If you have just got a new job, make sure to celebrate at first, and after that think about some important money tips to keep in mind before you start your job. You can go a bit crazy when you get a job earning more money or working more hours increasing the amount on your paycheck. You are on an endorphin high, so spending your hard earned money may be all you think about. New jewellery, clothing, new computer, iPad, iPhone, a car etc. are all typical items lots of us “celebrate” our new job with. Take a look at some important money tips to follow when you get a new job.
1. Resist happy hour
If your new colleagues go out to drink cocktails during happy hour every night after work to relax, don’t make it a habit just to fit in. It’s better to go once a week, but not every day and do not spend a lot of money on appetizers and drinks. You can come home and enjoy a nice glass of wine and home cooked meal instead.
2. Save first
One of the most important tips to keep in mind when starting a new job is to save a bit of those hard earned money. Try to save approximately 20% of your salary if you can for a rainy day, or put it into a retirement fund in your company. You will be grateful to yourself in the future if start saving now, since there’s really nothing more rewarding than that.
3. Spend less money
If you start a new job, try to be as much economical as you can. Try to eat your lunch at the office instead of going out to eat each day, and if there is a nearby train you can take or if you can easily walk to your work, take that into consideration instead of a car. You will spend less money, and maybe do more exercise.
4. Be tax smart
If you get a new job and fill out a W-2 upon hiring, be tax smart. It can be a good idea to save through your salary, which you’ll get back through your taxes. Those money you will either use to pay towards your taxes if you owe or they’ll come back to you through your taxes. Make sure your dependants are right, and what you take out is what you need to bring home in terms of money. Depending on how much you need, you’ll either get more back at tax time or bring more funds home now. Think over what’s right for your budget when you fill out your W-2, and keep in mind, you can always change it.
5. Spend your money smart
It’s not bad if you want to purchase new clothes for your first day, or even buy a more reliable car if you have a commute, but be sure to spend smart. Never buy a whole new closet full of clothes thinking then how to pay for it, or get a car that you can’t afford. Be smart with your money and you’ll love your job, and enjoy spending your funds.
6. Ask about health insurance
Definitely, you always have to ask about health insurance when starting a new job. Most companies have a 90 day waiting period before they offer you a full time or part time insurance. When the waiting period has finished, make sure to sign up for a health insurance plan that is good for your budget. You won’t probably need the most expensive package. Getting health insurance is important, just to be sure that you don’t end up going into debt over it and receive necessary care. Make sure to choose a deductible that is right for you. Sometimes insurance companies offer low and high deductibles, or both. High deductibles mean you should get a definite dollar amount of care before the insurance kicks in, and you should pay until then for all care you got. A low deductible costs more per month, and this means you will get less of a dollar amount of care before insurance kicks in. If you don’t often go to the doctor and don’t spend a lot of money on insurance, choose a higher deductible. But when you have medical costs on a regular basis, it’s probably the best to choose a lower deductible instead and pay more per month. If your company doesn’t offer health insurance, go online to get a low cost insurance plan provided by the government.
As I mentioned above, if your company has a 401K program, make sure to invest it in as fast as you can. This will make your company work for you, as much as you work for them. When putting this into a free investment plan, it means a portion of your dollars are vested in the company through the stock market, helping you earn money. Sure, you can’t lose what you don’t put in, that’s why you don’t risk at all. But the worst thing that could be is you don’t make much off the stock. And when you go to get the funds back when you leave the company or at the beginning of retirement, you’ll receive everything you put in, plus those funds the stock made. Sometimes penalties happen with early removal, that’s why make sure you stay with the company as long as possible.
If you’ve just got a new job, congratulations! I hope these tips will be helpful! If you have any money tips feel free to share them with us.