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New Year’s Financial Resolution Tip of the Day: Bank Your Raise

Founded in 1951, the National Foundation for Credit Counseling is the largest serving nonprofit financial counseling organization. Find various topics in this blog, including personal finance, credit counseling, housing, budgeting and student loan help. Click here to speak with an NFCC-certified Consumer Credit Counselor.

By Drew Kessler

In this tight job market if you were fortunate enough to receive a bonus or better yet a pay increase remember this tip: pay yourself first!

Since you were able to live on your original budget before your bonus or income increase you should be able to save and invest at least a portion of the increased income. You might also use the new money to speed up the repayment of your debts. Or, if your budget has been a bit too tight, you might use half of your income increase to improve your quality of life and save the other half.  One thing’s for sure—don’t spend it all.  If you do, you will be running in place—no better off financially than before you received the raise.

Drew Kessler is Vice President of Marketing & Communications with the NFCC.

Views expressed are the personal views of the author and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

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