Are you getting ready to start a new job? Whether you’re moving to a different company or have accepted a new role in your current organization, you’re likely focused on the responsibilities that come with your new position. Be sure to also consider what this change means to your personal finances. Between setting your daily routine and printing your new business cards, consider these 3 tips for starting a new job to keep your savings on track.
Take note of what will change.
Go ahead and update your profile on LinkedIn, then consider several other things that may be changing with your new position. Will your pay increase? If so, you will want to evaluate your yearly savings plan and personal budgets and decide whether or not to increase contributions to your retirement plan, if you have one (and if you don’t, now is a good time to start). Will you be utilizing your organization’s healthcare benefits? Or are you covered by a spouse? How do the costs compare to what you had before?
Some logistical things might change, too. Will you be moving closer to your new job, or is this position actually closer to home than your last workplace? How will it affect your commute? Note whether you’ll be spending more on gas or if your new office is on a train line. Figuring out what will change once you start your new position will help ensure that your finances stay on track.
Take note of what won’t change.
Keeping some things consistent when you take on a new position can be not only reassuring but one of the most practical tips for starting a new job. When considering the effects of your new salary, consider your daily routines like picking up a cup of coffee at the café near your house or picking up lunch on Thursdays. If you plan to continue these routines, make sure they’re included in your budget.
Create new financial projections.
Hopefully by now, you are in the habit of budgeting and keeping a yearly savings plan, so you already know how much of your new salary you’ll need to spend or put away. Even if your salary is not changing with your new position, it’s a good idea during any significant life transition to evaluate your finances and projections. This includes mapping out what you spend on your rent or mortgage, groceries and other monthly essentials, including the items listed above.
As you get more familiar with your new role, you may find that your anticipated routines change. Maybe you’ll decide to increase your gym membership or switch coffee shops. You might want to start paying off more of your student loans each month. Be sure to continue updating your budget and savings plans as your life changes so you can clearly map out your financial future.