The 7 Worst Things You Can Do With a Pay Raise

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You've landed a huge promotion and a raise -- congrats!

But before you ring up the champagne, let me provide a sober word of warning: Don't let this next rung on your career ladder be the beginning of the end of your financial health.

Sometimes, a raise can turn into a curse instead of a blessing. Here are seven common but ill-advised ideas for spending that extra money.


Paula Pant ditched her 9-to-5 job in 2008. She's traveled to 30 countries, owns six rental units and runs a business from her laptop. Her blog, Afford Anything, is a gathering spot for rebels who refuse to say, "I can't afford it." Visit Afford Anything to learn how to shatter limits and live life on your own terms.

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23 Comments

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Saad

This is a garbage article. Don't start a business? Don't give money away? Don't have a better standard of living even if you can afford it? What are you smoking Paula? Do everything opposite of what Paula tells you people, she is only trying to hold you down and prevent you from achieving your dreams!

July 20 2014 at 5:08 PM Report abuse +1 rate up rate down Reply
ectullis

But who is working?

July 20 2014 at 2:30 PM Report abuse +1 rate up rate down Reply
Iselin007

d.barack
No, it's PANT
=====================================
Thanks for the correction.

July 20 2014 at 2:01 PM Report abuse rate up rate down Reply
Iselin007

She is lucky they don't fire her never mind a raise. They'll give her a raise right out the door.

July 19 2014 at 11:26 PM Report abuse -2 rate up rate down Reply
Iselin007

What a joker, a raise large enough for a down payment yet.

July 19 2014 at 11:10 PM Report abuse -1 rate up rate down Reply
Valerie

Another dumb cut-and-paste "7 Things" article written EVERY DAY by Paula Pant. She needs to get a real job.

July 19 2014 at 8:38 PM Report abuse +3 rate up rate down Reply
1 reply to Valerie's comment
Iselin007

Is Plant her real name or is she just another visa worker trying to stay low until another amnesty bill is passed.

July 19 2014 at 10:59 PM Report abuse -1 rate up rate down Reply
weilunion

How many readers got a pay raise? We can't even get minimum wage raised. All lies from the corporate bulletin all the time

July 19 2014 at 7:49 PM Report abuse rate up rate down Reply
1 reply to weilunion's comment
jdykbpl45

Welcome to the Huffington Post. Source of lies, misinformation, and pandering.

July 19 2014 at 8:14 PM Report abuse +3 rate up rate down Reply
petpetdon

I am sure with this economy if people have a job and get a raise they are buying food with that money. I was making 12 bucks and hour and got a 1% raise, yep, 12 cents. I told my boss that I was so happy with the raise because I could now buy that villa in Italy.

July 18 2014 at 5:33 PM Report abuse +4 rate up rate down Reply
1 reply to petpetdon's comment
weilunion

Yeah, this raise thing is aall made up. Most do not even have steady jobs let alone get a raise

July 19 2014 at 7:51 PM Report abuse rate up rate down Reply
classof68gto

In my working years I used to put the raise in my 401k and just increased it.

July 18 2014 at 5:10 PM Report abuse -3 rate up rate down Reply
grudgrime

So what should you do with a pay raise? Stuff it in a mattress, Dream about moving into a better place (by the way Paula, an apartment is not a PERMANENT expense, they are usually leased by the year), count it every now and then and be thankful that I got the raise because counting my money gives me something to do since I can't upgrade my lifestyle.

Seriously, How about making sure your savings reflects your new lifestyle and several months payments (incase of emergency) and just budget to stay within your limits.

July 18 2014 at 4:24 PM Report abuse +4 rate up rate down Reply
1 reply to grudgrime's comment
weilunion

The new life style you refer to is called debt servitude. Enjoy it, it is your pay raise and retirement

July 19 2014 at 7:52 PM Report abuse -2 rate up rate down Reply