By Holly Johnson
The latest Survey of Consumer Expectations from the New York Fed predicted that American's wages will rise an average of 2.4 percent over the next year. Unfortunately, prices have risen 2 percent in the last 12 months, spiking 0.3 percent in April alone -- the highest monthly rate of inflation so far in 2014.
So let's face it: Until wage increases climb higher, rising prices could keep American wages effectively flat for the foreseeable future. That's the bad news.
The good news is, you don't have to wait for the economy to turn around to give yourself a big, fat raise. In fact, simply cutting your spending can accomplish the same thing by freeing up extra cash for savings, investments or that vacation you've been dreaming of. You cannot control the labor market, rising inflation or the rest of the economy, but you do have control over how you actually spend your hard-earned paycheck. If you want truly want a raise and believe you deserve it, it might be time to take matters into your own hands.
This type of raise isn't the kind you ask your boss for. It's the kind you take for yourself -- simply by reducing your spending and keeping the difference. Want to cut your spending and earn an effective raise in the process? Here's how to do it in five steps:Read the full article »