60k a year, single, 23, nothing to show!

[snafu]

OP obviously has the potential to be a millionaire before he's 30 if he does a few smart things. easy come, easy go Hope he goes for appreciating assets rather than blowing earnings on interest and a BMW.

[dawnwes]

Hard to really advise as there is a lot of information missing.

Do you live on your own in an apt?

No idea what your current budget is or how much you owe.

You say you have a credit score of 600 despite paying off a car, but there has got to be a reason for the low credit score. Either you didn't pay the car payments on time all the time, or you aren't paying your credit cards on time.

My suggestion?
FINISH SCHOOL FIRST, then:
Pay off ALL debts, get at least 3 months of living expenses saved up, and then start saving for a down payment on a house. You may not want one now, but you will eventually.

You just paid off a car which tells me you have a car already and probably a fairly reliable one. Wait on the BMW.

[Hector]

why dont you save 22k to put as a down payment for a house instead of for a BMW and a used on at that. If you are able to save 22k at least invest it in an asset that can potentialy increase in value instead of a depreciating asset like a used car. Trust me, girls will be a lot more impressed if you have a house at 23 then a used bmw

I dont think buying house and taking mortgage is everyone's first priority. I am one of them. I wont stuck to a place at 23 and letting go the opportunities that come along because I cant move.

[JAD85]

I would really pay down your credit card debt first, it really empties your wallet if you're paying 300-400 a month in credit card bills. I would also recommend having money deducted from your paycheck automatically and set aside in a online savings account. You'd be amazed how much more money you can save when the money is automatically taken out.

I am not much older than you, I just turned 26 and I make 80k a year, I do live on my own, and have a car payment and have accumulated my fair share of CC debt which I am going to eliminate within a few months. With the increase in CC interest rates I am paying close to $500 a month on credit card bills, which is absurd. My goal is to save about 50k this year, by next year I should have 100k. With that money I am going to buy a condo, and purchase a new car (current car is leased). Please note that I also live i Northern New Jersey which is insanely expensive.

[jmpride05]

Thank you all so much for your input.

This year I closed at 70,000 part time.

To answer some questions, I am a part time (20 hours a week) personal shopper. It sounds glamorous but it is hard work that sometimes interferes heavily with my college schedule. I put away $10,000 this year but still have some debt to pay off.

A friend said, no matter what I saved I would put off. I live in a run down apartment in Boston but work 10 minutes walking distance to my job and college.

I decided, to pay down all my college (summer classes) in cash, and paid down my debt. I went from 10,000 to 4,000 this year. Its a had struggle with me because I work in an industry where money is everything. I looked at statements and say that i was spending $4,000 so far this year on clothing alone! Just to keep up an image where I work. I pay for my own college, apartment and everything. I have recently just started grocery shoppiing and stopped smoking $300 a month right there.

I have a 401k valued at 10,000 so far. Im just trying to make sound investments. If anyone knows, Boston is the 3rd most expensive city in the US. Everything here is an absolute fortune.

Goal:
Be debt free by Summer 2013
Move back to California via a Job Transfer (50-80k a year part time)
Invest my degree into a career full time and get OUT of the fashion industry
Buy a car IN CA when I actually need one (you dont need one in Boston)

Thoughts?

[JoeP]

Do not think of a car as a one-time purchase. Any service you will need will incur parts and, unless you can do it yourself, labor. "Foreign" cars like the BMW and VW, even though they are made in the USA or Mexico, often require specialized parts that are expensive.

[laurend1985]

My husband has a BMW and when that car runs of its warranty, look out. The parts for BMWs cost a lot. You will need extra cash to service it. Reduce your debt and build up an emergency fund first.

[shengmei]

WOW your job is great!!! Hubby went to school studying 100+ hours a week for ten years. He now works 60 hours a week for 60K. I have two masters and no job at all.

Which company do you work for?

[snafu]

Good on you quitting smoking, you'll look better, feel better and smell better since smoking has potential to knock years off your life span. I understand the need to dress the role if you're meeting clients but the fact it's mostly bumph via debt. Don't fall for the marketing...it's merely the twist of a phrase. BMW no longer delivers on engineering of their past, that ride doesn't get you where you need to be any better than the other. It's a depreciating asset like all the other vehicles.

[UnknownXV]

Thank you all so much for your input.

This year I closed at 70,000 part time.

To answer some questions, I am a part time (20 hours a week) personal shopper. It sounds glamorous but it is hard work that sometimes interferes heavily with my college schedule. I put away $10,000 this year but still have some debt to pay off.

A friend said, no matter what I saved I would put off. I live in a run down apartment in Boston but work 10 minutes walking distance to my job and college.

I decided, to pay down all my college (summer classes) in cash, and paid down my debt. I went from 10,000 to 4,000 this year. Its a had struggle with me because I work in an industry where money is everything. I looked at statements and say that i was spending $4,000 so far this year on clothing alone! Just to keep up an image where I work. I pay for my own college, apartment and everything. I have recently just started grocery shoppiing and stopped smoking $300 a month right there.

I have a 401k valued at 10,000 so far. Im just trying to make sound investments. If anyone knows, Boston is the 3rd most expensive city in the US. Everything here is an absolute fortune.

Goal:
Be debt free by Summer 2013
Move back to California via a Job Transfer (50-80k a year part time)
Invest my degree into a career full time and get OUT of the fashion industry
Buy a car IN CA when I actually need one (you dont need one in Boston)

Thoughts?

I've spent $50 on clothes this year so far.

You can absolutely make due spending MUCH less on clothing than you are, I don't care what job you're in. Even the President doesn't need to spend that much on clothing a year.

[ecs33]

Sounds like you are getting killed by interest, and you are thinking of paying for a BMW?? Come on, man.

I'm 26 and make about $64k a year. I've been putting 2 G's away on student loans every month. I should be debt free by 2014, and even then I will not even be remotely thinking of buying a luxury car.

Pay off your debts to a manageable level where interest isn't destroying you, then think of putting your money towards money making investments whenever the rate of your potential cash flow exceeds the rate of accumulated interest on your debt. If you find that your interest would still increase faster than your other rates of cash flow, then pay down your debts first. Opportunity costs are everything. The only reason I've been putting $2k a month on my student loan instead of saving is that it has a 10.125% interest rate, and even after considering inflation and tax breaks on the interest accumulated, the interest is still higher. I've been thinking of paying down my debt as saving for the future. You should think the same way.

Don't try to look rich when you are not. The true "ballers" are able to afford these things easily. People who struggle just to portray this kind of image are fools. You will never truly be there if you are always playing catch up. Get to a sustainable level then work on building up your cash flow and letting your money make money for you.

Remember, it's not so much about how much you make, but what you do with it.

[ecs33]

Not to mention, cars are a huge money sink and their value is like water vapor. Luxury cars should really only be realistically enjoyed when having one doesn't significantly cut into your financial resources. I personally am not even thinking of buying a new car until I have a house while still pocketing atleast 2k a month after costs and with few other debts.

[ua_guy]

Did anyone else check the post date FIRST? This thread is over 2 years old. I wonder where this kid is at now.

[Jp912]

Did anyone else check the post date FIRST? This thread is over 2 years old. I wonder where this kid is at now.

Wow,

It's 2015, and let me fill you in my predicament.

That part time job was at Saks Fifth Avenue. I worked aggressively to build a client book. I was burnt out and left. Worst decision ever.

Why?

I took it for granted and clearly my perception of the real world became skewed because I entered the workforce.

I managed to save $20,000 dollars, went to another retail job and bought the car, which you all advised me not to do. LOL I got an Audi instead, she is a pretty light blue color.

So now, here's the situation: I was unemployed for 6 months laid off after that job, moved to California without a job upon graduation. I'm down to $7,000-$8,000. (Scary grounds) But I have only $2k in credit card debt now.

Finally got a job! My current job is an IT Sales Executive I work 40+ hours a week and make $60k + commission. (I want to scream, so much easier working retail...)

I wish I could go back in time, I took so much for granted and now I am working backwards to fix my financial situation. I also burned many bridges across the way.

During the mean time, to supplement my income, and car payment I personal shop for a few select clients out here on the weekends. $500-$1000 at a time. (I miss working at Saks!)

Here's the deal:

Rent: $550 (yes a room for rent in California, I hate where i live but it's within 2 miles of driving distance of my new job)
Car: $379 (Financed at 2.9%, bought the car tax free)
Insurance: $159
Phone: $150
Groceries: $400
Credit Cards: $100

After taxes, I only take home $3100 a month. Good old California!

I did the math with expenses, some not highlighted above but i can manage to save $500-700 a month to rebuild what I lost. In hind sight, i could have been A LOT smarter with my money BUT!

I managed to go on 4-5 vacations a year, and go to Paris a few times skied in the french alps, have an expensive wardrobe, so I lived a good life while I was in college.

Let me tell you, working that job has destroyed my life. In life usually you make less, and in time you work up. I managed to do better than most college grads working half their hours. It really messes up your perception when graduating college and trying to leave retail.

Problem: My car is already getting wear and tear.
Brakes $600
Motor mounts $900
Tires $700

In 3 months time...

I live in California now and owning a car is a must. I no longer live in Boston.

My credit score has suffered poorly, due to student loan debt now coming in.

I wish I could find a good job in Santa Monica or West Hollywood (Walkable cities), ditch the car and re-build more aggressively and work on the career.

Any suggestions? I am out here all alone.

By the way, retail sales jobs is the best way to go if your aggressive and thick-skinned through my experience let me tell you what some sample retail sales jobs CAN pay since nobody really talks about it...

Sears: I was 18, I made $40-$60k selling appliances.
Nordstrom: $40-50k
Saks: (Depends on your location) REALLY RANGES. $30-80K normally.
Bloomingdales: $40-60k selling shoes.
Verizon Wireless Sales Reps: $50-80k

I know people who make almost $150k+ a year selling clothes, but you need to build up your business and be in a HUGE volume location. (SF, Boston, NYC, Beverly Hills) (Luxury retailer)

So now, I am trying this corporate career 9-5 job after college in hopes that experience in IT sales, I can transition to a more senior management role $70-110k depending.

I'll be honest, I miss my old setup. This is really stressing me out here. The car is a time bomb. But no longer have to liquid to buy a beater without interfering with my savings account. It was a stupid decision, alongside moving out to CA burning through my savings to get here.

I'm great in the moment, just naturally a completely ****ty planner and really have a hard time thinking through things.

So now, any suggestions? I think I've minimized expenses pretty well, but thinking of getting a PT job (you know really just wanting to put the shovel to my face here).

So funny to see this thread as time went on.

[scfr]

I think giving you little bits of advice like "find a cheaper phone plan" would be fruitless. To be brutally honest, I think you need to sit down and figure out what it is that you really value in life. Then you can begin the process of bringing your finances in line with your values.