Starting a new job
Starting a new job or moving roles is an exciting time in your career. It can bring a lot of change to your work lifestyle and personal life. Make it an opportunity to reevaluate your financial position and maximize any extra money you’ll be earning.
Reassess your budget
A new job usually means an increase in salary. It doesn't take long to adjust to having extra money, which is why it's important to set new financial habits as soon as your income changes.
If you’re someone who has a financial plan, a new job is a good time to revisit it and ensure it’s up to date. However, if you’re like most people and don’t have a plan yet, seize the moment. You wouldn’t approach a significant project at work without establishing some initial goals and a list of steps to get you from start to finish.
Sure, your life and your priorities will certainly change over time, just like projects at work are rarely static, but having a plan gives you a framework for making intelligent decisions and adjustments along the way. It also helps you to understand the potential ripple effect of decisions you make in the short-term.
Save the raise
If your new job comes with an increase in salary, put the new money either towards reducing your debt or increasing your savings. Resist the temptation to consume more. You were able to live on your old salary, so you should certainly be able to live on the new one.
The decision to reduce debt or invest is something of a personal one. Factors to consider include the interest rate on your debt as well as your own personal comfort level with debt and the associated risks. Don’t forget to take taxes into account when figuring this out.
If you have no debt then it’s definitely worthwhile looking at making extra contributions into your current savings. If you have never setup a way for you to efficiently save money (not just collect money in a bank account) then this is the perfect time to start looking into different options available to you and earn up to 8-12% interest.
If you would like an expert to help, book a review meeting with a financial adviser who can show you how to optimise your extra income and help you manage your money effectively.
Keep your insurance up to date
If you’ve had insurance with a previous employer, you may already be covered for medical bills, dental, total disability, critical illness or death, as part of the policy. However, it may be that the policy is non-transferrable.
Most of the time when you are given an offer from a company it will include a breakdown of the employee benefits you have. If it didn’t then the first thing you should do is speak to your Human Resources department.
This way before making a decision on taking out your own policy it’s good to understand what cover you may already have. Even if you are provided with insurance it may it doesn’t go far enough to cover you when outside of work hours, cover your family’s medical bills or cover you on holiday overseas.
Once you have all the information on what coverage you have then it’s worth speaking to one of our advisors who can if there are gaps in your protection and then offer solutions to make sure that you can have a piece of mind of being covered against all eventualities.