Well, actually I did get a raise. Sort of.
My boss gave me a raise but I didn’t give it to myself. What do I mean? Right now I am at the point where I am “making it” day to day but there are still goals that I need to meet. My emergency fund is not fully funded. I have some big purchases that I need to save up for.
My raise is going to pay for that. If I have been fine with my current paycheck then I can live without my raise. The first thing I did when I was told that I would be getting a raise is increase my retirement savings contribution. If the money is immediately accounted for-then I will never miss it! I then sat down and decided how much more needs to go into each of my savings accounts- my emergency fund, my large purchases account etc. After a while, I will increase my discretionary spending but not until I bulk up my savings a bit!
Don’t think that this means that I make so much money that I don’t need the money from my raise- I absolutely do! But if I have been living poorely until now I can do it a little longer until I feel that my savings accounts are in a better place. I can do without now so that my future is a little more secure. And trust me-I do without often!
“Extra money” is the best money to put away- if you never had it then it doesn’t hurt as much to part with it.