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Hey everyone! I am 21 years old, graduated college in April, and 3 months ago I was very fortunate to obtain a full-time, full benefits job in my field. It is a great paying job, in the medical field and I am definitely not used to making this great of money as I have worked as a waitress throughout college. I am still living with my mother while I plan to move out in about 8 months,. My problem is now I can't stop spending my money when I get paid, haha.. Throughout college I had to be extremely frugal and basically never bought anything nice for myself. I think it is because I am now making great money and have never really owned nice things. For example, I went through school with the most basic phone while everyone had a smart phone of some sort. Well I finally was able to get an iphone when I got my job. Also, I spontaneously just bought an ipad mini. -_-; And I bought a bunch of clothes at expensive stores. All in one day. Its especially hard when I'm out with my friends. I am always able to pay my bills though. Other than rent, food, phone bill, and car insurance, I have no other bills. I still own my reliable little 1998 Corolla, its a good little gas saver (32 mpg) that I plan to use until it wont run anymore, so no car payment. I have cushion money in a savings account but definitely not as much as I should have in savings for how much I've worked/made by now. Ugh.
So is this normal to feel the urge to spend and spoil yourself at first when you get that good job out of college? Or do I have a problem/should the desire to spend a lot be gone by 3 months? I cant help but feel guilty when I spend though. Any tips on how to start saving better? Thanks!
It is unfortunately typical for many people. It took me a long time to get a decent job out of college and I have very little confidence in the future of my profession in this country so I save about 1/2 to 2/3 my take home pay.
Once the euphoria wears off you need to sit down and analyze your financials and come up with a budget with living expenses, reasonable amounts of discretionary spending and saving goals for retirement, emergency fund, house etc. Make out a budget. That way you have a set amount of cash per month to blow on frivolous stuff.
I did the same thing. It was a mistake. I way overspent and ended up with a lot of credit card debt.
Spending like this, is really no different than binge eating. Take control of your spending now and start building good financial habits. Develop a reasonable budget, including money to spend on fun things, and then stick to it.
Hey everyone! I am 21 years old, graduated college in April, and 3 months ago I was very fortunate to obtain a full-time, full benefits job in my field. It is a great paying job, in the medical field and I am definitely not used to making this great of money as I have worked as a waitress throughout college. I am still living with my mother while I plan to move out in about 8 months,. My problem is now I can't stop spending my money when I get paid, haha.. Throughout college I had to be extremely frugal and basically never bought anything nice for myself. I think it is because I am now making great money and have never really owned nice things. For example, I went through school with the most basic phone while everyone had a smart phone of some sort. Well I finally was able to get an iphone when I got my job. Also, I spontaneously just bought an ipad mini. -_-; And I bought a bunch of clothes at expensive stores. All in one day. Its especially hard when I'm out with my friends. I am always able to pay my bills though. Other than rent, food, phone bill, and car insurance, I have no other bills. I still own my reliable little 1998 Corolla, its a good little gas saver (32 mpg) that I plan to use until it wont run anymore, so no car payment. I have cushion money in a savings account but definitely not as much as I should have in savings for how much I've worked/made by now. Ugh.
So is this normal to feel the urge to spend and spoil yourself at first when you get that good job out of college? Or do I have a problem/should the desire to spend a lot be gone by 3 months? I cant help but feel guilty when I spend though. Any tips on how to start saving better? Thanks!
I still feel that way, and I've been out of college for 25 years. I actually didn't have any money out of college, and only started having some spending money in my late 30's. I bought a ton of clothing - I don't really care much about cars or technology. I still like to buy things, but over the past 5 years I've gotten less and less interested in spending, which is a good thing. I think it's OK to spoil yourself a little, as long as you aren't going into debt or failing to save at all. Just keep it in control - you can always increase your savings so that it comes out of your paycheck right away, so you can't spend it.
You are pissing away your money and you have nothing substantive to show for it. You can treat yourself once in awhile and be responsible at the same time.
I did the same thing. It was a mistake. I way overspent and ended up with a lot of credit card debt.
Spending like this, is really no different than binge eating. Take control of your spending now and start building good financial habits. Develop a reasonable budget, including money to spend on fun things, and then stick to it.
Good luck!
A lesson I learned rather late.
Practically all through the 1980's and 1990's, with the exception of 1990-1994, I could have easily saved $1,000 monthly into an average yield and safe mutual fund. But it was the 1980's and we were supposed to spend and I did.
$1,000 monthly earning 8% in five years leaves you with $73,478.35.
Now just leave it alone, never take away and never adding money and 30 years later your account would be worth somewhere around $805,000.
Oh, it's way too normal. I think a lot of people did that at that point in their lives, but if the novelty doesn't wear off soon, you need to make it wear off, even if everyone around you isn't. If you plan to move out in 8 months, then I'd suggest you think about paying for a security deposit, making rent every month, and paying utilities, and maybe you'll curb your spending. I'm guessing the very second you get your own place you'll probably snap out of it.
I overspent at that age too. On what I have absolutely no idea. The money just mysteriously evaporated. I eventually did wise up, but I really wish it had been a lot earlier.
Yes if you went to college on a very tight budget, and did not grow up with much money, it is totally natural to want to go out and spend your money on the stuff you deprived yourself of for all those years, and despite what everybody else is telling you 3 months is not a big deal, as long as you are not running up credit card debt and getting into contracts that you cannot really afford than you will be fine. .
Now that you are realizing that you are being irresponsible you can start taking the steps to get yourself straightened out.
Here is what I wish all young people would do with their 1st real job.
Figure out what the average rent for a 1 bedroom apartment is in your area, start having that amount auto drafted out of your account on the 1st of every month, you are living with your mom and probably paying a minimal rent, so between the 2 of them you will have the opportunity to build a nice emergency fund while getting used to what it is going to cost for rent and utilities when you do move out on your own.
On top of that max out your retirement account if you are eligible and make sure to talk to your retirement account rep to figure out what accounts you are comfortable with, if you are not yet eligible for the retirement than start saving 10-15% of every paycheck also have that auto drafted preferably to a different savings account than your emergency fund. Take some time to learn a little about investing in retirement accounts, and talk to several different financial advisers and than when you have some money built up you can start investing the money responsibly.
Then you need to figure out a budget on what you have left, actually figure out what you need for food and your other bills, than plan to enjoy the rest of the money. I am guessing you should have enough to buy and outfit or two, go out a few times with you friends every month, and even buy something you really want or need and not have to feel guilty.
I did the same thing. It was a mistake. I way overspent and ended up with a lot of credit card debt.
Spending like this, is really no different than binge eating. Take control of your spending now and start building good financial habits. Develop a reasonable budget, including money to spend on fun things, and then stick to it.
Good luck!
Yup in retrospect I wish I had saved more during the 18 months I lived at my parents and had few expenses. Take advantage now. Take the amount you would have spent on rent and save it.
Hey everyone! I am 21 years old, graduated college in April, and 3 months ago I was very fortunate to obtain a full-time, full benefits job in my field. It is a great paying job, in the medical field and I am definitely not used to making this great of money as I have worked as a waitress throughout college. I am still living with my mother while I plan to move out in about 8 months,. My problem is now I can't stop spending my money when I get paid, haha.. Throughout college I had to be extremely frugal and basically never bought anything nice for myself. I think it is because I am now making great money and have never really owned nice things. For example, I went through school with the most basic phone while everyone had a smart phone of some sort. Well I finally was able to get an iphone when I got my job. Also, I spontaneously just bought an ipad mini. -_-; And I bought a bunch of clothes at expensive stores. All in one day. Its especially hard when I'm out with my friends. I am always able to pay my bills though. Other than rent, food, phone bill, and car insurance, I have no other bills. I still own my reliable little 1998 Corolla, its a good little gas saver (32 mpg) that I plan to use until it wont run anymore, so no car payment. I have cushion money in a savings account but definitely not as much as I should have in savings for how much I've worked/made by now. Ugh.
So is this normal to feel the urge to spend and spoil yourself at first when you get that good job out of college? Or do I have a problem/should the desire to spend a lot be gone by 3 months? I cant help but feel guilty when I spend though. Any tips on how to start saving better? Thanks!
As is always said you can learn the easy way by listening to others or the hard way by making the mistake. Your still young.
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