Learning To Adjust To Having A Paycheck Again Or A New Job

Most of us have all been in the scenario of having an increase in pay of some kind. Depending on the person, some might feel like they should go get on their private jet, while others believe this is just more income to save away for later. Regardless of the person you are, there is a need to address the elephant in the room. What should be done with the extra money?

A few suggestions…

Update Your Budget First

Although it is great to have more income throughout our lives, without a plan for it, it will be pointless. Inevitably we will adjust naturally to a new standard of living as our income increases over time. My family has seen it first-hand. Gone are the days of shopping Wal-Mart for the cheapest food to spend as little as possible for groceries. The days of getting Starbucks as a monthly or bi-monthly treat are also gone. The truth is, many of us do not see where the money is going because we don’t attempt to control it through a budget. This is exactly why I have stressed the importance of having a budget in place to ensure you are appropriately managing your money. If you get a pay increase and do not update your budget, your money will ultimately control you.

Be Extra Frugal For Awhile

Much like getting a new car, new house, or new anything, you tend to be extra cautious. The same should be done for more money. You are not accustomed to having more money in your account. Thus, it is prudent to take it slow. Sure, your budget it updated, but be warned about the ease in which it can still be spent. Be cheap on stuff for a bit while you break-in this new found freedom through cash.

Have Some Fun!

Yes, have some fun. One of the many advantages of having more money is the freedom we gain to purchase entertainment or adventure. Obviously, everything has its limits. If you are getting an extra $50 a month, don’t go buy a boat. Be sensible. An extra $50 a month will allow you to have a great date night more often or save for a stay-cation quickly. Ultimately, you are still being responsible, just in a more enjoyable manner.

Having more money is great. Just remember, it is just money. There are always going to be other things in life that have a far greater purpose and can provide better fulfillment. Money is one of the mediums we use to achieve some of these things, but that is all. If you are to get a bigger pay raise, it would also be wonderful if you would consider increasing your contribution to charity from wherever you are at (this includes increasing from $0.00).