5 Things You Should Do When You Get a Raise

You’ve worked hard, taken on extra responsibilities, and made sure to shine at every aspect of your job. It’s finally paid off and your boss let you know that you’ve been approved for the raise you’ve wanted for months. Your first instinct may be to start dreaming of all the things you can do with your money, but don’t rush out and sign a lease on a brand new car just yet. Naturally you want to enjoy your extra money, but you also don’t want to spend it so fast you hardly notice you ever got a raise. Instead do these things.

Review your tax withholding. Your raise might push you into a new bracket. Use the IRS’s online withholding calculator to see how much should be withheld from your paycheck based on your salary and exemptions. If you need to make changes, complete a new Form W-4 and give it to the right person in payroll or human resources. Otherwise, if you don’t adjust your withholding, you could end up with a tax bill when you file next year’s income tax return.

Don’t count your eggs just yet. A 5% raise might not really look like 5% on your paycheck, especially if you’ve had to adjust your tax withholding. Wait until you get your first paycheck so you can see how your pay really increased post-raise. Once you have a concrete idea of how your raise affects your take-home pay, then it’s safe to start making plans for your money.

Be careful about taking on extra expenses. A few extra hundred dollars in your paychecks makes you feel like you can say yes to anything. Premium cable channels? Go right ahead. Spa subscription? Why not? Another extracurricular for the kids? It will keep them busy. Watch out for lifestyle inflation, which can easily happen as you make more money. If you start taking on new expenses quickly, the extra money from your raise will be gone before you ever really get a chance to just enjoy having more money in your paycheck.

Increase your savings. Rather than spending your salary increase on more “things,” your raise will benefit you much more if you divert it to savings. If you’re comfortably living on your current salary, you won’t miss the extra money if you put it in your savings account. You can build up your emergency fund, maximize your retirement savings, or put money towards a summer vacation. You don’t have to put all the salary increase in your savings – you can split it 50-50 with another goal.

Use the extra money to pay off your debt. Move beyond minimum payments by putting some extra money towards your debt payments. Start by paying as much as you can towards your highest rate credit card and continue until all your cards are paid off. If you don’t have any credit card debt, consider putting extra payments toward your mortgage or car loan to pay these off ahead of time. Make sure you won’t face any prepayment penalties by paying before the scheduled date.

It may be awhile before you get another raise so maintain some financial freedom by avoiding too many new financial obligations.

You Might Know More than You Think About Your Credit Score

When icount surveyed 1000 regular adults in the UK, they didn’t know if these folks would understand much about their own credit scores. And if you asked the people themselves, their answers didn’t exactly inspire confidence. When asked “Do You Think You Understand Your Credit Rating?”, 25.6% responded “No, Not at All”, and 47.6% said “Yes, in Some Ways.” That’s nearly three quarters of those surveyed expressing a somewhat tenuous comprehension of this vital piece of credit knowledge. But, when pressed, a lot of these people seemed to know a little more than they thought they did.

74.8% of people thought that past debts and bankruptcies had more to do with a low credit score than any other factor, which is true. Most (64.1%) understood that reliably paying off credit accounts was another major factor. Again, true. There were some other, more nuanced, criteria which seemed to be a little more confusing,however. These included “Credit Searches” (important to only 47% of people), Usage of Available Credit Limit (33.9%), and Financially Linked Dependents (34.6%). 8.6% panicked like deer in headlights and simply said “I don’t know”, then presumably went and played a credit card operated slot machine.

Understanding credit is important. Having good credit will determine, to a large extent, whether or not you will be able to borrow money for a car or a house. It also determines how much you’ll be charged for the borrowing of this money (fees and interest). While many people don’t have a ground-up knowledge of credit score influencers, this is knowledge that isn’t that hard to acquire or understand. If you count yourself among the 75% (or so) of respondents who don’t know about credit scores or don’t know much, spend a little time learning about the subject today.

Ways to Gain Accomplishment in Spread Betting

Spread Betting is getting more attention nowadays because of the greater rate of returns compared to customary trading accounts. It is a technique to get profits from the increasing and decreasing market prices of different products, shares, currencies, indices, and commodities. With a small percentage of investment, you can open gates to significant tax-free profits, if you trade in the right way. But first, you need to decide on a rational and sensible approach to gain profits in spread betting.

Things to Do Before the Trade

First of all, you need to narrow down your market. Whether your interest lies in shares, foreign exchange, currencies, or commodities – you need to choose and then place the trade. You must also make sense of the market and factors affecting the prices of the market you have settled on, the economical and political conditions of the countries, and the financial instruments which will help you predict the outcome.

It is necessary to keep yourself updated regarded any major declaration and media reports concerning economics to know the working of the world’s economy. News sites such as; The Economist, Bloomberg, FT, and Reuters, also provide trade information that will be useful for deciding the market and predicting the result. Spread Betting jargons which include pips, deposit, offer price, slippage, points, margin, bid price, spread, and stop loss play an important role in understanding what is happening during the trading process. Individuals also need to understand them first before initiating the trade.

Selecting Your Spread Betting Company

There are a number of Spread Betting companies in the UK to choose from. It is important to do your research, and settle for the one that provides the individual with greater advantages and dependability, such as ETX Capital.

You should start it off with small bets to get acquainted with the working of the dealing platform. When you are ready to enter the trade, you need to then strategically plan your moves to know when to enter or leave the trade, and what should be the extent of your bet. This is essential as it will help you reduce the risks and manage it by using different tools and strategies, such as stops and limits.

Drastic increase and decrease are a part of spread betting. However, to secure the individuals against such circumstances, lock profits or setting trail stop-loss can be used. It will lock your profits when things are working in your favour. You gain some, you lose some. When it comes to betting, losing is the part of the package. But reducing the loss and leaving the trade before it is too late is essential. You cannot disregard it or else you will be under a mountain of losses.

These steps are very important for beginners to get positive outcomes from spread betting. The more experience you will gain in the field, the smarter choices you will be able to make to become successful. Firms like ETX Capital also provide consultancy services which you can benefit from, and voila, you will be getting favorable results from spread betting in no time!
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