The New Year heralds a fresh start and for some that means finding a better or more rewarding job. But before you start polishing your CV, it\u2019s a good idea to get your financial affairs in order.<\/p>\n
\u201cThere are a number of reasons for this.<\/p>
\u201cProspective employers may look at your financial profile before offering you a job; a proper understanding of your financial affairs will better enable you to evaluate the remuneration package; and you will be able to identify any gaps in your financial situation when you change jobs,\u201d said Marlies Kappers, DirectAxis head of marketing.<\/p>\n
Depending on the job, your ability to manage your own financial affairs could have considerable bearing on whether your application is accepted.<\/p>
A bad credit rating won\u2019t reflect well on someone applying for a financial or senior management position.<\/p>\n
A low credit rating indicates that someone has a poor track record of making loan repayments, paying credit cards, store cards or even a phone bill and it\u2019s easy for employers to check.<\/p>\n
\u201cSouth African law entitles you to a free credit report annually and it\u2019s worth getting, particularly before applying for a new job.<\/p>\n
\u201cErrors can creep in and it\u2019s best to sort these out before you get a nasty surprise at the job interview,\u201d said Marlies.<\/p>\n
Once you\u2019ve made it through the application and interview process, assessing an offer isn\u2019t always a like-for-like comparison of how much you\u2019ll take home at the end of the month.<\/p>\n
A clear understanding of your existing package, including all the benefits, will make it easier to decide whether the move is a good financial decision.<\/p>\n
Although the new job may put more cash on the table at the end of each month, you could be worse off in terms of your overall financial standing.<\/p>\n
For example, if your current package includes a company car, you may need to consider the costs of buying and insuring your own car.<\/p>\n
The same would apply to housing benefits.<\/p>\n
It is also important to check on life policies, medical aid, car insurance or other insurance that your employer may pay for fully or in part.<\/p>\n
If these are not part of the new package, you will need to take over these payments or get quotes for replacement policies.<\/p>\n
\u201cChanging jobs, particularly in a sluggish economy, is a big decision.<\/p>\n
\u201cYou need to give yourself the best possible chance of getting the position you apply for, as well as ensuring that you really will be better off, if you decide to make the move,\u201d said Marlies.<\/p>\n
In summary:<\/strong><\/p>\n For more personal finance tips visit https:\/\/www.directaxis.co.za\/topics-tips-tools<\/a><\/p>\n\n