When your wages are frozen for some time it can be tough to think about starting to put away some savings. This means that when your salary finally increases again you might start looking around for the best interest easy access savings accounts. Wage increases are something which many of us unfortunately haven’t had to concern ourselves with too much lately. The economic problems across the world have meant that for a lot of workers their salaries have been frozen for a while now. However, this isn’t going to last forever and at some point you will no doubt see your wages rise again. The question is, will you know how best to use this extra cash each month?
Start Some Savings
This is a great way to make the most of an extra amount of money each month and look to get it to grow over time. It is a terrific feeling when you see your money in the savings accounts start to climb. Your first step should be to see which savings accounts have the highest interest rate and access terms which best suit you.
Splash Out
Of course, if this is the first time in a while that you have some breathing space with your monthly finances then it will be tempting to splash out on something nice. There is absolutely no harm in doing this but it is probably not what you will want to do every month. The first month that you get your higher wage paid to you it can certainly be a wonderful idea to go out for a nice meal or to buy some new clothes. After this initial celebration you will probably want to start making the extra money work harder for you, though, so it isn’t something to do every month after you get your wage increase. Try to look on it as an occasional treat which you deserve but which isn’t going to become a regular part of your lifestyle.
Pay Off Debts
The cost of living keeps on climbing regardless of whether or not your wages get increased. This means that by the time you finally get a salary hike you might have run up a credit card bill or have a loan or two to pay off. This is a difficult situation to be in and it is no surprise that so many people feel stressed out about owing money. When you first get your bigger wage and you are in this type of situation then it is likely that you will want to quickly start to pay off some of the debts you have. The quicker you get rid of these loans and card balances the less interest you will pay on them, so it makes sense to make this your priority. Once this is done it will probably feel like a huge weight has been lifted from your shoulders. At this point you can look to splash out on some treats and build up a healthy savings account as well.
