Now that I have a solid job offer, how do I do my finances smartly?

Hades86 said:
work on your credit and get up to date with your debt before you invest in anything homeboy. Save as much as you can in the process then you can really invest when it comes time. Playa's need time playas need time.
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I'm just worried about paying off my debt and risking having no assets or savings if I lose my job.
 
NamelessMC said:
I think I should save this or make a computer wallpaper out of it. This is solid advice and it's almost like the thread is over. I guess I'll look into spending $7,000 to $10,000 on a car. I'm concerned that a $10,000 used car will break down a lot. I drive a lot.
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This isn't necessarily true. If you do your homework when looking for a used car, your car shouldn't be giving you any more problems than a new car would. There is a wealth of information on the internet to educate yourself on cars to purchase, or avoid. If you take car of your car, it will take care of you. If you don't know much about cars, have a mechanic you trust look at any cars you're considering. I have a 99 Saturn SC1 that has around 140,000kms (87000 miles) that I drive everyday to work and since I make sure that routine maintenance is completed when it should be, it's never left me stranded and gets 35+mpg when I don't drive like an asshole. A used car is much smarter when you're looking to pinch pennies while still having a reliable car to drive. You'll lose money 99 times out of 100 on a new car, unless you purchase something ultra rare that will become desirable to car enthusiasts in the future.
 
bet 50,000 on mayweathers next fight, get yourself a cool 5,000 profit :D
 
Invest in a brick of cocaine. Learn the streets. Hustle hard. Turn that brick into two or 3. Rinse and repeat, and cash out when you feel the heat over your shoulder.
 
Cid said:
30k car sounds like a solid investment. Chose wisely and in a couple of years it could be worth three times as much.
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Nice. This is probably the best investment advice in this thread.
 
Get a copy of Quickbooks or similar software and learn to use it.
 
I like Dave Ramsey's baby steps.

1. save 1k for emergencies
2. pay off debts smallest to largest
3. increase savings to 3-6 months expenses
4. then start investing 15% of household income into Roth IRAs and pre-tax retirement.
etc
 
A job offer is not a job.


Get your feet wet and make sure you're going to stay before doing anything stupid.

Then follow the advice Higus gave.
 
MASShole said:
A job offer is not a job.


Get your feet wet and make sure you're going to stay before doing anything stupid.
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This. You don't get paid until you accept the offer and actually start working. Get your feet wet and get the lay of the land. Whether or not it seems like you'll stay there for a bit, start saving an emergency fund. Include all mandatory debt such a loans, credit card payment, bills (car insurance, cell phone, etc...), utilities, rent, etc... how much to save varies by opinion but go for 6+ months. Never touch this money and keep it liquid/accessible....meaning a savings account, money market, etc... at a dismal interest rate. You can cycle portions of it thru short term CD's to eak out a tiny bit more interest. Be sure to add more to your fund if your overall bills and such increase (eg car payment).

Depending on how much you make, the loan type (eg Federal), and what your student loan interest rate is, worry about that debt last. If you make below a certain amount, you can deduct the interest on your taxes. If you were to lose your job, the debt is deferred. In the mean time, making timely payments helps your credit. If you have credit card debt, start paying that down. If you have other debt, prioritize what you wish to pay off (eg smallest first vs interest rate, etc).

Re: 135i, realize that BMW, like Audi and MB, require more periodic maintenance; a lot of which you can do yourself fairly easily. Most people don't pay attention to that and pay for it in the long run. Join a forum and learn about whatever you look at (new or used and regardless of brand). BMW obviously costs more but you don't pay anything for service (parts or labor) for the majority of regular service and repair so some of the upfront markup really is covering that in advance. If you want a newer car, get a certified pre-owned vehicle and let someone else take the initial depreciation hit.

Regardless, start putting something away for investments/retirement now. If your company matches, at least max that out and increase your contribution as your salary increases and debt decreases. If you cannot take advantage of every cent you company matches, at least put into for what they will 100%.
 
livable houses for $8000?

that's cray cray

who can't afford to put together $8000, compare to what you're paying in rent
 
Ask for financial advice from Sherdog.

Haha.
 
pay yourself first and don't spend money you have

1. Have at least a 6 month emergency money supply
2. ROTH IRA - max it out at 5500 and buy cheap ETFs that match against an index like the S&P 500 or russell 2000
3. 401k or 403b - save at least much as the company will match
4. Pay down any credit card debt
5. Depending on the rates of your school loans, pay of the highest interest rates first. Consolidate if possible.
6. Max out contribution to 401k/403b
7. Do not buy a car unless you need to buy another car.
8. For most people, only buy a house if you have 20% to put down. You can only comfortably afford 3-3.5x your annual income.
 
Debt snowball they call it. Suggestion would be to save about 3 months worth of your salary for emergency needs. After you have that amount, start paying off all your debt, lowest to highest. Keep working that until you have paid everything off.

You don't have a life, you don't go out, you live on beans and rice.

Everything i am telling you can be better told by Dave Ramsey, check him out online, and he has a lot of free materials you can use to become debt free.
 
Okay so maybe this can serve as some kind of active blog of my "rags to riches" story.

I accepted the offer! My official starting wage is $27.00 an hour full time and I'll be working roughly 45 hours per week for a few months after I start. I can work 10-12 hour shifts Monday through Thursday and take Friday off.

I'm going to crash at my friend's place for two months. I offered to pay $400 a month but she won't take a dime over $300. Regardless of what car I buy, I wanted to put 10% down so I'll be eating sandwiches and chicken/rice for 2~3 months while I figure out what my eat, sleep and shit costs are.

Also, I have no idea how harshly I'm going to be taxed. For 4~5 years I've flown under the tax radar. I either made so little that I got all of it back or I made nothing and got free money every year from "Education Credits". Now it's time to pay the piper. So I'm going to have to see how harsh the following expenses hit me that I haven't had to pay before:
State Tax
Federal Tax
Health/Dental Insurance (Is it smart for me to take the best plan they have? I'd like to take very good care of my teeth and health. I don't like having high co-pay or thinking that some medical emergency could bankrupt me)
Loan payments
Bad credit payments
 
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