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Don't Spend Your Raise - Save It!

05/15/24

Receiving a pay increase – or landing a better-paying job – is certainly exciting, but don't immediately spend your "windfall." Consider putting the "extra" money towards savings or paying off debt.

Say your pay has increased by $100 per month. If you don't have an emergency fund, consider setting that $100 aside for the next six months to create a small emergency fund. Or you could choose to put the additional $100 towards paying off a credit card or other loan.

Here's the key: If before you received the pay increase you were able to live within your means, keeping your spending at the same level frees up the additional cash for investing, for paying off debt, or for making a purchase that you otherwise would have financed. If you do nothing else, consider immediately increasing the percentage of your pay that goes into your 401(k) account; when the money is automatically deducted from your pay you can't miss what you never "had."

Personal – Saving, Planning & Budgeting

Ready to explore how Sunflower Bank can assist you? Speak to a personal banker at a branch near you, contact a specialist on our Wealth Management team, or find the right financial partner on our Commercial Banking team for your business needs. 

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This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.