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sabot1

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What happens if I receive a $7000 pay increase from my employer
I received a pay increase from my employer of $7000

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That's great!!  The only thing that might be improved is your debt to income ratio or you can utilize that increase to reduce debt.  Both would be good things.

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Next Steps

The big question is what to do with that income. 

if you already make a "Living wage", Meaning that you can live comfortably on what you were earning before the raise, then you need to figure what your going to do with that extra $4200 a year you have after the taxes.  Thats about $82 a week that you can put away in your Emergency Fund, College accounts for the kids or you Retirement.  

Emergency fund = goal is equal to 1 years income    College fund =  Goal of at least $40,000 per child     Retirement = $850,000 to retire at $50k a year for 30 years 

If you are struggling to make ends meet, then, by all means, use that extra cash to live on. 

Good luck 

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