What not to do if your income has increased dramatically

[Lord777]

When our income increases dramatically, this is a cause for joy. However, if you treat your income incorrectly, which has increased dramatically, then after a while you can face a catastrophic shortage of free money.

It is enough to follow a few rules to avoid this.

1) Don't buy extra things on impulse, in the "mood", just because you can afford them.
Get only those things that you have planned in a calm state of mind. Then they will delight you for a long time with their practicality.

2) It is advisable to live for some time on the "old amount", and to get used to the "new money" gradually, responsibly.
To do this, divide the amount of income into two parts: the amount that came to you before the increase in income and the amount that was added. Make all the necessary expenses: for travel, food, utilities, and loan payments from the "old" amount. And with the "additive" it is desirable to do so:
– put 50% on a bank deposit at a high interest rate. This will allow you to accumulate good capital. Experts have calculated that investing only $ 10 a day (the cost of a cup of coffee in a well-known coffee shop chain), in a few years you can get a capital of several million;
– 20% you can spend on a new suit or phone to "match" the new position (or postpone it);
– 10% transfer to a charitable foundation or help friends and relatives who need financial support.

3) Do not show your "coolness" and consistency. Don't buy a bunch of "status purchases". From the point of view of functionality, status items are no better than ordinary ones, just much more expensive.

4) Do not take out new loans without paying off the previous ones. Although you think that right now you can afford any loan. However, this euphoria can be deceptive – it's easy not to calculate your financial capabilities.

5) Keep a record of all your expenses. Then your conscience will be reassured by the fact that you know where you spent your hard money, and they did not go into a black hole.