Giving Yourself a Pay Raise


By o5com

If you ask most people whether they would like to earn a pay raise, they would answer yes.

If you ask them whether their boss is likely to give them a pay raise, they would most likely answer no.

However, there is a reliable way to give yourself an after-tax pay raise in any year and any economy.  This fool-proof strategy is to track your spending and tighten-up your budget.

The power of this strategy comes from the fact that every dollar we spend is taxed before we spend it.  This means that when we find ways to reduce our personal spending profile, we can immediate reward ourselves with an after-tax pay raise.

There are seven steps to this process:

  1. Begin tracking your personal spending with the help of Mint’s free online budgeting tools.
  2. Review your income spending each month to see the source and uses for all of your money.
  3. Determine how much of your spending is a “Fixed” obligation each month and how much is discretionary.
  4. Rank your spending (fixed and discretionary) from the most important to the least important.
  5. Cut out the least important item on your list, and see if it makes much of a difference.  (Chances are it won’t)
  6. Repeat this process next month, finding more low-importance items to eliminate.
  7. Take the money that you are saving (your after-tax raise) and do something intelligent with it, such as investing it for the future.

In the end, you have the power to shape your personal financial future with the decisions that you make.  Instead of waiting for a politician to create a program, take action yourself to build a more productive and more prosperous future.

About these ads
Categories: Personal Finance | Tags: , , , , , , , , | 5 Comments

Post navigation

5 thoughts on “Giving Yourself a Pay Raise

  1. I found this weblog very usefull and I just wanna say thanks. I hope you keep up the great work!

    • Thank you very much. Please take a look around the site. I recently moved quite a bit of content from my blog to this domain, and am organizing the content.

  2. I came here hunting something else, but this inspired me regardless. Enthusing stuff!

  3. Please tell me more about where we agree / disagree. Thanks

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com. The Adventure Journal Theme.

Follow

Get every new post delivered to your Inbox.

Join 603 other followers

%d bloggers like this: