Things To Do When You Get A Pay Raise
When you are a smart investor you will know the importance of investing money besides merely saving it. For the enthusiastic investor, the shortage of funds or the shortage of time would not be an excuse for investments. If you are running short of time you can choose automation tools like Crypto Code. If you are running short of money for the investment you can start small with small-cap stocks and then once you have grown your funds you can invest the money in other areas. This is the case with investing with your regular income. Consider those special occasions where you have got a bonus or a sudden hike in your salary, it definitely calls for a celebration. But along with the celebration focus on the delayed gratification as well and set aside some money for other useful purposes that make financial sense.
- Build your emergency fund
Use the extra money made to increase your emergency funds. These are funds that you would be using when there are sudden expenses that cannot be postponed, the ones that are not part of your usual expenditure plan. There might be different types of emergencies and there are various investments that can be made as emergency funds.
- Open a long-term deposit
Long-term deposits could be opened with the entire capital you have as surplus. This would stop you from spending the whole money on something impulsively. So your funds remain safely stored in another account for a future expense and you would also be getting an interest in it.
- Clear off a debt
Use the excess money to repay any debt. If you have loans that allow convenient pre-closure you can even close those loans with the money at hand. But make sure that you understand the fees charged by some institutions for the early closure of the loans.
- Consider your retirement planning
Rework on your retirement plan when you have extra money. You can choose to increase the premium paid or even plan on paying the taxes that you had earlier deferred for your retirement accounts.
- Tax payment
Early payment of taxes can be beneficial in several ways. So you can use your extra money to pay the taxes in advance and avoid the financial burden in the coming months.
Also if there are insurance policies that you would have to renew any time soon, use your excess funds to cover that expenditure.