Chipping Away - Busting Debt in Boston

A personal finance weblog about my own journey to eliminating my debts and building net worth. Hopefully this will serve as a place for me to share and discuss my strategies and ideas, as well as keeping me on track and focused.

8/04/2006

Raises, Bonuses, and Budgeting

When I got home from vacation one of the first things I did was jump online to check out my bank statement to see where I stood once all the dust settled. As I mentioned, I wasn't quite as careful with money when I was out on vacation. But again, I think that's sorta of the point of a vacation, right?

In any case, I was delighted to see that my first new paycheck had been deposited, as well as this half's profit sharing bonus! The new paycheck was nice to see, since I was promoted recently and got a nice hefty 16.7% raise along with the new title. As far as the bonus, it was considerably larger than I had expected. Long story short, I have a nice emergency stash sitting in my emigrant account now and boguht myself a present (new fuel management for my miata, yet another money-draining hobby of mine, but more on that later). So this month is looking very good, budget-wise.

Now, I SHOULD be up for anotehr pay increase in sepetmber according to the regular schedule of when our company reviews salary and does merit/cost of living increases. This brings me to the following question: When planning out your rough budgeting for a few months out, does anyone ever take this sort of thing into account? And more generally, how does raise/bonus potential affect your budgeting overall?

Anyone? Anyone? Beuller? Beuller?

3 Comments:

  • At 8/04/2006 10:57 AM, Blogger Kira said…

    I have no chance in hell of getting a real raise (congrats, by the way! that's pretty awesome!) but we get 3.5% raises every October. I did not get one last October because I hadn't been here long enough, but it will translate into only about $80 per month. My direct deposit is neatly done by percentages, so actually everything will just go up a little bit - savings, spendings, bills. If I got a more substantial raise, I'd probably just direct a big chunk of it into savings so I didn't fool myself into thinking I could live higher on the hog. ;)

     
  • At 3/06/2008 6:07 AM, Anonymous debt blog said…

    I don't, personally. Planning something like that into your budget is far too unpredictable. Imagine spending money, relying on your pay increase & then for some reason, it doesn't happen (or is less than expected), your suddenly in debt. When it is concrete - in your bank account - then you can add it too your budget (imho)

     
  • At 3/17/2008 11:12 AM, Anonymous dm said…

    Definately not! I'd second debt blog's comments.

    Only rely on what you have in your hand!

     

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