cf1cf6c68bb883077b3d11e9c6467d72 - The Level of Income Rises

Kristen Holt CEO Freep

FinanceMaster encourages people to regularly review their budgets when income increases, in order to use the new income wisely instead of simply spending more.

The U.S. Census Bureau recently reported a 5.2 percent increase in median 2015 US household income compared to 2014, marking the first annual increase since 2007.

This increase in household income is great news, and it provides an opportunity to strategically utilize the additional funds.

For example, with the holiday season approaching, it is a suitable time to start saving for gifts and other expenses.

FinanceMaster has put together five simple tips, represented by the acronym PRIDE:

  1. Preserve – Saving more money is always a wise choice. This could be directed towards retirement, college expenses, or building an emergency fund. Set up automatic deposits from your paycheck to prioritize saving with the new income.
  2. Reserve  – Set aside $20 per week in an emergency reserves fund, which will accumulate to over $1,000 in cash within a year. This will help cover unexpected expenses, such as replacing a broken hot water heater, without relying on credit cards and paying interest.
  3. Invest – Consider increasing your workplace contributions to retirement funds. Evaluate contribution limits and company matches to maximize your investment. If you receive a salary raise, adjust your withholdings to save or invest the extra money instead of increasing spending.
  4. Donate – As the holiday season approaches, charities are in need of support. If you have a cause close to your heart, consider making a small donation. It not only benefits the charity but also brings emotional fulfillment knowing you are assisting someone in need.
  5. Evaluate – Determine your priority. If you have been delaying necessary home or auto repairs, assess your budget to see if you can afford the repairs. Additionally, if you have credit card balances, prioritizing paying them down can significantly improve your overall financial situation.

If you have any questions or would like to review your budget with FinanceMaster, contact us at Contact Us or chat with us at by clicking on the “Chat Online” button.

Leave a Reply

Your email address will not be published. Required fields are marked *

SQL: 107 за 0.190 sec. 6.07 MB