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

2. Invest in Alternatives

There are many benefits to your 40-hour per week full-time job: a steady paycheck; health benefits; vacation; 401(k) retirement plan; and so on. If things are going well, the promotions are rolling in, and the raises are there right along with it, it’s easy to think that it will go on forever.

But you don’t have to look back more than a few years to see how things can quickly change, with Forbes highlighting massive layoffs at Citigroup (50,000 employees in 2008), GM (47,000 in 2009), USPS (30,000 in 2010) and Bank of America / Merrill Lynch (30,000 in 2011).

Funneling your extra income into a side business makes sense on many levels:

  • It could be a fun project that gives you happiness and brings in some income
  • It builds new skills that you can use at your current job
  • It lays the foundation for a secondary career should a layoff occur
  • It’s a safe way to transition from one industry to another at a later date without quitting your full-time job now