If you are reading this you probably are starting, or are about to start a new job. And for that I want to say congratulations. Starting a new job is always a fun and exciting new experience.
Now that all of the theatrics are behind us, when you start a new job you have to first enroll in new benefits and understand all of the differences in your pay between this job and your old one. That is where I come in, today I am going to show you the five things you need to do after accepting that offer letter.
Setup Direct Deposit
The first step you need to take is setting up your direct deposit. The chances of you reading this article means that you were already going to set up the direct deposit when you start.
But for the people in the back that still get paper checks you might want to switch over to direct deposits. Not only will you get your money as soon as the company pays you. But it is an easier way to track your actual income.
Understand Your Benefits
When you start your new job you will probably be receiving or have received a benefits package outline. This will inform you of all the new benefits that you will have access to while working there. There are so many different offerings and coverings you can have that I am only going to highlight a few important ones.
Health Insurance – You need to make sure you take the time to understand all of the ins and outs of the health insurance provided by your job. Various things such as copays, deductibles, HSA vs HRA, and many more topics collaborate to give you the best coverage that makes sense.
Retirement Accounts – This is one that I expect everyone to leave this site understanding. Retirement accounts are one of the things most people think about when referencing a benefits package. Companies will offer you 401k, IRA, Index Funds, etc, to show that they are committed to investing in your future. Take the time to really understand all the benefits that each account will give you from your new employer. Then attack that account from all directions.
Income Tax and Withholdings
This new job that you have started could be in a different tax district than your old employer. So make sure that you understand the different taxes that could come with your new paycheck.
If you have stock options as part of your pay this can come to affect the way you manage your money throughout the year, especially if it is part of your total pay.
Make sure you check to see how your new company will tax different bonuses and raises. If they do it differently than you are used to it would be worth making sure you understand it all so when tax season rolls around you won’t be caught off guard.
Create a Budget
Once all of the formal things are taken care of with the company, you need to make sure your budget reflects your new income. This could be putting more money in savings and investing, or having a larger take out budget for the month.
Whatever it may be, it needs to be accurate with what you are making at your new company. When you do get raises make sure you don’t adjust your style of living to your new salary. This new raise should help you put more money in a rainy day fund or more money in your investments. Which leads me to my next point.
Have a Goal
Probably the most important thing after you start your new job is to have a goal. When you start making more money that money needs to be put to work in order to achieve the next goal you have.
Emergency Fund, Buying a Home or Car, Children, Or More Vacation time can all be things to look forward to. These types of goals will prevent you from spending your increased salary on things that you otherwise wouldn’t need.
So take a step back and really look at the next goal you would want to obtain.
Rob’s Opinion
When I first started my job I was happy to find out they had free dental and eye care. Along with a decent marching 401k plan. I am luckily still on my parents health insurance so I have not crossed that bridge yet.
It took me a while to really understand all of the benefits that my company has. And I still have a lot more to learn. The quicker you make an effort to learn all the benefits offered to you, the better off you will be in the future.
Like always if you have any questions or want to add other missed benefits that people are not using. Please comment them down below.
