Most people who receive a raise in income will quickly adjust their lifestyle to incorporate that raise into their standard of living. The “live a raise behind game” is an excellent way to save money before you become accustomed to your new income level.
This game is fairly simple. When you get an income increase of any kind, instead of adjusting your spending up to your new income level, you continue to live on your previous income. You place the income increase into your savings account or against credit card debt.
For example, if you’re earning $2,000 a month and get a $100 a month raise to earn $2,100 a month, you’d continue to budget as if you were only earning $2,000 a month. Then if at a later date you get a raise of $250, you’d budget your living on $2,100 with the $250 going to savings or credit card debt. This way you’re always living on the money from one raise behind.
To make this game work, most people need to set up a system where the extra money is taken out of their normal spending account and placed in an area where they won’t spend it. When the money is mixed into your regular spending account, it’ll more than likely get spent.
There are a number of ways to do this. Probably the best is to set up a banking account where you direct deposit your paycheck and then have a specified amount automatically sent to your credit card company or retirement savings account. You can set up an account with this service at most banks or credit unions.
By learning to live on a paycheck behind, you’ll put into place a system where you’ll save hundreds of dollars a year without even noticing it.