Promotions, salary increases, and new jobs usually have a positive impact on our lives. However, switching jobs can bring many hidden expenses. Before you make a significant life decision, consider the unexpected costs, like taxes, health insurance, benefits, retirement, relocation, bonuses, raises, and lifestyle changes. Luckily, with careful planning, you can save your bank account from unnecessary expenses or poor financial choices.

Are you trying to determine whether accepting that new job offer will be a financially-savvy decision? Here are some questions to consider:

Will you be a salaried employee or an hourly contractor?

Salaried workers only get paid for 40 hours per week. Even when they work more hours, there’s no overtime pay.

However, if your job includes extra benefits, raises, and annual bonuses, those perks might make up for extended shifts. Although contractors are paid for every hour worked, they’re responsible for paying their own taxes each quarter, rather than filing annually. If you forget to file taxes frequently enough or fail to put back enough money to pay the IRS, you can expect to owe a large sum come tax season.

Will your tax bracket change?

Higher-paying jobs can increase your tax bracket, meaning the government keeps more of your income. According to finance writer, Dan Caplinger, “self-employment tax is usually roughly twice what you’d see if you were an employee.” To determine whether that’s worth it, consider your unique financial situation and remember that tax laws frequently change. This year, a new tax law decreased tax refunds for most American workers, especially freelancers and contractors. If you’re unsure of local regulations, ask an accountant before accepting any job offers. That way, you’ll feel more confident about your decision.

What will your net pay be?

Job descriptions, interviews, and paperwork typically report salaries as gross income, the amount you make before taxes. Your take-home pay after taxes, or your net income, will be less. Net pay depends on factors like your location and tax bracket. That shiny gross income amount may not be worthwhile if you ultimately make less money than you currently make. Before accepting the job, save yourself some headaches by asking an accountant.

Is the pay transparent?

These days, many companies are moving toward transparent payscale policies. However, transparency eliminates your ability to negotiate salaries, limits future raises, and can even reduce morale. Ensure your new pay is high enough to compensate for any downsides.

What’s the dress code?

Whether you’re changing industries or moving into a higher-level management position, you may need to budget for a new wardrobe. Luckily, there are many budget-friendly options when it comes to work attire. Rather than buying expensive, trendy items, opt for simple, timeless pieces that can be easily paired together without going out of style. Popular clothing stores like Ann Taylor Loft or New York & Company have great prices on business wear and frequently have sales; you can even combine sale items with online coupons to increase your savings.

With some savvy shopping, you can bump up your wardrobe without blowing your new paycheck.

Will you be happier?

Keep in mind your career isn’t just about the money. If that higher-paying job will stress you to the point of becoming ill, it might end up costing you more than your new salary is worth. Besides, extra benefits like free childcare, college tuition reimbursements, flexible schedules, hefty bonuses, and the ability to work from home can make up for lower salaries.

It’s okay to ask for a few days to think about a job offer. Any decent company will give you time to consider your options rather than rushing you into a decision. Sites like InHerSight or Fairygodboss let women compare company benefits and work environments at a glance. By comparing the pros and cons of your new job versus your current one, you’ll feel confident you’ve made the best possible decision for yourself, your bank account, and your long-term future.

If you’re over cubicles, office politics, and micromanaging bosses, going freelance sounds like the obvious choice. Choose your own clients, set your own schedule, direct your own creative choices; it’s every professional’s dream, but working solo is a lot harder than it seems. If you want to enjoy the perks of the freelance life, you have to put in the work. Here’s where to start when launching your first freelance business.

1. Choose a Name

You need a name to register your business, get an Employer Identification Number (EIN), and open a bank account, so there’s no time to waste choosing a business name. Your business name should be easy to read, understand and remember. A business name can be abstract or informative, but either way customers should be able to quickly tell what your business does. If you’re struggling to come up with a name that works, try a business name generator for ideas.

2. Get Legal

As far as running a business goes, freelancing is easy mode. However, there are still legal and regulatory matters to deal with before launching your business, like:

• Register your business with your state’s Secretary of State.
• Register for an employer ID number with the IRS. (You need this even if you don’t have employees.)
• Register with the Electronic Filing and Tax Payment System for paying federal taxes.
• Apply for a sales tax permit with your state if selling products or services subject to sales tax.
• Apply for professional and trade licenses.
• File for a Home Occupation Permit or zoning variance.

You may need additional paperwork depending on the nature of your business. The Small Business Administration lists licenses and permits that are common to home-based businesses.

3. Develop Systems

Do you know what you’ll charge clients, the terms of your contracts and how you’ll manage invoices and track expenses? If these systems aren’t established before you launch, it won’t be long before you’re utterly overwhelmed. Develop documents like sample contracts, price sheets, invoice templates, and recordkeeping systems now so you can be confident and organized once in operation.

4. Establish Workflow

When you work in an office, there’s a natural flow to each day. And because you’re in a space that’s just for work, it’s easy to stay focused. Working from home is completely different. Without the change of environment, you can delay work or get distracted throughout the day. It’s important to create a home office that increases your productivity. Make sure you have the right equipment and furniture and that your office is in a space free of distractions.

Being productive as a freelancer relies on self-discipline and routine is the foundation of discipline. Set working hours for yourself and commit to them, time block your schedule to create time for both income-generating and administrative duties, and know how much work you can commit to at once.

5. Find Your First Customers

In the broad sense, a solid marketing plan and brand identity are what help businesses attract and retain customers. But when your business is brand new, customers are unlikely to discover it organically.

If you have connections with a freelancer in a complementary field — say you’re an SEO specialist who knows a web designer — ask for referrals or partner up to serve their clients. If networking doesn’t land any leads, check freelance marketplaces to find people seeking one-off services. While it might not lead to a long-standing business relationship, it’s a good way to get a few clients under your belt and recruit positive online reviews. Nation1099 recommends some of the best freelance marketplaces to try.

Setting up a freelance business is a lot of work, but thankfully, these tasks only have to be done once. Once your business is created and systems and processes are in place, you can shift your focus to running and growing your business. From marketing your business and building relationships to delivering a great product or service, there’s a lot to look forward to in the world of entrepreneurship.

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