Author Topic: Just starting  (Read 2277 times)

Murse

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Just starting
« on: July 03, 2015, 09:40:11 AM »
Hello everyone, I just graduated school and am currently waiting to sit for my certifying exam. I have been reading finance blogs for well over a year now, I am just wanting to lay out my plan and see if there are any suggestions/Improvements that can be made.

I was unable to secure employment prior to my certification, so I do not believe I will be employed until August/September. The going rate for new grads in my area is around 60k/year before any overtime/extra shifts. Most hospitals around my area require 6 months service prior to gaining access to a 401k. Because I will only have 3-4 months of employment this year I expect my income to be around 15-20k, this is the last year my parents will claim me as a dependent. The goal is to hit FI asap, and consider RE or possibly grad school when I get there.

Plan of attack-
Minimize taxes- max 401k when I am able, max R-ira this year, likely will switch to a t-Ira next year.
Minimize rent- Roomate (will likely cost me 500$/month with a roommate)
Minimize food- will avoid eating out often, once a week will be my maximum
Transportation- will depend on where I get a job/where I live, for the time being I own a 3000$ car that shows no sign of breaking down anytime soon. I do not intend to own a new car at any point in my life unless I become freakishly wealthy. For now I am assuming I will have a car, car insurance, and fuel/maintenance costs associated.
With these 4 big expenses under control I think I should be in pretty good shape. As long as I don't go out and buy a ton of crap I can see saving >50% of my income.

Investing will all be done with as low cost of index funds as I can get. Maybe at some point a rental if I feel I am up for it.

My only debt is about 2k to a family member who loaned it to me so I could make tuition. This will be paid immediately. As for my current situation, I am living at home until I find a job and my only expense is a 27$/month gym membership that I use 2-4x/ week. I have roughly 1k in savings and am in my early 20's. I am hoping for insight/opinions.



kamille

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Re: Just starting
« Reply #1 on: July 03, 2015, 12:08:16 PM »
Congrats on graduating and good luck on your upcoming certifying exam! :-) I don't really have any financial advice to give you except that what you have down looks good! I think it's admirable that you already have your financial goals and research done before you have even started your career! Good luck in securing a good place for employment. As a fellow nurse, the only thing as stressful as studying for my exams and finding a job was transitioning from school to the real-world. I hope all of your hard work will fall in place and get you where you want to be.

CmFtns

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Re: Just starting
« Reply #2 on: July 03, 2015, 12:50:06 PM »
With those expenses you should be on track for about a 75% savings rate.

I know because I'm in similar or greater expenses for all those categories and I do very close to 75% savings (assuming you actually make 60k). I thought nurses made closer to 50k without overtime.
« Last Edit: July 03, 2015, 12:51:44 PM by comfyfutons »

Murse

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Re: Just starting
« Reply #3 on: July 03, 2015, 12:56:04 PM »
With those expenses you should be on track for about a 75% savings rate.

I know because I'm in similar or greater expenses for all those categories and I do very close to 75% savings (assuming you actually make 60k). I thought nurses made closer to 50k without overtime.

I have no idea what my savings rate will be,  but I know that I do not want it to be less then 50% (and as high as I can get it.) 75% would be great, however I live in Oregon with a high state income tax so I imagine my income will be eaten up quite a bit (it just makes the pre-tax vehicles more juicy.) I need to learn how to tax plan at some point, any pointers?