Comfortable living?

klone, MSN, RN · Jun 27, 2015

I find this answer to be mean spirited. We have a young person asking an honest question.

Windsurfer is a grumpypants. Just ignore him.

joanna73, BSN, RN · Jun 27, 2015

Working overtime or a second job is a personal decision. However, if your goal is to live comfortable while building wealth, living below your means is the key.

Many depend on the overtime to live "comfortably". If those hours become non-existent, what then? What happens if you're suddenly ill or lose a job? Three to six months salary is ideal for emergencies.

brandy1017, ASN, RN · Jun 27, 2015

You forgot to include student loans in your budget. Starting pay depends on where you live it can as low as $20/hr in some places to as high as $40+ in NY, LA etc. The median pay for nurses is $65,000 a year, that's before taxes. Also more experienced usually make more, although overtime is generally available or working agency as a second job to make more money.

calivianya, BSN, RN · Jun 27, 2015

Okay, yeah, I rescind what I said about the car payment now that I noticed a lot of it is extra. That's a wise financial decision. :)

I actually disagree about new cars being a bad investment. It's all in what you're looking for, really. I like being able to totally rely on my car, for sure, without any doubts, and have most major maintenance covered by warranties for at least five years. I didn't do any maintenance on my very first car other than wear and tear stuff like brakes, oil changes, and tires until I had the car for nine years. I had to do something last year, and then I had to do something this year, and I was out of the warranty range. That was it for me - I met my personal threshold for what I'm willing to put up with in terms of car maintenance.

The warranty I got on my brand new shiny sports car covers just about everything for five years. I have a lifetime powertrain warranty courtesy of my dealer for as long as I own the car, and I get free oil changes anywhere and free maintenance for five years. I even get free car washes whenever I want if I swing by the dealership. I can also get all of the fabric replaced in the car (if they can't clean any spots out) and all of the paint dings fixed for free for the first five years. I have yet to see a used car company offer those sorts of warranties or perks. I looked at buying a car from CarMax, and they offer a 30-day warranty. Not my cup of tea.

I would rather pay more for something I know is going to work, especially since I'm single and don't have a roommate/spouse whose car I can borrow at any time, than buy something outright that's more likely to be unreliable, so I support the OP in the new car decision.

klone, MSN, RN · Jun 27, 2015

The 5/7/10 year warranties transfer. So if you buy a 2-year-old car, you still have 3/5/8 years on the warranty, plus you can purchase an extended warranty. And if you buy a car whose previous owner kept all records, you have a very good guarantee of the car's condition.

OrganizedChaos, LVN · Jun 27, 2015

The 5/7/10 year warranties transfer. So if you buy a 2-year-old car, you still have 3/5/8 years on the warranty, plus you can purchase an extended warranty. And if you buy a car whose previous owner kept all records, you have a very good guarantee of the car's condition.

To each their own. I bought a brand new car & am glad I did. I will have my vehicle for awhile so that's why I bought new & not used.

klone, MSN, RN · Jun 27, 2015

Easy monthly payments is the reason why 70% of Americans won't have enough money saved to retire comfortably.

OrganizedChaos, LVN · Jun 27, 2015

Easy monthly payments is the reason why 70% of Americans won't have enough money saved to retire comfortably.

I can put money away into retirement & have a car payment. A small $200/mo car payment isn't going to ruin my retirement. People are going to have monthly payments of some sort. I don't know very many people who can afford to buy a house in cash. Plus I decided to get a new car & get a loan to boost my credit. That's something I think of as a bonus. I like to do anything that will increase my credit.

planetgreenRN · Jun 27, 2015

I believe you said you live in Mississippi, If i've skimmed over the part where you said you're leaving - don't hold me to this comment lol. I would tell you that you should leave Mississippi if you're going to be a nurse. I worked with a woman who traveled from Mississippi to come to work in Texas for 3 days then go back home & repeat! She is a seasoned nurse and said there are NO jobs for nurses in Mississippi. Even if you do your research you will see Mississippi is the last if not close to last place a nurse should look for a job.

In regards to the money, YES YOU CAN. I work in Arlington as a new nurse and I make $25/hr base pay, 28.45/hr at night, $31/hr on the weekend. With my work schedule of 72 hours a pay period & after taxes, I make about $4000. It's doable. Best of luck with your decisions! And always always do your research when choosing a nursing program and don't limit yourself to hospitals for experience! :)

*Also your choice in car in neither here nor there. My sister pays close to $500 a month by choice as well and she too is a nurse. Whatever choice you make or path you choose, let it be what makes you happy. We are not here to judge your choices

Editorial Team / Admin · Jun 27, 2015

Easy monthly payments is the reason why 70% of Americans won't have enough money saved to retire comfortably.

People just have to be smart about what they will pay for with monthly payments. I bought a brand new SUV 2 years ago. Took out a 5 year loan at 2% interest. I'm making larger than the required minimum payments (only took the 5 year because it had the lowest interest rate and no penalty for early payoff). Sure, I could have saved up that money, but my previous car wouldn't have lasted that long, I would have paid more in repair costs than the interest, I know the car's history, and I researched my choice of vehicle ahead of time.

Now, people who use their credit cards for everyday purchases have a problem. But there are two extremes, and then there's the middle ground. I prefer the middle ground for myself, and I still have a stellar credit rating despite taking out a car loan, having student loans, and carrying a small balance on my one credit card (had no choice but to use it for a major home repair required to be able to continue living in my home). Financial smarts, levelheadedness, and understanding the ramifications of financial decisions is something that every person should educate themselves about.

OP, I have what I consider a comfortable life- I save 6% of my paycheck in a 403(b) (plus employer match of 5%, so total of 11% of my salary), I make a minimum $200 deposit in my emergency fund, I make extra payments above the minimum required on my loans, I own a townhouse that is probably a bit more house than I need (it's just me, so I probably would have been okay with a 2 bedroom instead of a 3 bedroom, but the 3 bedroom will be easier to resell), and I can afford to take a reasonably extravagant vacation every year. I don't have to worry about living paycheck to paycheck, and if something were to happen to prevent me from being able to work, I still have resources to continue my current state of living for several months.

Dranger · Jun 28, 2015

I have a 2015 Camry hybrid XLE.

You just graduated high school and have a 30k+ plus car (Even if you are over paying per month)? I am in my mid 20s and make 6-7k per month and have a 2005 7k car. Buying brand new cars is a no no, a few years old is fine.

Get rid of the car. Car payments are the most annoying bill I ever had...second to Comcast. I hate you Comcast.

vandiola · Jun 28, 2015

I don't really have any advice for the OP, just wanted to comment on how much the starter/average pay is for nurses in the US. I knew it was higher than ours, but I didn't realise it was that high!