What To Do When You Get A Raise

In this episode of Career Tools, Wendy and Amanda discuss strategies for managing a raise. They advise listeners to initially "pretend it didn't happen" by maintaining their current spending habits and saving the extra income. The hosts caution against lifestyle inflation, where increased spending negates the financial benefits of the raise and can lead to long-term financial strain. Instead, they recommend investing the difference in areas such as retirement, emergency funds, or debt repayment. Finally, they suggest making strategic upgrades that offer long-term value, such as investing in health, skills, or quality items, emphasizing the importance of thoughtful financial decisions to avoid becoming trapped in a cycle of paycheck-to-paycheck living.