I Got a Raise! What Should I Do With It?
Earlier this week, my manager informed me that I have been given a raise!!
This is especially good news as I did not receive one last year. After taxes, I estimate that it will net about $115 per paycheck, or $230 per month. It’s not life changing, but in an environment where I recently watched coworkers get laid off, I’m extremely thankful not only to have a job, but to have been granted a salary increase.
The question now is, what should I do with the extra cash?
My wife and I sat down and evaluated all our major budget buckets to find the best place to apply the new funds.
Entertainment fund increase: Nope. My wife and I both feel we have adequate funds each week for entertaining ourselves, so there’s no need to add any additional funds to this budget bucket.
Groceries / Household items: With a high school freshman and his seemingly bottomless bit of a stomach living in our home, we could use a little bump in our grocery budget. Plus, it would be nice to add another â€œspecialâ€ dinner to our meal plan each week. We decided to add $20 a week to this bucket, or $80 a month.
Retirement / Savings : Can you ever over fund these buckets? I’d love to pump them up a little more, but we decided that we have a more pressing need….read on.
Emergency Fund: We have aging vehicles (that we’re trying to make last as long as possible) and many of our appliances are reaching the age where they may be reaching end of life. Pumping up our emergency fund for repairs or even replacement of some items seems like the best place to apply the additional $150 a month.
Did you get a salary increase this year? How are you using the extra cash in your budget?
Brought to you courtesy of Brock