The Hidden Costs of Starting a New Job
Starting a new job often means that you will end up earning more, but you could incur additional costs as a result of that job.
Some of those costs are up-front costs that you’ll incur before you start your new job. Others are ongoing costs which could reduce the impact of any pay rise you will be getting.
These costs shouldn’t necessarily mean that you should turn down your dream job. However, it’s important that you’re aware of them so you can factor them in when you’re deciding whether to accept a job offer that you’ve received.
So what these potential additional costs?
Commuting
You might find that your new job means you have further to travel each day to get to work. This means that you could be using more of your pay packet to commute.
If you’re using public transport to get to and from your new workplace, you might have to pay more for your bus or train fares. If you are using your own car, it might mean more fuel and increased maintenance and servicing costs. Your car will also depreciate more quickly if you are putting more miles on it each year.
In extreme cases you might actually have to buy, tax and insure a car if you don’t already have one and the only way to get to your new job is by driving there because the location isn’t served by public transport.
Relocation – Up-Front Costs
If your new job is too far away to be commutable you might need to move nearer to it. Moving home can be expensive.
First, even if you do the removal yourself rather than using a removal contractor it will cost you money to move your belongings to your new home. You might need to hire a van. Even if your car is big enough you will need to pay for the fuel and that cost could be significant depending upon how far you are moving.
Second, there will be fees that you will need to pay. If you own your own property there will be legal fees when you sell your current home and when you buy your new home. If you rent there will admin fees when you sign the tenancy agreement for your new property. Depending on the notice period in your tenancy agreement you could find that you are paying to rent two places for a while. All of this significantly increases the risk of falling into financial difficulty.
If you have to sell your current home quickly you might have to sell it at a discount. And when you get into your new home you might need to buy new furniture for it or redecorate it. That could be expensive if you are moving from a furnished flat into an unfurnished flat.
Relocation – Ongoing Costs
In addition to the up-front costs, the area that you’re moving to might be more expensive to live in than the area where you’re currently living. That could mean higher mortgage or rent payments each month. You might find that it costs more to insure your new home.
And don’t forget that if you have a partner, your partner will need to find a new job when you relocate. That could mean that your partner has to take a pay cut. You might have to live on one wage rather than two wages while your partner looks for a replacement job.
Relocation Packages
Some employers may offer a relocation package to help you although that relocation package probably won’t cover all of the costs. It’s also likely that although any relocation package might cover some of your up-front costs, it probably won’t cover your ongoing costs.
If you are going to need to relocate in order to accept a job offer it is worth asking whether a relocation package is available during the job interview. Even if your new employer is not prepared to cover your costs they may be prepared to offer a staff loan to help you with your relocation expenses.
Childcare
If your work hours are changing this might mean that you need to pay for childcare. This might not just be because you’re working longer hours. If your new job means that it will take you longer to get home at the end of each working day that could also mean that childcare is required.
Bear in mind that if you’re relocating due to your new job you may no longer be able to rely on family and friends to provide childcare while you’re at work. In such cases, it can be a good idea to search online for providers in your new area. So for instance if you were moving to Katy in Texas, searching online for a reputable Day Care in Katy, TX ahead of the move could provide you with options if family and friends will no longer be about to rely on.
New Clothing
If your current employer supplies a work uniform but your new employer doesn’t, you’re going to need to think about buying some work clothes. To do this, you will first need to find an industry-specific site in order to find the right work clothes for your profession. For example, if you are a medic then the search ‘Best Scrubs to Wear‘ will provide you with a good selection of medical scrubs and uniforms to choose from.
Even if your current employer doesn’t supply a work uniform, your new employer might have a different dress code. This could mean that your collection of t-shirts is no longer appropriate. Those comfy trainers might have to be swapped for more formal shoes. You might even need to invest in some suits.
It’s not just your own clothing that you need to think about. If you have children you might need to buy a new school uniform if you moving to a new area and that relocation and that means your children have to go to a new school.
Long Service Awards
Leaving your current job could mean that you miss out on long service awards or other bonuses that you would have received had you stayed with your existing employer.
Your existing employer might grant additional holiday to employees who have worked for a certain number of years, for instance, or might operate a share participation scheme that gives long-term employees shares in the company.
Different Paydays
One final thing to bear in mind is the fact that your payday might change, or your new employer might pay its people monthly instead of weekly.
This isn’t a cost as such. However, it could mean that you have to wait longer than usual until your next payday and you would need to budget accordingly.
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