This forum is something special. It's almost the exact opposite of what we keep reading about the average American consumer. It's good to hear the voice of reason.
This is my first post. I am lucky enough to have the old-school advice and wherewithall of my ailing grandfather who as soon as I graduated from college, took me off to the side and discussed a budget. It's pretty crazy that I made it through college without really ever thinking too far ahead. My career would have gotten off to a better start had I done so, and I wouldn't have overdrawn my checking account numerous times while in school.
Getting my engineering degree while playing baseball was quite a load, however. I'm happy to have gotten through, looking back. I lived at home for one year after school, saved up some decent money, worked for a shady employer who ended up sheisting me out of 3,000$ (good to learn that lesson early on), but have gotten off to a decent start. I'm kind of bummed that going on three years now, I haven't saved quite enough to put 20% down on a new house (I'm looking to be in the 200k range), but I've maxed out 2 years of an IRA in addition to my 8% 401k with my new company (1.5 years). My parents the saints payed for most of college excluding one small 10k loan, and I have 5k left on a gas hungry vehicle to pay off (would have changed that purchase looking back). The only reason I'm looking in the 200k for a house range, is that pretty much to not buy a house from the 50s that's a shack, that's how much they cost right now in central Florida. Toast to crashing housing market!
I have read some other posts and FIRE seems to be a great goal. As of now I am on the small end of corporate America, well kind of. I'm in consulting engineering. There's a lot of warm bodies, pays ok (just ok for engineering, I mean). Last year I brought home 60k. For EE with 2-3 yrs experience, its pretty low, especially compared to most I went to school with. But there I go, comparing myself to others.. I like the company, and the people. But I'm a bit of a loner and not much of a salesman, so long term, I'm not sure if this is really the field for me.
I'm single, casually dating (actually another engineer). Those dual incomes would be quite nice for FIRE. Especially down the road. I want to be an executive, and raise a great family. I don't know how to get there, but at some point I hope to climb my way up. I think I've given up the start a business or venture from scratch idea. I got to work on some great projects in undergrad but none were marketable at that next level. I actually thought I was going to be a professional baseball player (really, I did), but a 92mph fastball doesn't do you much good if you hit people with it. Funny, my calculus teacher in high school replied to the question of why he choose his vocation with 'Because I couldn't hit a curve ball.'
My parents are going through a divorce right now and not 'struggling' financially, but I can see that the 4 kids before the age of 26 has taken its toll on their standard of living and retirement planning. Part of me wants to actually help them out (especially my mom) financially, but with her history of debt and poor money management, I don't think this would be wise. Also it didn't that help my dad got a PhD in finance, (so loss of income for awhile) and then choose to do academia. I now know why he has encouraged us kids to stay single until the age of 30. But I think he was speaking only from his experience, looking at things from a single-earner perspective. Is it ok to target a mate that might actually make some money? I almost feel guilty for doing it but at the same time, I wouldn't mind the LBYM for me being pretty comfortable. Actually, I would much prefer this. I almost fell for my last honey, but she was a teacher who didn't even know she wanted to be a teacher (basically she wanted to be a homemaker and spend her hubby's money while looking good), and came out of school with an unknown amount (but a lot) in credit card debt. Looking back, she was the first girl that I loved, but I am so incredibly happy we didn't end up together. It would have been financial disaster. As a matter of fact, to make it work, I would probably have had to abandon my goals entirely.
Career wise, I've been considering a couple other career options. It stinks that my undergraduate GPA was not a little higher, because it will probably keep me out of any top business or law school. Which, I think that patent law would be a good fit for me, and it still isn't impossible to get into, but will just be a lot harder, and I will have to undoubtedly get the experience in a law firm before I were to get a JD to have a shot at a decent firm after law school. However, if the right girl comes along, all my super ambitious ideas of making 150-200k a year will probably go away, to make room for a better balance of life and work and all that stuff.
I know this is a long post, and sorry for that, especially it being my first one and all. But I did want to get some input on something from everyone here.
It involves my housing choice. Basically, I think here in the next half-year, I will be in a position to buy, and timing the market bottom aside:
I will probably net close to 65k this year in income. The house is going to be in the range of 190-200k I would imagine. One roommate committed for at least a year, probably more, for 500$/month. I could get an additional roommate as well. I have 25k saved potentially for a house, but that's where I'm uneasy. It was a lot more, but being open to risk now, I had the money in the markets and it has lost a lot of value (global emerging markets). Obviously, not too smart if I wanted to buy a house with it, but that's what I'm not sure about, if buying a house is even the right thing to do. Best case, the stock market rises 20%, and the housing market goes down 20% in the next halfyear.But even if I only put 10% down, do you guys think this will be best in the long run?
Other than that, looking forward to compound interest, not spending too much except for the important things, and having some fun along the way...
This is my first post. I am lucky enough to have the old-school advice and wherewithall of my ailing grandfather who as soon as I graduated from college, took me off to the side and discussed a budget. It's pretty crazy that I made it through college without really ever thinking too far ahead. My career would have gotten off to a better start had I done so, and I wouldn't have overdrawn my checking account numerous times while in school.
Getting my engineering degree while playing baseball was quite a load, however. I'm happy to have gotten through, looking back. I lived at home for one year after school, saved up some decent money, worked for a shady employer who ended up sheisting me out of 3,000$ (good to learn that lesson early on), but have gotten off to a decent start. I'm kind of bummed that going on three years now, I haven't saved quite enough to put 20% down on a new house (I'm looking to be in the 200k range), but I've maxed out 2 years of an IRA in addition to my 8% 401k with my new company (1.5 years). My parents the saints payed for most of college excluding one small 10k loan, and I have 5k left on a gas hungry vehicle to pay off (would have changed that purchase looking back). The only reason I'm looking in the 200k for a house range, is that pretty much to not buy a house from the 50s that's a shack, that's how much they cost right now in central Florida. Toast to crashing housing market!
I have read some other posts and FIRE seems to be a great goal. As of now I am on the small end of corporate America, well kind of. I'm in consulting engineering. There's a lot of warm bodies, pays ok (just ok for engineering, I mean). Last year I brought home 60k. For EE with 2-3 yrs experience, its pretty low, especially compared to most I went to school with. But there I go, comparing myself to others.. I like the company, and the people. But I'm a bit of a loner and not much of a salesman, so long term, I'm not sure if this is really the field for me.
I'm single, casually dating (actually another engineer). Those dual incomes would be quite nice for FIRE. Especially down the road. I want to be an executive, and raise a great family. I don't know how to get there, but at some point I hope to climb my way up. I think I've given up the start a business or venture from scratch idea. I got to work on some great projects in undergrad but none were marketable at that next level. I actually thought I was going to be a professional baseball player (really, I did), but a 92mph fastball doesn't do you much good if you hit people with it. Funny, my calculus teacher in high school replied to the question of why he choose his vocation with 'Because I couldn't hit a curve ball.'
My parents are going through a divorce right now and not 'struggling' financially, but I can see that the 4 kids before the age of 26 has taken its toll on their standard of living and retirement planning. Part of me wants to actually help them out (especially my mom) financially, but with her history of debt and poor money management, I don't think this would be wise. Also it didn't that help my dad got a PhD in finance, (so loss of income for awhile) and then choose to do academia. I now know why he has encouraged us kids to stay single until the age of 30. But I think he was speaking only from his experience, looking at things from a single-earner perspective. Is it ok to target a mate that might actually make some money? I almost feel guilty for doing it but at the same time, I wouldn't mind the LBYM for me being pretty comfortable. Actually, I would much prefer this. I almost fell for my last honey, but she was a teacher who didn't even know she wanted to be a teacher (basically she wanted to be a homemaker and spend her hubby's money while looking good), and came out of school with an unknown amount (but a lot) in credit card debt. Looking back, she was the first girl that I loved, but I am so incredibly happy we didn't end up together. It would have been financial disaster. As a matter of fact, to make it work, I would probably have had to abandon my goals entirely.
Career wise, I've been considering a couple other career options. It stinks that my undergraduate GPA was not a little higher, because it will probably keep me out of any top business or law school. Which, I think that patent law would be a good fit for me, and it still isn't impossible to get into, but will just be a lot harder, and I will have to undoubtedly get the experience in a law firm before I were to get a JD to have a shot at a decent firm after law school. However, if the right girl comes along, all my super ambitious ideas of making 150-200k a year will probably go away, to make room for a better balance of life and work and all that stuff.
I know this is a long post, and sorry for that, especially it being my first one and all. But I did want to get some input on something from everyone here.
It involves my housing choice. Basically, I think here in the next half-year, I will be in a position to buy, and timing the market bottom aside:
I will probably net close to 65k this year in income. The house is going to be in the range of 190-200k I would imagine. One roommate committed for at least a year, probably more, for 500$/month. I could get an additional roommate as well. I have 25k saved potentially for a house, but that's where I'm uneasy. It was a lot more, but being open to risk now, I had the money in the markets and it has lost a lot of value (global emerging markets). Obviously, not too smart if I wanted to buy a house with it, but that's what I'm not sure about, if buying a house is even the right thing to do. Best case, the stock market rises 20%, and the housing market goes down 20% in the next halfyear.But even if I only put 10% down, do you guys think this will be best in the long run?
Other than that, looking forward to compound interest, not spending too much except for the important things, and having some fun along the way...
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