Week 41: Grow Income, Tactic 11

What can you do this week?

• Consider if you should stay another year where you’re employed or if new employment could offer you more earning potential (and other benefits).

• Evaluate and negotiate well when looking at new job opportunities.

• Plan well so when the opportunity presents itself, you will gain financially having done this transition.

When You Know It’s Time To Look

• Growing your income so you can save more may not be the strongest motivator for you to change jobs. There are a host of reasons that have less to do with money.

• This Indeed piece gives 15 total reasons to consider leaving your current job.

  

  Will It Be Worth It To Move?

• If your motivation is mostly financial, you will want to make it worth your while.

• One study has estimated 14.8% being the average pay increase for changing jobs.

• A salary increase is important but there can be other incentives that really help someone build wealth that justify the move.

  

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Negotiate Well

• Many people focus on just the base salary, but other benefits can be just as or more valuable.

• Consider negotiating other elements like bonus and incentive compensation, health benefits, retirement match, and pension options or plan contribution matches.

Health Plan Options

• If you’re experiencing an income increase and don’t have large, consistent health claims in your future, an HSA can be an attractive option.

• Benefits are more pronounced for high income earners, with a solid cash savings foundation.

• Less so when you don’t have the cash on hand and the tax incentives don’t mean as much.

Vesting Schedules

• Make sure you understand what you are leaving behind before you take the leap.

• An employer match or pension plan or other benefit can be tied to a vesting schedule. '

• This can make a very big difference as to whether you give 2 weeks notice or maybe longer to meet your vesting schedule benchmark and keep more money.

Relocation

• A new job with higher income is not always a slam dunk.

• The cost of the move and estimating what amount you are covering out of pocket vs. company provided is key.

• Another is how far will your new salary take you where you live now vs. your new home.

• Speaking of home, real estate price differences can be striking. A 102% difference in the below Atlanta to Seattle comparison.

Bridge With Savings

• If there is a longer transition time required as part of this transition, make sure you have the reserves you need.

The Value Of Owning Benefits Individually

• Employer provided benefits can be most cost effective but can sometimes be at the cost of flexibility.

• The period between jobs could leave you with a gap in coverage which can add extra stress.

• This is particularly key when job transitions are not by choice. Owning some coverages individually can help address some of this concern.

Vacation, Sick, and PTO Time

• A huge benefit you should not lose any of before making this move is time with your family.

• We all need money and growing income is the focus of this post but if that is at the expense of time with your family, it’s definitely time to reprioritize.

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