5 Smart Things to Do With a Raise That Make You Rich

🔎 Disclosure: Heads up, babe: some links here are affiliate links, which means you might throw a tiny commission my way if you buy (zero extra cost to you). Only things you’d actually use and love get shared on this site.

1. Increase Your 401(k) or Retirement Contribution Immediately

You got a raise. yay! But before you celebrate with Target runs and takeout, do this first.

Up your retirement contribution right away, so your future self can live without ramen noodles.

Even a small bump today compounds into serious wealth later.

Here’s how you make it count:

• Add 1–2% more to your 401(k) or retirement account after every raise.
  
• Take advantage of employer matching, because free money is the best kind.
  
• Check your contribution cap once a year to keep your savings maxed out.
  

👉 Here's How You'll Do It: Log into your HR portal and bump up your contribution before your next paycheck hits.

2. Set Up an Automatic Transfer to a High-Yield Savings Account

Out of sight, out of mind. especially with money.

When you automate your savings, you save before you even have a chance to spend.

It’s the easiest “lazy wealth” strategy you’ll ever try.

Here’s how to lock it in:

• Transfer a fixed amount from your checking to savings every payday.
  
• Use a separate account so you’re not tempted to dip into it.
  
• Rename the account something motivating, like “Freedom Fund” or “Future Vacay.”
  

👉 Here's How You'll Do It: Schedule an auto-transfer today so your savings grow quietly in the background while you live your life.

Make It Easy: Open a Betterment Cash Reserve Account for automated savings that earn higher interest with zero effort.

3. Spend a Small Percentage on Something That Improves Daily Life

You’re allowed to enjoy your money. Just make sure your splurge gives something back.

Think of this as a functional reward, not a financial hangover.

Invest in things that make your everyday life smoother or save you time.

Start with things that bring real value:

• Upgrade your kitchen gadgets to cook faster and cut down on takeout.
  
• Invest in a better mattress for more sleep and energy.
  
• Buy quality basics that last longer and reduce constant repurchasing.
  

👉 Here's How You'll Do It: Pick one upgrade that saves you time or stress daily, and buy only that one thing.

Make It Easy: Consider a programmable coffee maker so your mornings start strong and calm.

4. Knock Out One Credit Card Completely

Few feelings match the rush of seeing a $0 balance on your credit card.

Paying off debt isn’t just about financial freedom. It’s peace of mind you can’t buy.

Use your raise to crush one card at a time (debt snowball style).

Here’s how you make progress fast:

• Pick the smallest balance first to score quick wins and stay motivated.
  
• Use your raise difference each month as an extra payment.
  
• Track progress visually to keep the momentum going.
  

👉 Here's How You'll Do It: Apply your raise to one card until it’s gone, then move to the next.

Make It Easy: Use Undebt.it to plan your debt snowball payoff automatically and stay organized.

5. Start a Kids’ Education or Family Emergency Fund

Kids grow fast, and so do their expenses.

Setting up a fund now helps you handle school costs and life surprises without panic.

Think of it as future-proofing your family’s peace of mind.

Here’s how to start small but strong:

• Open a dedicated savings account just for education or emergencies.
  
• Automate small monthly deposits so it grows painlessly.
  
• Keep it separate from your everyday spending to avoid “accidental” withdrawals.
  

👉 Here's How You'll Do It: Create a new account labeled “Family Fund” and set a $25 auto-transfer to start building it.

Make It Easy: Use a Betterment Cash Reserve Account for automatic transfers that build your fund in the background.

📌 SAVE IT FOR LATER! 📌