Starting a new job is a powerful opportunity to build better habits, reset your goals, and set yourself up for long-term financial success.
If you’re celebrating a better environment, a bigger paycheck, or the end of unemployment, this is a great time to take that positive momentum and make smart money moves.
Here’s a financial checklist that can help you navigate your new role with confidence and keep your finances on track
Take FULL advantage of a fresh start.
You’re in a new role, with new people, new places, and a new salary. Everything is NEW, so shouldn’t your habits be new, too?
With the boost in motivation from your new environment, use that energy to build a strong foundation.
Ask yourself:
- What am I already doing well with my money?
- Does my budget need to change to accommodate my new commute? (Or lack thereof if you WFH)
- What am I going to do with my increased income? Pay off debt or invest more?
If this seems a bit overwhelming, we totally understand. There are a lot of moving parts, and you haven’t even done your new job training yet.
With one quick meeting, our financial advisors could help you create a personalized financial plan tailored to your goals… if you’re interested.
But until then, don’t forget about all the OTHER things you need to take care of during a career change.
Don’t forget about your benefits.
Were your healthcare benefits through your last employer?
Or did you put money into the 401(k) there?
Before you panic about leaving those things behind, keep reading.
You have a few options when it comes to your old retirement plan.
- You can leave the assets in your former employer’s plan, if permitted.
- You can roll over the assets into your new employer’s plan, if the plan accepts transfers.
- You can roll the assets over into an Individual Retirement Account (IRA).
- You can take the cash value of your account (and manage the potential tax consequences).
Your financial advisor can help make this whole process a lot easier. If you need help, let’s set up a quick, no cost intro meeting to see if Malecki Financial Group is a good fit.
This is also the best time to review and sign up for insurance benefits like health, dental, vision, life, and disability, comparing your new coverage to your old plan.
If you use Healthcare.gov Marketplace, update your information to avoid penalties.
Lastly, be sure to update your beneficiary designations to reflect your current situation!
Get set with savings
We already talked about your budget, but what happens if you had some downtime between jobs and used up your savings?
Well, we need to put them back.
But that doesn’t necessarily mean cutting costs everywhere until your emergency fund is back to where it’s supposed to be.
(Note: Aim for 3-6 months of living expenses.)
Using your new budget, make sure a healthy amount of your income is headed back into your savings.
Look up what budgeting guidelines align with your goals (70/20/10 or 50/30/20 for example) and consider using direct deposit to automatically split your paycheck into multiple accounts.
Check your credit
This is ALSO a great time to review your credit and clean up any issues!
When’s the last time you really looked at it anyway?
Try and look for errors or unpaid items. Often there are ways to correct them!
Also, update your income with your credit card company. This may help you qualify for higher credit limits. (WHILE YOU STILL SPEND WITHIN YOUR MEANS AND BUDGET!)
Which can also help improve your credit score
Consolidate your investments??? (What?)
If you have multiple retirement accounts or investment platforms, consider consolidating.
Especially if you’re already going to move your old retirement plan around.
Consolidating just means combining things into one place. Having your investments all managed by one firm could allow for easier paperwork, saving you time in the long run.
Plus, it means fewer meetings you need to attend throughout the year. Score.
Oh and you would have fewer tax forms, potentially lower fees, and improved ability to manage risk and diversify investments when they’re all in one place.
Work with a financial advisor!
Starting a new job is a big financial decision.
It could seem like a lot of pressure, figuring out the inner works of your job and trying to manage your finances all at once.
Don’t panic yet. You’re going to be alright!
Working with a financial advisor could save you a lot of stress, and allow you to focus on more important things (family, hobbies, learning how the heck to DO your new job, etc.)
We can help you understand your benefits, choose the best retirement options, create a realistic budget, and make smart investment decisions.
Just click here to schedule your complimentary meeting with Malecki Financial Group today.