{"id":2054,"date":"2016-05-04T00:15:38","date_gmt":"2016-05-04T08:15:38","guid":{"rendered":"http:\/\/www.cultofmoney.com\/?p=2054"},"modified":"2016-05-03T06:38:49","modified_gmt":"2016-05-03T14:38:49","slug":"what-to-do-when-your-income-increases","status":"publish","type":"post","link":"https:\/\/www.cultofmoney.com\/what-to-do-when-your-income-increases\/","title":{"rendered":"What to Do When Your Income Increases"},"content":{"rendered":"
Increasing your income whether from a promotion, raise, side hustle or business is an amazing feeling. It\u2019s hard to deny that having more money to work with on a monthly basis doesn\u2019t feel a bit freeing \u2013 especially if you\u2019ve been struggling.<\/a> However, if you\u2019re not careful that income increase can lead to some big budget imbalances.<\/p>\n If you\u2019re lucky enough to find yourself with an income larger than you\u2019re used to, here\u2019s what to do.<\/p>\n As my income has increased over the years I\u2019ve had to rethink my financial goals several times. I ultimately came to the decision that while my income is up I\u2019ll allocate more toward paying off my mortgage.<\/p>\n This is currently my only debt and I know that if the mortgage was paid off either myself or my husband losing a job wouldn\u2019t be a burden for us. (It wouldn\u2019t be fun. But it wouldn\u2019t wreck us either.) By focusing on this goal I\u2019m setting myself up for financial success in the future.<\/p>\n We do still save for retirement, our kid\u2019s college savings and emergencies but most extra money goes toward the mortgage.<\/p>\n I want to encourage you to adopt a similar train of thinking. Paying off your mortgage might not be the goal for you but what things can you focus on that will improve your financial situation and set you up for success if something unexpected happened down the line?<\/p>\n Paying off debt, establishing a decent savings rate and saving for retirement are always good options. (Although these definitely are not your only options. Do what feels best for you.)<\/p>\n Once you have those goals thought out pull out a sheet of paper and jot down a plan. Decide exactly how much money you want to go toward your financial goals.<\/p>\n (Hint: It doesn\u2019t have to be ALL of your extra income.)<\/p>\nRethink Your Financial Goals<\/h2>\n
Allocate Extra Funds Accordingly<\/h2>\n