People are very happy when they get their first or new job or when their salary increases... and they also plan where to spend their money. But do you think about where to invest this money? People often make some mistakes in spending their money when they get a job, which they pay for in the future. So let's know which are the 5 mistakes that no one should make.

Mistakes of the first job

The happiness of the first job is different for everyone. The first salary check in hand, big dreams in the eyes, a car, bungalow, latest gadgets... all this seems like a dream. But wait a bit... in this excitement and enthusiasm of the first job, most of the youth make some such 'big' financial mistakes, which instead of making them rich, trap them in the debt trap and then they get lifelong tension. So today we will tell you 5 such mistakes, which can put a break on your happiness. Now, if you also want to invest your hard-earned money in the right place and at the same time you want to be financially strong, then definitely avoid these mistakes.

1: Expenses increased as soon as the salary increased

As soon as people get their first job, they increase their expenses in the same manner or even more. This is called 'lifestyle inflation'. Unnecessary expenses make your savings zero. Always invest at least 50% of your increased salary in savings and investments.

2: A Credit card should not become a debt trap

Often, banks also easily give credit cards as soon as you get your first job. The bank will give you the card by luring you with the promise of buy now, pay later, and by giving you the lure of 'no cost EMI'. As soon as they get the card, people start using credit cards for every small or big thing. But use credit cards only when needed and wisely.

3: Ignoring savings and investment

Often, even after getting a job or salary hike, youngsters think that this is the age to earn, and savings and investment will start after the age of 30-35. This is where they make the biggest mistake, which they have to pay for in the future. So, always invest at least 20-30% of your earnings in SIP or any scheme from your first salary itself.

4: Show-off makes you bankrupt

In this era of social media, everyone often puts pressure on themselves to live the same life after seeing the lifestyle of others. After seeing their friend's expensive phone, car, etc., they spend their entire salary on these show-off hobbies. Whereas this 'show-off life' makes you financially hollow. Due to this show-off, people often get trapped in the debt trap, due to which they also gradually start becoming financially weak. So, focus on your financial goals, not on show-off.

5: Ignoring emergency fund or health/term insurance
Nowadays, youth usually think that they are not going to need an emergency fund or health/term insurance right now. But any untoward incident like illness or sudden job loss can happen anytime. So, if you do not have any security cover (financial security) to deal with such a situation, then it will be difficult for you to handle the situation. So always first create an emergency fund equal to your 6 months' expenses.

Ignore mistakes
If your new job is bringing a golden opportunity into your life, then you should use this opportunity properly. Yes, financial investment made in the initial years of the job can give you financial independence and a tension-free life in the future.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.