Guzzo the Contrarian

Although this recession has taken it’s toll on some businesses, there are still a few well-run companies who’ll value their employees’ contributions with a raise this year. If you’re one of the lucky ones, what are you going to do with that extra money?

We all the know the economy could use a good kick in the rear right now, so it would be easy to rationalize spending your raise as doing your part to help America as a whole. But, will spending that raise help you out personally?

It all depends upon your state of mind. What do you value more, immediate gratification or delayed gratification?

You could spend that raise right now on something that will give you immediate pleasure, such as a big screen TV. It sure would look nice on the wall. But, what good is a big screen TV if I don’t sign up for cable or satellite? What the hell, it’s just money. I deserve it, right?

Boy, that new Gucci bag sure would impress my friends. Wouldn’t they be jealous of my success. But, what good is the hand bag without a whole new ensemble, right? What the hell, it’s just money. I deserve it, right?

Spending easily becomes a slippery slope my friends. All of a sudden you’re spending more than the raise itself. You now have to work even more hours just to pay for stuff that you really don’t need, and can’t enjoy as much because you have to work more hours!

But what the hell, I deserve it, right?

On the other hand though, you could continue living your same lifestyle, ignore the fact that you’ve earned a raise, and contribute that entire raise towards your retirement savings. By delaying your gratification, you’ll have that money, plus any potential earnings on your savings, just when you’ll need it the most.. when you’re unemployed.

The choice is yours. But, I’m thinking you’ll hope to retire someday.