In 2016 I got promotion to my company's Cyber Security Team. My new role came with a nice 5k pay rise which was sweet.
And what did
I have to show for this extra money? Was my overdraft cleared, did I use the
extra cash to increase my credit card payments, did I save or invest my pay
rise?
The answer
is no. I have
nothing to show for my extra 5k a year. In fact my debt increased since from
there. Thinking about it, this pattern seems to be the case throughout my
career - As I earn more I spent more.
With a wage
increases can come higher credit limits resulting in more debts. When we earn
more our lifestyle tends to follow and we buy more, upgrade our stuff and even
use more credit that's made available to us.
Furthering
our careers offer an opportunity to dig ourselves out of debt. When you get a
salary increase put it to good use. Continue to live as if you didn't have the
extra cash.
It's
important that when we receive an income boost we take advantage by spending it
wisely on paying off our debt and saving the extra cash. If we fail to do this
our rewards for working hard and earning promotion are just wasted.
Use any
salary increase you receive to increase your pension contributions, kill off
debt and save up. For my next promotion the income boost will be spent straight
into my mortgage and home improvements.
