Many people have financial challenges and today, I am going to talk about one very big tip that will help improve your financial situation for years to come.
Did you know that many people making six figures but are in debt and not on track for retirement? Yet, they can survive and pay their month to month expenses. Did you know that there are also people who are surviving and paying their month to month expenses, making half of what the six figure salary earners are making? And still, there are people living off of half of that.
How does this happen? Isn't it true that when our income rises, our expenses tend to grow to match the level of income? Today, I'm here to teach you how to stop the madness.
When you get a raise, be purposeful about how you are going to spend the raise. Since you were already living just fine without the raise, take 80% of the raise and implement a pay yourself first program. This means, that you apply this money towards your debt elimination program or your retirement savings, before you use it for monthly expenses. After you have done this, you can take the other 20% and spend it however you like. Go ahead, you deserve it for your hard work.
Remember, by choosing to keep the same standard of living, you are also choosing to improve your finances.
This post was reposted from http://finlit.biz/retirement-2/improving-your-finances-while-maintaining-your-lifestyle/, originally written on September 12th, 2013.
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