What happens if you never get a raise? Well, let’s be optimistic and say you get that raise! You’re going to get rid of that roommate because you’re making more money than you’ve ever made so you’re going to get your own space. So you upgraded to a new apartment in an upscale part of and pay more in rent. Most sources say your rent should be no more than 30% of your annual income.
Now that you have your own space you have to get the furniture to fill up space. Maybe you have your own stuff to fill your place up. One thing I never knew would be so costly was floor rugs and dining sets, but I digress. With your raise now you can go on trips, get a newer car, and get new clothes because of your more senior position. Oh, oh, now we’re going to start paying off our debt because we’re making more money. Paying off debt is like any muscle, you have to exercise it early and often to get the most out of it. We build habits and the sooner we build and practice positive habits the easier paying debt becomes when we start to earn more. Some people live on less when they get raises, and others keep the same old bad habits