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Did you get a raise?
Time for a fancier car.
A promotion that doubled your earnings?
Time for a bigger house!
This pattern of behavior can severely limit the ability to save for the future and compromise overall financial stability.
So how exactly can you keep your spending in check as your earnings grow?
GOBankingRates looked to experts foradvice on this age-old dilemma.
The mindset should be, I got a pay raise, am I saving at least 20%?
[…] dont let your 65-year-old self down because you couldnt tell yourself no today.
Which expenses truly improve your life and which are the ones youve just become accustomed to having?
If you value education, an academic course may be worth the money;expensive restaurant dinnersmay not.
Ask yourself questions like, how do I know my money is going to the places I want?
or what does living within my values look like?'
Fun money helps you remember a budget isnt all about restrictions, read an article posted toRamsey Solutions.
Occasionally, allow yourself to buy Starbucks!
Your fun budget could be $10 or $10,000 but, when its gone, its gone.
And before you know it, money is flying out the door.
Forget all about the raise… as much as possible anyway.
Out of site, out of mind.
Behave as though the raise never happened, stated Georgi Todorov, founder atCreate & Grow.
Create automatic transfers to direct the additional money directly into savings or investments before you ever notice it.
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