It’s never been easier to give yourself a raise. And you don’t even have to ask your manager for one!
Let me explain.
Most of us think of raises as an increase in income, but in actuality, we get a raise whenever we increase our buying power.
What’s the difference? Increasing your income is just one way of increasing your buying power, but not the only way.
A whole new set of tools open up when you think of increasing your buying power – and you empower yourself to get one because you’re not relying on your manager or anyone else! And you can start right away.
But how does that make cents? Easy. Let’s say Regular Joe and Mr. CentsAndSense.com both consume $50,000 worth of goods, food, travel, etc. a year. However, one difference between the two is that Mr. CentsAndSense.com only buys things at a 50% discount.
That means while Regular Joe is spending the full $50,000 in cash to pay for everything he needs, Mr. CentsAndSense.com only needs to spend $25,000.
That means Mr. CentsAndSense.com can save an extra $25,000 a year maximizing his retirement accounts, and then some! ($50,000 – $25,000)
Remember, Regular Joe and Mr. CentsAndSense.com are still consuming the same $50,000 worth of goods, foods, travel, etc. a year — it’s just that Mr. CentsAndSense is also saving a ton more cents! (2.5 million to be exact!) And blowing away our 1 million cent challenge.
Bottom Line: Let’s say Mr. CentsAndSense.com is 30 years old, and is somehow able to put that one year’s savings into a Roth IRA. Just from that one time deposit, and a 7% annual return to age 65, Mr. CentsAndSense.com is $285,599 richer than Regular Joe! Say what?
You heard that right. And if Mr. CentsAndSense.com was able to save an extra $25,000 a year for just 10 years in a Roth IRA (impossible because the maximum contribution right now is $5,500 a year on an IRA), then at age 65 he would have $2.3 million extra in savings, and earn an additional annual income of $150,000! Tax free!
If you don’t believe me find a retirement calculator and plug in the numbers yourself to check. Here’s my quick and dirty one, and my screenshot below.
So don’t be Regular Joe, or Regular Jane. Increase your buying power, today! And use some of that unlocked value in saving for retirement.
It makes tons of cents.
Visit this page for 5 small steps that make big cents, and increase your take-home pay today!
What tricks do you use to give yourself a raise?
This concept also works in the reverse, where you can hurt your buying power over time! Click here to find out how.
Read more about why you should save for retirement now, here. Once you’re convinced you need to start preparing for your future, now, visit this page to learn more about Roth versus Traditional retirement accounts to pick an option that makes you more cents.