Post # 1
Hi Bee’s. So I am getting a raise starting June, won’t be alot about $140 a month but it will definatly add up over time. I am thinking about allocating half of it to my emergency savings account (since it’s currently totally underfunded) and the other half to my RRSP. What are your thoughts? What do you do with your raise or what have you done in the past? This is my first raise in about 3 years so I don’t want to waste it….
Post # 2
When I get increases, I bump up my retirement savings. I would max out your contributions to your RRSP. After that, contribute to your emergency fund.
Post # 3
I’m a saver, so my first instinct would be to put it into emergency savings or retirement. I’m assuming you’re in Canada, so I’m not sure if there is a max contribution or if your company offers any matching. My husband’s company matches 100% up to 6%, so maxing this out was our first priority and I would highly recommend doing the same if your company offers something similar. Either way, congrats on the raise 🙂
Post # 4
housebee: Unfortunately I work for a small private law firm so no company matching RRSP. I am very tempted to use the entire raise for RRSP since it’s a difference of close to $1700 a year which mean $17000 in 10 years not counting all the interest it will accumulate.
Post # 5
It just goes into savings. We live below our means already and max out all retirement accounts so there really isnt anywhere else it could go. Retirement funds are a priority for us, so I’d put as much in there as possible, especially since its a huge tax benefit. But if you don’t have a huge emergency savings, I’d say 50/50 is a good allocation.
Post # 6
HuysuzAyi33: Congratulations on your upcoming raise!
I also just got a raise too 13% overall raise – WOOOT! Like with any raise I’ve ever had (not that I’ve had that many), I put it into a retirement account. Just this month, I opened a Health Savings Account (HSA) and switched to HDHP (high deductible health plan).
Sincewe have only 6 months left in this year, I’m playing catch up so that’s $550/month they are taking out pre-taxes so I can fund the max of $3300. It will go back down come January so I can spread it out over 12 months in 2015. I also opened a 403b account as well with $100/month. We dont use the HSA money for medical expenses now; it’s mainly for early retirement medical expenses.
Post # 7
- Wedding: November 2012 - Oak Tree Manor
My first month, I buy myself something special to celebrate. After that, I put it all towards retirement. I want to retire as young as I can! 😀
Post # 8
Right now, both of our raises are going towards the wedding. After that, once we get into a new home [which we plan to save for directly after the honeymoon], we’ll begin on emergency savings & retirement.
Post # 9
HuysuzAyi33: LOL…nothing. I got a raise back in January and have very little to show for it!
But I did get myself out of debt so…silver lining???
Post # 10
HuysuzAyi33: I usually like to save, but right now bonuses and raises go towards making higher payments on my student loans. Once out of debt the savings will skyrocket lol
Post # 11
HuysuzAyi33: if you’re not maxing out your TFSA contributions, I would put half into your RRSP and the other half into a TFSA, which can remain liquid for you to use in case of emergency.
Post # 12
I usually put it into savings. A raise looks nice on paper, but once taxes are taken out, my paycheck usually isn’t that much more.
Post # 13
I’d go out to a really nice dinner and then put it towards retirement.
Post # 14
Mrs. Wallaby: I like the idea of buying something nice for yourself the first month!
Post # 15
BurlapnLace: That’s a big win!