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But here is the thing, my family makes a comfortable 40k after taxes. We have zero debt, eat good food, live in a decent neighborhood, and don't want for anything. We put away 10k a year into retirement, and still have 6k a year for vacation. We have had a fairly constant income for the last 7 years, and have gotten very good at living at this level.
Soon our take home will double, and then triple just a few months later, but I have no idea how to adjust to that. Already our savings is a years worth of expenses, and our cars have less than 100k miles between the two of them.
First world problems I know, but any advice is appreciated.
It can be a huge problem. If you are comfy right now, just stay the way you are and invest the money in stocks or other things. Save the money, save for your kids future ect. Do not live a life style that uses all that money. You can up your standard of living, but DO NOT let the money go to your head.
Try to live the exact same lifestyle you are currently living and save the excess. Half in a Roth IRA, half in a traditional 401k.
Look me up in five years and thank me for giving you the best advice ever five years ago! Feel free to throw some of the wealth you will have built-up my way!
Why would you change how you live because of money?
Do what you do now but put the excess in the 401k, IRA, donate to charities, stick it in a trust for grandchildren or children .
There is no reason at all to change your lifestyle just because you are going to have more income. I doubt that you have the desire to put yourself in debt since you are out of debt now so just continue on like you currently live and stash the excess in different savings and investments.
Try to live the exact same lifestyle you are currently living and save the excess. Half in a Roth IRA, half in a traditional 401k.
Look me up in five years and thank me for giving you the best advice ever five years ago! Feel free to throw some of the wealth you will have built-up my way!
That's a very difficult thing to do in practice. When income goes up, it's human nature to desire more comfort. It's the same thing that happened when you graduated from school and got a real job. Suddenly the need to buy something will pop up. A more realistic plan is to upgrade your life in a controlled manner. For example, rent a nicer apartment, buy new clothes, go to music events, eat out once in a while, and also set aside more money for retirement. Build a more generous budget, but still stick with it the same way you've stuck to your current budget all those years.
Why would you change how you live because of money?
Do what you do now but put the excess in the 401k, IRA, donate to charities, stick it in a trust for grandchildren or children .
There is no reason at all to change your lifestyle just because you are going to have more income. I doubt that you have the desire to put yourself in debt since you are out of debt now so just continue on like you currently live and stash the excess in different savings and investments.
Way easier said than done. If he doesn't have any expensive hobbies or interests or 'wants' then he should just keep steam rolling onward and invest the rest.
The issue here, is a better job at work? You better look the part. You can't dress the same for a $40,000 a year job, and an $80,000 a year job. You need to look a bit more polished. You were hired, meaning probation. You don't have the job forever. You need to look the part. If you don't, you better be used to your frugal lifestyle, because you won't keep the job.
Get a decent haircut, see what others wear at work, emulate them.
I see this often, people get hired out of college, and keep wearing their college clothes to work, they don't look professional, or put together. They stay in lower level jobs.
I know, many people will say go to Goodwill, and what snazzy dressers they are for zero money, blah blah, and you can be a sharp dresser buying clothes at Wal Mart. Whatever.
You want the job, please just review your wardrobe, and look the part.
What exactly will happen that will cause your household income to double then triple?
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