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4 Reasons You Should Negotiate a Raise (But Never Spend the Money)

Getting a Pay Increase is Great, But Not If It's Already Spent

3. More Savings = Less Stress

Most financial planners advise having an emergency fund of 6 to 12 months of living expenses you can access in a worst-case scenario. If you’re able to use the money negotiated from a raise to build up this nest egg, it can have several benefits.

If there is an unexpected layoff, restructuring, or an event that eliminates your job, it won’t be the end of the world if you have that buffer. Just knowing it’s there might lessen some of the stress in your life.

Additionally, the problem with living paycheck to paycheck is that you get in the situation where you NEED your job. And when that happens, you lose a key negotiation point: leverage. Your boss could be a jerk or you may dread going to the office every morning, but if you’re 100% reliant on that paycheck, there’s not much you can do. You can’t leave.