Watch Out For Hidden Expenses With A New Job

Watch Out For Hidden Expenses With A New Job

A higher salary means you have more money to spend, right? Not necessarily. You need to consider some of the added costs you’ll be taking on with that new job.

Photo by Images Money

Budget Blonde reminds us that if your new job pays more money than your last job, you need to figure in additional costs before you go on a spending spree. For example, if your salary goes up, that could bump you into a higher tax bracket, and you’ll need to factor that into your take-home estimate. Some other costs include:

  • If your new job requires a move to a higher cost-of-living area, just staying in the same size and quality of home or buying the same groceries will force an increase in spending.
  • You may also be losing out on some benefits that your student status conferred — think of health insurance, gym membership, subsidised entertainment, etc.
  • Your new job may come with some necessary new expenses, like a wardrobe upgrade and a (reasonable!) car if you didn’t already own one.
  • If you practise percentage-based budgeting the way that my husband and I do, your absolute saving and giving amounts will increase, whether or not you increase your lifestyle.

Check out the link for other tips on getting an income increase — and while you’re at it, check out our guide on the same topic.

What to Do with a Big Income Increase [Budget Blonde]

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