Frugal Tip 11: Put Raises or Bonuses in Savings or Apply Towards Debt

Recently I started posting a more in depth look at each of the frugal tips. Over the next few weeks I will publish the frugal tips that I have collected. Please note that not every tip will work for everyone. Chose as many of the tips that will work with you and your family and start implementing them. Today we will proceed with Tip #11 Put raises or bonuses in savings or apply towards debt.

This is something that I believe is the best way to help you get out of debt. You have been living on $x every week then you get a raise. Take that raise and apply the difference in your paycheck towards your debt (or put it in savings if you are debt free). The same is true for any bonuses you might get.

Bonuses, raises and overtime: Anytime you get a raise, bonus or earn overtime, you should use at least a portion of that money to pay towards your debt. Since this is “extra” money that you didn’t have before, you shouldn’t miss the money that you put towards your debt.
- Mommies Magazine

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