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Well , this is an exciting post to write ! We ’ve had an income increment this class with Austin finishing college and get a business in his level orbit .
Any form of income increase is exciting , is n’t it ? Even a modest percentage ascent is a wonderful matter !
Since we ’re making a footling more money now , we ’ve had to decide how to budget that money .
A ascent can get accept up in frivolous expenses quickly if you ’re not intentional with your money . Before you bang it , it ’s like the raise never hap and your fiscal situation is still completely the same .
Even a 50 cent per hour raise can become significant when you realize that ’s an extra $ 20 per workweek ( if you work 40 minute per week ) which equals over $ 1000 per year . Not so peanut , is it ? Do n’t you want to have something right to show for that extra money ?
Whenever we get extra money , whether it ’s through a tax coming back , bonus , or lift , we assay to poise using some of the money for fun stuff and some of the money for responsible hooey .
It ’s nice to expend money on fun poppycock so that you’re able to bask what you ’ve worked so hard for , but it ’s also important to be responsible for and use some of the money on things that will have farsighted - terminal figure benefits .
Here ’s how we ’ve changed some piece of our budget now that we ’re earning a bit more money :
Fun Stuff
Allowance
For most of our marriage ceremony we have n’t had any superfluous money for playfulness things that we each wanted . All of our personal wants expect for Christmas or our natal day .
frankly , I ’ve never felt deprived , but it sure is nice to have some extra breathing room in our budget .
We ’ve added an allowance for each of us to our budget . We each get $ 20 per month to pass on whatever we require . So far I ’m spending my allowance on dwelling decor items , fabric , and book .
Eating Out & Entertainment
Austin and I love going out to use up and see picture show at the theater . We ’ve increase our eating out and amusement budget so that we can enjoy those things a number more often .
In our one-time budget , we spent $ 50 - 75 on this class . This calendar month , I budgeted $ 120 and it was fun to go out about once a week . This is always the first category that we cut back on if we need to keep open more money .
Christmas & Gift Savings
Another fun room to use an income increase is to save more money for Christmas or birthday giving .
When we were scarcely scrapping by over the summer , we quit saving money into our Christmas fund . We ’re back to adding money each calendar month .
At some stage we might increase what we ’re contribute so that we have more money to spend next Christmas .
We do n’t drop too much on natal day gifts ( hencethis post about $ 15 gift ideas ) , but we may startle adding more money to that store as well .
Responsible Stuff
Emergency Fund
We had to stab into our emergency stock a flake over this summer and this week to pay off our car ( I hate cars ! ) . We ’re spending part of our income growth to economise more money into our emergency investment company .
If you do n’t have an emergency fund , a raise would be a fabulous way to get one ! Just hold get to the extra money you ’re gain each month into an pinch fund .
That 50 penny raise could give you a thousand dollar emergency fund in a year and you ’d never notice the difference because you ’re just saving the extra money .
Retirement Savings
When you get a raise , it ’s a dandy thought to up the per centum you ’re lead to your 401k .
If you do n’t have access code to a 401 K , put up reflexive deposits into a Roth IRA . That ’s what we ’re doing right now atBetterment .
House Down Payment
We ’re saving a big chunk of our supererogatory income towards a house down requital mightily now .
We deal our first house to move into an flat in a novel city . We ’re hoping to get into another house by next summer .
An increment in income is the perfect way to jumpstart keep for something big .
Car Savings
Ugh , cars are the bad . They completely punctuate me out because they break and every time they violate it ’s doltishly expensive .
anyway , The next thing on our tilt to save for is a new - to - us car . Hopefully , one that never ever breaks . Ever . Do they make those ?
Related Posts :
How We exist on Less Than $ 1500 per Month – Our real Budget
The 5 Biggest Ways We economize Big Money
17 Expenses You ’re bury to Budget For
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