6 Things To Do With Your Money When Getting That Pay Raise

#4: Don’t tell anyone about it

1. Act like you never got the pay raise in the first place.

Create another source of passive income for yourself by putting the money to work for yourself in investments. Just because you get a pay raise doesn’t mean you have to spend it. This is a primary reason most people who earn a lot of money still live paycheck to paycheck. They keep raising their standard of living as we are all used to hearing. Want to be an outlier? Act like you never got the pay raise in the first place. Don’t change anything about your lifestyle — except your net worth.

2. Decrease your expenses.

Instead of increasing your expenses, do the opposite and obliterate some of that extra cash obliterating expenses that you can do without. This will increase your pay raise even more. It’s almost like your boss telling you, “Actually, your raise is $30,000, not $20,000. My error. This change will go into effect immediately retroactive from x date.”

3. Re-allocate your investments.

It might be time to put more of your money into one investment over the other. Your investment strategies can go stale if you leave them alone for too long. Maybe you need to allocate more money to more aggressive tech stock (e.g., crypto), or maybe you need to increase your 401k contribution.

4. Don’t tell anyone about it.

Some of the people that lose the most money in life are the people who tell everyone they have money. If you get a new job or a pay raise, it’s okay to share the information with the right people, but some don’t need to know — especially if they’re leeches.

Key example

A guy told his girlfriend he was getting a new six-figure job; next thing you know, she moved in with him, quit her job, stopped contributing towards the bills, and told him she wanted to be a “housewife.” Sometimes, it’s best to keep stuff to yourself. People will want less from you if they don’t know how much you have.

5. Donate to someone in need.

Know someone who’s been financially struggling lately? Sow a seed into their lives. It will come back to you one hundred times over. When you have, give. It’s always better to be a giver than a receiver. The wisest of human beings prefer to give than receive; there’s much more fulfillment found here.

6. Celebrate for free.

A pay raise is worth celebrating because it can put you one step closer to financial independence. Instead of doing what most people do (consuming) whenever they experience a victory, celebrate for free, and save some money. There are plenty of ways to celebrate without spending a dime.

Hey, I’m Destiny. Join my newsletter, and get free books from me daily. Continue reading more finance articles from me: here.

For free personal finance classes, calculators, and more, check out the MOAM reader resource page.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.