Poll shows performance based rises

Many believe any pay rise should be based on performance but the real question is what to do with your pay rise.

09:06 04 August 2013

While a recent poll by Populus shows that there is a difference of opinion on what factors should be considered when looking at a teacher’s pay, it is clear that the majority of the polled individuals felt there should be some way to assess and create pay rises on the basis of performance.

Most of us probably have an idea of what we could do with a pay rise, but it might not include setting up a savings account. Here are some of the benefits of setting up a savings account with extra from your next pay rise:

• Establishing, or adding to, a savings account can provide you with a financial cushion. When surprises crop up, you’ll be able to weather them with less stress if you have some extra stashed away in savings.

 

• Having extra set aside for emergencies or other events not only gets you through a difficult financial time, but could also prevent you from spiralling into debt or experiencing other financial catastrophes.

 

• There’s no real loss if you don’t need to use the money you set aside in a savings account. If it’s just a regular account you won’t really earn much interest, but for many people it’s difficult to set aside emergency funds unless they are in an account separate from a cheque account.

 

• If your pay rise gives you a little more to work with each month, you might be able to get a better return on your investment if you decide to open an Independent Savings Account. If you have many years before retirement you could even take the riskier approach and choose a Stocks and Shares ISA. Over time you have the potential to make much more money from your initial investment.

 

• You can use an Independent Savings Account to set aside money for a particular purpose such as a deposit on a home. Property is a great investment tool and can improve quality of life as well.