Ok- You got a new job and more $$ what do you do with it?

TheFORCETheFORCE Senior MemberMember Posts: 2,298 ■■■■■■■■□□
So simple question :) What do you do with that extra money you receive once you get that new job or promotion? If you were able to have a good life with your old salary you surely are comfortable with the new one. So do you start spending more? Do you start saving more? Contribute to your 401k more or start investing the new fortune or do take your family to better and longer vacations?
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Comments

  • joelsfoodjoelsfood Member Posts: 1,027 ■■■■■■□□□□
    I got a promotion and a raise earlier this year, and I chose to do the following
    1. Increase my 401k contributions
    2. Increase my life insurance
    3. Increase wife's discretionary budget

    Other than that, no specific changes.
  • TheFORCETheFORCE Senior Member Member Posts: 2,298 ■■■■■■■■□□
    joelsfood wrote: »
    I got a promotion and a raise earlier this year, and I chose to do the following
    1. Increase my 401k contributions
    2. Increase my life insurance
    3. Increase wife's discretionary budget

    Other than that, no specific changes.

    Haha the wife must have been happy :p.
    I did the following.
    Increase 401k contributions
    Increase savings amount
    Increase contributions to investing amount
    Do some small renovations.
  • 5ekurity5ekurity Member Posts: 346 ■■■□□□□□□□
    Inherently, I think people spend more because they can 'afford' more - which can be a fatal flaw and lead to a lot of money issues (seen it happen to other people).

    My bump earlier this year has been going to:

    Ongoing remodeling of the house
    Increase savings
    Develop / invest in other money making opportunities
  • 10Linefigure10Linefigure CCNP R&S, Security+ USAMember Posts: 368 ■■■□□□□□□□
    I just started a new job this month with a 1k a month salary increase and here is what I reccomend:

    Maintain your current lifestyle
    Pay off any credit cards or debt if you have any (except entire house / car) ( I didn't have any so skip this step)
    Finish maxing out your Roth IRA for the year
    Use the rest to do anything you want ( I put it into a normal savings account to save for a plane ticket home this Christmas and Europe trip next spring)

    It all depends on how you want to live and whats important to you. Perhaps a new wardrobe or a gift for that special someone. :)
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  • jibbajabbajibbajabba Member Posts: 4,317 ■■■■■■■■□□
    Drink more whisky ...
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  • MooseboostMooseboost Senior Member Member Posts: 775 ■■■■□□□□□□
    jibbajabba wrote: »
    Drink more whisky ...


    I like this answer.


    Myself - I would probably save it or make extra car/bike payments.
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  • NetworkNewbNetworkNewb Member Posts: 3,298 ■■■■■■■■■□
    procreate, then watch that extra money disappear!
  • dave330idave330i Member Posts: 2,091 ■■■■■■■■■■
    401k's been maxed out for a while, so extra earnings go towards savings.
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  • Dakinggamer87Dakinggamer87 Gaming Tech Expert Silicon Valley, CAMember Posts: 4,016 ■■■■■■■■□□
    I would do the following if I got a raise/increased salary:

    Maintain your current lifestyle
    Pay off any credit cards or debt if you have any (except entire house / car)
    Finish maxing out your IRA/401k
    Continue adding to my savings account, donations to my church/charities, and travel
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  • alias454alias454 Member Posts: 648
    hookers and blow ;)

    Seriously though, home improvements, better toys, and saving for a rainy day are the things my additional money goes too. We are also able to enjoy life just a little better.
    “I do not seek answers, but rather to understand the question.”
  • joelsfoodjoelsfood Member Posts: 1,027 ■■■■■■□□□□
    Nice to see that at least in writing, most people here are already at point where they make comfortable living with existing pay, so they can be frugal and smart with any raise. Just a couple of years ago that wouldn't have been true in my case. :)
  • EssendonEssendon Member Posts: 4,548 ■■■■■■■■■■
    Increased my mortgage and car repayments each time my salary's increased. Result is the house is half paid off and the car fully.
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  • philz1982philz1982 Member Posts: 978
    Buy more houses...
  • gespensterngespenstern Member Posts: 1,243 ■■■■■■■□□□
  • pevangelpevangel Member Posts: 342
    Increase 401K, savings, and investments in stocks.
  • discount81discount81 Member Posts: 213
    Spread it out between some Index funds, stocks, buying physical gold bullion bars, and unfortunately having to fund your own retirement.

    I really hate the North American system of having to fund your own retirement, it's one more thing you need to worry about here.

    In Australia retirement funds are mandatory for employers to contribute to, you can give extra if you like, but if you are getting 9-13% of your salary put in for you, and you make $150k + per year you will have a healthy retirement without ever having to think about it, not to mention you can't touch it under any circumstances before the age of 60.
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  • TheFORCETheFORCE Senior Member Member Posts: 2,298 ■■■■■■■■□□
    discount81 wrote: »
    Spread it out between some Index funds, stocks, buying physical gold bullion bars, and unfortunately having to fund your own retirement.

    I really hate the North American system of having to fund your own retirement, it's one more thing you need to worry about here.

    In Australia retirement funds are mandatory for employers to contribute to, you can give extra if you like, but if you are getting 9-13% of your salary put in for you, and you make $150k + per year you will have a healthy retirement without ever having to think about it, not to mention you can't touch it under any circumstances before the age of 60.

    US companies match your 401k contributions too. My last company matched 5%, my current matches 6%. And bigger companies match a lot more i think.
  • dave330idave330i Member Posts: 2,091 ■■■■■■■■■■
    discount81 wrote: »
    In Australia retirement funds are mandatory for employers to contribute to, you can give extra if you like, but if you are getting 9-13% of your salary put in for you, and you make $150k + per year you will have a healthy retirement without ever having to think about it, not to mention you can't touch it under any circumstances before the age of 60.

    US used to have pension funds. It bankrupted many companies, cities and will probably bankrupt few states.
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  • discount81discount81 Member Posts: 213
    TheFORCE wrote: »
    US companies match your 401k contributions too. My last company matched 5%, my current matches 6%. And bigger companies match a lot more i think.
    Yeah I understand this, but the system is just extremely poorly managed.
    Also it comes out of my pay packet, in Australia a lot of companies will offer your Superannuation (401K) on top of your pay.

    http://www.forbes.com/sites/nextavenue/2013/08/19/to-solve-the-u-s-retirement-crisis-look-to-australia/

    I don't see how it could of bankrupt a company, you pay someone a salary, you can include the 9% super into their pay, so you are still paying the same salary, if you are a generous company you can pay the 9% on top of their salary.
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  • TranceSoulBrotherTranceSoulBrother Member Posts: 215
    No matter what, always use the extra money to:
    - pay off debts or improve your current situation (home improvement or vacation planning to celebrate)
    - so that you can use it to invest for your retirement.

    The idiot is the one that goes to upgrade to a bigger car or drastically changes their lifestyle.
    I was that idiot a couple of times. No more!
  • paul78paul78 Member Posts: 3,016 ■■■■■■■■■■
    dave330i wrote: »
    US used to have pension funds. It bankrupted many companies, cities and will probably bankrupt few states.
    Australia's Superannuation system is nothing like pensions in the US. I had done a bit of reading into this system last year. IMHO - it's perhaps the best retirement system that I've come across. Compared to US's social security system or 401K's, it overall provides more choices. I think are are several hundred superannuation funds at least.

    As for the OP's question - I think I would likely invest half and spend half. I can certainly relate to the notion of not living beyond your means. But if I am going to work hard and earned a higher wage - I'm certainly going to enjoy it. I "work to live" not "live to work".
  • alias454alias454 Member Posts: 648
    Exactly right. there is a difference between living beyond your means and enjoying the fruits of your labor.
    “I do not seek answers, but rather to understand the question.”
  • UnixGuyUnixGuy Are we having fun yet? Mod Posts: 4,148 Mod
    Save.

    Spend savings on experience (i.e. Live).
    Goal: MBA, Jan 2021
  • DrovorDrovor Member Posts: 137
    Using my promotion/raise to try to recover savings. Would also like to max out roth IRA. Unfortunately I was not able to this past year.
  • KronesKrones Member Posts: 164
    Max out 401k and Roth. Sigh. Maybe in the next life. I know boring. Maybe more cool toys.
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  • ScrawnyRonnieScrawnyRonnie Member Posts: 112
    Maintain current lifestyle and continue to save for purchasing a home. No debts to pay and I want to keep it that way.
    :lol:
  • W StewartW Stewart Member Posts: 794 ■■■■□□□□□□
    I'll tell you what I plan to do with the salary increase from the new job I'll be starting on Monday.

    Get a new TV to replace the one my 3 year old son broke
    Get a screen protector for that tv
    Get some new couches for the living room
    And finally, one of these days get a ps4
    Being a sys admin sucks but I love it
  • BlackBeretBlackBeret Member Posts: 684 ■■■■■□□□□□
    discount81 wrote: »
    I don't see how it could of bankrupt a company, you pay someone a salary, you can include the 9% super into their pay, so you are still paying the same salary, if you are a generous company you can pay the 9% on top of their salary.

    The old pension plans weren't investment funds. It was "You worked for us for 30 years, we're going to continue paying your salary until you die". At a certain point the companies would be paying the retirement of say 300 employees who no longer worked there, plus the salaries of the 80 employees who did work there, etc. Much like our current social security system, and to top it off the companies were dipping in to the funds that were set-aside, much like our social security system..
  • SaSkillerSaSkiller OSWP, GPEN, GWAPT, GCIH Member Posts: 337 ■■■□□□□□□□
    I'll be getting a raise sometime before the year is out, doesn't look like I will be bringing much extra home so, nothing.Best I can do is move to a crappier cheap apartment, decrease my expenditures and hopefully get a second job or extra hours. With any luck i'll be able to save some real money. Eventually.
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  • Mike-MikeMike-Mike Member Posts: 1,860
    My wife spends everything.

    I have the same problem.... and in Louisville... maybe it's the water
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