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So I got my first full time job after college ill be making about 1700 every two weeks after taxes. Since I will be living at home for awhile my bills will be lower.
Cell phone $100/ a month
Car insurance $100/ a month
And I want to spend $1200/ a month on student loans since I'm not laying rent
Food,Misc, Gas, clothes $300/ a month I'm assuming
$500 savings a month
After all my hard work in college I want to buy a new car and motorcycle. If you were me how would you manage your money. I never took a personal finance class so I dnt know how to manage my money. How would you manage it.
So I got my first full time job after college ill be making about 1700 every two weeks after taxes. Since I will be living at home for awhile my bills will be lower.
Cell phone $100/ a month
Car insurance $100/ a month
And I want to spend $1200/ a month on student loans since I'm not laying rent
Food,Misc, Gas, clothes $300/ a month I'm assuming
$500 savings a month
After all my hard work in college I want to buy a new car and motorcycle. If you were me how would you manage your money. I never took a personal finance class so I dnt know how to manage my money. How would you manage it.
When I was in your shoes many years ago, I did just what you want to do. Based on my experience, my advice would be DON'T DO IT!
I'm not saying don't do it at all, just don't hang yourself by borrowing a bunch of money so you can do it today. Pay the minimum on your student loans and put the extra in savings until you can afford the car and bike that you want, then go back to paying extra on the loans. And keep some emergency savings separate from what you're saving for the vehicles.
One last thing, start a retirement savings plan immediately if you haven't already. Contribute to your employer's 401k plan at least up to the match. If they don't match funds weight the benefits of the 401k vs traditional IRA vs Roth IRA and put something away where it makes the most sense. a little saved now will go a long way toward funding your retirement.
I'd give anything to be where you are knowing what I know how.
First congrats on landing your first job. Your expenses seem pretty low and you should strive to keep it that way. I'm not sure I'd recommend buying a new car and motorcycle right off the bat though. What's wrong with your current car? If nothing major, I'd keep it as long as you can and focus paying off the school loans. Having a car payment sucks IMO. Same with a motorcycle. I ride too and know the enjoyment of owning one, but you have to factor in the extra costs of owning multiple vehicles. The taxes/insurance/maintenance/gear etc.
If your new job has matching retirement plan, I'd definitely take full advantage of it. The sooner you start, the more compounding works for you. If you don't have one yet, I'd also look at setting up an emergency fund. Eventually you'll need it and you don't want to have to resort putting a big bill on a high interest credit card. Much easier to dip into emergency fund and then pay yourself back at 0% interest.
My advice might depend a little on how much student loan debt you have, and what kind of interest rate. Also, the condition of your car.
I would say there is nothing wrong with treating yourself with something. So a new car, or bike, or something would be great. Just be careful and do not go crazy loading up on new toys.
Ultimately your plans, goals, and timelines will dictate some of what exactly to do. Timeframes for large purchases (such as a home), or your career goal or direction (moving, staying in town, etc) will influence specific strategies you may want to employ.
In general, eiminating debt and building savings is never a bad strategy. Sometimes spending savings or utilizing debt is needed to meet goals and deadlines... but still can be done in a sound financial way.
Okay, I'm probably going to sound a bit harsh. But I'm coming from the perspective of a parent with a son currently in college and living at home......
First of all - if you can afford to pay for new toys like that, especially multiple toys, maybe you should help out with home expenses for your parents. It's just the adult thing to do in my opinion. Pay a little rent.
Next - getting all the way through college and not understanding how to manage your money? Really? Did you never have a job in all that time - have expenses you needed to pay?
Keep in mind - with a new car and especially motorcycle - your insurance will go way up. Not sure where you live, but here, new vehicle equals way higher registration as well.
You are in a great position to pay down student loans. I know as a parent, if I'm letting my child live at home for a bit, I would be doing it so they could pay down debt. Otherwise, go be an adult and start living on your own. The more debt you take on, the longer you'll be living there.
What is your student loan amount outstanding, minimum payment and interest? Depending on that, you MIGHT get my approval to buy a new vehicle within limits. Otherwise I would advise against it, esp. if you're current car runs fine.
As jkcoop said above, at least try to ask your parents if they would appreciate you helping to pay some bills around the house.
Okay, I'm probably going to sound a bit harsh. But I'm coming from the perspective of a parent with a son currently in college and living at home......
First of all - if you can afford to pay for new toys like that, especially multiple toys, maybe you should help out with home expenses for your parents. It's just the adult thing to do in my opinion. Pay a little rent.
Next - getting all the way through college and not understanding how to manage your money? Really? Did you never have a job in all that time - have expenses you needed to pay?
Keep in mind - with a new car and especially motorcycle - your insurance will go way up. Not sure where you live, but here, new vehicle equals way higher registration as well.
You are in a great position to pay down student loans. I know as a parent, if I'm letting my child live at home for a bit, I would be doing it so they could pay down debt. Otherwise, go be an adult and start living on your own. The more debt you take on, the longer you'll be living there.
This is really good advice! -- It only seems like you have a lot of discretionary income, because your parents are still paying for a LOT more of your living expenses than you probably imagine. (Apparently you are only paying for your cell phone and car insurance and are 'thinking' about paying $1200 in student loans, and 'assuming' your food, gas, misc, etc. will run about $300 per month (probably closer to $500), plus expecting to save about $500 per month). So that would seem to leave you about $1200 per month based on your $3400 monthly AT income. (No wonder you are thinking about buying yourself a new car, motorcycle, and related 'rewards' (aka: expenses!).
However, a conservative estimate of some of your parent's expenses, that 'being on your own' will transfer to you, include: housing ($1000 mo?), Utilities (elec, ($100), water/sewer ($75), cable TV ($100), Internet ($50); Rent/Utility Deposits ($800 one-time, not in total); Clothes Laundry/ Dish/House-Cleaning ($60); Health Insurance Contribution ($175); Transportation (Car: $400?), Maintenance/ Repairs ($150), parking, wash/wax, etc. ($50?); Newspaper/magazines/digital apps/music? ($45); Personal grooming (haircuts, toothpaste, soap, etc. ($45); Assuming no furniture, but include: linens, dishes, small appliances, cleaning supplies, etc ($30). --- That's another $2280 per month out of your $1200 balance! --- Wow! ... you had no idea, did you? (Ask your folks to help you make this 'reality check', based on actual costs in your area).
With a job that pays you $40K after taxes, you are able to make the transition from between being a dependent child ... to a fully functioning adult. But, because of the generosity of your parents, you have an opportunity to pay-down your debts and save-up money for a vehicle, housing/utility deposits and start-up costs, and a host of 'other' things that will pop-up when you actually get ready to make the move. -- -- This 'grace period' is the last one you are likely to have (for the rest of your life), so take advantage of it!
1) put at least 5-8% in your company 401K or retirement plan
2) Have $200 (or whatever amount you want) a paycheck go to a separate savings account. USe that to save up money for a bike. In a year you could have $4000-$5000 saved for a bike.
3) Take the first 2-3 months to track your spending habits so you have a good idea what you are really spending on gas/food/entertainment etc.
Its better to have a realistic idea of where your money is going before you set a budget.
First congrats on landing your first job. Your expenses seem pretty low and you should strive to keep it that way. I'm not sure I'd recommend buying a new car and motorcycle right off the bat though. What's wrong with your current car? If nothing major, I'd keep it as long as you can and focus paying off the school loans. Having a car payment sucks IMO. Same with a motorcycle. I ride too and know the enjoyment of owning one, but you have to factor in the extra costs of owning multiple vehicles. The taxes/insurance/maintenance/gear etc.
If your new job has matching retirement plan, I'd definitely take full advantage of it. The sooner you start, the more compounding works for you. If you don't have one yet, I'd also look at setting up an emergency fund. Eventually you'll need it and you don't want to have to resort putting a big bill on a high interest credit card. Much easier to dip into emergency fund and then pay yourself back at 0% interest.
Just my thoughts.
Thanks I was looking for advice I know my job has a 401k idk if they match so I'm thinking of a Roth IRA. My car is fine I was looking at getting a nicer used car and I have a 250cc bike I was looking for something with a little more kick maybe a 600cc bike. But insurance would go up and the kick of tags title regrestration taxes would be a steep bill.
But the idea of a emergency fund would be smart
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