Most of the time, switching jobs means earning a higher salary. And this means that you'll need to make important financial changes in order to start building your wealth. Here's a guide that can help you organize your finances when starting a new job!
Switching jobs can also mean having a higher salary, and this means that it's time to make some financial changes. Organizing your income will help you to start building your wealth and your future.
So, here's a guide that will help you identify the basic money moves you should make before receiving your first paycheck.
Tweak your budget
If your income is about to increase, so will your budget! This means that it's time to rearrange it based on your new paycheck. If you don't count with a budget, then it's the perfect moment to create one.
Remember to add your brand new expenses that come with your new job, like gas or public transportation. You can also take part in your new income and place it on your savings account, emergency fund or retirement account.
Check tax withholdings
With a higher income, comes greater responsibility. This means that you will probably face new tax withholdings. You will probably fill the W-4 form on your first day at work, and this will determine how much money you will pay or receive as a refund during tax filing season.
Now that your income is higher, you should pay special attention when completing this form. You don't want to end up owing money when tax time rolls around!
New bank account
Switching jobs may mean it's time to switching bank accounts. Make some research about the institutions that will suit your new finances better. Make sure you also check for online and mobile banking features that will make it easier for you to track your financial activity.
You should take into account fees, penalties and other costs when searching for new bank account options.
A higher-income will also mean it's time to open a savings account and allocate a portion of your paycheck into that particular account.