At one time or another, most of us daydream about what it would be like to win the lottery. The thought of suddenly coming into money sounds incredible and can take up many hours of day dreaming.
While most people don’t ever win the lottery, many do come into money when they have a salary increase or receive a bonus from work. The big decision when receiving an increase in base pay can be what to use the money for. Following are ten fun (and some not so fun) ideas for spending your pay raise.
1. Save
A raise in your base salary can be money you need to live or it can simply be extra money. If the latter is the case, consider saving the money you receive in your salary increase and put it away for a rainy day. The low-risk options for saving your money include savings accounts, college funds, and CD’s. Check out what kind of interest rates your bank is offering.
2. Invest
With stock prices low, this is a great time to buy. You can keep up with prices and your stocks on a daily basis at Yahoo Finance.
3. Take a Vacation
Consider going on a vacation you and your family have always wanted to take. With your raise in base salary, you can afford to put some money away to pay for the trip.
4. Buy a House
Most housing markets are in a slump which is bad news for home sellers but great news for home buyers. If you’ve been thinking about buying a home, consider using your salary increase as either a down payment or money that can go toward paying a mortgage. Visit Bankrate.com to compare mortgage rates.
5. Buy a Car
As with buying a home, consider using your salary increase for either a down payment or monthly payments. With the price of gas as high as it is, consider purchasing a more fuel efficient vehicle. Below are ten steps to consider when buying a new car:
- What kind of car do you need?
- How much can you afford?
- Should you lease or buy your next car?
- Have you considered all vehicles in that class?
- Have you considered all of the costs of ownership?
- Research options
- Schedule an appointment for a test drive
- How to test drive a car
- After the test drive
- Getting ready for the buying cycle
6. Pay Off Debt
If you have debt (and most people do), give some thought to paying off your credit cards. Pay off high interest rate cards first.
7. Home Improvement
Whether you need a total renovation or just some new furniture, think about using your money to pay for some home improvements. Minor improvements can increase the value of your home or make your Chicago apartment look even cooler.
8. Give to a Charity
Giving is not only good for the soul but it can also help you out at tax time. Most charitable contributions are tax deductible. Some charities host events and run/walks that you could also participate in as well. Consider one of the following charities or use the list as inspiration to help you decide to whom you should make a donation.
- Chicago Children’s Charities
- Chicago Baseball Cancer Charities
- National Breast Cancer Foundation
- Alzheimer’s Association
- March of Dimes
9. Take a Lesson
Have you or your children wanted to take lessons for an interest or hobby but you couldn’t afford it? Well now you can. Consider taking the art lessons you’ve always wanted to take or give your child the horseback riding lessons she’s begged for.
10. Relax
You’ve worked hard for your salary increase and now you should enjoy it. At least some of it. Take a day to go to a favorite spa and treat yourself to some pampered fun. Below are reviews of a few spas in Chicago:
Whatever you choose to do with your check, relax and enjoy the fruits of your labor.
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