Getting a pay raise can feel very rewarding. Whether it comes from a recent performance review, promotion, or a new job, a pay increase is an accomplishment to be proud of and a cause for celebration. Often, this would include spending some part of your well-deserved raise.

However, you must carefully consider how you spend your extra money and be certain you’re making wise, practical financial judgments. This way, you can be confident you’re putting your hard-earned money into good use.

If you’re looking for things you can spend on after getting a pay raise, here are some ideas might want to consider:

Home Appliances

One of the things many people buy as soon as they get their pay raise is a new home appliance. This can be a great choice, especially if you’ve been meaning to replace an old item for a while but didn’t have adequate funds before.

When buying large home appliances such as a refrigerator, washing machine, or air conditioner, prioritize quality so you can ensure they won’t conk out so soon. Do your research and look at reviews before your purchase. It’s also a good idea to look for energy-efficient models that can help lower your consumption. Note that these are usually more expensive, but they’ll be worth it in the long term. If your pay raise isn’t enough to purchase a quality appliance, consider supplementing your budget by availing of Cashalo’s own buy now pay later program.

Gadgets

Another popular item to buy with your raise is a new gadget. If you’ve been eyeing something for quite some time now, getting a pay raise is the most opportune time to finally make the purchase. Similar to buying home appliances, make sure to do your research first and check out online reviews before purchasing the gadget of your dreams. This way, you can be certain of the quality and functionality of the device.

In addition, carefully consider the purpose of getting the gadget and make sure it isn’t an impulsive buy. Do you need it to replace your busted one or to upgrade because your needs have changed? If you’re positive you need the gadget, have thought things through, and you’ll be using it for an important reason, then go ahead and make the purchase. 

Home Repairs or Improvements

Getting a pay increase is one of the best times to do some home repairs or improvements. The additional funds could make a difference when it comes to making your home safer and more comfortable. Aside from buying supplies, the extra money can also be used to hire professionals with the knowledge, skills, and tools. This way, you can be sure of the quality of the results.

Of course, you can still go the DIY for some simple projects. That said, getting professional help is wiser for major renovations or changes, like turning two windows into French or sliding glass doors.

A Vacation

Going shopping isn’t the only way you can celebrate your pay raise. You can also divert the funds into creating new experiences. For example, you can use your raise to fund a weekend trip with your loved ones. This is a great way to celebrate your accomplishments, too. Alternatively, you can save your money to plan your next trip abroad. You can open a separate bank account dedicated to your travel funds so you won’t be tempted to spend the money other than for the trip.

Savings or Investments

If you don’t need to make an immediate purchase or funding, one way to utilize your pay raise is to save it. You could add the money to your savings account to help you build up the funds you can later use for major purchases or in case of an emergency.

Apart from setting the money aside for later use, you can also look at using your raise to invest in your future through money market funds or a stock portfolio. It won’t just safe-keep your money, but will also help it grow over time. When picking this option, it’s best to consult with a financial expert who can guide you to make investment purchases.

Insurance

Aside from saving and investing, you can also consider using the money from your pay raise to buy a life insurance plan. This ensures you and your loved ones will be protected should anything unfortunate happen to you. Also, many insurance products nowadays are often bundled with some type of investment you can use to grow your wealth. To know what would best suit your needs, talk to a financial advisor.

 

A pay raise is definitely worth celebrating as it signifies progress in your career. However, you must carefully think about how you’ll spend the money. After all, you’ve worked hard for it and wouldn’t want it to go to waste. Hopefully, these recommendations can help you decide on practical and fun ideas for spending your well-deserved raise.