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Looking for a little financial advice. I am about to start a job where I'll be making significantly more money than I ever have. I usually live pretty paycheck-to-paycheck for the most part but on this next job I'll be able to really save a lot. I work in film production so this job is temporary because I'm freelance (9 months long). I will save about $78,000 after taxes and after my costs of living are taken of.
After this job, I want to buy a new car and take a trip to Australia and New Zealand at the end of the year. The rest I would like to save for an eventual down-payment on house, and to have an emergency fund for myself to dip into in times when I'm not working. I'm 30 years old so I also figure I should start saving some for retirement too.
Should I buy my car in cash, or is it better to have a monthly payment, even if it's a small one? I plan to get a used Mini Countryman or a Fiat 500X. Both are around $20,000.
Should I put some money I save into an IRA as well, or just into a savings account?
What will your annual salary return to after this contract is up and you're back from traveling?
I average $50,000-60,000 annual income but I do hope that I can continue to find jobs like this one I'm doing. I am 30 and still establishing myself. Every project I do I get a pay increase, but this one I'll be making significantly more because:
- even though my salary is only a little above what I usually make ($1700 a week instead of $1500), my work is paying for my housing (they are giving me a housing stipend of $3000 a month and the place I found is only $900, so I can save the rest), they are paying for my car and gas (so I have sold my personal car, so no more monthly payment or car insurance for 9 months!), and I am getting $350 a week in per diem (spending money I can use however I like). I plan on saving my salary plus the leftover money for housing every month and just surviving on my $350 weekly per diem for spending money which is more than enough for me.
You should have an emergency fund before the fantasy trips! IMO, if you need a vehicle, pay for it. You obviously sound young, trips sound good - but life takes precedent!
You should have an emergency fund before the fantasy trips! IMO, if you need a vehicle, pay for it. You obviously sound young, trips sound good - but life takes precedent!
I'm 30. I'm a believer in that tomorrow isn't promised... So if I have an opportunity and I can do it, I go for it. I think I'll be able to save AND treat myself a little too with $78,000. I do agree though that I need a little more balance (emergency fund AND enjoying myself too, as opposed to just enjoying myself all the time and not saving).
I think your plans sound fine. Put the bulk of your savings into an online savings account. You will only get about 1% interest right now, but the idea is to keep your money safe and liquid.
Definitely fund your IRA. You can still contribute for 2015 until 4/18/16. Max that and your 2016 contribution too (11k). Choose a quality low cost custodian and choose a good all-in-one fund. For example, a Vanguard Target Retirement Fund is a fine choice.
I think your plans sound fine. Put the bulk of your savings into an online savings account. You will only get about 1% interest right now, but the idea is to keep your money safe and liquid.
Definitely fund your IRA. You can still contribute for 2015 until 4/18/16. Max that and your 2016 contribution too (11k). Choose a quality low cost custodian and choose a good all-in-one fund. For example, a Vanguard Target Retirement Fund is a fine choice.
Dont spend 20k on a garbage fiat. If you want a blah but drive able car spend 4k on a used elantra, at least then its not italian and frankly you get a better car.
If your going to spend 20k you can do miles better than either of the two you posted tho you dont seem to have the cash in hand to afford that. If your living paycheck to paycheck 20k on a car is WAY too much.
Dont spend 20k on a garbage fiat. If you want a blah but drive able car spend 4k on a used elantra, at least then its not italian and frankly you get a better car.
If your going to spend 20k you can do miles better than either of the two you posted tho you dont seem to have the cash in hand to afford that. If your living paycheck to paycheck 20k on a car is WAY too much.
Thanks, but this post isn't really about "What car should I get?". I have lots of time to think about that (9 months). I won't be living paycheck-to-paycheck after this job I'm about to do because it'll give me a great financial cushion underneath me.
Thanks, but this post isn't really about "What car should I get?". I have lots of time to think about that (9 months). I won't be living paycheck-to-paycheck after this job I'm about to do because it'll give me a great financial cushion underneath me.
What cushion? 20k for a Italian car (better save for repairs and just ignore depreciation), 10k+ for a vacation, another 40k for a downpayment. You think you suddenly will stop living paycheck to paycheck? Not at that spend level.
You got advice, your choosing to put your money into a car instead of a retirement account and emergency fund. Poor strategy for fiscal success.
Last edited by dpm1; 01-02-2016 at 09:36 PM..
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I do agree though that I need a little more balance (emergency fund AND enjoying myself too, as opposed to just enjoying myself all the time and not saving).
