Two of the most anticipated thing in the life of an employee is a pay raise or a promotion. For many office workers, the end of the year means annual review time, and if you’re lucky, a raise.
However, for most folks, these raises will be in the low single-digit percentages. Many companies will give you between 1 and 3% pay raise.
But what do you so with such a small amount of money. When you first do the math, it’s hard to get excited about such a nominal increase.
In fact, in my experience, most folks become angry and disappointed over such a “small” raise after an annual review.
Once you step back, however, take a deep breath, and become grateful for what you have, you will see that this money can make a difference in your life.
If you make Ksh 35000 per month, then you are looking at around Ksh1500 to Ksh 2000 in your pocket every month. Are you getting rich, it is a definite No.
How to spend your pay raise
If you have a plan to spend this new found money, you can help advance your career and put your finances in better order.
Spend the money on a retirement plan. It might seem odd to start preparing for retirement while you are only in your twenties or thirties but trust me time flies.
If you’re reading this blog, I’m guessing you’re like me and most of our readers and do not have a pension.
With Social Security on the brink of extinction and no true financial safety net for Gen X. we are reliant on the unpredictable fate.
A few shillings a month over the course of your career can amount to real money. Since you will likely not feel the impact of missing a few thousand a month, take your raise and invest monthly in your future. See, that annual review wasn’t so bad after all.
Invest in Physical Activity
Well, say you have plans for your future already. You can also invest the new found money on Physical Activity.
By now, you must have known that office work is not the healthiest for you. Long hours of sitting and less physical activity can lead to conditions like diabetes and obesity.
Exercising gives you more energy, fights off depression and anxiety, and keeps your mind, body, and spirit in balance. Why aren’t you doing more?
Take the raise gladly and join a local gym. Buy a piece of workout equipment for home. Enrol in a dancing class. Pretend a punching bag is your boss during your annual review. Just do something physical, anything!
You also might want to “invest” your raise and join a Chama. Remember it is money that you didn’t have before so why not save it if you can.
If saving is not an option, have you taken a driving class? Take a Class. It could be a course to learn a new skill and further your value as an employee. Or it could just be for personal fulfilment.
Be Charitable. Nothing is self-gratifying like the feeling of fulfilment that comes with helping others.
However, it’s often hard to find the money to give back. Why not set aside some of this “new” money to help make a difference.
There is just so much you could do with the little pay raise that can give you a purpose in Life. If your annual review reaped the bonus of a raise, be grateful! Don’t look like the donkey with a gift in its mouth but still kicks the owner. Go out and make the most of this new money.