Talk to a college student about after college!
07-20-2011, 11:57 AM
#71
Originally Posted by Not Sure,Dec 27 2010, 05:06 PM
It is important to not submerse yourself in credit card debt, but it is also important to build a good credit history. Good credit history helps you get those low APRs car dealers always promise, and helps you get loans when it's time to buy a house. Be frugal but don't avoid credit cards altogether. No credit history can be as hurtful as bad credit history.
10-26-2011, 07:28 AM
#72
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Great thread! So addicting that I'm reading it while I'm in a training course for work.
Sounds like you have your priorities in order, which I think is the most important thing to do. A lot of people don't know what they want.
BSME is a great degree, lots of opportunities for growth if you ever get bored; which is why I chose it
Although I'm at my first job out of school, this thread has inspired me to explore other career paths; or research them rather.
Sounds like you have your priorities in order, which I think is the most important thing to do. A lot of people don't know what they want.
BSME is a great degree, lots of opportunities for growth if you ever get bored; which is why I chose it
Although I'm at my first job out of school, this thread has inspired me to explore other career paths; or research them rather.
11-15-2011, 02:38 PM
#73
Originally Posted by rob-2,Dec 28 2010, 04:27 PM
1. Live on 60-80% of your take home income
2. Save 10-15% investing it wisely (different topic)
3. Give generously to those in need suggesting 10% of your income
2. Save 10-15% investing it wisely (different topic)
3. Give generously to those in need suggesting 10% of your income
When you are young, there is extreme uncertainty around everything; your time horizon is way too large to even pretend to know what will happen. No one even knows what the tax policy in the US will be in 2013.
My point is that you should absolutely do #1, but up #2 to 20-40%. Just sock it away. Invest it wisely and be disciplined.
Then, as time wears on, things become more certain, and you can evaluate whether or not you can afford to begin giving to those in need. If you can, you will be able to give more than you ever would at graduation. You'll also get a tax write off that is worth something because you'll be in a real tax bracket when you're older...making your dollars go that much further.
Think beyond yourself. Our failures to give generously and think about others is why we're in our current mess. Everyone in it to get theirs and screw the little guy. Yup you didn't say it but who gives a shit about 2013 taxes. If I need help one day I hope the entire country isn't a bunch of tight bastards.
When you're young you have no responsibilities. Giving 10% of your income away is easy. Ask me how I know.. I did it. When you have a wife, kids, bills and unexpected things seeing 10% given away gets harder. If you live on 70% you have a buffer and are helping people.
Try not buying that new exhaust system or the latest stupid toy and feed someone.
11-25-2011, 11:26 AM
#74
There is no luxury like the luxury of being debt free. With that said, I don't think a mortgage is a bad idea as a way toward building wealth.
I have two engineering degrees (chem e and enviro) and an MBA (finance) so I understand where you are at. I worked for McDonnell Douglas and United Technologies for years. I worked on Rockets, subs, missiles, and wrote part of the Clean air Act in the 90s. Just remember, you won't get rich as an engineer, it isn't impossible, just very improbable. If you want wealth, you have to be in finance.
This will annoy some of you, but we engineers are better than everyone else at almost everything when it comes to problem solving and complex modeling. If I were you I would get an MBA and then a PhD in economics and get with a big brokerage firm in a big city if you want HUGE money.
Trust me, as you get older you will meet Doctors and Lawyers that make much more money than you that aren't nearly as sharp as you are and it will annoy the crap out of you. Every half wit in the world is a lawyer (my sister included) and all they know how to do is procedures, very few lawyers can think at all, same with doctors. The worst is when you have buddies from college with a basic Finance degree and they go on to work for a big Firm and they make $1.5 million a year and they aren't nearly as smart as you. It is fun to go to their house in the Hamptons, but it irks you because you know that they were just in the right business, and you weren't.
While I think engineering school is good, I think working as an engineer is bad. Engineering classes enable you to think better than most and graduating proves you are smarter than everybody else in a room, but in order to get wealth, you can't work as one for long. You will get 'Golden Handcuffs' good enough pay to keep you happy and your house full of toys, but you'll never have real money.
Get someone to pay for an MBA then a PhD, then quit. Engineering is a job, not a career, never let them promote you to where you don't have the time to go to school and better yourself.
I have two engineering degrees (chem e and enviro) and an MBA (finance) so I understand where you are at. I worked for McDonnell Douglas and United Technologies for years. I worked on Rockets, subs, missiles, and wrote part of the Clean air Act in the 90s. Just remember, you won't get rich as an engineer, it isn't impossible, just very improbable. If you want wealth, you have to be in finance.
This will annoy some of you, but we engineers are better than everyone else at almost everything when it comes to problem solving and complex modeling. If I were you I would get an MBA and then a PhD in economics and get with a big brokerage firm in a big city if you want HUGE money.
Trust me, as you get older you will meet Doctors and Lawyers that make much more money than you that aren't nearly as sharp as you are and it will annoy the crap out of you. Every half wit in the world is a lawyer (my sister included) and all they know how to do is procedures, very few lawyers can think at all, same with doctors. The worst is when you have buddies from college with a basic Finance degree and they go on to work for a big Firm and they make $1.5 million a year and they aren't nearly as smart as you. It is fun to go to their house in the Hamptons, but it irks you because you know that they were just in the right business, and you weren't.
While I think engineering school is good, I think working as an engineer is bad. Engineering classes enable you to think better than most and graduating proves you are smarter than everybody else in a room, but in order to get wealth, you can't work as one for long. You will get 'Golden Handcuffs' good enough pay to keep you happy and your house full of toys, but you'll never have real money.
Get someone to pay for an MBA then a PhD, then quit. Engineering is a job, not a career, never let them promote you to where you don't have the time to go to school and better yourself.
Depends where you go with your engineering degree and experience, though. I agree that working purely as an engineer is rarely lucrative unless you go somewhere very remote (Alaska, Russia, Ft. McMurray Alberta, etc, etc) and then it's not worth it for most people. Engineering managers and partners in engineering firms, however, can make very good money ($125K-$250K per year).
I recently transitioned to senior management in a large international company from a pure engineering role with another company. Next step for me is a vice presidency, which should hopefully occur in the next five years. That's deep into six figures for salary, not counting bonuses. A presidency role for one of the divisions (or countries) would follow, where a half million dollars a year is very common (before bonuses).
So, I will transition out of pure engineering and into business management and my experience and education as an engineer will be a huge part of getting me to that goal. In the end, I won't be working as an engineer but my skills and training as an engineer will have been very impactful on the journey. Our CEO and COO are both engineers (CEO makes $2M+ a year, COO is in the $800K range)!
04-17-2012, 11:40 PM
#75
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Just read this thread top to bottom loved it
Graduating with BS in Finance in a couple months, really like hearing what happens to people fresh out of college, and really enjoy the 40+'s words of wisdom.
Graduating with BS in Finance in a couple months, really like hearing what happens to people fresh out of college, and really enjoy the 40+'s words of wisdom.
04-19-2012, 11:07 AM
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This is very intriguing to me since I am also a recent graduate living in Indianapolis (which is close to Evansville, IN for all you non-Hoosiers).
I, too, am trying to live as stingy as possible in my early years to save up. I have two disadvantages that you managed to avoid. I have a car loan (S2K for $9000 which = $273/month) and student debt. My parents had 4 children. I was the youngest. My parents were earning a lot more and had only me left to pay for by the time I went to school. My parents could afford to help me a lot more than they did, but chose not to because it would be unfair to my siblings. This was more than fair, but it meant debt for me.
I also got an engineering degree, but went to an out of state university to get it (very expensive). This means by the time I left, I had $80,000 in debt. Sounds bad, but my total education expenses were $160,000 without room and board and eating, etc. This comes down to about $700/month in student loan payments.
I did not get a job right away, but eventually ended up in Indianapolis with a starting salary of $55000/year. I rented for 2 years living as cheaply as possible. I did buy my S2K as a reward. I probably should have waited, but I still don't regret it.
My big recommendation to you is to not buy the biggest, best house you can afford. This is what started the housing market bubble. My boyfriend and I, together, make about $120K/year before taxes. We could easily qualify for a $250K house if we wanted. To be cautious, he decided to buy a house alone without my help in case our relationship takes a turn for the worst. I will be living with him and "paying rent" if you will. We decided on a budget of $140-150K, which we could easily afford if either one of us lost our jobs. Assuming all goes well, we can pay off our morgage in half the time. Plus, in Indianapolis, there are some very nice homes in good neighborhoods for our budget.
I'll get off my soap box now
I, too, am trying to live as stingy as possible in my early years to save up. I have two disadvantages that you managed to avoid. I have a car loan (S2K for $9000 which = $273/month) and student debt. My parents had 4 children. I was the youngest. My parents were earning a lot more and had only me left to pay for by the time I went to school. My parents could afford to help me a lot more than they did, but chose not to because it would be unfair to my siblings. This was more than fair, but it meant debt for me.
I also got an engineering degree, but went to an out of state university to get it (very expensive). This means by the time I left, I had $80,000 in debt. Sounds bad, but my total education expenses were $160,000 without room and board and eating, etc. This comes down to about $700/month in student loan payments.
I did not get a job right away, but eventually ended up in Indianapolis with a starting salary of $55000/year. I rented for 2 years living as cheaply as possible. I did buy my S2K as a reward. I probably should have waited, but I still don't regret it.
My big recommendation to you is to not buy the biggest, best house you can afford. This is what started the housing market bubble. My boyfriend and I, together, make about $120K/year before taxes. We could easily qualify for a $250K house if we wanted. To be cautious, he decided to buy a house alone without my help in case our relationship takes a turn for the worst. I will be living with him and "paying rent" if you will. We decided on a budget of $140-150K, which we could easily afford if either one of us lost our jobs. Assuming all goes well, we can pay off our morgage in half the time. Plus, in Indianapolis, there are some very nice homes in good neighborhoods for our budget.
I'll get off my soap box now
04-19-2012, 12:59 PM
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i felt like this thread mushroomed and exploded in 100 different directions
direct answer to your question -- whether you can live debtfree off 55k a year -- is absolutely yes.
(my parents makes/made something like that. combined. yet they put 3 kids through college. hold the deed to their house, and all their cars, and owe 0c to the banks. growing up in this spend-smart environment helped me attach a value to the dollar).
i think the very fact that you ask this question indicates you have the *discipline* to live a financially-healthy life. something that maybe 90% of people out there lack.
this below is extraneous information:
1) my advice is dont get too caught up in money - how much you do or dont make - how much your neighbors do or dont make. you have it right in the head, money will come with time. also, i think you can afford to splurge once in a while
2) i have pretty heavy GAS -- gear acquisition syndrome. swiss watches. italian bicycles. english shoes. single-purpose kitchen doodads and all manners of electronic gadgets.
but for a while i bounced overseas on work assignments, and lived out of 3 large suitcases. it eventually became burdensome so i shipped 1 suitcase home. later, i realized i could drop another suitcase and still wouldn't be wanting.
what the experience told me is that it is EASY to maintain a minimalist life. and it is a huge mental relief to do so. whatever you buy, BUY few, but buy NICE.
direct answer to your question -- whether you can live debtfree off 55k a year -- is absolutely yes.
(my parents makes/made something like that. combined. yet they put 3 kids through college. hold the deed to their house, and all their cars, and owe 0c to the banks. growing up in this spend-smart environment helped me attach a value to the dollar).
i think the very fact that you ask this question indicates you have the *discipline* to live a financially-healthy life. something that maybe 90% of people out there lack.
this below is extraneous information:
1) my advice is dont get too caught up in money - how much you do or dont make - how much your neighbors do or dont make. you have it right in the head, money will come with time. also, i think you can afford to splurge once in a while
2) i have pretty heavy GAS -- gear acquisition syndrome. swiss watches. italian bicycles. english shoes. single-purpose kitchen doodads and all manners of electronic gadgets.
but for a while i bounced overseas on work assignments, and lived out of 3 large suitcases. it eventually became burdensome so i shipped 1 suitcase home. later, i realized i could drop another suitcase and still wouldn't be wanting.
what the experience told me is that it is EASY to maintain a minimalist life. and it is a huge mental relief to do so. whatever you buy, BUY few, but buy NICE.
04-24-2012, 06:40 PM
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It is an old thread, but it is full of great advise!
Just an update: looking at two job offers out of school right now. One in Evansville IN and another in Charleston SC. In the negotiating stage.
I have a huge EXCEL budget spread sheet I have made down to the dollar. It has been very useful at finding and making trade offs to live at a level I feel comfortable with. Multiple sheets created for budgets with buying a small place, budgets with renting, and the same sheets for both cities. It is much more expensive to live on the coasts!
My favorite setup right now is living downtown renting with a friend of mine. Expecting a pretty average salary (I think I will go for higher) and we split rent/utilities, after all insurance / food / gas / investments (10%) / misc I can put away almost $1500 a month! So that long term investment number will probably move towards 20% and the rest will do towards something shorter for a first down payment.
The next two months will be exciting!
Just an update: looking at two job offers out of school right now. One in Evansville IN and another in Charleston SC. In the negotiating stage.
I have a huge EXCEL budget spread sheet I have made down to the dollar. It has been very useful at finding and making trade offs to live at a level I feel comfortable with. Multiple sheets created for budgets with buying a small place, budgets with renting, and the same sheets for both cities. It is much more expensive to live on the coasts!
My favorite setup right now is living downtown renting with a friend of mine. Expecting a pretty average salary (I think I will go for higher) and we split rent/utilities, after all insurance / food / gas / investments (10%) / misc I can put away almost $1500 a month! So that long term investment number will probably move towards 20% and the rest will do towards something shorter for a first down payment.
The next two months will be exciting!
06-22-2012, 08:48 AM
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Originally Posted by DiamondDave2005,Apr 1 2010, 02:49 PM
That depends on the business
I would also say that owning your own business is the only way to go. I can't say I agree with everything Robert Kiyosaki says, but go read his book 'Rich Dad, Poor Dad' to get an idea of the type of business you need to look at.
Owning a business that runs itself versus owning a job (Doctor, Dentist, Plumber, Contractor etc) are two very different things.
I work with a guy who is a multi mullionaire and owns the first type of business. Another guy who works with him owns the largest electrical contracting business in the state, and is so stressed out it's ridiculous.
PM me if you want to know what we do.
I would also say that owning your own business is the only way to go. I can't say I agree with everything Robert Kiyosaki says, but go read his book 'Rich Dad, Poor Dad' to get an idea of the type of business you need to look at.
Owning a business that runs itself versus owning a job (Doctor, Dentist, Plumber, Contractor etc) are two very different things.
I work with a guy who is a multi mullionaire and owns the first type of business. Another guy who works with him owns the largest electrical contracting business in the state, and is so stressed out it's ridiculous.
PM me if you want to know what we do.
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