NDSU Extension Service - Ramsey County

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Money Management for New Employees

Money Management for New Employees

            So you’re getting started on a new job – congratulations!   This is a good time to look at your financial management skills and choices.  There is a lot to do with that paycheck besides spending it!

            Choose Direct Deposit- By having your paycheck automatically deposited into your checking account, you’ll be less tempted to spend it.  Then take it to the next step by signing up for automatic deposits into your savings and retirement accounts.

            Re-evaluate Your Budget - Counting how much money will be coming in is easy but also count how much will be going out.  Does your new job entail more or different types of expenses – a longer commute means more dollars for gas, new uniforms, association dues, etc.  Consider using a computer software program to track expenses.  Not only does it give you totals for categories of housing, insurance, etc. at a glance, it is also a time saver when it coming to filing taxes .

            Review Your Emergency Fund – Hopefully you already have an emergency fund in place but again does the new job bring changes of a new vehicle, more equipment that can break down, etc.

            Add to Your 401K or IRA. - Retirement seems far away, but the more you save now, the more you’ll have when you retire. If you’ve got a healthy savings habit, the power of compound interest will ensure that you also get a healthy retirement. Some retirement financial management advice to consider:

  • if your 401K has an employer match, contribute the maximum pre-tax amount
  • And invest enough to your 401K to get the full match.
  • if you don’t have an employer-sponsored retirement plan, or if you’ve got the extra money after maxing out your 401K, set up a traditional or Roth IRA. Find out which type of IRA you’re eligible for here.
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