Getting a pay raise is reason for celebration! When the excitement wears off, it’s time to decide how best to handle a salary increase. There are all kinds of things to do with a base salary increase in Phoenix – some are more fun than others.
Ten ideas on how best to handle a pay raise include:
1. Paying off bills – Sure this isn’t the most fun idea on how to spend a pay raise, but it’s a great way to tackle bills and enjoy even more disposable income down the road.
For example, if you have a credit card bill that you’ve only been able to pay the minimum on, then use this pay raise to pay that thing off, and you’ll get that great feeling that comes with being debt free. Once you have the credit card paid off, you can start saving money rather than wasting it on the interest building up on your credit card balance.
2. Putting money into savings – If your bills are squared away, putting even a tiny base salary increase into savings is a great idea. Even a small raise can add up to a lot of money when interest is added in. See what kind of interest rate your bank is offering for savings accounts, CD’s, and money markets. Or, if you’d rather take a more risky approach, check out the price of stocks.
3. Sprucing up your Phoenix apartment – If you’ve been thinking about redecorating, this is a great time to make it happen. New furniture, linens and so on can make your Phoenix apartment more enjoyable to come home to.
4. Funding a dream – Of all the things to do with a salary increase, this might be the most fun. If you put your increase into the bank and save it, you might find yourself able to pay for a dream vacation, a new car or even advanced education in no time at all.
5. Spending more on your kids – If you’ve been living a little tight, a salary increase might give you the extra cash you need to enroll a child in dance, little league or another activity they’ve been itching to try out.
6. Moving to a bigger apartment – A pay raise might provide enough funding to enjoy a bigger and better Phoenix apartment. Just don’t tax your budget too much! Look around and compare apartments for the best deals on rent prices, square footage, and amenities.
7. Giving to charity – Sometimes a base salary increase provides the perfect opportunity for giving to charity and enjoying tax deductions. There are a great number of different types of local and national charities to choose from. Most charities hold events that you can participate in like bake sales, run/walks, and other fund raising events.
Below are walks that you donate money to sponsor a walker or to participate in the walk yourself in the Phoenix area. These walks not only help raise money for worthy causes, but they are also a great way to get your exercise in.
- Alzheimer’s Association – Memory Walk
- Susan G. Komen for the Cure – 3 Day Breast Cancer Walk
- American Heart Association – Heart Walk
- Arthritis Foundation Walk
- March of Dimes – March for Babies
- Leukemia & Lymphoma Society – Light the Night Walk
- American Diabetes Association – Step Out Walk to Fight Diabetes
8. Investing in retirement – Buying into an IRA or purchasing stocks or other similar investments for the future is a great idea for spending a pay raise. Start saving and investing your money early for retirement. This way you’ll have more time to put money back on a regular basis and your money will have more time to build interest. If you invest in a traditional IRA or SEP IRA, you become eligable for a tax break.
9. Getting out more – Exploring Phoenix more thoroughly can prove to be a great deal of fun. There’s nothing that says you can’t spend your pay raise having a good time. Treat yourself with your pay raise: go shopping, play golf, or spend a day at the spa.
10. Upgrading job skills – If you want to see more salary increases in your future, this is an excellent idea. Use the money to go back to school or obtain more advanced training. Higher education and training on your resume make you more marketable to employers. Check out College Board for information on colleges, degrees, admissions, and test scores.
There are all sorts of things to do with a pay raise. Even a small increase can go a long way if it’s used wisely.
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