Smart Financial Moves After You Get a Job Promotion
Congratulations! If you’ve recently earned a job promotion, there is probably plenty on your mind. However, getting ahead of financial decisions should be one of those priorities.
Let’s look at some smart steps you can take after earning a raise at work.
Does my new promotion mean a change in finances?
Many people are excited after a promotion because, along with those new responsibilities, often comes a salary increase. This can impact your financial goals, and it’s a good idea to consider those, first.
What should these new funds be used towards? By outlining a goal early on, you will be sure to get the most out of those additional dollars in every paycheck. We’ve had clients opt to:
Whatever your goals, planning for that first bumped-up check will ensure you’re on track to achieve them.
What’s the best way to optimize my pay increase?
There is often no “one-fits-all” answer to financial questions. Paying off debts is often a great place to start, since interest expenses can add up. Plus, once you have a debt paid off, you will have more money in your bank account every month.
Have you considered the tax implications of the increase? Another smart way to optimize your financial change is to get ahead of your annual tax filings. Does this increase put you into a new tax bracket? Have you updated the necessary withdrawals to be sure you are covered? Depending on when the promotion or salary increase occurs, you may want to review options with a tax accountant to be sure you stay on track and don’t slip behind any owed taxes at state or federal levels.
What if I have questions about my salary increase?
No matter your question, we’re here to help. Sometimes, it’s just nice to have a knowledgeable third party weigh in on your financial situation, so you can feel confident about your decision!
If you’ve recently had a change in your salary or financial goals, reach out to schedule a consultation. Our team is here to help!
