7 Best Money Resolutions If You’re Looking To Start a New Job
Trying to start a new job at the beginning of a New Year is an exciting time, and it can also make you reflect on financial goals you’d like to achieve.
“If you are planning to start a new job after the New Year, know exactly where every dollar of your income is going,” said Tyler Howe, owner and investment advisor representative at Clarity Wealth Management. “It’s important to be organized during a transition period to make the financial corner of your life more enjoyable. In short: Tighten up that budget!”
Here are more of the best money resolutions you can make if you’re looking to start a new job.
Contribute to Your Retirement Fund
According to Howe, you should keep track of your 401(k) through your old employer as you transition jobs.
“It’s very helpful to roll over your 401(k) to an IRA or, at the very least, your new 401(k),” Howe said. “This is thousands of dollars that you don’t want to lose.”
Aviva Pinto, finance advisor at Wealthspire, said the best resolution you can make when starting a new job is to put away as much as you can into your retirement plan.
“If possible, put in the maximum,” she said. “Many companies even match your contributions, which is free money to you!”
Understand Your Benefits Package
When making smarter money decisions for the coming year, experts recommend getting acquainted with your retirement programs, health and life insurance, and any other benefits your new workplace offers.
There are benefits you might not even be aware of. For example, your company might offer you health options like dental, vision and even disability insurance.
Doing a deep dive into what you’re entitled to will set you up for success.
Save Money
Paige Robinson, real estate investor and owner of House Buyers, said one of the most critical resolutions you can make is to save more money.
Whether it’s for an emergency fund, retirement or a down payment on a house, you need savings for financial stability. Robinson recommends setting a specific amount to save each month and sticking to it.
“You will thank yourself in the future when unexpected expenses arise.”
Having a financial cushion that equals three to six months’ worth of living expenses can give you greater peace of mind. Experts also suggest trying to automate contributions to your emergency fund to ensure your savings is more consistent.
Create a Budget
If you are starting a new job in 2024, experts highlight the need to set up a comprehensive budget that reflects your new income and takes into account your financial goals.
This should take the following into account: categories for essentials like housing, utilities, transportation and groceries, as well as discretionary spending on entertainment and non-essential items.
Tracking your spending is a helpful way to understand where your money is going each month. You also can download a budgeting app to make things more streamlined. These also allow you to review your monthly spending habits so you know exactly how you are spending each dime.
Pay Off Any Debt
Right now is also the perfect time to see about paying off any existing debt you have. Whether it’s credit card debt, student loans or a car loan, reducing these should be a top priority.
One effective strategy, according to experts, is creating a debt repayment plan and making extra payments whenever possible. Another option is to try consolidating credit card debt on a balance transfer credit card — some offer no interest for up to 21 months.
Keep Learning
It’s essential to keep up with the latest developments in investing and personal finance.
You can participate in webinars or workshops to boost your financial savvy and help you make wise decisions.
For example, you might examine pay averages and industry norms that have to do with your position. Experts say to never be afraid to haggle over your pay, incentives and benefits to make sure you’re getting paid fairly.
You also should establish both short- and long-term financial goals when it comes to retirement, education and house savings.
Update Your Financial Goals
Setting resolutions isn’t something that is set in stone and you simply forget about. It’s necessary to revisit and update your financial goals. Keep in mind that a new job also means both your income and financial situation may change, so take the time to set specific, measurable and achievable goals. This will help you stay on track — not just today but throughout the rest of the year.
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This article originally appeared on GOBankingRates.com: 7 Best Money Resolutions If You’re Looking To Start a New Job