It's tough living on a shoestring budget in order to pursue your dreams of growing a business successfully or pursuing your career. Sacrifices need to be made and hustle must be had! Be smart with your money and crush it with your career!
When it comes to compensation, almost every individual aims at obtaining a big raise at work. Basically, a lot of people believe that money is the fuel to solve most of the financial issues in life, especially the debt situation.
The money in the form of a raise can help them pay down their debt more quickly. While it is true, there can also be another side to this. What I actually mean by that is what if you could select benefits like more vacation time, over a raise in your salary?
Now your question might be why would one do that? Well, I believe that for keeping the process of paying off a debt at its best, one needs to stay focused and for this, one must take out time to enjoy life. So, would you go for it? Let’s explore some of the advantages of both the scenarios in your career.
Taking More Benefits
When it comes to discussing an annual increase, very few people consider negotiating benefits. But is it something you should think about on a serious note? Yes, of course, it is. Why? Some benefits can prove to carry more value than the small or even large raise that you might be receiving. There are many benefits to negotiate, such as health benefits, educational opportunities, retirement benefits, real estate opportunities and my personal favorite: more vacation time. The first reason why it is my favorite is that when I was following my debt relief plan, it was this vacation time that kept me focused on my objective of reaching financial freedom.
The second reason why I went for extra vacation time instead of a raise is because I believe you can find a plethora of ways to generate more money, but you can’t create more time. Unlike a raise, it is vital to keep in mind that for extra vacation or hotel stay you don’t need to pay more in taxes. Since you’d still be taking home the same amount of salary, your taxes would likely to remain the same. Well, you won’t be taxed on the number of days or weeks of vacation you get. The concept of benefit increases isn’t something everyone approves of. Here are some points for the raise side of compensation.
The Reason Why Raises Are So Popular
Everyone loves to have a raise and for a good reason. A raise will reflect in your paycheck every time until the next one or you find a different job. Even if you land on another job, there is a good chance that you’ll keep your raise with you. Raises are simply amazing as they display themselves as a part of your salary. If you keep on getting big raises, your salary will hike in a short time. Did I still need to tell you that this can help you pay off your debt sooner?
Alongside this, you should also think about that some of your other benefits, including your 401(k) matching, that are based on your salary amount. On receiving a raise in your salary, you also get a raise in your 401(k) matching contribution. It’d be a pity to miss an opportunity of taking that extra vacation and a swanky hotel.
The question is, which way would you like to go to achieve debt relief? Would you choose the road to some extra benefits like vacation time, or prefer the raise? Tweet us today with hashtag #LeanStartupLife on your experiences with vacations vs raises.
I hope you enjoyed this blog post about money management and consistent career improvement, discussing vacation vs other benefits.
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