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Personal Financing Planner > Loans > How to “give yourself a raise” when inflation cuts your salary
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How to “give yourself a raise” when inflation cuts your salary

June 5, 2025 7 Min Read
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7 Min Read
How to "give yourself a raise" when inflation cuts your salary
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Table of Contents

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  • 1. Stop giving passive income to credit card companies
  • 2. Throw away car debt that runs out of wages
  • 3. Try your savings better than you
  • 4. Stop unpaid overtime that drains your energy
  • Final Thoughts: Stop waiting for someone else to give you a raise

Inflation is stolen from your salary and all signs indicate that it won’t change anytime soon.

Even if wages have not changed, the costs of groceries, gas and essential services are rising, and many Americans feel they are working hard because of their less purchasing ability. a 2025 Bank Rate Analysis Data from the Bureau of Labor Statistics showed that consumer prices were 23.6% higher than in February 2020.

While waiting for a raise or promotion or starting a side hustle may seem like the only solution, here is a powerful alternative. now.

This is not about asking your boss for more money (though you should definitely do it when the time is right). Instead, you can use these four simple, strategic moves to free up hundreds, or even thousands of dollars each year.

1. Stop giving passive income to credit card companies

According to Federal Reserve Bank of New YorkAmericans currently hold $1.18 trillion in credit card debt. Over 20% of interest. That debt can feel like a permanent tax on your income.

If you have a credit card balance monthly, your payments feed the earnings of your credit card company while removing your income. By repaying even one card, you can “give a salary increase” by eliminating your monthly obligation.

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It is known as How to do a debt snowmanI recommend starting this approach with debt at the highest interest rate (also known as the debt avalanche law). Prioritizing debt at the highest interest rates can lead to greater savings over time, but it feels like you can raise it faster if you remove the bill completely.

2. Throw away car debt that runs out of wages

Experian’s quarterly report found that the average monthly car payment for new cars is $745, and $521, which will be used in the first quarter of 2025.

Imagine you can direct these hundreds of dollars towards other essentials and fun things like holidays. Paying back your car loan early will help you have better control over your cash flow and help you build savings that earn you money instead of losing value.

If you are approaching your vehicle repayment, try to pay for additional vehicles for the next six months. After that, I went back to making the minimum payment, but still got much closer to the finish line. When you pay your car debt in full, you will receive a salary increase of several hundred dollars each month.

3. Try your savings better than you

Perhaps the easiest and fastest way to give yourself a raise is to put your savings in work. The money I sit in a regular savings account earning 0.01% interest is what I call “lazy money.” Certainly, it’s there if you need it, but what if it could be available when you need it and Will you make money for you in the meantime?

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Instead, your money could be making more High-yield savings account or Money Market Account Approximately 4% (as of June 2025).

For example, if you have $10,000 in a high-revenue account that earns 4.5%, your balance will increase by $450 a year with zero efforts. (Compare that to a whopping $1. You might earn money from a regular savings account.)

This could be equivalent to two tickets for a month’s groceries, a weekend getaway, or a K-Pop concert.

Even if you start with a $1,000 savings, a $45 yield is still a great bonus in return for your job. Furthermore, it can promote habits that save more and reduce reliance on debt later.

If you have an emergency fund (I like to call it Keep Calm Fund), consider moving it to a high-yield savings account. Short-term CD Or a money market for passive income.

4. Stop unpaid overtime that drains your energy

I left the most challenging strategy at the end, but it’s a tactic that my client has the most difficult time to implement. Especially those conditioned to be “always productive.”

You are not paid to over-releaser on tasks that no one asked you to do. Many advanced experts fall into the trap of “proving” their worth by taking on invisible labor in the workplace, including:

  • Proofreading will make your team shine bright
  • Stay late for the perfect presentation
  • Volunteer activities for all additional projects
  • Overpreparation for meetings

But here is the truth I learned the difficult method. Working long hours on tasks that don’t earn a promotion or pay raise is like working overtime for free. That time can be used to learn higher wage skills, pick up side hustles, or simply take a rest. Increase your performance, strengthen relationships and improve your financial decisions in the long term.

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Audit the upcoming weeks to reduce one less valuable task that no one will notice if they quit. To regain that time for your physical or financial health or to focus on the task of making money.

Final Thoughts: Stop waiting for someone else to give you a raise

If you choose to be more strategic with your salary, you can achieve this by giving yourself less raises and working less.

Clearing credit card debt, eliminating car payments, and moving savings into accounts that work for you may not increase your top line, but it certainly will increase your net profits. And make sure to cherish your time as it is a non-renewable resource.

You don’t have to wait for the promised promotion and eat up inflation or get older with your salary. Instead, with the dollars and hours you already have, you can give yourself a raise today.

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