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Take Advantage of a Raise
Hey, nothing like a little extra coin to make the sun shine a little brighter. Instead of succumbing to lifestyle creep, let’s see what to do about getting ahead.
- Splurge wisely. If a reward is in order, make sure it’s oriented more toward a onetime event, like dinner out at your favorite restaurant versus getting a new car subject to years of debt payments.
- Beware lifestyle creep. You can get stuck in lifestyle creep even if you don’t develop new luxury habits or get a new car or house. Even going out more often can start to add up. Getting a new outfit can overflow into lifestyle creep if it goes on to become a whole new wardrobe.
- Go for the sure return. Want to make a 100 percent safe return on your money of 18% – 21%? Pay off your credit card debts. Hard to believe the interest rates could be that high, but they are.
- Develop a safety net. Save up at least one month of expenses as a safety net. If you’ve already paid off all debt, continue to expand your safety net to six months.
- If your employer has an investment plan with an employer match, make sure you’re maxing out that opportunity. Again, it’s 100 percent certain return on your money.
- Invest in real estate. Had to put this one in there, I’m a landlord after all. Obviously, properly addressing this topic is beyond the scope of this blog entry!
- Give Back. Make a charitable donation or help someone out in need. It’ll make you feel good too.
