3 reasons you make a lot but don’t bring home much

The fact is, when we make more money, whether it’s a one-time bonus or an increase in salary, we spend more. Many of us think making more gives us the freedom to be less careful in our financial decision-making. This is a huge mistake. Consider the following three reasons why although you think you’ll be bringing more home, your habits are keeping you from seeing an increase in income.

You’re living a luxurious lifestyle

You’ve gotten a pay raise. Time to travel, right? Wrong! Don’t immediately book your ticket to Tahiti. Get your bearings first and figure out how you can best use your additional income. Instead of rushing out to buy a new car, consider more responsible ways to put your money to good use. The more thoughtful you are about your spending, the more you’ll appreciate having extra in the end.

You’re overly generous

You’ve gotten a big bonus… so, drinks for everyone! Hold tight on forking out gifts and cash to others. Your heart is in the right place, but focus first on taking care of yourself and your loved ones. Be sure you’ve considered your child’s college savings or necessities you’ve needed but haven’t had the funds for. Being generous with others, whether it’s treating a parent or giving to a charitable cause, is a wonderful thing. Just make sure before you give, you plan accordingly for how it will affect your money moving forward.

You’ve become careless

Just because you are making more money, doesn’t mean budgeting and saving should go out the window. There’s a reason why the wealthiest people in the world have advisors who help with their financial decision-making. When you get a bump in pay and have money on the mind it can be difficult to see past the dollar signs. Don’t get distracted by the extra zeros. Be smart and not rash when it comes to even the smallest purchases. Life is expensive and even extremely successful people can easily blow their money if they’re not careful.