Things Every Corporate Professional Must Do Before Salary Appraisal Season.

By Admin

• 17 Sep, 2025

 Things Every Corporate Professional Must Do Before Salary Appraisal Season

Salary appraisal season is one of the most important times of the year for corporate professionals. It’s not just about getting a raise — it’s about using that raise smartly to boost your financial health and move closer to your life goals.

Here’s a checklist of things you must do before your salary appraisal to make the most of this opportunity.

📊 1. Review Your Current Financial Position

Start by taking a clear look at where you stand:

• How much do you earn, save, and spend every month?

• Are you sticking to a budget or overspending?

• How much is invested toward long-term goals like retirement, house purchase, or children’s education?

✅ Tip: Use this time to review your portfolio performance and rebalance your asset allocation if needed.

💳 2. Clear High-Interest Debt

Before you celebrate your salary hike, make sure you are not paying unnecessary interest:

• Pay off credit card outstanding, personal loans, or buy-now-pay-later dues

• Reducing debt improves cash flow and frees up money for investments

📈 3. Plan How to Use Your Increment

Most people increase their lifestyle expenses after an appraisal — but smart professionals use a raise to invest more.

• Increase your SIPs by 10-20%

• Allocate some funds for emergency savings if you don’t have 6 months’ cushion

• Start planning for big goals (dream home, retirement, vacations)

🏦 4. Maximize Tax Benefits

Salary revisions may push you into a higher tax bracket.

• Optimize your tax-saving investments under Section 80C (PPF, ELSS, EPF)

• Consider NPS for additional tax deduction under Section 80CCD(1B)

• Claim tax benefits on health and term insurance premiums

🏥 5. Review Insurance Coverage

Your salary hike often means an increase in responsibilities and lifestyle expenses.

• Term Insurance: Increase coverage to at least 10-15x your annual income

• Health Insurance: Ensure your family has adequate coverage beyond employer-provided plans

🧠 6. Upskill for the Next Appraisal

Salary growth is not just about this year — it’s about setting yourself up for the next hike.

• Enroll in online courses to strengthen your skillset

• Learn financial literacy to make better money decisions

🛡️ 7. Don’t Fall for Lifestyle Inflation

With more money coming in, it’s tempting to spend on gadgets, vacations, or luxury items.

• Follow the 50-30-20 rule (50% needs, 30% wants, 20% savings)

• Let your investments grow faster than your expenses

🔑 Key Takeaway

Salary appraisal season is more than a pay raise — it’s an opportunity to level up your finances.

At ProShield Invest, we help corporate professionals create goal-based investment plans, maximize tax benefits, and grow wealth smarter after every appraisal season.

📞 Want to Turn Your Salary Hike into Wealth?
📧 Email: contacts@proshieldinvest.in
📞 Phone: 011-69290568
🌐 Website: www.proshieldinvest.in