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Its a great start to the new year.
Youve gotten back to the office to find that all of your hard work has been recognized.
Congratulations youve earned a raise or received a promotion with a hefty salary increase.
Its only natural to want to celebrate.
Its easy to get swept up in the excitement over your success and make a few money mistakes.
But if youre not careful, those mistakes could eclipse the extra earnings youve worked so hard to achieve.
Here are their tips on how to avoid common financial pitfalls after a raise.
Spending on Luxury Items
Youve worked late nights and put your all into every project.
Of course you deserve to reward yourself with that Birkin bag or elite camping gear youve been eyeing.
Additional cash can lead you to believe you’re able to splurge on luxury, he said.
Instead, you should maintain thrifty spending habits and focus on saving the extra money.
This can set them up for true financial security, rather than just upgrading their lifestyle.
Roller warns that this mentality is a quick way to blow through your extra earnings.
Instead, pause before making a purchase.
Ignoring Your Taxes
As the late Notorious B.I.G.
famously said, mo money, mo problems at least when it comes to your tax bracket.
This way, theyre not blindsided when tax time comes around.
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