Due to inflation earnings might be adjusted with the inflation rate. This could give you a great opportunity to save some cash. Most people once they get a pay raise will start spending more money than they previously did. But you don't have to. If you get that raise, regardless of how little or how much the pay increase is, send it straight into your savings account.
I think it's great to save any kind of pay raise, as there is no need to increase the amount that you are spending on a monthly basis. This means that you could put the money aside to have a good holiday, or to put aside for retirement if this is something that you are thinking about at the moment. I know that whenever I earn more than I was expecting, I will always put the money aside, as this means that it is available to me at a later date, which is something that can very often come in handy for me.
This such a fantastic idea, but i've never thought of it that way. It's always such a small amount that you don't see it making much difference, but it truly is worth a go. If we do online work that pays us peanuts and don't mind having cents slowly accumulate, why not do it from our own pocket? I'm definitely up for trying this out, although it won't be a while until I get any sort of raise, being a freelancer
Whenever I received a raise, I tried to budget and spend according to the old salary. This way, I may be able to save the additional income that I have received. Also, income from part-time are also saved.
When I get a raise, I normally spend it on something that can be called an investment like a new car or a new living room sofa set. But for excess money, I still keep it in my bank account for the so called rainy days. I had developed that habit of saving money so when I get an excess money, my volition is to save and plan on what better use for it.
I don't exactly think about saving my raise. I mean, I just save when I can and when it's possible to do so. What I usually do is set aside a certain amount every month or pay day (if there are no other important expenses to consider). I have some freelance gigs and my earnings from there all go to my personal savings until further notice. In my country, we have this so-called 13th month pay. Employees from private firms usually receive this before December 24th. I do save a great chunk of my Christmas bonus (as people fondly called it) and add it to my savings.
I think a lot of people will now find it harder than ever to do this. The level of inflation in my country is ridiculous, and when we get a salary increment you'd think it'd be in line with the inflation rate. Eh, it's usually lower. Since the financial crash, we're all feeling the pinch and saving is now like a luxury. That's partly why I keep my online ventures going, because that way I have a little to put aside.
