Financial Mistakes to Avoid
It’s great to be paid a little more each month, but make sure you don't make financial decisions you’ll regret later.
Getting paid a little extra every month is a great feeling. But don't let an increase push you to make financial decisions you'll regret later. Here are five mistakes to avoid when starting a new job:
1. Splashing out on something you can't afford
Maybe you can only just afford those car repayments, but that new car is so shiny and it makes your heart go vroom. We've all had that moment, wanting something that’s beyond our means. Sometimes we’re able to find a way to make it work, but with that shiny car, would you also be able to afford the higher fuel bills, increased insurance costs, and emergency repairs?
Pro tip: When you're working out a budget for that big-ticket item, be sure to consider the hidden costs.
2. Forgetting the taxman
Does your new salary push you into a higher tax bracket? A higher salary means sending more money to the taxman. It's best to speak to your accountant or someone in HR so you're aware of how much will actually land in your account each month, plus any extra tax bills you may have to pay.
3. Not revising your budget
If you don't have a budget planned out, try a real-time budget planner, tracking and savings tool. Remember to also update it with your new salary so you’re able to accurately track your income and expenses.
4. Not saving for retirement
If you haven't already started saving for retirement, now is the time. We can take the hassle out of choosing the right retirement annuity for your budget and goals. Take a look at some of the solutions on offer on our website www.oldmutual.co.ke or chat with one of our friendly financial advisers for expert guidance.
5. Getting into more debt
Do you have existing debt like a credit card or store card? Debt consolidation can combine your debt into a single, affordable monthly payment, helping you work toward becoming debt-free.
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