Many people these days live from paycheck to paycheck. This necessarily isn’t because their income is too low, but because people have no control over their spending. They give a whole new meaning to living within your means.
Have you ever thought about what you would do if you got a sudden pay increase? Would you choose to live how you had lived before, or would you tack on some new bills? A lot of people would choose to let their money burn a hole in their pocket and they would spend more than they originally had. The smart thing to do is continue to live how you did before your pay raise, and SAVE the extra you have.
Why is it so hard for people to NOT spend money? The answer is simple, people always want what they can’t have, so when they come into some extra money they feel like they can finally buy things they have never had the luxury of buying.
A trick to making the right decisions when choosing how to spend your extra money is to think about what benefit you will be getting out of your purchase. Are you wanting to spend that extra cash on a gourmet meal, which will be forgotten about the after? Or do you want to purchase something that will benefit you for years to come? Think about if you really NEED your extra purchases.
Another trick to having more control with the extra income you could potentially come into is, think about how much you can save, if you choose to pass on a certain purchase? If you we’re perfectly content with your lifestyle before your increase in finances, why not continue to live that way? Build a savings for emergencies, special occasions, etc. Having a savings can benefit you more than tacking on 30 movie channels to your current Dish bill.
Be smart about your finances, and think about how your purchases will benefit you and your family. Think about if you truly NEED what you are about to buy. I guarantee you will have more satisfaction if you look back in five years and have $5000 in savings rather than $5000 in DVDs and movie channels.