Worst Money Advice You Can Ever Get


2. A Pay Raise Means It's Time to Upgrade Your Lifestyle

This is an entire misconception especially for newly salaried professionals. You got a new job. It’s true you will get a good amount of salary monthly. But your needs are the same as earlier. So there’s no point of thinking that you should raise your needs or demands.

Flexo, Finance Expert at Consumerism Commentary says, “When people get a raise and they've managed to live comfortably on what they earn, there's no reason to upgrade their lifestyle. This mindset can keep you trapped in a paycheck-to-paycheck cycle that leads to debt. And if we spend exactly in proportion with our income rising, then we'll still wind up with the status quo”, as quoted by Business Insider.