What are some things one should spend money on when they get a raise?
We always talk about the things not to spend money on, but I’m wondering what you would all consider good things to spend money on?
I just had a very large raise, I was making 48k a year and now I’m making 84k a year. I am obviously super excited. I’m afraid of major lifestyle creep though.
Currently, my expenses are:
- Rent: 1050
- Utilities: 60
- Car: 200
- Insurance: 100
- Gym Memberships: 150
- Groceries: 150-250 (I’m on a bulking diet)
I also have 25k in savings and 15k spread in investments.
I’m single, no dependents and have no debt other than my car payment. I plan on keeping my fixed costs low, maybe move to an apartment closer to work even if it is double the price. I live in Los Angeles so rent will always be high.
Some ideas I had were:
- Upgrading wardrobe
- QoL appliances, and appliances that would save you money long term (espresso machine if you drink starbucks every day)
- Better mattress and sheets
I’m also going to maximize my IRA contributions and invest whatever I have left.
edit accidentally wrote 250k for savings when I meant 25k. Thank god I’m not an accountant. Also, I’m 26 if that factors into anything.