Scoring a new job can be an exciting time, as well as a time to make some important financial decisions. Insurance plans, retirement programs, and more can mean financial peace of mind as long as you play your cards right. So, before you start dreaming of ways to spend your new cash flow, make the most of your finances by discovering the five money matters to tackle when you land a new job.
Participate in a Retirement Plan
Many companies offer an employer-sponsored retirement plan, making it easy for you to put money away pre-tax for your future retirement. The first of your financial tasks when you change jobs should be to inquire about the type of retirement plan opportunities your new employer provides, whether or not they match a percentage of your contribution and when you can start participating. If your company does not offer a 401K plan, open up a retirement account with your local bank and start saving for your future.
Understand Your Health Insurance Coverage
Your new job may come with health insurance coverage such as medical, dental, and vision, but sorting out your costs and co-pays is key to making your new insurance coverage work for your finances. Find out how much will be taken out of your paycheck each month, the amount of your co-pay, and how much in deductibles you will be responsible for should an emergency occur. You may be able to elect for a higher deductible or co-pay with a lower monthly payment if your budget requires it.
Sign Up for Life Insurance or Accidental Insurance
Enrolling in a life insurance plan or accident insurance coverage may not seem like a priority now, especially for those who are young. However, if your new job offers employer-sponsored policies or if your new finances can swing it, electing for coverage may save you and your family a bundle in the future. Some companies even offer plans that allow you to contribute funds that will be distributed to your beneficiaries should something happen to you, so explore all of your options.
The start of a new income is a good time to review your budget and start saving. Inquire with your new employer about direct deposit. Putting money aside in a savings or investment account with your bank may be easier if you have a portion of your paycheck automatically deposited each month.
Check Your Credit Report
Once the dust has settled in your new job, remember to check your credit report from the big three credit bureaus. During the job hunt employers often check your credit. It’s wise to check and see if this inquiry has been recorded and confirm that all other information is accurate and up-to-date.
Once you’ve managed the five money matters to tackle when you land a new job, look into other financial perks your company may offer. Company-sponsored childcare, discounts on movie tickets, and more may not only help you make your paycheck go further, but could also help you work toward saving for your future goals.
About the author:
Steven is a professional personal finance writer. He is a contributor to several professional finance sites. His work has been mentioned in and linked to from, USA Today, The Huffington Post, Benzinga, Investopedia and many other publications. He also has his own personal finance blog, CreditZeal, where you can follow him.
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