How many of you spent responsibly after getting a raise?

Discussion in 'Vintage Topic Archive (Sept - 2009)' started by 4095fanatic, Feb 12, 2008.

  1. Thinking of switching jobs... going to go from 11k a year to 41k a year. I love what I do, but I'm barely keeping up with the bills. With my new paycheck, I could:

    Pay off all my debts
    Collect about 10 new firearms a year, with plenty of accessories
    Get a reloading set
    Afford to go back to school, finish my degree
    Shoot about 500 rds/week (centerfire)
    Shoot about 5,000 rds/week (rimfire)
    Get an actual house, not simply an apartment (with a gun room/work room)
    Have an actual savings account with money in it
    Get back into the stock trading game

    Don't think I'll be like my brother, who spent thousands on strippers and alcohol like a drunken sailor when he got his bonus, but we'll see. Any advice? Right now most of my "spending" cash goes right out the window... but once I'm debt free its going to be so tempting to go spend it all again...
  2. Jarhead1775

    Jarhead1775 Guest

    When you earn more you spend more. If you could maintain the way you live and save the balance you would be better off. Once you get set on a higher standard of living it is much harder to adjust to a tighter one. Meaning if you could maintain your current lifestyle but being debt free, occasionally spending but saving and investing you will be set. Once you start buying everything your heart desires, eating out 6 days a week and so on.. It will be your demise. You never know what the future holds and what is happening in the economy. Spend what you must and save what you can. Congratulations on your new job and good luck.

  3. Kelotravolski

    Kelotravolski Member

    It sounds lame but develop a budget! sit down and divide your money paying all of your bills. After you have taken care of all of your necessities decide on a small amount each month that is your "spending money" It should not be a lot and to make big purchases you may have to save for several months. Take the rest of your money and save it. However you want to do this is up to you it could be in stock or mutual funds. (although the market is not looking too well right now) Or maybe you want to lay your money away in gold bars to resist inflation. However you chose you should keep some of it liquid so that you have cash if you need it. Enough to get out of town or maybe out of the country just in case. Having this cash set aside will save you trouble if your funds are otherwise unavailable or your assets are frozen. I would say the first thing you should be working towards is owning your own home. Money payed towards a home you get to keep. Rent is gone forever and it does not bring you closer to owning anything. Plus a home is your own and you can make modifications to it if you so desire. Anyway just my thoughts on how to do it.
  4. AndrewST

    AndrewST Guest

    I can vouch for the fact that life changes extremely quickly. My wife and I went from about $81,000 a year, to $28,000 a year this summer. We had gotten adjusted to the higher income, and than Oregon passed new laws that effected the pay day loan industry. As soon as it happen her company folded up operations in this state and she lost her job.

    I was still working for Dell Computers and had a very livable income, so we THOUGHT we would be fine. Not even 2 months later Dell called a site wide meeting, and shut us down.

    It took me a month to find the current job I have, which as I said only pays $28,000 a year and it is one of the higher paying jobs in my area. $28,000 and a family of four isn't much at all! We moved out of the house we had into a much smaller apartment, cable went, cell phones went, only kept the basics.

    The "big" purchases we make now happen only when the money is saved up. My wife just got a new notebook, and I got my new 30-06.

    We both did get pretty decent severance packages and we did have some money in savings, but it isn't easy.

    So my advice to you, if you are comfortable with your living style now don't change it when the income changes. If it is just you, a small apartment is fine, of course you can spend more on shooting now. But with the income raise, unless you HAVE to don't go out and get a bigger place and start living bigger.

    Live below your income level, not at it, or for god sakes above it! I found it out the hard way.
  5. Yeah... I went from 30k or so a year to my current 11k a year. Credit card got racked up quite quick as it was a month or two before I got used to spending a LOT less (no eating out, no weekly range trips (I actually had to go 6 months without shooting, etc.). But I adapted. However, I also believe a maxim from Donald Trump, of all people: When you make more money, don't be afraid to spend it. The point of making more money is being able to enjoy it. That being said, I do plan to try and put at least 10k of that a year into savings/investments, but I am a bit tired of living in a 8x8 room, having the heat set to 55 degrees to cut down on the gas bill, sleeping on an air mattress that deflates, not having a car, and eating off food stamps.
  6. neothespian

    neothespian Member

    Raise?? What's that?

    Working in the arts, I'm at the whim of two methods of pay procurement:

    -Contract flat rate: This means I do (x) ammount of work (Be it per show, per hour or per run), and I get $(Y) in pay. I do beyond the contract, and I will hopefully get $(Y)+ $(Y)/ammount of extra labour over the term of the contract. Now, if the show sucks or if we close early, unless there is a certian clause in the contract, it doesn't affect my pay. If we sell out every night and increase the run, the same could be true as well. Most "Equity" or "Union" Shows are contracted like this. A "raise" would be more like a renegotiation of the contract, and really doesn't reflect your skill as much as the success of the show or the company as a while

    -Percentage Rate: This is a bit more rare, but is used when the show, film or theater company is either new or doing a work that is viewed as "risky". The crew and talent get paid a percentage of the overall take of the production. Administrative employees usually don't get this. This can be a bad thing, especially if the show tanks and closes in one week. Other times, it can be an amazing take! (Remember Star Wars? All the crew and actors worked for percentage. Ever wonder why Mark Hamil or Carrie Fisher never really complained about landing big contracts after the series? They didn't have to!)

    BUT, when I'm not in the show....I don't get paid!! I envy you guys who get hourly sometimes. I get paid the same if I work for 4 hours or if I work 14. Usually it's based off an 8 hour day :( WHO the hell in the arts works only 4 hours a day!?!?!

    But I can relate about making less than you were before. When I moved to Flagstaff to take the University job, I was expecting about $39k a year. Now? I'm pulling in a whopping $14k part time until they can increase their funding 6 MONTHS!


    At least I'm working at a place that doesn't suck.
  7. Eh for now I'm pulling in 900/month, regardless of hours, and sometimes I put in 120 hour weeks. Oh well, at least I enjoy it (usually).
  8. masfonos

    masfonos Member

    getting a what? what the heck's a raise?
  9. maybe the question is not what to do with it........ it's where do you want to be in 10 years? 20 years?

    It would be worth a few hundred to visit a real live financial planner - create a budget that lets you enjoy your new coin, and save/invest that lets you enjoy it in the future too. If you don't care about the next 10 years, then spending it all now could be fun. But........ I guarantee you'll wish you hadn't.

    Been there. Done that. Got the T-shirt. Get help, get it right.
  10. Sounds like a nice raise! You'll be able to do a lot more with that. I'm just trying to scrape and survive myself. I got a few job interviews, but no offers yet :(
  11. Reward yourself. Pick out one thing you've really wanted but couldn't afford. Buy it and save at least half the increase. You'll have savings and enjoy a better standard of living. When I got divorced I went from having $3000 a month down to about $700 after maintenance and child support. After 4 years, I was done. Then I bought a new car and put the rest in my 401K. Make your changes soon or you'll adjust to the new income and still be living paycheck to paycheck. Now I'm remarried and broke again. :)
  12. If I ever get divorced, I'll never get married again. This way, even if I have a live in girlfriend, she can handle her own bills, I take care of mine and I can kick her out if she hacks me off.... Easy life really.

    4095, honestly, find an investment, like a Roth IRA, and that will make you money work for you in the long run. Right now, I have Roth IRA's for both my wife and I. As long as we keep adding to them, we'll be set by the time we're 50 years old.
  13. jason865

    jason865 Guest

    Evertime I get a raise, which in my jobline typically comes with change of employer, I add 50% of the difference to my spendable monthly income, and put the other 50% towards a retirement account. Since it is newly found income, you arent use to having it anyway. I am only 30, but I dont plan on being a walmart door greater when I am 60 so I figured I better at least save what I can now.

    Now, that being said, there was a time when this wasnt the case. Newly found income is harder to save when it makes the difference between buying real groceries and eating ramen noodles for the week. :lol:
  14. elguapo

    elguapo Guest

    Pay your bills.
    Make sure everything is ok in your household.
    Get the checks, and make sure the above two are met...and you see a balance left over.
    If you want a house, or a new car, focus the funds on that then....
    Thats how I am doing it.
  15. I count my lucky stars that I work for a company that throws money at us. Decent base salary, plus 12% shift differential for working mids, tons of OT, tripletime + diff on holidays, etc. But we earn it. The broadcast industry is a mean ole bitch with sand in her...well, you get my point...
    But they're right, when you make more you spend more. I try my hardest to keep the bills down, and end up spending it on stupid crap.