The news of a new job brings loads of joy and excitement. More so, if it is your dream job or you have wanted to change your career for a long time. However, before you leap forward at the opportunity, it is advisable to consider a few crucial things to avoid making mistakes that you may regret in the future. Here is a list of financial mistakes that you can avoid with just a little research and a whole lot of determination.
Not evaluating your taxes
Let’s face it. Taxes can pinch your pockets and reduce your take-home salary. The situation becomes all the more unpleasant when you have been trying hard to manage your finances and would appreciate a few extra bucks. In most possibilities, your salary will change when you move to a different organization. It is advisable to assess how your new salary structure will impact your overall taxes. For instance, are your taxes going to increase, or are you going to lose the benefit of deductions with your new salary? Working out your taxes before you accept the offer will help you in making an informed decision.
Accepting an offer without understanding the market
The talent shortage in the market is real, and the competition to attract the best talent is fierce. In a bid to attract the most qualified candidates, organizations are at times willing to offer an impressive package of salary and benefits. Besides, you must get the salary that you deserve. Before you accept an offer, talk to people in the industry and understand what other companies are paying. You may even try talking to recruitment consultants to get the right idea. We encourage you to use your negotiation skills to get the offer you deserve.
Your new job may get you more disposable income. You may get swayed into spending that extra money and living a more comfortable life. Well, it would be a mistake if you do not save for your financial goals. Of course, you can pamper yourself in the first month, and buy something valuable. However, it is recommended to start saving before it becomes a habit. Your impulsive purchases and unlimited expenditure may land you in credit card debt. Moreover, It is a vicious circle, and it may become challenging to come out of it.
Spending too much on a program
You have been in a particular field, but feel it is not the right career path for you. You also know that you need a few skills and qualifications to change your line of work. For instance, an MBA program or a yoga training program. However, such programs are expensive and may require considerable investment from you. It is advisable to proceed with such plans only when you have a plan B. It will protect you from any unpleasant scenarios if you are unable to find a suitable job in the future. It may also help to save for such programs so that your financial health doesn’t suffer.
Not having a financial plan
A financial plan is a pathway to your life’s goals. You may want to buy a house, a fancy car or wish to provide your children with the best possible education. Having a clear vision will help you in making the right career choices. Experts suggest that you must save before you spend. This habit will keep you on track and take you towards the life of your dreams.
Not considering the changes to your insurance cover
We all know the value of insurance cover as an employment benefit. Health care is expensive, and most of us rely on employment insurance package to cover these expenses. Most employers cover life, disability, and even critical illnesses to some extent through their insurance covers. When you let go of an employer, you also let go of this invaluable benefit. It is advisable to check this aspect with your new employer before you sign on the dotted line. You can avoid making a grave mistake this way.
Apart from these, it is also wise to consider making necessary adjustments to your investment portfolio. With these simple action points, you can truly enjoy your job, and safeguard your future.