I've been a GRS reader for sometime now and this is my first post on the forums.
Recently, i've left my old office job and became a consultant for an international company.
With my old job me and my family lived nearly paycheck to paycheck and could rarely afford luxuries like vacations, other than road trips and local amusement parks.With my new salary i earn a little more than double what i used to earn and I need to know what to do with the extra money.Some things to take into account:
I have 3 kids, two in elementary school and 1 going to university in 2 years.
My new job doesn't give me a Healthcare plan or a 401k.
I'm not a homeowner but would like to be in the future
and me and my family are about $10k in credit card debt, with low interest
What would be some good budget and savings plans that would be ideal for me and my family.
Right now i'm interested in the 50-30-20 plan but other than that I've no knowledge of other budget plans
and I can't wait to hear from fellow GRS readers
It seems to me like you have a modest lifestyle now but you may want to expand it because of your new high income. My suggestion is to hold off as long as you can while setting up a savings plan. If you were happy before, can't you be happy now on the same income? Maybe save 90% of the increase for at lease 1 year.
I'd also observe that a company normally charges 100% more for an employees services so that if an employee makes $50k per year their billing rate is $100k. Since you now have t pay healthcare, SS, and so forth, your income has not gone up as much as you suggest. Maybe a little celebration is in order but it's not time to change our lifestyle.
Just my opinion