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.
It's highly likely that your disposable income will be far less than you think.
That said, as Texas residents, we can be grateful that we don't have state income tax on top of federal.
You've gotten great advice here. Even a couple of years down the line, I would not pay cash for a car if that was going to take the lion's share of my money. Maybe if you buy a reasonably priced used car, that would work, but not a brand new expensive one. Have as much cushion as you possibly have. You never know when the rainy day will make its appearance.
Congrats. I had my job lined up before graduation as well. Made my NCLEX seem a little "bigger" as a result, but I passed.
You guys are offering incredible advice. I really appreciate the time you all took to give me positive words and such great advice. I have a question: as far as insurance is concerned, I am a young, fit and very active female with no preexisting conditions. Do I need an extensive health care plan or do I just need a bare bones package? Does it even work like that? Thanks!
No, it doesn't work like that. Your employer will have a contract with 1 or a few major insurers. They'll work with the insurer to decide what is covered, with what copays and deductibles, making sure they're staying within the Affordable Care Act's rules. Then your insurer will pay a percentage of the premium and you'll pay a smaller percentage. And you'll be covered. And so will the obese 60 year old smoker with an extensive family and personal history of heart disease, diabetes, and cancer. It's pooled risk. And if you are out on a bike ride and get hit by a car and need a 50 day inpatient stay with 10 of those days in ICU, followed by 3 months at rehab, then a year of outpatient PT, OT, and Lyrica prescriptions, along with Ortho and Neuro follow ups- you'll also be covered.
Specializes in OR, Nursing Professional Development.
I'm with many other posters who stated your take home "large disposable income" is going to be smaller than you expect. I was there; I learned. However, if you do have the extra money, put it into paying of the loans, and start with the highest interest rate one first. That's against what Dave Ramsey says, but I disagree with his philosophy of paying off the smallest balance first- yes, it leads to emotional satisfaction, but that means those with higher interest rates are going to cost you more money in the long run. That's why I'm targeting my grad school loans first- at 6.8%, they are far and above my car loan at 2.4%. The tax deduction isn't worth the extra interest paid. Definitely get an emergency fund saved up, definitely contribute to your 401(k), definitely pay off the loans.
I have a feeling you won't be taking home as much pay as you think. I make over 7k a month before taxes. After taxes take a big chunk out of my pay, then health insurance, then retirement, then flexible spending account (why not take money out I know I will use and lower my tax burden), etc. I take home literally half of what I truly make. Then I have to pay student loans which even doing the 25 year plan takes a huge chunk of my "discretionary" income.
At times I look at what I make and what I could earn if I lived off the system and think "why the hell did I invest 10 years of my life into getting an education?"
If I had a bunch of extra money, I'd buy a Tesla. No gas. No oil changes. And no further depleting the ozone layer. Then I would save up for solar panels for my house so I could charge it for free too. This is my goal after my student loans are paid for and the solar panels after my mortgage is done. Hoping my current car can hold out awhile.
You guys are offering incredible advice. I really appreciate the time you all took to give me positive words and such great advice. I have a question: as far as insurance is concerned, I am a young, fit and very active female with no preexisting conditions. Do I need an extensive health care plan or do I just need a bare bones package? Does it even work like that? Thanks!
I'm young and healthy too. And then I had to have surgery and was glad I had paid for the insurance plan I had. It depends on what you want and what your employer offers. Health insurance is expensive!
You guys are offering incredible advice. I really appreciate the time you all took to give me positive words and such great advice. I have a question: as far as insurance is concerned, I am a young, fit and very active female with no preexisting conditions. Do I need an extensive health care plan or do I just need a bare bones package? Does it even work like that? Thanks!
That all depends. If you plan of getting insurance through your employer, and you should as that is without a doubt the least expensive way to go you will be locked in the choices your employer offers. Most do offer at least a few levels of coverage and the least expensive in premiums will be the most expensive in out of pocket costs. This is probably an OK gamble to take given your age and general good health. Just be aware of the gamble and be prepared for those high out of pocket expenses should something happen.
Most people don't expect to become ill. Take the comprehensive health package just in case. Otherwise, you could find your savings unexpectedly depleted.
Travel while you're young. I'm very happy that I did. I have wonderful memories. I'm content to be home now and save. However, even at a young age, I realized that saving was essential.
When I was 24, I opened a retirement account. Since then, I've taken funds out for school, emergencies and home ownership but at least I had the funds to use.
Mavrick, BSN, RN
1,578 Posts
And here I thought she was an Athlete 2b.