A new job or salary is a time to celebrate and a time people often make a lot of financial mistakes. These mistakes can cost someone the financial freedom they thought this change would bring. Avoid these 5 money mistakes people make with a new salary to reach your financial goals and avoid consumer debt.
New Job: 5 Money Mistakes to Avoid
If you need help getting out of debt and hope your new salary will be the answer, it might be. However, you need to be careful and avoid the following 5 money mistakes. They are easy to make so prepare yourself now!
Forgetting to Budget
Your budget should not be forgotten in the wake of more income. Every dollar coming in and going out needs to be reconciled. Create a new budget to start taking steps toward your financial goals, like reducing credit card debt.
Ignoring Company Retirement Matching Programs
Did someone say free money?! If your company will match your retirement contribution, you better be on that train. Ignoring free money is not a great choice so talk to your HR Department and find out what is available. Up your contributions if you have already started.
Dining Out for Every Meal
Dining out is a great way to meet coworkers at a new job, celebrate an occasion or a nice way to unwind. If your budget isn’t prepared to handle lunches and dinners out on the town every day, you need to pull back from that behavior. All you’re doing is adding more consumer debt to the pile. It’s either in the budget or it’s not.
Rewarding Yourself with a Spending Spree
Everyone loves a good old spending spree. Instead of rewarding yourself with more debt in a day, stay on budget and take an extended spending spree. If your new salary adds more room to your clothing budget, take advantage of that. You’re investing in something that serves a purpose and you will be happy when your credit card bill can easily be paid in full.
Not Saving for Emergencies and More
Your new salary is a great way to start saving for an emergency fund, a new car, or a down payment on a house. Think through your priorities and start taking action. Put these ahead of categories like entertainment when considering increasing the budget.
Use your money wisely to eliminate debt, build savings and reach any other financial goals you may have.
To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.