Recently I asked you to share the best financial advice you’ve ever received. Here’s a second installment of some of that advice. A reader named Bob said that during a pre-marriage class he and his then fiance attended, the teacher suggested using pay raises to build an initial savings account. In Bob’s words, “I can remember how taken aback I was when I did the math and realized what a significant savings base we could establish in just three years. All it would take was establishing and maintaining a reasonable budget, committing to staying within it for three years, and banking 3 years of modest raises.” Bob says following that advice helped his wife and him develop the habits of living beneath their means and saving money. They have raised five children on one income (he’s a teacher) and have never had debt for anything except a mortgage.
h3(matt). Matt’s View
p(matt). Bob said the savings advice stemmed from a simple question the teacher asked: “What do you do with your raises?” Without some forethought, expenses usually increase to absorb all new income.
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