Tips

Five Smart Financial Moves to Make before Switching Jobs

When switching jobs, it is important to be pragmatic when evaluating the new opportunity before you. Outlined below are some aspects of the new situation that you can examine carefully to make sure the new switch works out well for you.

Your New Contract

It would be particularly wise to only give in notice at your old job after you have received and carefully examined the contract for the new position you are being offered. Make sure that at the very least you seek a legal opinion on the validity of the contract, and whether the terms as expressed within it are a reflection of your understanding of the document. This includes remuneration, the terms under which you may leave that position, non-disclosure clauses as well as any other terms that may affect your future career and thus, your future financial stability.

Net Income

Ensure that you have correctly understood the calculations by which you arrive at your net income in your new job. This is a discrepancy that a lot of new employees make, and one that some employers do not take the time to point out, which results in your receiving significantly less than you had initially understood you were going to get as your net income.

Benefits

Closely examine the benefits offered by the new position and note how they impact on your lifestyle. Do you have to travel further than you did for your original job? Does the cost-benefit analysis work out? Do you get paid overtime? Do you have the same health benefits? Are aspects important to your performance, like an entertainment allowance for a high-end marketeer, included in your benefits package? Carefully analyze your benefits terms to ensure they do not put you in a losing position.

Employee Schemes

Examine what schemes are on offer at the new job and take advantage of them. These often vary, and can include stock options, saving schemes, and things of that nature which can be vital to ensuring your medium to long term financial stability.

Account Management

It may be wise for you to look into who manages the financial accounts for the firm you are joining, at a banking level. It puts you on friendlier footing if you are banking with the same bank that handles your employer’s accounts, especially if you are joining a stable firm. Credit is significantly easier to access, and transactions are of course much easier to follow up on. Along side this, you would do well to ensure that you continue with any saving activity that you may have been carrying out at your previous position, or at the very least, start this valuable habit. If disbursements from your monthly income were being distributed between an expense and savings account, ensure the same process is maintained when taking on the new job.