6 Ways to Avoid High Salary Blunders

6 Ways to Avoid The Worst High Salary Blunders
Imagine you’re struggling with your finances for years. Suddenly you happen to be receiving a huge amount of money! Not becoming a millionaire overnight, mind you. But getting substantially more than your usual income on a regular basis. *wink*

‘What a wonderful chance to secure my financial future!’ 

That’s what most people would think. Or would they?

Someone who started from zero and could have barely made ends meet for years would more likely first ask: ‘Where should I spend all my new money?’
Don’t you agree that person is tired of tightening their belt? This fabulous feeling of satisfaction and financial well-being can be a double-edged sword. Especially when you find yourself in such a situation unprepared.

Because most people relax their frugal habits and start spending more than they can afford. This behavior then turns into poor financial habits that are difficult to get rid of. That’s how they quickly end up back where they started.

Thus, be proactive in handling your finances to achieve financial independence in the years ahead of you. First, become aware of the most frequent blunders and learn how to avoid them.


Blunder #1 You Don’t Invest in Education
Your hard work brings you enough money to get by, perhaps even more. Good, but it’s still not how you imagined your successful virtual career, for example. You watch other online workers around you grow, and feel you can achieve more. But you’re either afraid to change something or don’t know what to do.

Here’s how you can double or triple your income. Find out where the best online opportunities are hidden and grab them! Here’s a hint. Did you know that the eCommerce industry is among the fastest growing ones?

Investing in your education is among the wisest ways to ensure long-term prosperity. It will get you a better online job and a higher salary. So, what are you waiting for?
Blunder #2 You Can’t Resist Impulsive Buying
Now you have enough money to buy that red dress, the latest iPad, that gorgeous necklace, the fabulous leather jacket, or a new car you’ve longed for sooo long. You can also buy presents for your dearest ones! Hmmm… What should you buy first? Well, you’ve finally got enough money, right? Why wouldn’t you buy them all at once?

Sure, all these new purchases are extremely tempting, especially the impressive ones. But you’re smarter than that! Cool down and think again - do you really need all this stuff immediately? Of course NOT! Take a sip of coffee, calm and wait for the initial euphoria to evaporate. Then, make a list of priorities and stick to it. That’s how you’ll have a good chance of avoiding your first financial blunder.
Blunder #3 You Live Beyond Your Means
Of course, it’s OK to celebrate this pay rise out of the navy. You’ve deserved it! Still, it doesn’t mean spending a fortune to host a Christmas dinner for 50 people to show off.  Besides, you don’t have to support your distant family members or friends who are healthy and capable of making money themselves.

Remember - just because you have extra cash, it doesn’t mean you should or have to spend it without careful consideration. So, learn how to say NO to those who start abusing your generosity.
Blunder #4  You Don’t Have A Clear Budget Plan
Not only have you not come up with a decent financial plan, but you’re not even considering it. Why would you need bothering with that now you have plenty of money?

Is this your attitude? If yes, it’s time you started figuring out how much it costs to run your household on a monthly basis. Then, you need to create a solid financial plan based on that calculation.

It’s crucial that you always track your earnings and expenses.

You haven’t started yet?! No excuses! If you don’t do it right away, you’re very likely to end up old and poor, and that’s what no one wants, is it? Be aware that this abundance won’t last forever, unfortunately.
Blunder #5 You Don’t Have a Savings Fund
You didn’t have a savings account since there was no extra money you could save. Luckily, the situation has changed! NOW is the perfect time for you to open a savings account. Start thinking of possible rainy days in the future before it’s too late.

When coming up with your budget plan, make sure you determine a certain amount of money to save every month. It can be small, but it’ll pile up over the years to come. It could come in handy if you find yourself in an unexpectedly difficult situation.
Blunder #6 You’re Not Setting Aside Enough Money for Retirement
If you have children, you probably think they’re your greatest investment. They’ll support you once you get old because you deserve it and it is their responsibility. That’s true, but if this sounds like a perfect plan to you, think again.
Your children will have their families to support and bills to pay.

Do you want to be that extra burden to your dearest ones even if it’s NOT necessary? Of course, you don’t!
There’s a lot you can do while still young and can make money! So, to avoid such a situation, don’t put off saving for your retirement.

It takes a lot of discipline to secure your financial independence. So, if you don’t plan what to do with your extra funds, they’re bound to vanish very soon, which is detrimental in the long run. That’s why you should know where each dollar of yours is spent. 


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1 comment:

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