Hello everyone…
Short version: My finances are great for a college student, but I’m bored and need something to do, especially now that I'm trying to move out. I’m a closet MMM and ERE fan boy.
Long version: I am an engineering major graduating in December, but I’m trying to move out by next week due to some family disagreements (helicopter parents). Since finding this blog exactly one year ago and being able to turn my head but not move my body, I had a couple of concerns for my future after “awakening” from Plato’s Cave. My financial situation for a college student is awesome, but I want to keep it that way.
Assets
$13,500 in savings (basically every allowance I have ever earned; currently stuck in bonds til Jan 2016)
$2,500 from my grandparents intended for college, but I didn't need it; also stuck in bonds
$1000-$2000 of mostly new textbooks that I intend to sell as soon as I’m allowed
$500 in an MTurk account that should be in my bank account already, but isn’t yet because of procrastination and fear of the unknown
Total: $17,500-$18,500
Liabilities
Absolutely none; not even a girlfriend; not even friends, for that matter
Projected Income
Current: about 10 hours/week of physics tutoring with my university at $7.50/hr before tax ($65/week) AND
Hopefully an engineering internship position that pays $15/hr before tax at 40 hours a week; would probably last six weeks and start next Monday, but I’ll talk with them tomorrow ($480/week)
Total: $2180/month (per four weeks; until my position ends with the start of fall term)
In fall: a new tutoring position (still with the university) at 10 hours/week but $8.50/hr before tax ($70/week) AND
20 hours/week of additional tutoring/food service/other minimum wage ($125/week)
30 hours total a week shouldn’t be too much, even given my current major. Since it seems I’ve already mastered “the art of not working at work” (forum.mrmoneymustache.com/welcome-to-the-forum/the-art-of-not-working-at-work/) with my college classes, I was still bored out of my mind in the spring doing only 10 hours a week of MTurk with 17 credits.
Total: $780/month (per four weeks)
Projected Expenses
Groceries-$21/week for 21 meals (using Mustache’s grocery rule)
Rent-$100/week (I will definitely live with a roommate)
Utilities-$20/week (dummy number; I’m not sure how to estimate this)
Transportation-$25/week (good for a daily 10-mile round trip; I do not bike yet, but I challenge myself to travel exclusively by bike by the end of September; until then, it’s sadly not zero)
Everything else-close to $0
Total: $664/month (per four weeks)
Also, almost all of my college expenses are complete. I have scholarships that will pay for about 90% of my in-state public tuition (the bill or refund, depending on how much classes cost, comes in late July), my final textbooks are ordered, and my parking tag for fall is right next to me. Some expenses remain like the fee for the FE exam and getting a cap and gown, but they should be easily eradicated by my savings.
So, I’ve assembled a few questions…
1. In the near future, I will probably purchase a car, and my parents are selling their 2007 Impala with about 65,000 miles for $4800 (even have proof in an e-mail), even though the Blue Book Value for trade in is about $6000. It’s in great condition except for some cosmetic damage on the back (oops; my bad). My parents will bill me for the cost to fix the damage if I don’t purchase the Impala. I’ve heard several people brag about getting much cheaper cars that still ran well for years, but I am definitely not a mechanic.
Is the Impala a bargain or will I more likely find better deals elsewhere (Craigslist, eBay, used car lots)? Or should I buy the Impala and then promptly trade it in for a profit to buy something else?
2. I went through Mustache-withdrawal after I finished reading the majority of the blog (and ERE, and Livingafi, and Afford Anything, and Cheap RV Living, and Theme Park Review, and…). So, rather than refresh the home pages of these websites fifty times a day, hoping for a new post, I wrote a fifty-three page mini-book in Microsoft Word synthesizing what I’d learned (I’m just occasionally editing it now) on my computer. Where should I self-publish it? If you'd like to see it, I can send you the document. I trust you.
I think back in October, David Downie announced his book Radical Immediate Retirement on Jacob’s website without really having a prior presence on the site (and the comments were still really nice and receptive, too). I’ve considered advertising my book, but I really don’t want to seem like an obnoxious sell-out. I’ve seen other folks online (especially on YouTube) get blasted for indiscriminately advertising their own work. How should I advertise, if at all?
Related, should I tie the book in with the Mr. Money Mustache name even though that might be considered name dropping? While I wrote the book primarily because I got tired of Mustache wanting to write a book and never following through, it could just as easily stand alone without referring to him at all.
3. I am having a major crisis of faith in engineering before I’ve even started.
I’m starting the FI journey so early and so raw that I’ll likely zing out of the work force in five years or less if I follow Jacob’s strategies (and he took five years to get to a 3% withdrawal rate, at normal wages, and started before completely figuring everything out). That will put me at age 25 (I graduated high school two years early). I’m starting to wonder what the point of going into engineering is if I’d essentially be doing it for free (because I’d be FI or because of side income) shortly after getting my PE. I found meaning in my classes at the beginning of college when I thought I needed waaaaaaay more money than I really did and hadn’t yet seen the Dilbertisms of the workplace. But the novelty has long worn off now that life’s greatest secrets have been spoiled. I know I’ll get some real world engineering experience soon, but my bar is set very low.
On the plus side, my tutoring side job rocks, and I could definitely see myself doing that for a living. Or even, heaven forbid, writing. So, why would engineering still be my first career choice when Mustache claims that tutoring and writing can also earn $50k/year ? My expenses should be so low that I could support myself solely with side gigs if I wanted to. Even if I got bored of one, it’s no trouble to switch to something else or work with several at the same time, which I believe is difficult to manage with an engineering position.
Like everyone else my age, I have a lot of anxiety about what I’m going to do with my life. If I continue optimizing expenses, my “fun income” could outpace my spending soon, which is like the back door to FIRE. What do I do with this rather nice problem to have?
I’m currently meeting with a counselor at the university to work through #3 specifically…and the resulting disagreements with my parents (if you’re reading this Dr. Doom, thanks for your article on counseling), but it would be very interesting to hear the perspectives of people who are more aware of the other way.
I have more, but I've already talked far longer than I should. Thanks in advance for any and all feedback, advice, and face punches. Heck, thanks for simply reading this far. If you would like any additional clarifications, please ask away. I’ve wanted to post this for months and I'm glad that I’m finally doing it. Over to you guys.