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Why You’re Still Broke Even After a Raise

Paul Onu

• 3 min read
Why You’re Still Broke Even After a Raise
Why You’re Still Broke Even After a Raise | Onu App

Combat lifestyle inflation with Onu’s AI tools to stay financially secure in 2025.

Introduction: The Post-Raise Trap

A raise feels like a financial win, but 70% of people remain broke due to lifestyle inflation, per a 2024 Forbes survey. In 2025, this guide explains why and how Onu’s AI helps manage extra income effectively.

With Onu, a raise becomes wealth, not debt.

Manage raises with Onu. Avoid staying broke.

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Why Raises Don’t Solve Broke

Common reasons, per NerdWallet:

  • Lifestyle Inflation: Spending rises with income.
  • No Plan: Extra income unallocated.
  • Debt Trap: New purchases add debt.

Example: $500 raise spent on dining adds no wealth.

Onu’s AI tracks spending to curb inflation.

Lifestyle Inflation Breakdown

Typical post-raise spending, per Bankrate:

CategoryPre-RaisePost-Raise
Dining$300$500
Travel$200$400
Shopping$150$300

Insight: $550/month increase wipes out raise.

Onu identifies inflation patterns.

Control raises with Onu. Track spending.

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Step-by-Step: Managing a Raise

30-day plan to avoid staying broke:

  1. Assess Raise (Days 1–5): Calculate new income with Onu. Example: $500/month raise.
  2. Allocate Funds (Days 6–10): Prioritize savings. Example: 50% to savings.
  3. Track Spending (Days 11–15): Monitor with Onu. Example: $100 dining increase.
  4. Automate Savings (Days 16–20): Onu sets transfers. Example: $250/month to savings.
  5. Limit Inflation (Days 21–25): Cap lifestyle. Example: Keep dining at $300.
  6. Review (Days 26–30): Optimize plan. Example: Save $3,000/year.
Onu automates raise management.

Real-Life Example: Raise Management

Meet John, $600 raise:

  • Assess: Onu calculated $600/month.
  • Allocate: 60% to savings, 40% lifestyle.
  • Track: Monitored dining increase.
  • Automate: $300/month to savings.
  • Limit: Kept dining at $350.

Result: Saved $3,600/year, stayed solvent.

Financial Impact of Managing Raises

Benefits:

  • Wealth Building: $500/month saved = $6,000/year.
  • Debt Avoidance: Prevents new loans.

Example: $300/month savings funds investments.

Onu projects raise-driven savings.

Context: Raises in 2025

Trends from Forbes:

  • Inflation Risk: 80% increase spending post-raise.
  • AI Tools: Onu-like apps curb inflation.

Example: Auto-saving raises is key.

Onu aligns with 2025 financial trends.

Final Thoughts

A raise doesn’t fix broke if lifestyle inflates. Onu’s AI helps manage income for wealth. Start today to break the cycle.

Sources: Forbes (2024), NerdWallet (2024), Bankrate (2024). This article is for informational purposes only and not financial, legal, or tax advice.

Manage raises with Onu. Start now.

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