Many people don’t realize they don’t have to wait on their boss to get a pay raise. You can give yourself a raise by following three steps. Brought to you by FinancialFreedomTool.com.
We discussed pay raises on The BIGG Success Show today. You can do things which may increase your ability to get a pay raise, but you can’t control whether or not your boss gives you one. But you don’t have to rely on him or her. You can give yourself a raise. Here’s a summary of that discussion.
Getting a raise at work should be all good. But many people fall into a trap and end up in worse shape financially. Discover how to stay out of the trap.
We discuss the trap that comes from getting a raise on The BIGG Success Show today. Here’s a summary of that discussion.
This show was inspired by our latest free resource. It helps you quickly discover how your finances compare to an average American in five key areas. (You can sign up below to get your free copy.)
Do you think a pay raise is a good thing? Of course, it is. Right? But only IF you understand the inherent problem that comes with it. That’s what we want to discuss with you today. Read more
https://biggsuccess.com/wp-content/uploads/2019/04/How-Getting-a-Raise-Can-Cost-You-blog-post-image.png430448George Krueger & Mary-Lynn Fosterhttps://biggsuccess.com/wp-content/uploads/2015/07/BIGG-Success-Nurturing-Your-Inner-Entreprener.jpgGeorge Krueger & Mary-Lynn Foster2019-04-23 00:00:502019-04-23 14:15:11How Getting a Raise Can Cost You
We try not to make financial decisions in a vacuum. We strive to factor in all the relevant pieces before making a major purchase. But there are some costs that we often fail to factor in that can make a significant difference.
We expect a certain percentage pay raise. So we spend money as if it has already happened. It’s especially important in times like these that we don’t spend money before we know we have it.
Another thing we often do is count on a bonus. If it doesn’t materialize, we’re in trouble as we learned from Clark Griswold in Christmas Vacation. We sure don’t want our brother tying up our boss!
What about increased insurance costs? Is it likely that you’ll pay more for health insurance next year? How about insurance for your house or car? Insurance costs can rise significantly from year to year.
Do you have a variable rate mortgage? Have you considered a projected increase in the rate and the associated increase in your mortgage payment?
Have you thought about what might happen with recurring expenses?Cable bills, power bills, and water bills all seem to rise from year to year.
Affording it now isn’t good enough
You may finance a major purchase. Sure it’s only $100 a month. You can cover it now. But if it stretches your budget to its limit, it’s likely you won’t be able to cover it next year. You’ll start sinking and soon end up underwater, in a financial sense. You’ll run out of money before you run out of month!
It’s important to have a safety net – spending less than what you make each month.
A tool businesses use
We often don’t think about it this way, but we all run an organization – our households. Just like any organization, we have inflows and outflows of money.
Reasonably sophisticated business people work from a budget. Yes, the “b” word. Many people do treat budgets like a dirty word. But they’re a great tool.
And they’re especially important if you don’t have any money left over at the end of the month. It’s important to understand why. You can use Quicken, Excel or any number of ways to create your budget.
Many business people don’t just budget for one year. They look at projections over three years or more. These budgets don’t have to be elaborate – just plot out your main sources of inflows and outflows.
The power of the tool
Once you have a budget set up, you can look at “what if” scenarios. For example, what if:
you don’t get a pay raise
you (or your spouse) lose a job
the cost of health insurance (or any other cost) rises more than you expect?
you make this major purchase?
When you create a budget, you’re applying Stephen Covey’s “begin with the end in mind” and “put first things first” (from The 7 Habits of Highly Effective People) to your finances. You’re considering all your costs – both now and in the future. Then you can see the impact of major purchases on your overall finances so you make the best decision going forward.
You can run your finances intentionally, rather than ad hoc. You can prepare for contingencies so you survive no matter what. Then you can shift your focus to thriving!
Thanks for stopping by today. Next time, we’ll discuss how assumptions we make about time leave us overextended. Until then, here’s to your bigg success!
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
We try not to make financial decisions in a vacuum. We strive to factor in all the relevant pieces before making a major purchase. But there are some costs that we often fail to factor in that can make a significant difference.