Starting a new job is the perfect time to reevaluate your savings. It might seem that the change in paycheck is the factor most likely to impact your financial life, but that’s not all that you should be taking into account. Read on for our tips to help you maximize your savings as you transition into your new role.
Adjust Your Budget
Go through your budget to identify any expenses that will change with your new job. Are you going to need to upgrade your wardrobe? Has your commute increased or decreased (and with it your transportation expenses)? Will you be more likely to eat out because you won’t have time or energy to prepare meals? How does your new health insurance compare to your old policy? All of these items will affect how much of your paycheck you’ll be able to save.
Take Advantage of Employer Benefits
This advice especially applies to retirement accounts. If your employer offers a 401(k) match, you should be sure to save at least the maximum match. Otherwise, you’re leaving free (to you) money on the table.
Plus, some employers offer additional financial benefits, such as health club membership discounts, tuition reimbursement, and flexible spending programs for medical expenses. Make sure you understand all the benefits available to you through your new employer.
Automate Your Savings
Finally, decide how much of each paycheck to save, and set up an automatic transfer to divert that right to your savings account. It will keep you from accidentally overspending and ensure that you’re on track with your savings goals.
If this is your first job, we recommend reading Youtern’s article, You Started the Job! Now… Start Saving Money, which provides additional tips to consider when budgeting on an entry-level salary.