Save Your Raise Instead of Spending It

A raise is always important to your budget, no matter how big or small it is. If it’s already difficult for you to get by with your current salary, it might be better to take the extra money from your pay raise and transfer it into your retirement account instead of your bank account.

“Try not to expand your lifestyle if your salary grows,” recommends John Sweeney, head of wealth and asset management at Figure. “Put all that away instead of deciding to buy a nicer car or [a] bigger home.” This way, you won’t have to endure a lower standard of living in retirement.