When you earn more money after getting a raise or by moonlighting or a side job, you make plans for the extra cash. Many of us often tell ourselves the lie that when I get more money “I will get out of debt”or “I will save more.”

Yeah right.

Saving more doesn’t happen because if you are making considerably more, there may be obligations that go with the job, so you may spend more You may need to buy certain clothes or work related supplies. Then of course you want to fit in with your co-workers by going to lunch with them or socializing with them.

What can you do? If you are making the change to a dramatically higher salary you may be star struck by the numbers. If you are making a small jump in salary based on years of service or education then the salary amount will not be that great a deal even though it isi more. Even if you earn an additional 10% raise, with the cost of inflation, transportation and other necessities, the raise that you get may only keep you on pace with inflation in your area.

Why do we think that once we get a raise or make a certain amount that we will be so much better off? Because we haven’t really looked at the relationship we have with money.

When that new raise comes, the first thing you need to look at is how much more you could add to your pre-tax savings, an additional payment to decrease your debt or accelerate your car or mortgage payment. Of course you may want to add to something to a non retirement savings account.

The point is… when you get a raise or find a job with a higher salary do not throw caution to the wind. Before you first new payday comes, realistically and seriously think about how you are going to send the additional money you have. Rethink what you need to comfortably need to live on and go from there.

If you just added $25 each pay period to any outstanding bad debt (credit card) or $25 or more to your retirement investment you would see a big difference upon retirement. Then with the rest of the money you earn… use that for your fun money. Take a vacation, go to the theater, buy hobby supplies.

 t go into debt when you spend.

Save first, then spend but don’