8 Things You Should Consider When Starting a New Job
Starting a new job is exciting. New challenges, new coworkers, and new opportunities for growth. But beyond learning your role and meeting your team, it’s also a crucial time to make sure your financial and personal foundations are set up for success. The choices you make in the first few weeks can have a lasting impact on your long-term goals.
In this post, we’ll walk through the top things to consider when starting a new job, from understanding your compensation package to planning for taxes and beyond.
1. Understand Your Total Compensation Package
Before your first paycheck hits, take time to understand everything that makes up your total compensation, not just your base salary. Many tech employees receive bonuses, commissions, or some form of equity compensation, which can meaningfully impact your overall financial picture.
Key areas to review:
Base pay: Confirm your salary and any performance-based bonus potential.
Equity compensation: Review what kind of equity you’re receiving (stock options, RSUs, etc.), the vesting schedule, and what triggers taxation.
Benefits and perks: Look into health coverage, 401(k) match, and other employer-provided benefits that may add significant value.
Knowing these details early when starting a new job helps you plan your spending, saving, and investing with clarity.
2. Review and Understand Your Equity Compensation
If your new employer offers stock options, RSUs, or participation in an Employee Stock Purchase Plan (ESPP), it’s worth getting familiar with the details. Equity can be a powerful wealth-building tool, but it comes with unique timelines and tax considerations.
Start by reviewing:
Vesting schedule: How long before shares become yours, and what happens if you leave early.
Type of equity: Incentive Stock Options (ISOs), Non-Qualified Stock Options (NSOs), or RSUs all have different tax treatments.
Tax impact: Equity events (like exercising or selling shares) can trigger taxes. Having a plan before these events occur can help you stay ahead.
Many employees wait until their first vesting date to think about these details, but proactive planning now can prevent costly surprises later.
3. Revisit Your Budget and Emergency Fund
Starting a new job often means changes to your income and spending habits. Maybe your paycheck is higher, but so are your commute or relocation costs. Or perhaps you’re earning more and want to prioritize investing.
A quick refresh of your budget can help you stay on track. One simple framework is the 50/30/20 rule:
50% for needs (rent, utilities, groceries, insurance)
30% for wants (dining out, travel, entertainment)
20% for savings and debt repayment
Even if your income rises, resist the urge to inflate your lifestyle too quickly. Maintaining or even increasing your savings rate during transitions can accelerate your long-term goals.
4. Evaluate Benefits Beyond Pay
Your employer’s benefit offerings can be just as valuable as your salary. Many people overlook them or delay enrolling, which can mean missing out on important opportunities.
Review these key areas early:
Health insurance: Choose a plan that aligns with your medical needs and budget.
Retirement plans: Contribute enough to get the full employer match if available.
Health savings or flexible spending accounts (HSA/FSA): Great for managing medical costs tax-efficiently.
Employee Stock Purchase Plan (ESPP): If offered, understand the rules and potential benefits.
Taking full advantage of these programs can have a big impact on your net worth over time.
Considering starting a new job in tech or exploring a benefits package that includes equity?
Understanding how your salary, benefits, and stock compensation fit together can be complex. The right financial guidance can help you make confident decisions from day one. Schedule a quick consultation with DiversiFi to learn how we help tech professionals navigate new opportunities with clarity and confidence.
5. Plan for Taxes Early
Your new job may change how much you owe, especially if you’re receiving bonuses or equity. Taxes on stock compensation, for example, can be triggered at vesting or exercise, depending on the structure.
Consider checking your withholding settings or running a quick projection to make sure you won’t be surprised next April. If you have multiple income sources (or a spouse who does), this becomes even more important. An advisor or tax professional can help identify whether you should adjust your withholding or make estimated payments throughout the year.
6. Roll Over or Consolidate Old Retirement Accounts
If you contributed to a 401(k) or similar plan at your previous job, don’t forget about it. Many people leave old accounts behind and lose track of their investments over time.
Your main options include:
Rolling the funds into your new employer’s plan
Moving them to an IRA for more investment flexibility
Leaving them where they are (if allowed)
Consolidating accounts can make it easier to manage your investments, minimize duplicate fees, and simplify your retirement planning.
7. Review Your Insurance and Legal Documents
A new job often comes with new insurance options or the need to update personal records. Make sure your beneficiaries are current and your coverage aligns with your needs.
Items to check:
Life insurance and disability coverage: Ensure your policies provide enough protection for your current situation.
Beneficiary designations: Update them on all accounts, including retirement plans.
Legal documents: Review wills or estate plans if your life circumstances have changed.
Small updates here can make a big difference down the line.
8. Set Clear Career and Financial Goals
Transitions are the perfect time to pause and think about what’s next, not just professionally but financially. Align your career goals with your financial priorities, such as building wealth, saving for a home, or starting a family.
Think about how your new role supports those goals and what steps you can take to maximize your compensation and benefits toward achieving them. A well-rounded plan connects your professional growth with your long-term financial security.
Final Thoughts
Starting a new job is about more than just the next chapter in your career. It’s also a chance to set the stage for lasting financial success. Whether it’s understanding your equity, optimizing benefits, or creating a plan for your newfound income, the actions you take now can make a big difference later.
If you’re starting a new role or recently changed jobs, schedule a consultation with a DiversiFi advisor to make sure your compensation, taxes, and investments are all working together toward your goals.
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