Have you ever worked hard to get a raise at the beginning of the year but your wallet is still empty at the end of the month. Even though you thought that the salary increase would be able to fulfill all the financial problems that occurred before.
But in fact, even more often scratch your head when you see the account balance. Relax, my friend is not alone, it turns out that the phenomenon of salary increases but still not enough happens to many people. So, this time we discuss together, what are the causes of salary increases but still not enough? So that you can take steps to fix it!
Causes of Salary Increases But Still Not Enough
1. Lifestyle increases
One of the main causes of salary increases but still not enough is the increase in lifestyle that you don’t realize. For example, coffee used to be enough at home, now you have to hang out every day at the latest coffee shop. Used to bring lunch, now order online every meal time. This is what is called lifestyle inflation.
There is nothing wrong with enjoying the results of hard work, but if it is wrapped in impulses and prestige, it will cause to lose money. Try to maintain a simple lifestyle even though your salary has increased. Use the extra income for investment, savings, or emergency fund first, then use the rest for self-reward.
2. No Clear Budgeting
The most common reason for a salary increase but still not enough is that there is no more mature money planning. A salary increase should also be balanced with more mature financial planning.
Friend must not record expenses as a result, the salary rises but is still not enough because spending goes without control. In the end, you are confused about where the money goes. You can start simple budgeting with the 50-30-20 method.
(50% needs, 30% wants, 20% savings/investment). Or use a financial application to make it easier to track expenses. The salary increase should be an opportunity to improve cash flow, not increase leaks.
3. Salary Increase But Still Not Enough Because of Piling Installments
You know there is also a main cause why salaries increase but still not enough. As soon as your salary increases, you immediately take out new installments: new cellphones, vehicles, even other gadgets that are not urgent. In the long run, most of your salary is actually used up for paying installments every month.
Try to re-evaluate all the installments you have. Are all of them really needed? If possible, prioritize productive installments, for example for business or property. Avoid consumptive installments that only make life narrower.
4. Increased Life Needs
But behind the hedonistic lifestyle, it turns out that there are also reasons for increasing salaries but still not enough because the needs of life continue to increase. For example, basic prices, education costs, house installments, etc.
That way, even though your friend has experienced a salary increase, the situation faced will remain the same. It will still only be enough to meet the needs of life, not increase your sense of financial security.
5. Financial Goals for the Future
Friend, don’t just think about today. Salary increases but still not enough can also be caused because you have not set aside money for the future. Every month the money runs out for today, but nothing is allocated for the long term, such as retirement, children’s education, or emergency funds.
In the absence of clear goals regarding future finances, you will continue to feel inadequate. This financial goal will help you to give a clearer direction of where the money should be channeled to be appropriate.
Then to maintain future finances, you can invest in digital gold at Treasury. A salary increase is a good start to improve your finances, especially to safeguard future finances.
With Treasury, investment becomes safer and more practical. In addition, gold investment can help you protect the value of money from inflation and become a more stable future savings. Let’s start investing in digital gold with Treasury so that your salary increase doesn’t go to waste.
