Top 3 Financial Benefits When Choosing a Job
A job’s salary will usually be the first thing you look at when applying for new jobs. You need to ensure that the job can cover your basic living expenses with a bit of wiggle room to save money and enjoy yourself. However, you should also keep an eye out for some additional financial benefits that may make one job a lot better than another.
Having the highest salary doesn’t always mean a job is the best – you could be better off getting a slightly smaller salary if the following financial benefits are present:
Workers’ Compensation Insurance
Few employees realize the importance of workers’ comp insurance when working a job. In essence, this insurance protects you if you need to take time off work due to a workplace injury or sickness. It can cover:
- Lost wages
- Medical expenses
In other words, it turns a potentially stressful situation into one that’s more financially manageable. Jobs that don’t include this level of cover are almost always less worthwhile than those that do. It’s one of those key financial benefits that you hope you’ll never need, yet it can save your finances if you ever do call upon it.
Retirement Plans
It’s sometimes worth picking a job with a slightly lower salary if the employer provides an extensive retirement program for employees. Yes, you earn a bit less per month, but you stack up loads of savings to help you achieve financial success in retirement. The more extensive a retirement plan is, the better it will be.
This is another one of those financial benefits that many people neglect when looking for jobs. You won’t need your retirement plan until you retire, so it’s hard to see the benefits for now. Fast forward a few decades, and you’ll soon be incredibly glad you took that job based on its amazing retirement plan, because you now have way more money to play around with in retirement.
Bonuses & Salary Increases
Ask yourself one simple question: Is it better to pick a job with a good set salary, or opt for one that includes salary increases and bonuses? Job A gives you $50,000 a year. Job B only gives you $45,000 a year – but it also notes that bonuses are available, and there’s a salary increase every year.
The first job might seem more tempting, but you could end up earning more with the second one if you hit the bonus targets or stick around to gain salary increases. Jobs like this are always great because you have a better career roadmap; you know you’ll gradually earn more money year after year, and the job rewards good performance. It’s an excellent financial benefit to keep an eye on, particularly if most jobs only offer fixed salaries with no room for growth.
If a job hits all three of these financial benefits on the head, then you know it’s an excellent option that can’t be passed up. Likewise, if you find a job that doesn’t provide any of these benefits, then you may want to reconsider your application.
FAQs:
Why are financial benefits when choosing a job more important than just salary?
Because salary is only part of your total compensation. Financial benefits when choosing a job—like retirement plans, workers’ comp, and salary growth—offer long-term security and reduce future financial stress.
What financial benefits when choosing a job should I prioritize first?
Start with workers’ compensation insurance, employer-sponsored retirement plans, and potential for raises or bonuses. These provide both short- and long-term value.
How do retirement plans fit into the financial benefits when choosing a job?
Retirement plans are key financial benefits when choosing a job. They ensure you’re building wealth for the future, especially when employers offer contributions or matching funds.
Is it better to choose a job with lower pay but better financial benefits?
Yes, often it is. Financial benefits when choosing a job—like consistent raises, bonuses, and comprehensive insurance—can result in greater lifetime earnings and financial stability.
How can bonuses and salary growth impact my financial well-being?
These are powerful financial benefits when choosing a job because they reward performance and loyalty. They also offer a clear income trajectory, helping you plan your financial future.
