Did you get a promotion? Here are 3 money moves to make when you start earning more

After a pay raise, individuals should first calculate their new take-home pay since higher gross pay can be blunted by tax-bracket changes and withholding; then update budgets to avoid lifestyle creep and use budgeting tools such as Monarch or PocketGuard to set and monitor goals; and finally redirect a portion of the increase into retirement saving—Moore recommends targeting at least 15% of income including employer contributions and topping up 401(k)s and Roth IRAs via providers or robo-advisors like Fidelity and Wealthfront to accelerate long-term wealth-building.

Analysis

The article emphasizes that recipients of raises should first quantify the incremental take-home pay because gross salary increases can be materially reduced by higher federal and state withholding and FICA; it specifically recommends using SmartAsset’s paycheck calculator or comparing pre- and post-raise pay stubs to see the net effect. Chloe Moore, a certified financial planner with more than 20 years of experience, cautions that moving into a higher tax bracket can blunt expected cash-flow gains and lead to premature large purchases that derail long-term plans.

After determining net income, the article advises updating a budget to prevent lifestyle creep and align spending with priorities; it highlights budgeting apps as practical tools, naming Monarch (listed at $8.33/month billed $99.99 annually or $14.99/month monthly, with net-worth and portfolio tracking) and PocketGuard (basic free plan, PocketGuard Plus $12.99/month or $74.99 annually, with an "In My Pocket" feature and bank-level encryption). These apps link to accounts and categorize expenses to support goal-based allocation.

For long-term wealth-building the piece recommends increasing retirement savings—targeting at least 15% of income including employer contributions—and topping up 401(k) deferrals and Roth IRA contributions; it cites Fidelity (no minimum for Fidelity Go®, zero commissions on many trades) and Wealthfront ( $500 minimum, 0.25% advisory fee) as execution options for investors seeking robo-advisor or brokerage solutions.

Key Decisions for Investors

• Recalculate your new net pay immediately using a paycheck calculator or by comparing pay stubs and adjust withholding if necessary to avoid unexpected tax shortfalls
• Revise your budget to prioritize savings and goals rather than increasing discretionary spend; consider Monarch (paid) or PocketGuard (free/basic) to track cash flow and enforce limits
• Increase retirement contributions toward a 15% total savings rate including employer match and open or fund a Roth IRA alongside higher 401(k) deferrals via providers like Fidelity or Wealthfront based on minimums and fees
• Monitor tax-bracket movement and consult a tax advisor if your raise materially changes your withholding needs or tax-return profile