Starting A New Job? Consider These Financial Factors.
December 9, 2021
Accepting a new job offer includes adjusting to a different company, environment, coworkers, culture, and more. This may also include an impact on your finances. If you’re about to start or have recently started a new job, here are some smart money moves to make.
Check your 401(k)
Check if your new employer offers a 401(k) plan with a match. If so, make sure you contribute enough to qualify for the match. Don’t forget to roll over funds from your previous employer’s retirement plan.
Review your new employer’s health plans
When determining the best health plan for your family, consider the monthly premium, copayments/coinsurance, the deductible, and the maximum out-of-pocket limits.
As you compare plans, think about how often each of your family members visit the doctor, and if there are any expected upcoming medical costs, such as surgeries.
Evaluate other benefits
Besides health insurance and a retirement plan, review other benefits that you’re new employer may offer. These might include tuition reimbursement, gym memberships, pet insurance, discounts for using public transportation, and more.
Adjust your budget
When starting a new job, it’s a good time to readjust your budget as your income and other costs may have changed. With a higher salary, you may want to add more to your savings, or pay off your debt. If your expenses have changed with your new job, such as a longer commute, you will need to budget for more gas or perhaps parking fees. Also, if you are going from a casual to formal work culture, you may need to update your wardrobe.
Remember, there are ways to stay within your budget even with additional costs. Take a look at what expenses you can reduce, such as eating out, if you need to spend funds elsewhere.
Give yourself some time to get accustomed to what is required at your new job, and then take a fresh look at your budget.
Tags: Budgeting, Savings, Tips and Tricks