Starting a new job can be an exciting time, but it can also come with many new responsibilities and decisions, especially when it comes to managing your finances.
As a newly salaried employee, you may be wondering how to make the most of your new income and set yourself up for financial success. By following effective financial planning strategies, you can take control of your finances and make the most of your new income as a salaried employee.
5 financial planning tips for newly salaried employees
As a newly salaried employee, financial planning is crucial to helping you establish a solid foundation for your financial future. For example, you may have new expenses — like a new apartment or new car loan — and may still be paying off student loans when you begin your job. Financial planning can help you incorporate these expenditures and budget your new lifestyle accordingly. In addition, establishing good financial habits early on can make it easier to navigate financial decisions and challenges in the future.
You can adhere to the following financial planning tips to maintain a healthy financial present and future:
- Create a budget — Start by identifying your fixed expenses, such as rent or mortgage payments and utilities. Then, allocate money for your variable expenses, such as entertainment and dining out. You should make sure to set aside a certain percentage of your income for your savings account.
- Save for an emergency fund — Unexpected financial challenges can happen, even when you feel secure in a salaried job. Aim to save at least three to six months’ worth of living expenses in case of unexpected events such as car maintenance or medical emergencies.
- Invest in retirement — Take advantage of employer-sponsored retirement plans, such as 401(k)s, and consider contributing enough to take full advantage of any employer matching contributions.
- Pay off debt — Try to pay off high-interest credit card debt as soon as possible and avoid taking on new debt while you are in your secured salaried position.
- Consider insurance — Look into health, disability, and life insurance to protect yourself, your assets, and your loved ones in case of illness or injury. Your company will most likely have insurance packages that you can choose from and incorporate into your financial plan.
Talk to a ProVise CFP® professional about financial planning for salaried employees
Ready to start planning your financial future as a salaried employee? Financial planning is essential. At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Contact ProVise today to schedule a complimentary consultation.