Congratulations, you just got a salary raise. You are excited because your paycheck will soon arrive. As a result, you may get carried away by your well-paying job. This clearly stated, it’s easier than you think to make some financial mistakes when you anticipate a juicy pay package. So, if you just got a salary raise, here are the tips to avoid financial mistakes . Please take note!
Making a big purchase
Do not rush to make any big purchase immediately you get a salary raise. You should wait for several months before spending big. Also, you need to evaluate the cost effect of whatever you are spending on your income and lifestyle. You don’t want to be broke because of this. The rule of thumb is that the more you earn, the less you should spend.
Buying on credit
Due to the fact that you are expecting a huge paycheck, you buy things on credit at a Lagos store. You should make do with what you have so that you won’t spend your whole salary on settling debts.
Not revising your budget
A budget is very essential in tracking your spending. And since earn more, you should try as much as possible to revise your budget. It will help you track the new things you want to spend money and also help you determine if it’s worth it.
Telling people about your new paycheck
It’s good news that you got a raise. There’s the tendency that you want to tell everyone. But wait for a second, informing people about your new pay may not be a good idea because some people will take advantage of this to loan money from you. So, keep it to yourself.
Whether you earn a huge income or not, you should always save. However, it is more important when you get a raise because there is every likelihood that you will increase your expenses because of the more money you are earning.