How to Land a Better Job
I might have a few things for you in fact I have three things. I love it when they're number one. Get a raise fall behind. Well so maybe at the end of two thousand nine hundred nine or the beginning of this year you got a raise or maybe you listen to one of our episodes about how to ask for a raise and it worked or maybe you'll listen to today's episode. Get a new job and make more money however it happens. Earning more is always a good thing right right. That's the whole premise. Of Why we're doing this episode. Are you trying to undermine this episode? Well don't blame me. Blame a new report from Morningstar which is entitled more money more problems how to keep a bigger paycheck from spoiling retirement. So here's the problem. So according to their research most people don't increase increased their savings rates after they raise. What are they instead do increased lifestyle? Go out to eat a little bit more by nicer. Cars get a bigger house as report. Put it quote yesterday's indulgences become today's new normal tomorrow's expectations and quote in other words? Lifestyle creep right. The problem is the more you increase the cost of your lifestyle. The more you have to have saved to replace that lifestyle in retirement. Because that's what people WANNA do. They WanNA maintain their lifestyle. Nobody wants to cut back when they retire The report included analysis a hypothetical now so someone who earns one hundred thousand dollars a year eleven percent of their income and his on track to have enough safe retirement but then a huge raise twenty percent. Raise the make a hundred and twenty thousand dollars. Good news right except that they don't so they are saving more. They're gonNA continue saving eleven percent of that salary so they are saving more on absolute dollar terms. But it's not enough to make up for the increase in their lifestyle so that person who was at one hundred thousand dollars on track to retire with enough money. Now what is falling behind so the question is then. How much should you be increasing your savings rate? Every time you get a race. They actually offered three guidelines and analyzed. Which one was best so number one? Spend twice your years to retirement.