If you know what it’s like to have to keep a careful eye on your finances in order to stay afloat, no doubt you would have been glad to hear about the upcoming national minimum wage increase.
Staying in control when you’re on a tight budget can be extremely difficult. The key to managing your money well includes working out your living costs, setting yourself a budget and living within your means.
To the delight of many, the government has announced that the “national living wage” for over-25s will increase 6.2%, from £8.21 an hour to £8.72 from the start of April. This means that almost 3 million workers in Britain are set to receive a pay rise of more than four times the rate of inflation. If you are someone that is going to benefit from this, there are many ways that you can ensure that your pay increase goes a long way. Read below for tips on how to make the most out of your monetary upturn.
Pay off your debts
Boost your disposable income by paying off expensive debt sooner rather than later. Of course, ensure that you have got enough money to pay for living expenses, because you don’t want to fall back into debt. Once these have all been paid off, you’ll effectively benefit from two pay rises.
Would you like to book an exotic getaway, put a deposit down on a house or sign up to a course? If so, you may be able to achieve your dream quicker with this additional income. Before making any large purchases, ensure that you have considered all your financial options. If you haven’t yet set yourself a target to achieve, why not do it now? Make sure it’s realistic, and then calculate how long it’ll take you to get there with your new wages.
Put your pay increase straight into a savings account
Have you been managing well on your current income? If so, you could choose to put your pay increase straight into a savings account. Over time, that pot will start to build, and you’ll soon be able to use that cash for something worthwhile! Set up a standing order or direct debit to come out of your bank account just after pay day so that your extra earnings can be stored away safely.
Follow these handy tips to ensure that you’re making the most out of your extra income.