FITNESS INSPIRATION – DAVID BUTLER

Maximizing Your Raise: Why You Should Increase Retirement Savings Along with Your Income

Getting a raise is a great opportunity to increase your savings, including your retirement savings. In this post, we discuss why it’s important to raise your retirement savings along with your income, and how to do it.

• When you get a raise, it’s easy to fall into the trap of lifestyle inflation, where you increase your spending to match your higher income. However, this can be a missed opportunity to increase your savings and build long-term financial security.
• One of the best ways to take advantage of a raise is to increase your retirement contributions. If your employer offers a 401(k) or other retirement plans, consider increasing your contribution percentage to take advantage of the higher income. If you’re already maxing out your contributions, consider opening an IRA or other retirement account to continue building your savings.
• Another important step is to increase your automatic transfer to savings. By setting up automatic transfers from your checking account to your savings account, you can make sure that a portion of your income goes towards savings each month. This can help you build an emergency fund and other savings goals over time.

In conclusion, getting a raise is an excellent opportunity to increase your savings and build long-term financial security. By upping your retirement contributions and automatic savings transfer, you can take full advantage of your higher income and set yourself up for a comfortable retirement.