How to Make Your Salary Go the Distance

  | Elizabeth Heron

The most exciting thing about being employed is earning a salary. Having a certain amount of money rolling into your account can be quite exciting. Though you might be earning little when you join the workforce, it is possible to make that money go the distance if you have a great strategy. Keep in mind the following advice.


1. Ask the Employer to Raise Your Salary

You have probably spent a lot of working out how to construct an awesome barista resume. You got the job but in time you have become unsatisfied with the salary. In a tough world where even finding a job can be a challenge, you may fear to ask the employer to raise your salary. However, that should not be the case. After a few months of working diligently for your new employer, you should confidently approach him or her and ask them to increase your salary. Ensure that you conduct enough research and have good reasons why you think you deserve a raise. An employee that goes to their boss with all the facts is more likely to get a raise than one who has a casual approach to the issue. 


2. Save the Raise You Get

After the employer gives you a raise, you should consider saving the extra amount of money you make. Especially if the amount you were earning was already meeting all your needs. You do not have to increase your spending because you received a small raise. Put the extra cash towards in emergency savings account. You never know when you may need to have some backup amount in case something goes wrong. 


3. Increase Your Deductibles

If you have a vehicle insurance, it definitely has some deductibles. By increasing this amount, you could lower the premiums you pay every month. If you are a diligent driver with a good history of being careful on the road, you should definitely go for this. It will ensure that you have more money in your account for other activities. Thus, your salary will go all the way up to the next payday. 


4. Make Most Purchases in Cash

When you are paying for everything with a credit card, it is quite easy to purchase things you cannot afford. Although the items seem almost free at the time of purchase, it can be quite expensive in the end. Credit cards have a high-interest rate, which means you could be stuck trying to pay off the amount for months or years. Besides that, if you skip a payment, the penaltiescan be excruciating. To avoid these problems, use a debit card that is linked to a checking account. If you have to pay high interests rate for your credit cards, you could be stuck in a vicious cycle of debt. 


5. Consider Refinancing the Mortgage

Interest rates have recently gone way down. You should ensure that you take advantage of it. In both the long and short term, refinancing can save you lots of money. It helps you to lower the monthly payments you make and lowers the total amount you have to pay for your home. Speak to your local lender and estimate how much you could save each month. Besides that, you should check for tips on refinancing online. 


6. Pack Your Lunch to Work

If you work in a busy part of town, there may not be any cheap hotels nearby. Consequently, you may have to settle for overly expensive restaurants. To cut the cost of lunch, consider packing you own lunch. It takes a relatively short time to do so. If you are just getting started and you have a tiny salary, it can be a great way to save money. Plus you will never find as healthy food as the meal you prepare on your own. 


Finally, you should always have a plan for how you are going to spend the money that you earn. Avoid impulse purchasing, make rational decisions in regards to your investments and always think of ways you can improve your financing.

Author Bio: Elizabeth Heron is a HR Manager and a passionate writer with great interest in employee motivation. With over 15 years of experience, specializing in small to mid-size organizations, Elizabeth provides guidance to senior managers about how to start up and grow their organizations.

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