You have recently taken on a new position in your company that includes a substantial pay raise. Congratulations. Your new salary will give you more freedom. It is important that you take a step back and examine how your new pay impacts your financial situation. Doing this will help you get the most benefit out of your new standard of living.
The Ability to Increase Your Savings
After the celebration dies down, take the time to better understand your new salary. Talk to an accountant or tax professional to determine if you should increase your tax withholding and how this increase could impact your personal tax situation.
Now is a good time to increase your retirement savings. If your employer offers a 401(k) plan that matches your contributions, you should contribute enough to get the full amount. This is also a good time to establish or revisit your emergency fund and pay off any lingering debts.
Move to a Better Part of Town
You likely have your idea for the perfect living place. Getting a large raise gives you the chance to move to a community and neighborhood that is right for you and your family.
Moving to a better neighborhood can improve the quality of your life. It can offer more safety and convenience and give you access to recreational activities that may not be available in cheaper residences. You can afford to live in surroundings that will lift your spirit.
Many people who receive an executive salary live in a luxury apartment. These communities can be found in cities and suburbs throughout the country. They offer security, comfort, and countless amenities designed to make your life more enjoyable. Some executives even have their rent paid for by the company so they can stay in proximity to the office.
Free Financial Planning, Tax Preparation and Security
In addition to an increased salary, there are a number of other perks that come with becoming an executive. Some executives receive financial counseling and tax preparation. Unfortunately, many people fail to increase their savings when their salaries increase. You should always increase your savings as your salary increases. The best plan is to allocate 50% of any raise to your retirement or savings plan. The other half can go toward improving your standard of living.
Many firms recognize that their executives need protection. This protection is provided in the form of security details or home monitoring services.
The Transportation Perks of Being an Executive
Executives receive ground transportation perks. This may include a company car or even a car and a driver. Some executives, especially CEOs, may be allowed to use the corporate plane for business and personal travel.
Executives Enjoy Amazing Retirement Benefits
The retirement benefits and pensions for executives can be more lucrative than the paycheck received while they are actually doing the job. It’s understandable that your organization would want to have special treatment and privileges for high-level employees.
Enjoy the benefits of your new position and salary. Monitor your finances carefully and make decisions that are going to positively impact yourself and your family.
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