When you change your job, it can be easy to make some errors financially. This is because you have a lot to think about and possibly overlook financial matters. It is therefore worth making sure that you avoid making mistakes with life and health insurance, pensions and spending.
Health insurance often comes with a job. If you change jobs then the insurance may change or you may no longer be covered. It is very wise to find out exactly what the insurance will cover you for and make sure that you have enough cover for you and your family. If not you may have to consider taking out insurance privately so that you have the peace of mind that you will all be able to have the care that you need.
Often a job will have an employer’s pension associated with it. When you move jobs, you may start paying in to a new one and ignore the last one. It is wise to consider joining the two schemes together. This could make financial sense as the compound interest will be higher and it could also make things a lot simpler when you do retire. The biggest mistake to make is to lose the details of the previous pension and move house and so you never get what you are entitled to. So make sure you look after that paperwork.
If you have life insurance with your previous job, then you may find that you forget about continuing with it when you change jobs. It may be that you have been out of work for a while and not been able to afford insurance. Whether you have insurance or not, it is wise to think hard about it once you change jobs. Consider whether you need it to help your family and whether it would be a sensible thing to have just in case anything happens to you in order to make sure that they are financially secure.
Too Much Spending
It can be tempting to have a celebration when you get a new job. You might also decide to treat yourself to some new things. You may need things for work, such as new clothes and shoes but you may buy other things too. This is all fine, but you need to be aware that you may have to wait a while before you are next paid. You may have a pay day that is later in the month or have a few weeks between jobs where you are not paid. It is therefore wise to find out when you will be paid so that you know how much money you need to keep by. You can always do your celebrating once you have had your first pay day.
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Mon Martinez says
Nice points to consider indeed. One should look beyond the present and think things through before making that very important decision.