I had my annual performance evaluation for 2007 yesterday. My company does performance evaluations twice a year but raises are only given once a year. Last year, I had an excellent performance review which resulted in a 4% raise. Since I exceeded the company expectations last year, I received a raise and merit cash. The amount of the merit cash received is determined by 5% of your yearly salary.
This year, I was hoping to exceed company expectations again to be able to get another merit cash payment. Unfortunately, I did not exceed company expectations but I did fall into the highest performance tier. As a result, I was able to get a 5% raise and a $500 cash bonus. I was a little bummed about not getting the merit cash but I quickly realized, some people did not get a raise at all this year. Some people are even hoping they are able to get a job to be able to make money. I quickly realized, I am very, very fortunate to have a good job with a good salary and job security.
This year, I am making a conscious effort to make sure my expenses do not rise to meet my new income. Out of my 5% raise, I am adding an additional 1% contribution to my 401k. The rest of my increased biweekly income will go into savings and towards debt payments.
Did you get a raise this year? What do you plan to do with the increased amount of salary?
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