Comments on: Why I Am Keeping My Budget The Same After A Salary Increase http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/ Tips and tricks to save money, manage credit and reduce debt Wed, 28 Jul 2010 22:20:54 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: Slinky http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16955 Slinky Mon, 23 Nov 2009 17:02:02 +0000 http://www.howisavemoney.net/?p=3374#comment-16955 I never increase my budget just because my income increases. Income increases are ignored as all 'extra money' at the end of the month is rolled over into whatever my primary goal is. More income just means I get to my main goal faster which is always a good thing. I will increase my budget based on wants/needs/goals though. I instituted a small clothing allowance in my budget after I realized I couldn't go on wearing the same clothes and never buying new like I did in college. This made sense, so I did it. Likewise, I have a small 'Apartment fund' for whatever I need like new sheets or a bookcase or if I just want to have curtains. I did this because I otherwise never spend any money on these things...and I think I should. A lot of people would consider these needs I suppose, but for me, they're luxuries. I can survive for a long time without new clothes....I just won't look as nice. I discovered that in college. I try to remember that and not let these little luxuries get in the way of my important goals. If I need to, I'll cut them out of my budget for a time. And I think that's the part that gets people in trouble. They put things in, but never consider taking things back out! I never increase my budget just because my income increases. Income increases are ignored as all ‘extra money’ at the end of the month is rolled over into whatever my primary goal is. More income just means I get to my main goal faster which is always a good thing.

I will increase my budget based on wants/needs/goals though. I instituted a small clothing allowance in my budget after I realized I couldn’t go on wearing the same clothes and never buying new like I did in college. This made sense, so I did it. Likewise, I have a small ‘Apartment fund’ for whatever I need like new sheets or a bookcase or if I just want to have curtains. I did this because I otherwise never spend any money on these things…and I think I should.

A lot of people would consider these needs I suppose, but for me, they’re luxuries. I can survive for a long time without new clothes….I just won’t look as nice. I discovered that in college. I try to remember that and not let these little luxuries get in the way of my important goals. If I need to, I’ll cut them out of my budget for a time. And I think that’s the part that gets people in trouble. They put things in, but never consider taking things back out!

]]> By: used tires http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16724 used tires Sat, 17 Oct 2009 22:42:21 +0000 http://www.howisavemoney.net/?p=3374#comment-16724 The best way definitely is to keep the budget the same, I know alot of people who make ALOT of money, meaning over 6 digits per month but are living pay check to pay check, and as a result they often go bankrupt :( Which is really sad if you think about it. Till then, Jean The best way definitely is to keep the budget the same, I know alot of people who make ALOT of money, meaning over 6 digits per month but are living pay check to pay check, and as a result they often go bankrupt :( Which is really sad if you think about it.

Till then,

Jean

]]> By: Court Reporting http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16703 Court Reporting Wed, 14 Oct 2009 11:56:58 +0000 http://www.howisavemoney.net/?p=3374#comment-16703 Good advice. But sometimes when salary increase and expense amount also increase. Fight against lifestyle inflation.. Good advice. But sometimes when salary increase and expense amount also increase. Fight against lifestyle inflation..

]]> By: Cheapskate Sandy http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16701 Cheapskate Sandy Tue, 13 Oct 2009 15:52:41 +0000 http://www.howisavemoney.net/?p=3374#comment-16701 Best thing to do is treat it as if you don't have the money and save, save, save. Best thing to do is treat it as if you don’t have the money and save, save, save.

]]> By: Financial Samurai http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16696 Financial Samurai Mon, 12 Oct 2009 23:31:04 +0000 http://www.howisavemoney.net/?p=3374#comment-16696 BTW LuluGal - I personally believe teachers of the world should get paid the most! You guys are instrumental in shaping the world. At the very least, I hope you have a great amount of satisfaction knowing you are making a difference in people's lives everyday! Best, FS BTW LuluGal – I personally believe teachers of the world should get paid the most! You guys are instrumental in shaping the world. At the very least, I hope you have a great amount of satisfaction knowing you are making a difference in people’s lives everyday!

Best, FS

]]> By: Blake http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16694 Blake Mon, 12 Oct 2009 21:21:28 +0000 http://www.howisavemoney.net/?p=3374#comment-16694 Awesome work! This is a prime example of why becoming wealthy over the long-haul has less to do with how much income you make vs. how you manage your money. I can't believe how common it is for people to say "if only I made $5k per year more, things would be easier", and they just keep saying that despite how many raises they get. If only more Americans would manage their money in a similar fashion, we wouldn't have nearly the financial mess we do now. -Blake P.S.- I use ING Direct too, and now cannot imagine life without one of the world's greatest online bank! :D Awesome work! This is a prime example of why becoming wealthy over the long-haul has less to do with how much income you make vs. how you manage your money. I can’t believe how common it is for people to say “if only I made $5k per year more, things would be easier”, and they just keep saying that despite how many raises they get.

If only more Americans would manage their money in a similar fashion, we wouldn’t have nearly the financial mess we do now.

-Blake

P.S.- I use ING Direct too, and now cannot imagine life without one of the world’s greatest online bank! :D

]]> By: Financial Samurai http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16691 Financial Samurai Mon, 12 Oct 2009 18:31:43 +0000 http://www.howisavemoney.net/?p=3374#comment-16691 Great job avoiding spending creep! Fight against lifestyle inflation! Hope to see you at FS one day. Great job avoiding spending creep! Fight against lifestyle inflation!

Hope to see you at FS one day.

]]> By: Melissa Gubbels http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16690 Melissa Gubbels Mon, 12 Oct 2009 18:00:12 +0000 http://www.howisavemoney.net/?p=3374#comment-16690 I have my paychecks allocated on a percentage basis. 7% to 401k then after tax 83% to my checking account and 17% to two savings accounts. This way, I'm able to enjoy a little bit of benefit after a pay raise, and so does my savings! I have my paychecks allocated on a percentage basis. 7% to 401k then after tax 83% to my checking account and 17% to two savings accounts. This way, I’m able to enjoy a little bit of benefit after a pay raise, and so does my savings!

]]> By: How To Make Money For Life http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16689 How To Make Money For Life Mon, 12 Oct 2009 16:33:18 +0000 http://www.howisavemoney.net/?p=3374#comment-16689 Very good technique. I use this also, but have a different use for it. I use some of the extra as to pay off debt, and some of the extra for anything I know is worthy of generating more income. Very good technique. I use this also, but have a different use for it. I use some of the extra as to pay off debt, and some of the extra for anything I know is worthy of generating more income.

]]> By: oneadvice http://www.howisavemoney.net/save-money/keeping-budget-salary-increase/#comment-16687 oneadvice Mon, 12 Oct 2009 11:42:24 +0000 http://www.howisavemoney.net/?p=3374#comment-16687 That is wise advice for all... It is so easy to automatically spend more once you begin to earn more! That is wise advice for all… It is so easy to automatically spend more once you begin to earn more!

]]>