Sign up for your free Credit.com account    Sign Up Now
From the Experts at Credit.com

How to Make the Most of a Raise

Advertiser Disclosure

man checking his finances on a laptop

There’s a 50/50 chance you’ll get a raise in the next year—at least according to a recent survey that found about half of all American workers (52%) got a raise in the past 12 months.

That may seem like good or bad odds depending on if you’re a glass-half-full or a glass-half-empty person. But according to economists, it’s reflective of how much progress the U.S. needs to make before it fully recovers from the 2007–08 financial collapse.

Raises and annual bonuses used to be a mainstay of having a job, but have been few and far between since the Great Recession. Today’s average hourly wage has about the same purchasing power it did in 1978 after adjusting for inflation. Don’t be discouraged though —getting a raise isn’t impossible—sometimes it’s only a matter of asking. As many as 84% of people who ask for a raise get one. And if you do get a raise, it’s all the more reason to be intentional with your money. To ensure you’re making the most of your raise, take these seven steps now.

how to make the most of a raise

Getting a promotion can backfire, but whether your raise is due to a promotion or not, if you practice some restraint and are intentional with your spending, you set yourself up a successful financial future. Getting a raise is a time for celebration—you’ve worked hard and you earned it! But, before you buy top-shelf bubbly, take a minute to make a conscious decision about what’s right for you and your money.

Sources: Economic Policy Institute | Pew Research | Bankrate 1, 2 | Jobvite


Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.


Sign up for your free Credit.com account. Learn More

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.