Friday, October 17, 1997
What To Do With a
Raise
by Leslie Spencer
([email protected])
I don't know about you, but whenever I got a raise, I couldn't dream up too many ways to spend that extra couple of bucks. Then, five years ago or so, I started putting 100% of my raises into our company's 401(k) and stock purchase plans. It was the least painless way to increase my investments without decreasing my lifestyle. My lifestyle isn't anything that has Robin Leach interested, but it works for me.
The point is that after five years of raises and promotions, I am now investing a third of my income and living on the same amount of money I did five years ago. And it hasn't been painful. Of course, I can't say I went to Tahiti on vacation this year, either. But I have been to Europe a couple of times and I drive a year old Honda Accord. I'm not deprived. As long as I am salting away enough to retire on comfortably one day, I can enjoy traveling without worrying about which brand of cat food I'll be eating when I am in my 70s.
So the next time you get a raise, reach for the form for your company's 401(k) plan, and increase (or start) your participation by the amount of your raise. You'll be glad you did, and you'll never miss the extra cash.
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