How do I ‘work’ my payrise?

Here’s the thing. I got a pay raise (woot!). So I thought I’d look at what I was spending and now I have an increase, work out what I shall do with it…

Back in the day, the split was (on take home pay)


40% on housing
16% on bill (saving for bills, strata, water, gas, electrical, and the unexpected plumber etc)
12% on savings goal (meeting my mortgage refinancing goal)
17% on ‘walking around money’ – all groceries, eating out, vanity etc.
7% on generosity
8% on slush – this would supplemental the above money if I ran short, and/or be added to various savings targets.


37% on housing
14% on bills (savings)
11% on savings
16% on spending
7% on generosity
16% on slush

Anyone see that, there’s a doubling in slush! Best not let that go to waste or lifestyle inflation!

Oh and I just want to say, I already get 15% or so of my salary put to a retirement fund, which I contribute personally too above that as well (another 2% of my pre tax salary).

I’m thinking my options are
1. Save for a holiday
2. Save MORE for house refinancing at the end of the year (find out more in my monthly goals round up)
3. Give more away
4. Work towards the $6k I need to prepay a funeral

I’ve decided I’ll put another 13% in savings for the house refinancing (and if a holiday comes up, I’ll borrow from that fattened up account. Alternatively, I can use it for the funeral prepurchasing). That leaves 2% permitted for lifestyle inflation :p  Well really ‘fat’ for when I don’t stick to my day to day budget!  I think I’ll even ramp up the automatic savings plan, so I won’t ‘think’ about it too much.


Setting ambitious targets is the BEST way for me to achieve them. Strange but true. Otherwise I think the money is ‘leftover’ and allow myself to spend it!  Oh and I’ll feel SO much more comfortable reading all those retire young/financial free blogs now!

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