So, you landed a new job, congratulations! Here are some simple and actionable tips that will help you make the most of your new opportunity, inside and outside of the office. A new job can act as a launchpad, not just for your career, but also for your personal finances. It’s a new beginning and the opportunity for a fresh start. This makes it all the more important to start strong.
We’ve included tips below to help you start on the right foot.
Create a new budget to reflect your new pay rate
After receiving a raise we can be susceptible to an unreasonable increase in expenses that exceeds the increase in our wages. This can happen if you don’t manage your lifestyle changes. Consider putting any new income to work for you. Use the additional income to pay off bad debts, add to your emergency fund, make retirement contributions, or fulfill a goal of your own.
Update the retirement account at your old employer
Is your retirement account still with your previous employer? If it is, this presents a potential issue. This arrangement gives you less access to your money and less control over it. Discuss the benefits of moving your account to your new employer or rolling the money into your own personal IRA account. A financial advisor’s insight can help you make the right decision for your unique circumstances.
Make Saving Automatic with Auto-deposits
Whether funding your retirement or your vacation, automatic deposits to a special savings account are a convenient way to hold yourself accountable to your financial goals.
Adjust your insurance coverage
Your insurance needs can be drastically affected by a new job. Health insurance in particular comes to mind. Life insurance is also often provided by employers and is rarely portable. Your family may be exposed to unnecessary risk if you have not secured a job with comparable insurance and have not purchased adequate personal life insurance.
You should be sure to speak with a professional financial advisor about how much coverage you need to keep your family safe from an unexpected loss of income due to an untimely passing. Especially if you’ve taken a big step up the ladder and are now earning significantly more.
Will you have to move?
Moving is a major decision and might even have a larger financial impact on your life than the new job. There’s a laundry list of financial tasks to handle when you move, whether that be into a home or an apartment. Be a task master and don’t procrastinate.
Study the new employer’s benefits
Understanding your benefits is crucial. Pay attention to the fine details like how much a checkup at the doctor’s will cost. Don’t forget the big perks though. Is further education supported by your new employer? If you’re interested in an advanced degree this could be the perfect opportunity to obtain one. What about discounts at the gym or on your cell phone plan? If there are perks you can benefit from, take advantage of the opportunities.
Talk with a Financial advisor
A good financial advisor can add additional value to your job change. Whether that be protecting your larger income through tax management strategies or by helping you create or adjust your retirement plan.
Click Below to schedule a complementary consultation with Michael Romanello a trusted financial advisor with 18+ years of experience. Set a time for your 15-minute phone call or a visit to our office.
Do something nice for yourself
It doesn’t have to cost anything. Landing a new job can be quite the achievement. It’s important to reward yourself for a job well done.