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 OR, Nursing Professional Development.
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.
This exact attitude is why so many baby boomers and those of the younger generations won't be able to retire when eligible for Medicare and/or Social Security. It's what gets saved during the younger years that helps generate the interest that gets compounded on top of additional contributions that make the difference between retiring comfortable or being forced to keep working just to make ends meet.
24 is not too early. The years go by fast. We are discussing saving in general, not only retirement planning. You never know what the future will bring.
I started planning early and I've always enjoyed the freedom of knowing that I can quit my job or get fired and still pay all my expenses for a year.
How long do you plan to work full time? Saving consistently at a young age allows the savings to grow.
Money is not everything, but there are more options for those who have financial freedom.
This exact attitude is why so many baby boomers and those of the younger generations won't be able to retire when eligible for Medicare and/or Social Security. It's what gets saved during the younger years that helps generate the interest that gets compounded on top of additional contributions that make the difference between retiring comfortable or being forced to keep working just to make ends meet.
I understand what you're saying but the reason I gave this advice is because I think telling a 24 yr old who has not yet started her very first real job that she needs get on with "saving for retirement" is unrealistic. I remember being 24 and if somebody had said to me at her age "to save for retirement" I would've rolled my eyes and ignored everything else they said. I wanted to be more realistic so she would actually hear what I am saying. Also, I think that the fact that she knows who Dave Ramsey is, took the time to look at a financial calendar, only has @ 25K in debt, and took the time to email us.....shows that she's more mature than many 24 yr olds that I have precepted.
Signed;
someone who paid for college by herself, had 3 jobs while in college, lived on her own since 17, uses YNAB and is saving for her retirement...and yet still had some fun at 24.
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.
Okay, do you date?
Your relationship with your mother is not the same as a room mate. A room mate didn't birth you, change your diapers, teach you to walk and talk, drop you off at school, and yell at you to do your homework.
My mom and I hate each other if we spend too much time together any time since I've been 18. A little separation and the love is strong.
I understand what you're saying but the reason I gave this advice is because I think telling a 24 yr old who has not yet started her very first real job that she needs get on with "saving for retirement" is unrealistic. I remember being 24 and if somebody had said to me at her age "to save for retirement" I would've rolled my eyes and ignored everything else they said.
But she, being very mature for her age, has NOT rolled her eyes at the advice to save for retirement.
I don't think she should give up her youth in order to live large as a retiree, but she has gotten VERY good advice as to contributing to her retirement fund, especially if her employer matches. Waiting until later will NOT get her where she probably wants to be when she decides to call it quits in nursing.
A lot of the nurses who are living hand to mouth in their older years are there PRECISELY because they didn't plan for retirement when they were young!
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.
Just my .02.
Keep up the good work.
Thanks for your comment. I guess I should have thrown in there that I have decided to only live with my mom for a year after graduation. This gives me ample time to set aside a 6-8 month fund. She doesn't want me to move out ever, but uhhh... I love you mom, but I want my own space eventually. Lol now I see why people were having that knee-jerk reaction to my comment about living with mom. Lol. I'll only be there for a year. Maybe less.
Yes, you have a very good points. That is what I think of when I see nurses a decade older than me still job hopping.....that they'll never be able to retire.
...but because I'm playing devil's advocate, I would still tell my dtrs if they were in this situation my original advice.
I learn a lot of good things, and bad things, from my coworkers. Some of them chose "project" husbands in their early twenties. Then they ended up old, broke and working hand to mouth from a lifetime of bad choices - not primarily because they didnt plan well enough for retirement - hence my advice about reading the "boundaries" related books. In my case, I have a child with special needs. Not "all encompassing" ones, but special needs nonetheless. Add the recession to having a child with special needs and that throws off your whole retirement plan!
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 :-)
* This almost made me feel really emotional because I love my mom so much. We have been through everything together and she is my favorite person in the whole wide world. I want to take care of her the way she took care of me and I don't want her living alone, but I also want my independence and to live as a 24 year old. We have an incredible relationship and she is my queen. Sometimes I hope The good lord takes me before he takes her because I may just have to be buried with her if she leaves. I know this is really dramatic, but you are right. I do need to cut the cord. Lol financially I won't be depending on her, and I'llfinally be able to spoil her with nice stuff that she deserves, but emotionally it's tough thinking about her living alone
Thanks for your comment. I guess I should have thrown in there that I have decided to only live with my mom for a year after graduation. This gives me ample time to set aside a 6-8 month fund. She doesn't want me to move out ever, but uhhh... I love you mom, but I want my own space eventually. Lol now I see why people were having that knee-jerk reaction to my comment about living with mom. Lol. I'll only be there for a year. Maybe less.
No, I get it. My younger daughter and I are VERY close (though my older D and I love each other very much, she is just by nature very independent and private). So I have to make sure that I don't hold her back in order to feel needed and validated. I think the ideal thing would be for D2 to move back to my city, fairly close to us, but definitely in her own space!
I really don't see anything wrong AT all with your current living arrangements, your interest in planning for your financial future, etc.
You are awesome! A little overly optimistic about how far your paycheck will go, but all in all, I'm very impressed with you.
No, I get it. My younger daughter and I are VERY close (though my older D and I love each other very much, she is just by nature very independent and private). So I have to make sure that I don't hold her back in order to feel needed and validated. I think the ideal thing would be for D2 to move back to my city, fairly close to us, but definitely in her own space!
I really don't see anything wrong AT all with your current living arrangements, your interest in planning for your financial future, etc.
You are awesome! A little overly optimistic about how far your paycheck will go, but all in all, I'm very impressed with you.
Lol yeah thanks to everyone's input, I realize that I probably won't be bringing home as much as I thought, but when I signed that offer contract that said $30.50 and hour, I got dollar signs in my eyes like the characters do in cartoons. Lol I most likely won't be bringing home as much as I anticipated, but I definitely will be bringing home more than I need. I think the advice about funding my retirement was invaluable. I come from a rather impoverished, rather uneducated family and every person I have ever known in my family essentially worked until they were disable or dead and the check from the government is never enough to make ends meet. I want to look forward and be excited and optimistic about every season/decade in my life. As soon as I begin working, retirement funding will be a priority.
So you can be an independent, functioning adult. You can't live with your mom forever.
Why not? It is perfectly acceptable and even expected for multiple generations to live under the same roof. I plan to do the same with my mother (she is very excited about watching her future grandbabies!).
This is a wonderful opportunity for you! By all means, YES, YES, YES, pay off your student loans and begin to invest in your company's 401K/ROTH IRA. If you want to save up for a new car, go for it.
The fact that you seem to know your own limits and exercise discipline in your wants vs needs vs desires IS A GREAT SELF-ASSESSMENT! If you know you are not ready to become a homeowner, then DON'T DO IT, no matter what your family or friends say.
Save, pay off debt as quickly as you can, give to your special causes, and spend wisely. Happy growing up!
Rose_Queen, BSN, MSN, RN
6 Articles; 12,057 Posts
This exact attitude is why so many baby boomers and those of the younger generations won't be able to retire when eligible for Medicare and/or Social Security. It's what gets saved during the younger years that helps generate the interest that gets compounded on top of additional contributions that make the difference between retiring comfortable or being forced to keep working just to make ends meet.