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Live: Sun's Out Guns—erm, Money Runs Out
Congrats on wrapping of the school year (or finishing strong if you're almost there). Summer is just about here and it is time to dawn your shades and tan like the bronze god you were always meant to be.
Summer change also means adjustments in your finances though.
Summer jobs, internships, post-graduation full-time gigs, or vacationing across the world probably means you are dealing with a new daily routine, income, and lifestyle.
So what?
If your life is changing, your money should too. Your budget from spring slog won’t cut it for your summer sexy. Rents change. Incomes change. That “free” university gym (that you told people you went to) is gone.
For those starting out a new career (or going into one in the next few years), people focus significantly on their income. That said, there is a whole other piece that warrants equal consideration. Consider the...
Learn: The Benefits Package
If you’re considering your first “real” job offer, yippee! Throw up some cash! Buy a lambo, or maybe some Cinnabon.
While the pay is exciting, don't just focus on the salary number. The benefits package is arguably just as important.
What is the Benefits Package?
Your offer's benefits package is your salary, and everything else. This normally includes...
Health Insurance (medical, dental, vision)
Retirement Plans (typically a 401(k), sometimes with employer match)
Paid Time Off (aka PTO: vacation days, sick days, etc.)
Other Perks (student loan help, disability & life insurance, commuter benefits, help with a masters, free coffee that tastes like they should pay you to drink it)
This is the reason why people in military or government jobs are said to have "good" benefits: usually their healthcare and retirement plans are very generous.
What should you do with your benefits package?
Throw it away. Kidding!
Actually read through it. Don’t just look at the salary—benefits (such as vacation time, quality healthcare, and more) can add serious value.
Run the numbers. A $60K job with great health insurance and a 5% 401(k) match might be a better deal than a $70K job with nothing.
Ask questions. These would typically be directed at your company's HR department. Is there a waiting period to activate insurance? Do unused PTO days roll over to the next year? Does the company match your retirement contributions, and if so how much? Are there complimentary gummy worms? Are they Trolli branded?
Knowing if you have a solid benefits package is important. Luckily, there are tools that can help.
Leverage: Salary Transparency
States such as California and New York are requiring employers to publicly list their pay ranges for a job. While they are not necessarily required to list their benefits, these laws help with getting a larger picture of what you should be compensated.
Combine that information with whatever you can get from tools like Glassdoor, your company's HR and Benefits website, and reddit communities and you can probably get a decent picture of how your benefits compare to other jobs.
Just make sure that you go into your interviews prepared. This means you should know how to answer questions about all the grandma’s you have walked across the street, and whether you are being played on vacation days.
Also, quick reminder that I am not sponsored by any of the tools I note in the leverage section. I wish I was! These are just the tools I use.
Launch!
Find your top 3 most important benefits and use them as your foundation when comparing job offers (outside of the experience the job will provide you of course).
Everyone is different, so the best benefits package for your friend not always be what's best for you.
Maybe you care more about student loan repayment than dental. Maybe unlimited PTO is the greatest priority. Whatever it is, you should know before you agree to work somewhere.
Gif by Crest on Giphy, Consider checking if your employer can keep your pearly yellows nice and fresh
The best job for you isn’t just the one with the biggest paycheck—it’s the one that lets you live the life you want ;).
Hey!
Thank you so much for being a part of this newsletter. I am grateful to write to you weekly and I hope this helps you feel more confident with your finances.
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—Ben Brosnahan
