Did you get laid off and started a new job? An exciting one at that? Well, good job. This is an exciting milestone. Maybe you were not laid off, or maybe this is your first role or a step up in your career, it hardly matters. Starting a new job brings fresh opportunities which gives rise to new responsibilities, new income, and new goals. But beyond all these, your new job gives you a powerful chance to set yourself up for long-term financial security.
At PAL Pensions, we believe your future starts with the decisions you make today. Here is how to make the most of it.
Get to Know Your Benefits Package
One of the first things you should do when starting a new job is to understand the benefits that come with the job. A lot of job seekers or new employees look at the monthly salary promises on the vacancy bill and that’s all they need to accept the job. We fail to realize that many employers offer pension plans, paid sick leaves, life insurance, and other perks that can support your financial goals. If, by any chance, your employer offers a pension scheme, it is important to sign up as early as possible.
Set Clear Financial Goals
Define your short and long-term financial goals. Think about them and write them out in a piece of paper. Short-term goals might include reaching a specific financial goal. Long-term goals could be buying a home, supporting your family, or retiring comfortably.
Once you are acquainted with these goals, you can create an achievable plan. Do not bite more than you can chew and remember to stay realistic. Start small and stay consistent. This could mean setting aside a fraction of your monthly payments for your savings or your pension account.
Create a Budget That Reflects Your Income
This is a great time to reassess your budget. What do you want to spend more on and what do you want to spend less on? It is tempting to upgrade your lifestyle immediately, but it is wiser to first understand how much you earn, how much you spend, and how much you can save.
Tailor your budget to your financial goals. You can follow the 50/30/20 financial rule if you ever find yourself overwhelmed by your financial responsibilities:
– 50% of your income goes to needs (like rent and food)
– 30% to wants (like subscriptions, and more)
– 20% to savings and investments
This structure helps you keep a balanced spending habit, and you are likely to save more from your first salary to your last. This would also help build your pension account as you are always taking money out for it.
Plan for Retirement Early
Do not leave retirement planning until the last minute. It might feel far ahead, but the earlier you start planning, the more prepared you will be. Even if you are in your 20s or 30s, contributing to a pension now puts you in a much stronger position later.
You should think of your pension as a long-term safety net. The earlier you start, the more time your money must grow and the less pressure you’ll feel down the line.
Automate Your Savings and Pension Contributions
If you are having anxiety about not having enough money to contribute to your savings or pension account. The easiest way to combat this is to automate it. If your salary goes into your account and you automatically transfer a portion to your pension or savings, you won’t have to think about it or be tempted to spend it. PAL Pensions has a mobile app that allows for seamless transactions and information about your financial status. This makes controlling your account easy as it is right at your fingertips.
Your new job is more than a pay cheque. It is a stepping stone to the life you want to build. At PAL Pensions, we understand that, and we are here to help you make your future a priority from day one.
