Thread by @scripbox

How can you best utilise a #promotion or #salary hike? We have come up with a quick #guide on how to make that raise work for you instead of watching it disappear! (1/11)

Before you make any decisions, first check with your HR to understand the complete breakdown of your new salary, including #tax implications. This will help you assess the actual increase in your #takehome pay. (2/11)

Remember about #inflation. The price of everyday items will also increase too. Revisit your household #budget to understand the impact of rising #expenses on your #savings, real #income and #spending power. (3/11)

Invest at least 50% of the #increment. By adding the increment to your existing SIPs, your new money will generate even more income. How big an impact will the increment make? (4/11)

Say you were investing ₹50,000 monthly, in 25 years your #corpus would grow to ₹6.68 crores (with a 10% annual return). Now, with an increment of ₹5000 to your SIPs you can reach the target in just 21-22 years. And in 25 years it could become ₹10.03 crore. (5/11)

Pay off costly debts. Prioritise clearing high-interest loans like #creditcards, personal loans, #carloans, and home loans. You should also consider increasing your #homeloan #EMIs to pay it off faster. (6/11)

Revisit your #goals. With more #income, reassess your #financialplans and see if you can achieve your goals sooner, set new ones, or adjust your targets for #retirement and other #longterm objectives. (7/11)

Build an #emergencyfund. Ensure you have at least six months' worth of household expenses saved in an emergency fund to provide peace of mind and a financial buffer during unexpected times. (8/11)

Try to avoid lifestyle creep, which is the urge to #spend more just because you're now #earning more. Be mindful of the difference between needs and wants, and remember to prioritise financial stability over extravagant purchases. (9/11)

#Invest in yourself. By upgrading your #skills and knowledge through workshops and courses, you enhance your professional value to secure future #promotions and salary increases. (10/11)

Lastly, remember to enjoy your success! Don’t forget to treat yourself and your loved ones from your well-deserved raise. Read more here: scripbox.com/blog/salary-hi… (11/11)