Finally! After applying for many jobs and attending lots of interviews, you finally get that job you’ve been hoping for. Whether it’s your first job, or not, many of us tend to make the same mistakes when we start earning an income with the mental promise to ourselves that we will fix it next month.
Maybe it’s the guarantee of having your salary come in every month, but it gets even worse with a raise. Don’t get trapped in the ‘more money, more problems’ group. Here are the smart money moves you should make when you start a new job:
Update your retirement fund
If it’s your first job, you should create one, but if otherwise, ensure you transition your retirement fund with the new job. If your new salary allows you to put away more money into your pension fund, then go right ahead.
Review your financial plan
A new job usually means that your bank account will be getting more money than it usually does. For most people, earning more income translates into lifestyle creep – a situation where their living expenses constantly grow as their income increases. To avoid lifestyle creep, put a solid financial plan together and commit to following it. A new job also indicates a change in your commute, more or less of certain expenses, so this should be reflected in your budget.
Automate your savings
With a higher income, you can increase your savings as well. Automating your savings just helps with the discipline of doing so. Don’t be one of those people who earn more money but don’t have any savings whatsoever.
Do not lend to people
This is Nigeria, so your friends and family will know about your new job. This new information will make them reach out and ask to borrow some money and they would repay at so and so time. Do not lend money to friends or family. It is a trap because you mostly won’t get it back.
You should try out the envelope method of budgeting to help you stay within your budget.
The post Smart Money Moves To Make When Starting A New Job appeared first on ZUMI.