Got A Pay Raise? Sensible Ideas On Spending It!
June 13, 2017 by Staff
Filed under Money/Business, Weekly Columns
(Akiit.com) It’s always a good day when you get paid! The feeling of being (technically) out of debt for a little while feels good, and then you have to pay the bills and the rent, and you’re back to square one until you get paid again. It’s difficult being on this type of treadmill, which is why it’s amazing when you get a pay raise. And although you might be tempted to buy those purchases you’ve really wanted for some time now, here are some things that you need to think about before buying that home gym made of gold.
Wait!
Really? You might be surprised to hear that a lot of your pay raise
gets sucked away by taxes. So until you really know how much you’re playing with at the end of every month, you’d best apply the brakes. If you can’t wait too long, do some basic math based on your first new paycheck to work out how much you potentially have leftover at the end of every month.
Plan For The Future
It may sound like a boring and sensible thing to do, but do you want to be working into your eighties? Preparing for the future, either by adding to your retirement fund or purchasing a property that is a worthwhile investment will be the life saver you may be grateful for. Lots of people place their money into a property and then rent it out over the years to get a handy pot of cash they can use in retirement. Depending on your pay raise, you may wish to buy a place that is trendy and has lots of luxury amenities on its doorstep. A place that is a cut above is likely to have more takers and a certain caliber of tenant. Don’t forget that as a landlord, you will be responsible for the maintenance of the property, so if you can afford the time, then it’s definitely worth thinking about.
Growing Up!
You may be keen on taking your relationship to the next level, or you may be happily married already, but financial security is a benchmark to aspire to. We’ve all got debt hanging around our necks, and it can be a big stressor in most couples’ lives. So, if you can pay off debt, it could mean the difference between having that dream wedding you have always wanted and going to the registry office to get it done one afternoon for cheap!
If your main items of debt are paid off, it frees you up to buy a better car, bigger home (or even your first home) and just having a better lifestyle. While money isn’t everything, a pay raise can be the solution to all your problems. You could be renting a small home because that’s all you could afford, and yes, everyday items are nice to buy when you get a windfall, but they aren’t solid investments. Try these, and you’ll be able to better provide for you and your loved ones now and in the future.
Staff Writer; Karl Jones