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5 Potential Costs of a New Job

Are you thinking about switching jobs? As the job market starts to loosen up just a little bit, unhappy and underpaid workers everywhere are considering brushing up their resumes to submit applications. Nearly everyone who seeks to switch jobs [1] attempts to get at least a small raise…but a small raise might not be enough if the new positions comes with unforeseen costs.

New Job Costs

  1. Additional gas/public transportation costs if your new job is further from home – in extreme cases you may even have to purchase a car!
  2. Additional child care costs if you work longer hours
  3. Wardrobe costs if the dress code is different
  4. Increased insurance [2] premiums if your new employer is less generous than the old one
  5. The need for higher retirement contributions if you’re losing an employer match

Jobs that require moves might come with even more costs – moving costs [3], new apartment deposits [4], additional state or local taxes. But of course these long-distance job offers [5] might also come with quite a few perks (and tax benefits [6]) – and hopefully a worthwhile raise!

Next Steps

If you have a job offer [7] in this dismal employment environment, good for you! If you’re extra lucky, you’ll actually end up with a higher salary AND increased benefits rather than additional costs. But before you sign on the dotted line, consider the big picture [8]…will the increased costs of the new job plus any lost benefits from the old job leave you in a worse financial position than before? If you can truly afford [9] the switch, go for it. But if you recognize that the job could cost more than any salary increase could compensate for, perhaps this is one offer you should pass on.

What other costs – or benefits – might come with a new job? Help your fellow job-seekers out by sharing in the comments!