5 Things You Should Always Do When You Get a Raise

Profits are up, the boss is happy and due to your excellent contributions since the last review period you’ve just received an impressive raise. Give yourself a little pat on the back and prepare to celebrate! But before things get too out-of-hand, you should take a minute to gather your thoughts and plot out your post-raise strategy. Making the right moves here can help you make the most out of your good fortune.

1. Keep Quiet

Fair compensation is important, which is why discussing salary can be a good thing – and why it can be illegal for employers to prohibit discussions on the topic. That said, unless you’re asked directly, it’s best to keep a recent raise on the down-low. Achieving office chemistry is tricky, much less maintaining it, so you don’t want to invite any envious gossip or resentment by publicizing your good fortune. Upsetting workplace harmony can come back to bite you in the long run, making your job more difficult and hurting your chances of getting another raise down the road.

2. Treat Yourself (But Not Too Much)

Someone recognized your increased contribution to the company, and there’s nothing wrong with rewarding yourself for all the hard work you put in to earn said recognition. In fact, it’s healthy to splurge a little on excesses from time to time. It reminds you of why you put in so much hard work in the first place, and keeps you motivated to continue working hard towards further career advancement. Just don’t go overboard. Using half the raise for fun, and the other half for financial goals is a reasonable compromise.

3. Maintain Perspective

However you decide to reward yourself, it’s important to avoid increasing your overall standard of living to meet your new income level. Whether you’re a young professional saving to purchase that first home or the head of a family on a budget, you’ll continue merely surviving from one paycheck to the next unless you keep your lifestyle well within your means. While a bigger house, new car or boat are certainly tempting, make sure you can maintain any major expenditures without breaking your budget.

4. Stay Responsible

Speaking of budgets, don’t forget to adjust your less glamorous expenses to account for your additional monthly income. Increasing contributions to emergency and retirement (e.g. IRA, 401k) funds is a smart way to plan ahead and keep spending in check. Likewise, allocating extra money towards paying down a mortgage or credit card debt can help raise your credit score. This raise may also have unexpected tax implications, so make sure to keep your records current to avoid any surprises later on.

5. Keep It Up

You’ve just been rewarded for things you’ve done up to this point, meaning your bosses now expect that kind of performance from you as a baseline going forward – not to mention any additional responsibilities that may have accompanied your raise. The increased pressure to perform can seem daunting, but it doesn’t have to overwhelm you. Take a deep breath, remember what got you here in the first place and work to deliver results. Consistently striving to meet and surpass expectations can help make sure this raise isn’t your last.