Did you get a raise this year? If so, congratulations on your hard work. Now I have a suggestion for that money that you probably didn’t think of when you received the check. I recommend that you increase your retirement contributions, whether it’s a 401(k), a 403(b), or something else; by a half percent or more. If you can handle it and you aren’t maxing out your contributions, put a full percent or even two or three. What’s nice about this strategy is that your take home pay, your salary minus deductions such as retirement contributions, will still increase compared to last year but you are now saving much more towards your retirement. In fact, you will be saving more and you likely won’t even notice it because your salary increased because of the raise.
So, think of the future and consider increasing your retirement contributions!