One of the most common traps many people fall into when they get a new job — and in many cases, a raise along with it — is to let their lifestyle inflate to use that extra money as though they needed it. After a few payslips, what initially felt like a healthy boost and a windfall suddenly is just another part of the budget, spent on some new service or habit. Instead, remember the adage: “If you didn’t need the money before, you don’t need it now.”
Wise Bread notes that this is one of many good money moves to make when you get a new job and we couldn’t agree more. We’d go so far as to extend it to raises at your current employer, or any additional income you may find yourself earning. Use it as a reminder to pay yourself (or your future self, by saving for the future) first and just as you may breathe easier knowing your budget has a little more padding, use the new income as motivation to re-examine your budget and see what you can trim from your monthly expenses.
How do you avoid the temptation to start spending when you know you have a big bonus or raise coming? Share your money management tips in the comments below.
7 Money Moves to Make When You Get a New Job [Wise Bread]