Alright this one is simple: Most of us get some kind of an annual review of our performance, usually centered around our date of hire. That performance review is usually accompanied by the news that we're about to get a raise! Yippee!

Usually this is the kind of news we long for as a way to cure our debt problems. For instance: you've been just barely getting by on your current paycheck. Hearing that you're about to get a 3% raise you immediately do the calculations in your head and decide you can now afford to get that extra little something you've been wanting.

STOP!

Last year you made it through on your existing income, right now you need to decide that you are going to do the same this year. I cannot express this clearly enough. Do Not Act Like You've Got A Raise!

Take that extra money and put it to work. Remember the recipe for getting out of debt is to spend less than you earn. Now that you're doing that there is no reason to increase your spending. Live on the prior number and make a choice to either:

1. put the ammount of the pay raise in the bank
2. or put that extra ammount into your debt snowball.

This year I did both.