You've heard (and maybe you've used) the excuse of..."if I made more money, then I'd save more." I'm about to call you out on that.
Every time you get a bump in pay, I want you to pretend that you never got that raise. Yes, you heard that right. Your spending should not change. Meaning that you should take all of that money and roll it directly into your retirement (unless you're already at the max). You'll never miss it, but your future self will thank you.
If you're already maxed on retirement, let's take a look at some of the ways you can use the amount of raise instead of just spending it.
Use all extra money to...
Pay off Debt: The day you get paid, make a payment to a debt or remove it immediately out of your account.
Build Emergency Fund: Have automatic transfers either directly from your paycheck with the raise amount to your savings account or immediately moved to savings when check is received.
Save for College: Have automatic deposits made form your account directly to a college savings plan.
Save for a Dream Vacation: Move money immediately from your account to a savings account (or use the tactics from #2) to plan for that once in a lifetime trip.
Save for Your Next Vehicle: You want to be prepared when you have to purchase a vehicle and not be forced to get a loan. Another way to do this is when you finish your car payments, continue making them to a savings account just like they never stopped. Or even set aside 75% of the amount and spend 25%.
Save for any other item that might seem to be out of your reach normally.
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