Appraisal months are usually months of excitement. And while the element of suspense is always there, it is difficult to pre-plan things before you know exactly what is coming into your bag. Well, we hope the maximum increment for you, good luck! But the biggest challenge that comes with salary increment is what to do with the increases monies.
Most of us unknowingly increase our expenses with an increased salary, and are finally at the same place in life financially, as we were last year.
Well, here are some practical ideas to make sure this doesn’t happen to you this year, and you end up wondering where did all the extra money go!
Spend less, save more
It is human tendency to start spending more on unnecessary things more as income increase. When your salary increases, start investing more, instead of treating yourself with more expenses. Don’t add to your expenses with over-excitement for the new monies.
The best way to save yourself from unnecessary expenses is to invest it in some better place. One way is to buy gold, which is a good thing to invest in, and to have! Install the Augmont app for Android and iOS and buy gold at Best Prices Guaranteed.
Wait a month or two
Wait a little to see what part of the new salary comes to you in hand. Don’t start thinking immediately about what you should do with all the extra money. Wait for one salary message to arrive, reach a tangible amount you know you’re going to get every month, and that’s when you can decide further.
Pay off debts, if any, first
Before jumping into any happy conclusions, think about your obligations that the new amount could fulfil first.
Plan your taxes
With salary increment come increased taxes! Don’t forget to leave some margin in your financial plans. Set aside an amount of the new, increased salary for tax saving first.
Review your budget
Reassess your monthly and yearly budget in accordance with the new salary. The sooner you plan your budget, the easier it would be to plan your savings and investments.
Take care of your existing money, and your incremental money after the appraisal time. Have a good appraisal! 🙂