Beginning a new career as a millennial can be a daunting thing. Even more so are your finances. But you can’t just turn a blind eye to them. They are important to understand and when you understand them, you can take advantage of them to your benefit. Don’t let big words put you off, keep calm and read this article, we know our stuff.
Not just for millennials, it’s never too late or too early to start understanding how your finances work in a new career.
Oh no, the tax man is coming! Let’s get real here, taxes are and always be a part of your finances. But what makes them better or worse is how you manage them. Taxes impact your cash flow, so when you start any job or even if you have been working in the same place for years, make sure you understand your employer’s tax policies.
As a millennial, you will likely change jobs around quite frequently. This means that you should be aware of what your employers have given you in terms of benefits. Maybe they had a retirement plan, stock plan or another benefit plan. Point being, understand exactly what you should be left with and how those affect your taxes.
Tax deductions come in all shapes and sizes. So make sure that you understand what you can and cannot expense. As a freelancer, there are a whole host of deductions available. It’s paramount that you keep receipts so at the end of the year you can provide proof. A great tool for this is FreshBooks, just link up your bank account and never collect another receipt.
A new company, new benefits, different costs. Make sure that you know how much more, or less, your benefit plan will be costing you. This is important in budgeting and understanding when to take advantage of the plan provided.
Career transitions can be scary, but don’t let them get in the way of your finances, the more you know, the better off you will be.