set up some short-term investments.
Everyone likes to see progress, and they like to see it right now, like.
How much you should automatically tuck away versus enjoying is up to you.
Enjoy your hard earned money.
(Maybe even order some takeout.)
But dont spend that money without a plan, to help ensure youll save what truly matters.
