So I forgot to mention something back when it happened. I got a raise! Yeah, it somehow slipped my mind. But I’m not just bragging about it. I’ve got a personal finance lesson in here!
Remember when I modified my 401(k) contributions? I upped my contribution by 1%. A week or two later, I found out about my raise, and then a few more weeks later, my raise kicked in. I noticed that, even though I increased my contribution, my take home pay went up with my raise. I did a little math and figured out the difference between my newest paycheck amount and my old paycheck amount. Since I get paid every other week, I set my ING Direct Savings account to remove that amount from my regular checking account every other week. That way, I wouldn’t see the money in my checking account, so I’d be less inclined to spend it. Plus, I’ve directed this money towards my “Down Payment Fund“, so that is an added bonus. Only tens of thousands more, and I can afford a down payment! 😛
As I mentioned in my last post, I have been thinking of doing something else with money besides putting it into savings. So, perhaps, I might redirect the “extra” money from my paycheck towards paying off my loans. Or upping my 401(k) yet again. Still figuring that stuff out, but I’ll update with another post soon about what I’ve figured out (or at least what I’m doing so far).