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Whether it was through a new job or a raise at work, you just found a way to increase your discretionary income. Congratulations! Now comes the tricky part — not spending it all.

There are many reasons why someone will get new discretionary income. The most common reason is because of a successful career, but there are other reasons as well. Maybe a relative left you a large sum of money, or you won the lottery, or you are starting a side hustle that is bringing you some extra income.

When discretionary income increases, sometimes a person gets the impulse to spend more money. And this additional spending will diminish your ability to grow wealth.

Welcome To Lifestyle Creep

It’s a common mistake that so many people make when they get additional income through a job or anywhere. Lifestyle creep is when someone automatically increases their spending as soon as they get more money. As a result, that person’s standard of living increases.

While it’s natural to want to buy new things when you get more money, this is not a good financial practice. Let’s say that you got a raise at work and decided to spend your extra money. If you later lost your job, that means you would be in a deeper hole because your standard of living has increased. And, because you spent the extra money, you did not save it.

What You Should Do With Discretionary Income

Instead of spending your additional income, you should pay down your debt. If you don’t have any debt, put the new income in your emergency savings fund of 3-6 months worth of income. If your emergency savings fund is full, put the income in a tax-friendly investment account. Or you could saving the money for a major purchase like buying a home.

Business Insider calls this the “Rich Habit” — which is pausing your impulse to spend so that you can put disposable income into savings and investments.

You could also do a compromise. Let’s say you get a $10,000 bonus from work. You spend $1,000 on something fun and save the other $9,000 in retirement accounts.