I have accepted a position at a hospital that will have me earning at least $30 an hour. That is ALOT of money for me. Considering the fact that I will be 24, splitting living expenses 50-50 with mom, and I have a vehicle that is completely paid for, I will have lots of $$$ left over every month ($2800+) after my expenses are paid. What can I/should I do with the excess money? Hurry and pay off student loans (23k)? Save up and buy a new car cash? I don't have kids and I am single if that means much.
What did you do with your disposable income when you began your Nursing career?
ETA: I am not interested in becoming a home owner at this point. I like the flexibility of being able to pick up and go when I please and owning a home would make that difficult.
No but BSN prepared nurses have the HIGHEST pass rate for the NCLEX. I think its around 88% for first time takers so it is far more likely that she will pass. What kind of winner goes around thinking they will be the 12% that don't cut it ? The post just came across as parade pee-ing to me. I calls 'em like I sees 'em.
Well, "Don't Ask Me Why" but me thinks the OP thinks she is a "Big Shot", going to make "Easy Money", well she is a "Modern Woman", almost "Shameless". No one can "Tell Her About It". "This Is The Time" she should be "Movin' Out" of her parents house. "And So ItGoes". After all, I have been a nurse "For The Longest Time", almost "All My Life". But hey, "We Didn't Start The Fire". OP, no "Pressure", just "Keeping The Faith". Well, "You're Only Human". "Sometimes A Fantasy" or "A River Of Dreams" is all you've got.
I've gotten some incredible advice from some really good people on here. I really appreciate that yall. Yes, some of you have tried to put me down and dim my little "new nurse new grad" light, but it's all good! I'm just gonna focus on the positive.
I am really excited about starting my career in my dream specialty at my dream hospital. Things are moving so fast! In less than 2 months I will be moving to a new city for a new job. I am SO excited for the future & Nothing or no one is gonna take that joy away from me.
Thanks for all the financial tips guys, whether I'll have an excess $20 bucks or $3500 bucks every month, I will take heed to all the positive and useful advice I've been given here.
#Blessed
No one is trying to "put you down" or "dim your light." Sometimes, a dose of reality is necessary. This is precisely how young people get themselves into trouble financially. You think you are going to have way more disposable income than you will have. If you buy a new fancy car, have you considered how much it will cost to insure? What kind of interest rate can you expect right out of college with probably not the most extensive credit history? In your math of how much you are going to bring home, you completely neglected taxes as well as the cost of benefits. You said you will be "bringing home" 4300 per month when that is your pre-tax salary. I dare say that you will be unpleasantly surprised to see how much of your money goes to the government.
Specializes in ER/Tele, Med-Surg, Faculty, Urgent Care.
Well done.
Give us a song, piano man.....
Well, "Don't Ask Me Why" but me thinks the OP thinks she is a "Big Shot", going to make "Easy Money", well she is a "Modern Woman", almost "Shameless". No one can "Tell Her About It". "This Is The Time" she should be "Movin' Out" of her parents house. "And So ItGoes". After all, I have been a nurse "For The Longest Time", almost "All My Life". But hey, "We Didn't Start The Fire". OP, no "Pressure", just "Keeping The Faith". Well, "You're Only Human". "Sometimes A Fantasy" or "A River Of Dreams" is all you've got.
OP, lighten up! Those are all titles to Billy Joel songs[emoji446][emoji443]
Congratulations on your accomplishment! Some of this was probably mentioned already... But a good rule of thumb is to first save enough for emergencies (3-6 months of expenses depending on your comfort level). At the same time, you want to start contributing to your 403(b)/401k plan for retirement. Especially if they match. But even if they don't you should still try to put away 10-15% of your gross salary. Ask if the retirement plan allows you to make ROTH (after-tax) contributions. Given your young age, if you are able to make ROTH contributions, this will go along way to having tax free income when you retire. I know its hard to think about retirement when you just starting out, but the earlier you start the easier it will be down the road. I would also look into individual long-term disability. Again, given your age, you can lock in a very low rate that you can keep throughout your career, which will save you lots of money if you decide to get it say in ten years. Most employers do offer a group plan, which is typically 60% of your gross salary. However, if they pay for it, the benefit you will receive will be taxable to you. When figuring out how much to contribute where, the first thing you need to do is to come up with a budget plan so that you know exactly how much you can afford. One great way to do this is by tracking your expenses. I recommend MINT.com. This should be your starting point, from there you can figure out how much you are able to save and afford towards different goals. Hope this helps. Good luck!
I loved your list of "take-aways." You seem to have a good head on your shoulders that can distinguish between good advice and bad. Congratulations!
Now, I want to add a few thoughts. Keep in mind that they are based on my own experience as a nurse who is now 60 years old and who has been single with no kids her whole life.
1. Good insurance is worth the investment -- particularly health insurance -- and particularly if you are single. The purpose of insurance is to provide you with money should something bad happen. With no husband to help pay the bills should something unexpected happen to you, you need to be able to take care of yourself financially even in the event of disaster. Also, should you get a serious disease, you won't want your insurance limiting your choices of treatment options. Get the best health insurance available to you -- just in case. Also, get dental insurance and consider all other types carefully. For example, I've never gotten life insurance because my parents could take of themselves. If you died, would your mother be able to live on her own without your financial help? etc.
2. Don't rush into buying a home. If you want to be a home-owner, then buy. But if the work of maintaining it doesn't appeal to you, then it is not necessary. I didn't buy anything until I was in my 40's because I wanted the freedom to move easily and I didn't want to worry about all the maintenance. I have no regrets about that. I finally bought a condo when I was in my 40's and now I have mixed feelings about it. I hate the burden of having to take care of it. The financial benefits have been minimal -- and I probably could have done as well with good investments. If I were to move again, I would rent. If you want to buy -- fine -- but if you don't, don't feel compelled to.
3. Save, save, save. You never know what you might want/need that money for later. I have always been a saver and it has paid off for me. I put myself through grad school with minimal student loans (that I paid off very quickly) -- and going to graduate school has opened up a whole new range of career possibilities for me (with better pay and better working conditions). You may not think you want to go to grad school now ... but you might want to further your career in 10 years. Start saving for it now so that the money will be there. If you never want to go back to school, you can use that money for other things.
4. The need to save big time for retirement is real. So many of my friends have saved so little that they are frightened. They see/feel their bodies get old and know they can't go on working as a staff nurse forever. But they never went to grad school and aren't qualified for better-paying, less-physical jobs. And they never saved much for retirement and can't afford to stop working. It's sad. I have saved enough money now, at 60, to retire if I needed to and were willing to lead a very modest lifestyle. But I don't want to be on my own for health care insurance and I would rather have some luxuries in retirement. So I hope to stay in the workforce until 65, when Medicare will kick in. By then, I should have over 1.5 million in my retirement funds and be able to live quite comfortably on the income + Social Security. I should even be able to leave some money to my nieces and nephews when I die. It feels good to know that I have saved well and don't have to be afraid of retiring -- whenever I want to.
5. Finally, for the record .... I make $43 per hour (no overtime) and contribute the maximum amount allowed to my retirement (a little over $1600 per month). My take-home is about $3400 per month after taxes, insurance, etc. is taken out.
Well, "Don't Ask Me Why" but me thinks the OP thinks she is a "Big Shot", going to make "Easy Money", well she is a "Modern Woman", almost "Shameless". No one can "Tell Her About It". "This Is The Time" she should be "Movin' Out" of her parents house. "And So ItGoes". After all, I have been a nurse "For The Longest Time", almost "All My Life". But hey, "We Didn't Start The Fire". OP, no "Pressure", just "Keeping The Faith". Well, "You're Only Human". "Sometimes A Fantasy" or "A River Of Dreams" is all you've got.
I read through some of the comments and OP was given great advice. I especially agree that after OP actually receives a full two weeks paycheck and sees how much money they take home, you will get a sense of what is left when student loans and other bills split with your mom has been deducted.
Everyone keeps saying I should move out of my mom's house, but why?? It's not like I'll be there for free. We're splitting everything 50/50. Lol we'll basically be roommates.
So you can be an independent, functioning adult. You can't live with your mom forever.
Have you heard of Dave Ramsey? Check out the link there I put over his name. He teaches sound financial advice. Save a $1000 emergency fund, then start paying off debt. At that rate you'll have your student loan paid off soon. Do the max that your work will match on retirement (i.e. 3% or whatever). Then, start investing more for retirement. When the debt is paid off, though, you can start living more freely...he has it all planned out in his book. It has great words to live by, and you could be debt free in a year or so, by the sound of it! Wow! You're in a great position! WTG!
Farawyn
12,646 Posts
I'll give it to you, Conquerer. :)