More Money Could Mean More Problems

God blessed me with an amazing new job last summer with a salary increase. I thought to myself “I will surely be able to allocate more money to pay off my debt and add to my savings.” WRONG. However, this should have been the case ideally. I failed to factor in the increased cost of my insurances and living expenses (due to new transitions).


Being in the red

As a result, I was spending money blindly and going downhill financially. I could not understand why I did not see this “increased monthly pay.” I had created an allusion without considering the new facts. I also was not monitoring my finances and updating my budget as often as I would normally. Therefore, the revelation that I was not being a good steward of my money was delayed. It took about three months (three months too long!) to realize the error of my ways. I quickly made the adjustment with a few sighs and squirms, and I see the difference.

I believe God continues to provide for my every need (and more) because I allow Him full access to my money (which is really HIS money). I ask God to grant me wisdom on how to spend the money that HE has entrusted me with EACH time I pay a tithe or give an offering. Upcoming post on the significance of tithing (I know, T-word)!

#WiseWednesdays: When you are considering a salary change, you should calculate the estimated monthly (or bi-weekly, 26 pay periods) gross pay change. This will allow you to be more well-informed of the real impact of the salary change. You should calculate the net pay as well, but this would probably be a less accurate estimate given the various tax and benefit deductions on your paycheck.

For example:

  • Current salary = $50,000
  • Monthly gross pay = $50,000/12 = $4,167
  • Bi-weekly (pay period) gross pay = $50,000/26=$1,923
  • New salary = $75,000
  • Monthly gross pay = $75,000/12 = $6,250
  • Bi-weekly (pay period) gross pay = $75,000/26 = $2,885


  • Monthly gross pay increase = $6,250 – 4,167 = $2,083
  • Bi-weekly (pay period) gross pay increase = $2,885 – 1,923 = $962


  • Salary increase = $75,000 – $50,000 = $25,000
  • Monthly gross pay increase = $25,000/12 = $2,083
  • Bi-weekly (pay period) gross pay increase = $25,000/26 = $962

Please do not make the same mistake that I made. Be wise and learn from my experience so that you can save yourself the headache. I would love to hear about your lessons learned from your financial experiences! What are some of your techniques to make sure you avoid going in the red? Of course, if you need help to recover from being in the red, let me know.

2 thoughts on “More Money Could Mean More Problems

  1. I usualy get my tithes out of the way first so I dont feel guilty. Then similar to you I also made the mistake of not saving as much due to eating out more, dating, gifting and enjoying the fruits of my labor. My splurging is usualy kept to a minimum i.e. one paycheck or 100 dollars of additional pocket change. I find it easier to set financial goals and set deadlines, because saving just to save makes it easier for you to justify transfering money from one account to cover your splurging.

    Liked by 2 people

    1. I agree and I love your splurging rule! When I set a financial goal, I am motivated to meet it which helps me to be a little more disciplined. Plus, isn’t the feeling of accomplishment, great?!

      The mind is so clever; I used to say that “I’ll pay myself back” after transferring money to another account. However, I rarely paid “myself” back…tisk tisk.


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