Graduated Learning: Life after College

I got my degree, I got a job…now what?

Fighting lifestyle inflation June 20, 2010

Filed under: Careers,Personal Finance — Stephanie @ 12:02 pm
Tags: , , , ,

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).

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6 Responses to “Fighting lifestyle inflation”

  1. Brian 4nash Says:

    Hi Stephanie! Great site from a long-time reader, 1st time reply-er. I just wanted to say, some employers will let you set up multiple direct deposit accounts. That way you can have the payroll department send a portion of your paycheck straight to your savings account and truly never see it in your checking account!

  2. Katie Says:

    Congratulations! 🙂 You’re so responsible! I’ve been dumping my recent raise into paying off my credit card and a new “Katie NEEDS to see Rome, like yesterday” fund. 😉

  3. PAY YOUR LOAN PAY YOUR LOAN. You should only put it into savings if you can get a better interest rate than your loan which is unlikely. (i should say i’m biased against any kind of debt)

  4. Jenna Says:

    I would suggest paying off your loans as soon as possible before upping your 401k contributions or adding it to your down payment fund.

  5. Hi Stephanie! I came upon you site and I like your content. Paying off student loans is definitely a good idea! I would pick paying off loans over adding to the 401K any day. Here is my article on
    ways to pay off student loans faster
    Let me know if I can help. I look forward to your future content.

  6. […] blog posts (like on I’m okay with being wrong sometimes, Personal Finance Stagnation, and Fighting Lifestyle Inflation), I realized I should be more aggressive with my student loan payoff.  Granted, the interest […]


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