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.
Specializes in Gerontology, Case Management, Pediatrics.
Talk to a financial person. When I was in high school, nursing school, and first working, no one talked about pensions, 401ks, etc. Back in my early days of working, everyone assumed nurses were going to marry doctors (lol), so no one offered pensions. If I had started in my 20s, putting money into an IRA, I would have a hefty retirement plan by now. As it is, I finally have a pension-but only in the last 15 years. My plan is to work as long as my health is good to make up for my inept money management. Paying off student loans is important, but so is putting money away now. Ask if employees where you work have access to financial advice. If one of your parents served in the military, you might be eligible to participate in USAA. They give great financial advice.
If you can afford it, sink as much as you can into your retirement fund. You make the real money from the compound interest paid over the years more than the gross dollars sunk in late in the game. If your employer offers a 401k, take advantage of it.
I was able to retire at 55 and move to the beach. And let me warn you: the years go by FAST. Good intentions combined with poor performance equals eating cat food in your old age. Do what you can afford now to enjoy your later years without having to worry.
That $1000 a month starting now would equal well over a million dollars to live on at retirement.
Pay off all loans 1st that are high interest...then start investing 20% of your income. EVERY MONTH. Do it for 20-25 years and you will be wealthy beyond your wildest dreams if you are diligent about it......don't buy things on credit. Don't buy new cars, buy 1-2 year old cars with good reliability ratings. Don't buy time shares. Email me if I can help you out with some advise.........good luck...
Save save save! When you're my age (32) with a mortgage and a two year old that needs daycare in the city, $30/hr will fell like just a chunk of change.
Athlete2bNurseBSN - I love your enthusiasm and desire to plan. I read the first few pages of posts. My advice is to "settle in" with your budget and income before making big decisions. You might want not to make too many decisions the first few months other than to max out your retirement (obviously just my opinion). And you should have an emergency fund. I would hate for you to use all your disposable income to accelerate loan payments and then be in a bind in the event of a financial emergency. I have confidence you will pass the boards if you are planning and anticipating the same way with the boards as you are for your financial future. Minnesota Betty
One more thing: Read what you can about money. Be careful about taking advice solely from one off the financial darlings in the media. From what I have seen, they give some great advice and some not-so-great advice, but they do provide nice enthusiasm about making smart financial decisions. When I was starting out, I read things like "Money" magazine. It covers a wide range of topics. Just keep at it. Good luck on your boards!
Thanks so much for taking the time to comment guys. You all offer great advice! I have a steep learning curve ahead of me, but I'm up for the challenge. I love the advice about getting "settled into" my finances first before making any huge purchases. Thank yall for your wisdom.
Pay off your student loans is a big one and set aside for retirement.
My personal advice (based on how I feel about life, lol) is to also move out and get your own apartment. Also travel. And don't be afraid to do nice things for yourself. For example, I love theater/Broadway, so I got myself a season ticket package to the performing arts center.
I think it's fine that you are living with your Mom while you get on your feet financially. But I do think it might be a good thing for you to set a time limit for this. You know, I'm going to save like crazy for x amount of time, then I'm going to move out. It's good to be close to your mother, even very close, but you do need to develop some independence from loving parents. I say that as a mom of two college daughters. It's not good to be overly dependent on one's parents. You can still love them very much and see them very much, but have your own space to go home to.
I think some are forgetting that you are 24. I love that you are aware of Dave Ramsey, but you're only 24 once, so thinking about retirement at 24 is nuts to me. Since you asked, I think you should work on finding a roommate @ your age & income level and then move in with them and split expenses like you are with your mom. There are a MILLION good things that come from living on your own. You're too old to be living with mom - it made perfect sense when you were in school, my dtrs will probably have to do the same, but as soon as you pass boards and start getting a paycheck figure out your true expenses and what kind of rent you can afford. Then get some "good enough" furniture together from Craigslist and move in with someone and truly be independent. If this is hard for you to consider, or your mom freaks, read books like "Boundaries" by Cloud & Townsend because that's what you are working to establish. Learning boundaries is a life skill that I wish I had had at your age; caretakers are notorious for having poor boundaries. It will help you be a much better nurse, too. It's easier to learn about boundaries now then learning them the hard way (like I did). Then pay off that loan as soon as you can - consider doing an online budgeting program like YNAB. Give yourself a goal for when you'll get your school loan paid off and then give yourself some extra money in the budget to blow on things like cute clothes or a long-awaited trip somewhere...because you're 24! If you're good with money you wont go nuts, but IF you want to get married and/or have kids someday this may be the only time you can realistically afford to go to Europe (or on some other trip you've been fantasizing about).
My parents allowed my brother to live with them until he was 32, and I have many coworkers who are letting their GROWN ADULT kids live with them post-college....because it is really hard in this economy, I get it....but it leaves the kid emotionally stunted and sets them up for a host of other issues. Then their kids have kids and then the grandkids are living there, too....and can never afford to leave. Cut the cord and enjoy being 24 and on your own....it's a really great time in your life. When you leave your mom's place, you'll grow emotionally in dog years. It'll be hard at first, but it's healthy. You wont regret it. Your mom may need to learn this lesson, too. It may take @ 4-5 years to pay off this school loan and by then you'll be 28-29, and hopefully you'll know yourself much better and what you want for your future...and then you can starting thinking about that other stuff like home-buying, getting married, kids, grad school, etc.
Have a little fun, pay off your school loans, find out who you are, get away from mom, make a few mistakes....that's what it means to be 24. It's such a fun and important age. Congrats on getting where you are so far!!!! I'm sure your mom is very proud of you :-)
RNCCMMS, RN
47 Posts
Talk to a financial person. When I was in high school, nursing school, and first working, no one talked about pensions, 401ks, etc. Back in my early days of working, everyone assumed nurses were going to marry doctors (lol), so no one offered pensions. If I had started in my 20s, putting money into an IRA, I would have a hefty retirement plan by now. As it is, I finally have a pension-but only in the last 15 years. My plan is to work as long as my health is good to make up for my inept money management. Paying off student loans is important, but so is putting money away now. Ask if employees where you work have access to financial advice. If one of your parents served in the military, you might be eligible to participate in USAA. They give great financial advice.
Good luck!