5 Accounts You Should Review Within the First 3 Months of Getting a Promotion
Written by
Laura Bogart
Edited by
Kristen Mae
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You’ve worked so hard to earn this promotion — your nose is practically worn off from being put to the grindstone. Over countless hours, you’ve proven yourself an asset on the job, and you walked into your annual review ready to pitch yourself for a promotion. Turns out, the love fest between you and work is mutual — you got a spiffy new title and an even spiffier new salary to go with it.
As industrious as you are, you might be tempted to simply get back to work. But it’s essential to show the same diligence in managing your finances that you did in earning your promotion. Before that first paycheck hits your direct deposit, take time to review these critical accounts.
1. Retirement Accounts
Using the gains from this new stage of your career to plan your retirement may seem ironic, but to paraphrase Alanis Morissette: Yeah, you really do have to think about it. Review your 401(k) as soon as possible. If your employer offers a match, adjust your contributions to take full advantage — it’s essentially free money.
This is also the time to evaluate your IRA options. Whether you have a traditional or Roth IRA, consider increasing your contributions. If you haven’t started an IRA yet, now’s a great time to open one. Every extra dollar you invest today has the potential to grow significantly thanks to compound interest.
2. Emergency Fund
As you’re riding the emotional and professional high of a promotion, the last thing you probably want to consider is a financial emergency. Yet now is precisely the time to bolster your emergency fund. If it’s already fully funded — typically three to six months’ worth of expenses — you’re ahead of the game. Still, consider whether it’s time to increase that cushion, especially if your lifestyle or financial obligations have changed with your promotion.
If your savings aren’t already in a high-yield savings account, consider transferring them to one that offers competitive interest rates. This way, your emergency fund can grow while providing a financial safety net.
3. Investment Accounts
You don’t need to be a Wall Street power player to explore the investment markets. With your salary boost, you can begin building a diversified portfolio or increase contributions to your existing portfolio. A financial advisor can help you balance your portfolio to your personal risk tolerance. If you’re comfortable managing your own investments, consider a mix of traditional stocks, exchange-traded funds (ETFs), real estate investment trusts (REITs), and even peer-to-peer lending platforms. The more you invest now, and the longer you’re in the market, the better positioned you are for long-term wealth growth.
4. Accounts With High Interest Debt
Carrying high-interest debt can feel like carrying a bag full of bricks — it weighs you down and slows your financial progress. Take a close look at accounts associated with credit cards or personal loans with steep interest rates.
Some financial advisors recommend prioritizing paying off debt before pursuing other financial goals. Strategies like the snowball method (paying off the smallest balances first) or the avalanche method (tackling the highest interest rates first) can help you tackle your debt systematically, allowing you to move forward freely.
5. Health Savings Accounts
Paying for healthcare isn’t something most people think about until they absolutely have to. So why not make it as painless as possible by padding your health savings account, or HSA? If your employer offers an HSA, take advantage of it by contributing pre-tax dollars to cover qualified medical expenses. Whether it’s for routine checkups or unexpected procedures, an HSA provides financial support when you need it most. If you’ve been putting off increasing your contributions, now’s the time to reconsider.
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