Tuesday, 07 April 2015 14:04

5 Hidden Costs of a New Job

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Hidden Costs of a New Job Excited for your new salary? Commuting expenses, insurance changes and other factors should be considered to avoid losing a large portion of your paycheck.

Here are five costs that can come with new employment:

Commuting expenses. You’ll be facing higher costs for gas and maintenance if your new job requires a longer commute. Public transportation costs can add up too. Don’t forget to do the math.

Insurance premiums or deductibles. It is important to fully understand what you’ll be paying for health insurance and what those premiums will get you before accepting any offer. Learn as much as you can about an employer’s insurance plans in order to make accurate calculations for premiums and out-of-pocket expenses.

Plus, you’ll need to know what the plan covers, your deductibles and what your copays will look like. Paying more could be reason for pause, depending on your healthcare needs.

COBRA coverage. Your new insurance coverage may not start until you’ve worked 30 days or more. Within a month of lapsed coverage, you can keep using your old insurance coverage through COBRA, or the federal Consolidated Omnibus Budget Reconciliation Act health benefit provisions program.

However, COBRA coverage can become expensive, since you will be paying the full cost of your prior coverage.

Professional wardrobe. Buying professional work clothes should be anticipated, especially if you’ve just graduated or you’re moving to a new working environment. Go to the company’s website and take a look at what the employees usually wear. You might need to buy an entirely new wardrobe for work if you’re used to spending your days in jeans. Luckily, discount and outlet stores usually carry plenty of options.

Food and other extras. Eating out every day can take a big bite out of your paycheck every month. Set a budget for lunches and bring healthy snacks with you to avoid pricey vending machines.

These cost factors should always be considered, whether you’re looking for (or are about to accept)a new job. Make sure you can make ends meet before making a new work commitment.

Read 1598 times Last modified on Thursday, 11 February 2016 19:54
Alan Carniol

Alan is the creator of Interview Success Formula, a training program that has helped more than 40,000 job seekers to ace their interviews and land the jobs they deserve. Interviewers love asking curveball questions to weed out job seekers. But the truth is, most of these questions are asking about a few key areas. Learn more about how to outsmart tough interviewers by watching this video.