What to Review Financially Before Making a Big Career Move

Before you accept an offer or give notice, make sure you know what changes along with your paycheck.

A new job might come with a raise. It might also come with better hours, more interesting work, a shorter commute, or simply the chance to do something different.

Once an offer is on the table, though, there are numbers to sort through.

Salary is the obvious one. Health insurance, retirement benefits, bonuses, time off, and even the timing of your last and first paychecks can matter too.

Here are a few things worth checking before you make it official.

Put the two compensation packages side by side

Start with what you have now and what you’d have in the new role.

Salary belongs on the list, but so do bonuses or commissions, retirement contributions, insurance costs, HSA contributions, paid time off, equity, and any other benefits you regularly use.

Then get into the fine print.

How much will health insurance cost per paycheck? What’s the deductible? How much does the employer contribute to your retirement plan? Is there a vesting period? Is the bonus guaranteed, or does it depend on your performance or the company’s?

A $10,000 raise can look different once you know what you’ll pay for benefits and what your employer is contributing on your behalf.

Take a look at your retirement plan before you leave

If you have money in your current employer’s retirement plan, you’ll need to decide what to do with it after you leave.

You may be able to keep it in the existing plan, move it to your new employer’s plan, roll it into an IRA, or take a distribution. Fees, investment choices, taxes, and plan rules can all factor into that decision.

There’s also a timing question: Are you fully vested?

Your own retirement contributions are yours. Employer contributions may not be. If you’re a month away from reaching a vesting milestone, it’s helpful to know that before you choose your last day.

Get the exact dates for health insurance

Don’t assume one employer’s coverage ends the day the next employer’s begins.

Ask when your current insurance ends and when the new plan takes effect. If there’s time in between, you may need temporary coverage through COBRA, a spouse’s or partner’s plan, or the Health Insurance Marketplace.

If anyone in your family has regular prescriptions or an appointment or procedure coming up, check the dates before you leave. A short gap in coverage can become expensive at exactly the wrong time.

See if your departure date matters

Pull up your employer’s policies before deciding when to give notice.

You could have a bonus or commission payment coming. Maybe unused PTO gets paid out. Maybe it doesn’t. Stock or employer retirement contributions could be close to vesting.

None of those things has to determine when you leave. But if staying another two weeks changes what you walk away with, you probably want to know before you pick a date.

Check the timing of your paychecks

Your old and new employers may run payroll on completely different schedules.

That can leave more time than expected between your final paycheck and your first one at the new job. Add a week or two off between jobs, and the gap gets longer.

Look at when the money will actually hit your account and what bills are due in between. You may want to keep a little more cash available during the transition rather than assuming the new salary will immediately take over.

Think about what the job will cost you

The offer letter won't tell you what you'll spend getting to work every day.

If you’ll be commuting farther, estimate the additional gas, parking, tolls, or transit costs. If the position involves more travel or different hours, think about whether that changes childcare or other household expenses.

The opposite matters, too. Going from a five-day commute to a hybrid schedule could put money back into your monthly budget.

Those expenses probably won’t make or break a career decision on their own. They’re still worth including in the math.

Before you accept

You don't need to turn a job offer into a financial research project.

You do want enough information to know what you're agreeing to.

Get the benefits documents. Ask questions about anything that isn't clear. Check the dates that matter at your current job. Then look at how the change works with your budget and the financial plans you already have in place.

A career move doesn't have to be the best financial choice on paper to be the right choice for you. Knowing the numbers simply lets you make it with your eyes open.

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summary

Before you accept a new job, look past the salary. Compare benefits and employer contributions, check your retirement vesting, confirm when health insurance starts and stops, see whether your departure date affects money you've earned, and make sure you're prepared for the timing of your first paycheck. Then factor in any new costs that come with the job.