The Family Piggy Bank
If the current breadwinner in your household received a raise of double what they're currently making:
Would you stick to living the same and save the extra income,
Adjust your budget accordingly so you spend a little, save a little,
Or just start living the highlife with what that money brings (bigger homes, fancier cars, designer clothes)?
Would you stick to living the same and save the extra income,
Adjust your budget accordingly so you spend a little, save a little,
Or just start living the highlife with what that money brings (bigger homes, fancier cars, designer clothes)?
Replies
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If it was early in our marrage, I know we would have saved most of the increase, but made sure we were comfortable first.
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We'd spend a little, save the rest.
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We don't have any debt except for 12 years left on our mortgage.
I would pay that off, probably do some major home renos and POSSIBLY have a third child. I would also probably stop working altogether...
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This actually has happened to us over the last 5 years, well not double, but a 60% increase. We've gone from a 2 income household to a single income. We have a full year in emergency funds, we also have enough set aside for a down payment on land when we find what we want, my hubbys 401k has been maxed each year. We had a 3rd child. Along with me quitting work, we spend less eating out and gas, but more on groceries. We bought a van to accommodate our family. We each have smart phones. We currently are planning a minor kitchen remodel, something we could never have considered before. We've saved a lot, but we've also allowed ourselves some luxuries. I think there can be a happy medium. -
It would take three months to Seven months before all of the bills are caught up. (except the house and the student loans) . At that point we would pribably go a bit nuts -shopping wise- before paying off the student loans and the mortage. So depending on how long it lasts will depend on what we do exactly.
So if we know it is only for a year then the $20,000 in debt will be paid off and we could ignore the student loans and pay off three months of our mortgage. Any left over cash would be put into savings so we could do the house repairs as needed.
Now if this was a permeant situation, then there would be no change in our spending habits. DH pays 2/3 of his income in child support (2 kids by his ex) and this would just mean that they would be getting more and our monthly pay would only go up a 1/3 which would allow us to pay all of our bills on time. -
My husband did get a raise but we live about the same.