new budget

[premar16]

So in the last year I have come into control of my own money and i am trying my best to make sure i dont lose it all or spend on stupid stuff and pay bills on time.So i came up with a budget .So far its been working really well I just found that i will be getting a small pay increase should i redo my budget or should pretend like the increase is not there and make sure i spend withen my means im confused anyone who knows anything please help

[quietpal]

It's very hard to stay disciplined when you are starting something new. Having said that, I would pretend the extra money isn't there. Bottom line is when you get the money, you need to immediately be thinking about your future. Do you have any savings goals? You also should set aside a certain amount of money in your budget for splurging. That way when you spend it, you don't feel guilty because you put it in the budget.

[premar16]

I have an extra fund just in case i spend it on top of an emergency fund.I have been trying to pay off some school debt so that i can get my transcripts and get into grad school

[tjung10]

Yes...it is nice to have a budget setup! It makes things a little easier!

[kingozzy]

I'd stay on budget if it works for you, and put that increase in wage into some savings for emergency or vacation of some sort

[squirrelgirl44]

It is SO.HARD. to stick to a budget. Especially after years of NOT sticking to one. The only way I've really ever had any luck with that is to just not go shopping at all. But now with Amazon and eBay it's practically impossible to ignore.

[Snoozey]

I would put the extra money in a savings account.
I have a budget that I stick to every month (which has gotten harder because of the increases in cost of food and electricity) and any extra money I have at the end of the month is put aside for savings. When my money is in a savings account I don't think about it and I don't get tempted to spend it on things that I don't really need. 

[LAkathi]

The first item that you should list in your budget is savings.  Pay yourself first ,start putting away ,even a small amount, every payday towards your retirement.  Retirement may seem like eons away ,but believe me, you'll be surprized, at how fast it will get here.

[dreamyxo]

I would put the extra money in a savings account.
I have a budget that I stick to every month (which has gotten harder because of the increases in cost of food and electricity) and any extra money I have at the end of the month is put aside for savings. When my money is in a savings account I don't think about it and I don't get tempted to spend it on things that I don't really need. 

I would agree.  You can even set it up to be automatically deducted and sent to an online savings account that way it wold be a little harder to access the money instead of being temped to go to the bank and take it out.  You wouldn't even miss it.  

[poppy1]

If you were not paying yourself first  Let that increase be your pay  Let it go into a savings account  and FORGETABOUTIT! 

[premar16]

i have an automatic withdrawal that goes directly into savings at the first of the month i do have to move in a few months maybe i will use it to go towards the deposit

[kapeh12]

What I did years ago was found a budget/lifestyle I was comfortable with (including putting some money in savings each paycheck).  Whenever I got an increase, I allotted most of it to savings and continued to live comfortably.  I'd usually determine some kind of rounded number and if there was extra, then I had that "extra" as spending money.  My paycheck is direct deposited, so I setup an automatic transfer to my savings, then when I log the deposit in my checking account ledger, I only record the paycheck minus the transfer amount (I do make a notation about the transfer amount though).

This strategy benefited me in many ways.  First, by accumulating a savings account - if there was any unexpected expense, or a fun opportunity, it was easier and less stressful to handle the situation due to having enough to cover whatever it was.  The second was when the economy took it's downward slide - I was fortunate enough to keep my job, but everyone was taking mandatory pay cuts.  The only impact my pay cut had on me was I was just saving less money (I started doing this years ago).  That was when my eyes were really opened up to the good choice I made to save my pay increases.

One thing to note - before I started this savings strategy, when I had credit card debt - the first thing I did was put raises mostly toward the card debt (I still did put some into a savings account, but just a small amount).  I really didn't start the savings strategy until that debt was gone.  Reason is the interest you accumulate in savings is not nearly great enough to offset the amount you lose in paying the interest on credit card balances.  Faster you pay off the principle on those, the better.

So depending on your situation - if you have credit card debt - you may want to put some of that money there first to pay down the debt, then go to a savings strategy.  If you don't have debt - strongly consider a savings strategy if you are comfortable with the budget you are living on.

Good luck with your decision - and congrats on the pay increase!  

[premar16]

thanks for all the great advice you guys are so helpful .my pay increase is only 20 extra bucks and i only make 700 a month so im thinking maybe i will put towards the princepal on the money i owe.and i can put my fusion cash money($30/month) in savings what do u think