In today’s fast-paced and competitive world, obtaining a stable job with a reputable company is a significant milestone for many. Beyond the paycheck and daily responsibilities, an often overlooked aspect of employment is the benefits package that comes with it.
From health insurance to retirement plans, paid time off, and employee assistance programs, these benefits are designed to provide you with a safety net and support system. Unfortunately, many employees fail to fully grasp the extent of their benefits or neglect to take advantage of them, missing out on valuable opportunities to improve their financial situation.
In this article, we’ll explore the ways you can support your financial well-being by harnessing the power of your company’s benefits package. Read on for key components of most packages and practical tips on how to use them to your advantage.
Maximize 401(k) Matching
If your employer offers a 401(k) retirement plan with employee matching, definitely take advantage of this benefit. Employee matching is when an employer will match up to a certain percentage of the employee’s overall contribution in addition to what the employee has already saved up. In other words, it is free money that is coming directly out of your employer’s pocket. Don’t leave free money on the table; make sure your contributions qualify you for the maximum amount of employer matching, and a little extra if you have wiggle room.
Take Advantage of Health or Flexible Spending Accounts
Health savings accounts (HSAs) and flexible spending accounts (FSAs) save you money in taxes for everyday needs such as doctors’ appointments, medical care, prescriptions, healthcare for dependents, as well as childcare. When you enroll, money is taken out of your paycheck and put into these special accounts. Not only is this money tax-free to use for qualified expenses, it will also make your annual income appear smaller, resulting in paying less income tax.
Opt-in to the Life Insurance Option
If your employer offers life insurance below market price, you have nothing to lose by enrolling. In fact, it is a win-win for you. While it is hard to think about what would happen to your family if something were to happen to you, it is vital to have a will or living trust and a life insurance policy to cover the loss of income that would result from your death. You want to make sure your family is able to maintain their lifestyle and expenses when you are gone.
Enjoy Professional Development & Education Benefits
Many employers offer training programs and other learning opportunities to employees. Ongoing training can provide hands-on experiences that enrich you as an employee. Often these benefits are not well known by the workforce, so taking time to investigate these options can be well worth it. Education above and beyond your current level can bring you a higher salary or even a promotion.
Get Excited for Mental Health Benefits
Luckily we are living in a time when mental health is part of our daily vernacular and no longer ignored. Employers are eager to do what they can to ensure the strong mental health of their employees. One of the most popular benefits to offer employees is mental health benefits. Chances are your employer offers a variety of benefits that fall under the category of mental health. Everyone benefits when workers have a strong, supported mental health system in place that is partially funded by businesses.
Get Creative With a Flexible Work Schedule
Since the pandemic, employers have been called on to get creative around their employees’ work schedules. This creativity began as a reaction to a crisis and now it’s become the norm. If you thrive working on your couch in your pj’s with your dog next to you, you may be able to take advantage of your company’s flexible work schedule option. If you’d like to work in a hybrid style (a few days in the office, a few days working from home), check if your employer allows for that type of flexibility. Employers now understand that work can move forward regardless of where everyone sits each day.
We Can Help You Gain Clarity
In today’s unpredictable economy, having a steady income is critical to feel a sense of stability. Yet a significant number of people fail to fully utilize the array of benefits to which they are entitled. Take a moment to connect with your human resources department to be confident you’re making the most of every available benefit. Over time, these benefits can accumulate and greatly improve your financial well-being.
If you need help understanding your benefits package or advice on integrating it into your overall financial strategy, our experienced team at T.M. Wealth Management is ready to offer guidance that keeps your best interests the top priority. To get in touch today, give us a call at (703) 537-8351 or email email@example.com to explore how we can support you on your financial journey.
Thomas R. Seneca is Managing Partner at T.M. Wealth Management, a wealth management firm that focuses on independent, boutique, and fiduciary services for clients. After gaining extensive finance and investment experience working as an investment banker on Wall Street and in Silicon Valley, Thomas had a desire to work more closely with clients and positively impact their lives by helping them make better financial decisions. He started his own practice and now works with successful professionals to help them simplify their financial needs and optimize their wealth to pursue their goals. Thomas knows the positive impact that good financial decisions can have on families and individuals, and he strives to help give clients financial confidence so they can spend their time on what matters most to them.
Thomas holds a bachelor’s degree in economics from Brigham Young University and an MBA from Columbia Business School. Thomas is an avid golfer, fluent in Spanish, and served as an adjunct finance professor at Virginia International University in the Washington, D.C., area. Outside of work, he enjoys traveling, spending time with family, and attending church. To learn more about Thomas, connect with him onLinkedIn.