So you made it through all the interviews and landed a great job. Now it’s time for the rubber to meet the road. Getting a new gig is great, but for many of us, it is change and that can always lead to a lot of stress.
You now have a new commute, a new role, new colleagues and a completely new routine. Dealing with all of that is hard enough and certainly can add a little anxiety in your life. Take a deep breath and relax. You made it through the hard part.
While it can be a stressful time, life must go on and you still have things you need to do. With that being said, I want to provide a really simple list of the three things that are absolutely imperative when going through the job change process.
I narrowed it down to three because you already have enough on your plate and only have so much time. However, these three things get passed up all the time.
Don’t let that happen to you. Be different. You don’t want to look back a year from now to find out you missed something or didn’t do one of these three things. So, without further ado, let’s look at the three financially savvy things you must do after getting a new job.
- Understand Their Benefit Package – It seems so common sense, but rarely do people actually take the time to understand the benefits of their new employer. It’s overwhelming to go through the entire package and a lot of times the person giving it to you isn’t a whole lot of help. However, it’s crucial you sit down with your spouse and financial planner to understand exactly what they offer and whether it’s a good fit for you or not.
- Do they offer a 401k and what is their match?
- Maybe you got really lucky and they offer some kind of pension
- What type of health insurance do they offer? Maybe they offer a few different plans with one being a high deductible policy with a health savings account. Which one is right for you?
- Do they offer short-term and long-term disability and how much do you need?
- What about a flexible spending account?
As you can see, the questions can go on and on. However, these are extremely important to know and understand. That's why it's so vital to go through your benefits package and understand what's best for you and your family.
And, that’s why I highly recommend reviewing all of this with a financial planner who will be able to help you through the process and ensure you make the best decision. Don’t be like most people going through the motions. Be informed and know you’re making the right choices.
- Rollover Your Old 401k – This is one that rarely happens. It gets lost in the transition and falls way down the priority list. However, it’s quite important. You don’t want to leave it behind for you to eventually remember it 5 years from now.
Guess what? If you’re not watching it, no one else is either. My recommendation would be to roll it over to an IRA you manage yourself, roll it over to an IRA your financial planner handles or roll it over to your new 401k.
Don’t leave it with your old employer and by all means, don’t take it out. Take control of your old 401k and take it with you.
- Update Your Budget – That’s right; I said the “B” word. That dreaded word so many people fear. As I say all the time, don’t be like everyone else, be different and embrace it.
If you already have a budget, then it’s simply a matter of updating it. If you don’t have a budget yet, then now is a great time to get started now that you have a new job.
If you have more money coming in then maybe you can put some more away for retirement or increase your “fun” spending. Regardless, it’s important to update your budget to ensure you know the new amount coming in and where it will be going. Just do it!
While these three things aren’t the most fun items to do in the world, they are extremely important. Don’t put them off for another day. Take action and be in control!
This is a post from Clint Haynes, a Certified Financial Planner® in Lee’s Summit, MO. He is also founder and owner of NextGen Wealth. You can learn more about Clint at the website NextGen Wealth.