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  • FIRST POST
    • rjwr
    • By rjwr 27th Aug 17, 12:11 AM
    • 281Posts
    • 185Thanks
    rjwr
    Advice - what to do with a £10k pay rise
    • #1
    • 27th Aug 17, 12:11 AM
    Advice - what to do with a £10k pay rise 27th Aug 17 at 12:11 AM
    So my basic salary has just been increase by £10k. I am concerned i will now spend more because i feel more "wealthy".

    I've just cancelled the two credit cards i had with no balance on them,

    Has anyone got any advice of how to avoid wasting money and removing the benefit of the increase?
Page 2
    • rjwr
    • By rjwr 31st Aug 17, 9:02 PM
    • 281 Posts
    • 185 Thanks
    rjwr
    in fact i like it that much, its staying under my name.
    But never spend money you don't have to buy things you don't want to impress people you don't like.
    .
    Originally posted by kidmugsy
    • inflationbuster
    • By inflationbuster 31st Aug 17, 11:22 PM
    • 117 Posts
    • 22 Thanks
    inflationbuster
    Overpay the mortgage and tuck some away into a saving account. I was mortgage free in my 30s it's just bliss.
    • elephantrosie
    • By elephantrosie 1st Sep 17, 12:31 AM
    • 364 Posts
    • 102 Thanks
    elephantrosie
    it is human nature to spend more when they feel rich. i agree we should pamper ourselves, but set the budget right. now that i am earning a little bit more, i shop at m&s, rather than sainsburys or tesco....

    anyways, back to your question. i think the best way is to put your money somewhere that you cannot withdraw like fixed deposit accounts, give it to your parents to keep etc.

    my 2 cents
    Another night of thankfulness.
    • elephantrosie
    • By elephantrosie 1st Sep 17, 12:48 AM
    • 364 Posts
    • 102 Thanks
    elephantrosie
    money to my parents are lost to inflation because they do not actually need my money, therefore they are kept in the bank. they have enough to get by.
    i dont care whether the money given to them are not financially wise (ie. lost to inflation). it just make me feel happier and more fulfilling to know that i can provide them like how they provided me.
    • Anonymous101
    • By Anonymous101 1st Sep 17, 9:04 AM
    • 977 Posts
    • 343 Thanks
    Anonymous101
    I got a similar pay rise last year.
    I don't need a new car or bigger house so I went on a very very nice holiday, increased my ISA savings by a couple of hundred a month and increased my pension contributions by about 5%.

    I think the biggest risk to my Financial Independence goal is standard of living creep. I already have a comfortable life. I don't NEED to make it a luxurious one. If I were to recieve another similar pay rise it would most likely all go into savings in one way or another.
    • rjwr
    • By rjwr 2nd Sep 17, 6:12 PM
    • 281 Posts
    • 185 Thanks
    rjwr
    thank you for the responses. I currently live comfortably on my income prior to this raise.

    I hope that I am able to follow some of the pointers and not blow it.
    But never spend money you don't have to buy things you don't want to impress people you don't like.
    .
    Originally posted by kidmugsy
    • Tiners
    • By Tiners 3rd Sep 17, 7:25 AM
    • 190 Posts
    • 203 Thanks
    Tiners
    Are there any creditors still left out of pocket following your bankruptcy?

    Why not use it to reimburse them if there are any?
    • Tarambor
    • By Tarambor 3rd Sep 17, 9:10 AM
    • 1,145 Posts
    • 786 Thanks
    Tarambor
    But you only live once.
    Better car. Better holidays. More comfortable house.
    Originally posted by PeacefulWaters
    Lose job, end up taking one with lower salary, end up on DFW board because the costs of what you did above mean you can't meet your financial obligations any more and you have no emergency fund.
    • Tarambor
    • By Tarambor 3rd Sep 17, 9:12 AM
    • 1,145 Posts
    • 786 Thanks
    Tarambor

    I think the biggest risk to my Financial Independence goal is standard of living creep. I already have a comfortable life. I don't NEED to make it a luxurious one. If I were to recieve another similar pay rise it would most likely all go into savings in one way or another.
    Originally posted by Anonymous101
    www.mrmoneymoustache.com, www.monevator.com.

    Read and inwardly digest. Living standards creep is a real big issue. It is one reason why you'll find someone like a doctor on a six figure salary has no more chance of retiring early than someone working on NMW.
    • bigadaj
    • By bigadaj 3rd Sep 17, 10:56 AM
    • 9,907 Posts
    • 6,325 Thanks
    bigadaj
    Lose job, end up taking one with lower salary, end up on DFW board because the costs of what you did above mean you can't meet your financial obligations any more and you have no emergency fund.
    Originally posted by Tarambor
    You're a right little ray of sunshine.
    • Audaxer
    • By Audaxer 3rd Sep 17, 1:06 PM
    • 404 Posts
    • 166 Thanks
    Audaxer
    www.mrmoneymoustache.com, www.monevator.com.

    Read and inwardly digest. Living standards creep is a real big issue. It is one reason why you'll find someone like a doctor on a six figure salary has no more chance of retiring early than someone working on NMW.
    Originally posted by Tarambor
    I think most ambitious people that get promotions and wage increases at work would conscientiously want to increase their standard of living. If sensible they will not blow it all, but increase their present standard of living as well as saving and investing for the future.

    A doctor or anyone on a six figure salary should be able to plan to retire early if that is what they wish to do, easier than someone on near minimum wage.
    • kidmugsy
    • By kidmugsy 3rd Sep 17, 3:49 PM
    • 9,596 Posts
    • 6,354 Thanks
    kidmugsy
    I have overlooked contributing to my wifes pension, currently she doesnt have an income.
    Originally posted by rjwr
    No earnings, no problem. She's allowed to contribute up to £2880 net (=£3600 gross) each tax year.

    Her provider claims the £720 tax relief and adds it to her "pot" even though she hasn't paid any income tax. I imagine that it's the government's way of encouraging the low paid and unpaid to invest for their old age.
    • rjwr
    • By rjwr 9th Sep 17, 11:29 PM
    • 281 Posts
    • 185 Thanks
    rjwr
    Are there any creditors still left out of pocket following your bankruptcy?

    Why not use it to reimburse them if there are any?
    Originally posted by Tiners
    that sounds like something i will get on right away,
    But never spend money you don't have to buy things you don't want to impress people you don't like.
    .
    Originally posted by kidmugsy
    • mollycat
    • By mollycat 10th Sep 17, 8:33 AM
    • 935 Posts
    • 1,889 Thanks
    mollycat
    thank you for the responses. I currently live comfortably on my income prior to this raise.

    I hope that I am able to follow some of the pointers and not blow it.
    Originally posted by rjwr
    Without wishing to be unkind to the OP, these types of "I'm frightened I blow all my money", threads baffle me.

    Who has the gun pressed to your head?

    Willpower.....just don't spend it!
    • Audaxer
    • By Audaxer 10th Sep 17, 9:13 AM
    • 404 Posts
    • 166 Thanks
    Audaxer
    Without wishing to be unkind to the OP, these types of "I'm frightened I blow all my money", threads baffle me.

    Who has the gun pressed to your head?

    Willpower.....just don't spend it!
    Originally posted by mollycat
    It's not that baffling. Everyone is different and a lot of people do not have the willpower to not just blow it.
    • Snakey
    • By Snakey 10th Sep 17, 10:41 AM
    • 990 Posts
    • 1,200 Thanks
    Snakey
    It's not for everyone, but I put every pay increase I've had since 2001 (age 29) into my pension and other savings/investments, and as a result I am - fingers crossed - on course to retire comfortably at 50. It's a real slow burner, but there's one heck of a psychological payoff on the day when you realise that the dream is no longer in the far distant future but now relatively close.

    If you don't fancy further direct financial investment in your future, you could consider indirectly helping out Future Rjwr in the form of better living today - gym memberships, healthier food. Other ways to invest in yourself and your life might include professional qualifications, learning a language, and keeping Mrs Rjwr happy with a nice holiday or doing up the garden or whatever floats her boat.
    • elephantrosie
    • By elephantrosie 10th Sep 17, 9:56 PM
    • 364 Posts
    • 102 Thanks
    elephantrosie
    I think most ambitious people that get promotions and wage increases at work would conscientiously want to increase their standard of living. If sensible they will not blow it all, but increase their present standard of living as well as saving and investing for the future.

    A doctor or anyone on a six figure salary should be able to plan to retire early if that is what they wish to do, easier than someone on near minimum wage.
    Originally posted by Audaxer
    hmm... false public perception again. doctors do not earn a lot.
    Another night of thankfulness.
    • bigadaj
    • By bigadaj 10th Sep 17, 10:15 PM
    • 9,907 Posts
    • 6,325 Thanks
    bigadaj
    hmm... false public perception again. doctors do not earn a lot.
    Originally posted by elephantrosie
    How much do you think they earn?
    • Apodemus
    • By Apodemus 11th Sep 17, 7:31 AM
    • 829 Posts
    • 618 Thanks
    Apodemus
    How much do you think they earn?
    Originally posted by bigadaj
    ...and what is "a lot"? Compared to a hospital cleaner, a medical doctor does earn a lot. Compared to a CEO in an FT100 company, they earn a pittance!
    • justme111
    • By justme111 11th Sep 17, 8:01 AM
    • 2,788 Posts
    • 2,669 Thanks
    justme111
    https://www.google.co.uk/amp/s/www.bbc.co.uk/news/amp/health-34475955
    Basic salary starts at about 23 k. As they get a lot of extra hours it used to be more due to them being paid for those hours , not sure what happens now.
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