5 financial mistakes to avoid when starting a new job |Old Mutual

5 financial mistakes to avoidIt’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 was 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? When you're working out a budget for that big ticket item, be sure to consider the hidden costs.

2. Forgetting the tax man

Does your new salary push you into a higher tax bracket? A higher salary means sending more money to the tax man. It's best to speak to your accountant or someone in HR, so you're aware of how much cash will actually be deposited into 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 app like 22seven. 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 or chat to one of our friendly financial advisers for some expert advice.

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, so you can work towards being debt free.

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