Advice - what to do with a £10k pay rise

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  • inflationbuster
    inflationbuster Posts: 250 Forumite
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    Overpay the mortgage and tuck some away into a saving account. I was mortgage free in my 30s it's just bliss.
  • elephantrosie
    elephantrosie Posts: 467 Forumite
    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
    elephantrosie Posts: 467 Forumite
    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.
    Another night of thankfulness.
  • Anonymous101
    Anonymous101 Posts: 1,869 Forumite
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    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.
  • The_Real_Cheddar_Bob
    The_Real_Cheddar_Bob Posts: 542 Forumite
    Name Dropper First Anniversary First Post Photogenic
    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.
  • Tiners
    Tiners Posts: 232 Forumite
    Are there any creditors still left out of pocket following your bankruptcy?

    Why not use it to reimburse them if there are any?
  • System
    System Posts: 178,093 Community Admin
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    PeacefulWaters wrote: »
    But you only live once.
    Better car. Better holidays. More comfortable house.

    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.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Anonymous101 wrote: »

    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.

    https://www.mrmoneymoustache.com, https://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
    bigadaj Posts: 11,531 Forumite
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    Tarambor wrote: »
    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.

    You're a right little ray of sunshine.
  • Audaxer
    Audaxer Posts: 3,508 Forumite
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    Tarambor wrote: »
    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.
    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.
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