~Don't Overextend Your Raise!~

*photo credit-Ron Niebrugge*

A very common mistake...

Did you get a raise or are you expecting a raise for your household?
Do you have big plans for that money already?
Will you be playing catch-up due to living outside your current income?

I've found that raises (usually minimal) really don't help most people that much. It is almost as if people get a false sense of security and go overboard, but in little ways. Example: You typically spend $100 per month eating out. Now that you have a raise you don't think twice about eating out a couple more times per month. At the end of the month you have spent $200-$300, when you really only had $100 to spend still.
Or
Your hubby gets a $200 raise per month and decides he needs new truck. The new truck payment is $450. Technically, he is getting a $250 pay cut now that he has a payment instead of driving the car that is paid for. Ouch!
Or
You get a somewhat substantial raise and decide that you need to upgrade your home by doubling in size & payment. Most people forget to budget for the utilities and other expenses that come with a larger home. Being home poor is no fun! Trust me!

I've seen this mistake in almost everyone I know. No joke! I can say this because we have made the same mistakes too. Not proud, just honest.

It is really hard to get ahead when you don't budget every cent. I'm not saying to not enjoy the raise. Go out for a special meal, but then get back on track. Don't go out and get crazy. Plan out that raise to truly work for you and for your family. As always, give your first fruits to the One who gave it all.

Be blessed~
SHO