Why endings can equal new (financial) beginningsPosted to Financial Capability on 15-01-2018
It’s been almost two years since I walked through the doors of the Commission for Financial Capability (CFFC) and took up the role as Manukoloa – Pasifika Programmes Manager. It’s an amazing role that allowed me to use my skills and networks to do work that aligns with my values. It’s been a great run and I’m really proud of some of the things I’ve been able to achieve here, and while it was my final day on Friday, this work is still very close to my heart.
Given this is CFFC, I need to ensure my money game stays on track.
So, I’ve asked around the office for a bit of advice to
help transition to my new gig.
Here is a list of things to think about when you’re changing roles:
1: Manage your Cashflow (sorry to get all banker on you)
Will your pay be paid on the same day? Every Fortnight? Every month?
Check with your new employer and find out when your first pay will be and what the frequency is. You’ll need to ensure any bills and standing orders (AP’s & DD’s) don’t bounce. If your pay frequency changes you’ll need to either ensure you have a buffer to handle the cash flow gap, or you can change your AP’s & DD’s to align with your new pay cycle.
AP’s are push payments i.e. you control them, so you can just make the change with your bank. DD’s are pull payments i.e. the other party controls them, so you’ll need to contact them to let them know you’d like to change the day the money comes out.
2: Review Insurance
Many of my friends are moving from full time employment to contract work. Many of my friends also have personal loans with insurance to cover them. If you have any type of loan protection insurance or income protection insurance, moving from employment to contract work – or even fixed term contract work, may mean you are no longer covered under your current insurance policy. Take the time to review all of your insurance (you might as well because I bet you haven’t done it in a while) and make sure your current cover is appropriate to your needs and lifestyle.
3: While you’re at it, review your KiwiSaver (or whatever superannuation scheme you’ve got going)
KiwiSaver is only one superannuation scheme and while it’s pretty awesome (I am a little biased here) there are also many good schemes being offered by employers. When you start at your new job, make a point to check in with the HR manager to go over your options. Changing jobs is a good time to review your retirement saving options, including KiwiSaver and any other employer scheme. To make sure you’re in the right KiwiSaver scheme for you, it could be worth taking a look at Sorted’s Fund Finder and the KiwiSaver savings calculator may offer some insights too.
4: Lifestyle changes
The new job needs to fit into your lifestyle. Many of us have families and social commitments during the working weeks – sports teams, day care, school drop offs etc. Check to make sure you can physically get you and your family to the places you need in this new work setting. Also, if you’re in a relationship, these changes will affect your partner as well – depending on how closely you manage your finances. Make sure you have a conversation with your significant other to make sure you’re both on the same page.
5: Final Pay
Make friends with your lovely the payroll person before you leave and check that everything is all tidied up before you leave. If there’s any accrued unpaid leave then you need to get that paid. Also, check when it will be paid i.e. with your last pay or the pay cycle after. If in doubt, printout your last payslips with your leave balances or perhaps drop an email to your Payroll team and ask them to confirm in writing, what is going to get paid when.
Changing jobs is never a decision lightly made. It’s exciting and usually the decision is made after a lot of reflection. Take the opportunity to reflect on your finances to help give you the best chance as you step into this new and exciting chapter in your career.
By Tim Swann - our former CFFC Manukoloa – Pasifika Programmes Manager
Next: Retirement Commissioner urges calm over KiwiSaver funds