$500 a month pay raise!!! What shall I do?

Just got promoted this month... Get paycheck twice a month, 1st paycheck didn't indicate the raise, 2nd paycheck back paid my raise, and it was over $500!!! Woo hoo!!!

Treated everyone in the office with pizzas. What shall I do with this pay raise from now? Any ideas?

Nic

Congrats!

Save it. Retirement fund. Treat yourself to a fun trip using hotels and not hostels.

(i am a saver...all raises go to my savings/house fund, or my retirement fund)

$500?

I suggest that you adopt a new boyfriend from the San Francisco Bay Area.

Ignore Static, adopting someone in Denver is better!!

quote:

Originally posted by static:
$500?

I suggest that you adopt a new boyfriend from the San Francisco Bay Area.

whoa! I sure hope Zopa doesn't read this thread. I bet she'd bring a mean can of whoop-ass to SF.

Congratulations on your raise! From your description it sounds like you've got an extra $500 NET income increase. Depending on your tax bracket, this means you're talking about an even bigger amount of gross income in question.

Investing the raise money, pre-tax, in a 401k plan at work can earn you a serious amount of money. Go to this 401k calculator to see exactly how much money you're talking about if you save that amount for ten, twenty or more years.

If your employer matches your contribution in whole or part, this is a 100% return on investment for every dollar you contribute. For your overall portfolio, try assuming a (modest) 5% average annual return on your investment, and make sure you're sitting down when you see how much money you're looking at.

And, twenty five years from now, I suggest you adopt a new boyfriend from central Indiana.

Congrats destiny,

I'm sure it was well deserved.

Yes, congratulations!

Pick something you've wanted for a while but never bought b/c it was too expensive/unneeded, and get that for yourself.

Then save! Compound interest is your friend.