Salary increases are indeed a blessing that I never take for granted, especially in today’s uncertain economic times where job security is a luxury. Receiving a salary increase feels like a bonus, and even though there’s no assurance of it, I’ve already planned how to utilize any potential increase.
Firstly, I won’t be frivolously spending this money; instead, I’ll be judiciously saving or allocating it to existing categories in my budget. As I’ve mentioned before, treating a salary increase as money I never had is crucial, and it’s best to channel it toward more important uses rather than mere spending. The majority of any increase will be directed towards the payroll stock purchase program, matched by my company up to a certain amount. Additionally, I’ll contribute to a company-matched pension program. If anything remains after allocating 50% and 30% to these two savings programs respectively, I’ll allocate some funds to cover bills and grocery shopping, considering the impact of higher bills and increased grocery costs due to ongoing inflationary pressures.
Will I enjoy any of the extra money? Perhaps 5%—not more! Every cent will be dedicated to savings and increasing the allocation to existing programs benefiting the family and household. This approach ensures a substantial accumulation of savings for the future and sufficient funds allocated to our needs, minimizing the necessity to take on debt for bills and groceries. While different people have different needs and may spend their increase differently, it’s essential to review all budget items before declaring that you’re saving enough and can afford to spend the extra money instead.
Opting for delayed gratification lays the foundation for a prosperous and financially secure future. Conversely, succumbing to immediate desires may lead to uncertainty and a future burdened by debt