It happens everywhere…

Whenever the management of an organisation declares a pay raise, it is always greeted with jubilation. While a salary increase is certainly good, what one does with that ‘extra’ often determines if the increase actually made you better off or worse off than you were before.

Although it is generally believed that your expenses grow as your income increases. This is not true. Those expenses and obligations have always been there. You only decided to give them attention now, since you have that extra income to spare.

In his book ‘From the Rat Race to Financial Freedom’ Manoj Arora, wrote “Your expenses will rise to meet your increased income, unless you are on a mission.” The question is what should be your mission when you get a salary raise?

Stay broke!

Rather than start planning how to spend the little extra you get, add it to the 20% you have been setting aside from your net income, for savings, investment, and loan repayment. This way you will remain broke.


Why would you want to stay broke? Because when you’re broke, you hustle. When you don’t have money you have got to improvise around the never-ending list of obligations begging for a slice of your income. When there is money lying around, there will always be an emergency to put that money to.

So, stay broke.

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