Here’s something that’s been on my mind lately…
At this time last year, we were making less than $1,500/month. Even though our credit cards came out to help purchase groceries and gas, overall we did spend less than we do now that we are making more money.
Some of the spending is due to things that we can now afford and we should try to have to protect our finances for the future, like health insurance. Now I am thinking about getting more life insurance (to make sure that the surviving spouse can live debt-free) as well as getting disability insurance. Last year, we knew we couldn’t afford any of that, so it wasn’t even a thought in our minds.
The other spending is just because we have a little more money now so we can “live life a little” as I guess you would call it. My husband sneaks in Sara Lee bread instead of the store brand even though it costs twice as much, and I don’t complain. We buy fresh fruits more often now and buy more non-ground beef meats. Our thermostat has inched closer to 67 degrees this winter (last winter it was set around 64 degrees). Just little things that I’ve noticed that we have done.
I’ve always heard that when you make more money you spend more money and I can see that happening with us. I think the key here is for us to not go overboard and always spend less than we earn. Spending less than we earn is going to be key to having money to pay off debt and save for retirement once the debt is gone.