I just got a job offer for 45k

kizzmybutt
kizzmybutt

i just got a job offer for 45k.

my rent is $800 a month including everything. $400 student loan payments. food is like $150 a week maybe?

$45k/12 = $3750 - 30% taxes = $2625 - expenses = $825 savings a month.

Should I be investing this into my 401k or an index fund or is there a better way to invest my money? I don't want to end up a loser when I'm 40 and have no money.

also holy shit, i can only save fucking ~$800 a month? this is the fucking burden of being a poor wage slave...

Deadlyinx
Deadlyinx

@kizzmybutt
tak a loan. When close to defaulting, take another loan to finance the first one. Then, buy trumpcoins. You'll thank me later.

Illusionz
Illusionz

@kizzmybutt
aren't you forgetting about some expenses? Electricity, internet, health insurance, cell phone bill, gas, entertainment..

But I understand how you feel. I make $4690 a month after taxes but after all my expenses I have less than $1000 to save. I try to live minimalisticly. but it's difficult when the cheapest rent for the shittiest apartment is over $1500 a month in my area, and the government forces me to buy $300 a month health insurance or pay a penalty.

Garbage Can Lid
Garbage Can Lid

@Illusionz
Yeah, I know what you mean. Making around $3600 but the cheapest places that aren't holes are around the same ($1500). Plus a car note and other expenses suck.

Harmless_Venom
Harmless_Venom

@Illusionz
electricity and gas are included. health insurance is covered by your job right? how much do you have to pay for health insurance?

but yeah the cellphone is another $100.

Sir_Gallonhead
Sir_Gallonhead

Save up an emergency fund of 6 month expenses and put that in a money market account.

Next, open a Roth IRA and max it out 5500.00 with a low fee index fund/ target retirement fund.

Do this for the next 30 years and you can retire semi comfortably.

Spamalot
Spamalot

@Sir_Gallonhead

Contribute to your 401k whatever your company matches.

takes2long
takes2long

@Illusionz
You know that penalty can be easily waived

TurtleCat
TurtleCat

@Spamalot
Contribute to your 401k whatever your company matches.
My company doesn't match but this would be the smartest thing to do.

This is why I live at home. I don't know if our parents earned more relative to inflation or if things were cheaper, but holy shit these days I don't understand how anyone can go from renting to having enough to own in any reasonable amount of time.

Ignoramus
Ignoramus

@Illusionz
he doesn't live in a tent or automobile home

on a serious note, there really must have been better options. Rent cheap like 25 minutes away from work, take mortgage for fixer-upper/usda home for cheapo and ditch that shit later after contracting out to fix it or hold. Or buying a duplex and just having one tenant

Supergrass
Supergrass

@Ignoramus
Good ideas. Wish I'd bought a duplex or triplex when I was looking for houses.

Lunatick
Lunatick

@TurtleCat
Things were cheaper and there were fewer necessary utilities. Cell phones, Internet, hell cable tv barely existed before 1980. That's the equivalent of $300/month right there. Plus, houses were way cheaper relative to income.

Firespawn
Firespawn

@Lunatick
Cell phones, Internet
Yeah I guess the little things do add up. And you cannot be competitive without either of these things.

Fuzzy_Logic
Fuzzy_Logic

@kizzmybutt
Food is $150 a week
Nigga wut? I eat like a KING for $300 a month. Cut that shit down and save $1000 a month, 12k a year

Need_TLC
Need_TLC

35k a year
$2250 a month
$610 rent
$80 utilities
$300 food
$30 internet
$500 student loans
$150 Fun/Eating Out
Expenses: $1670
$500 in my savings per month

Sometimes +$200 per month on gas reimbursement.

I really need a better job. But my apartment is nice, and the cost of living is amazing

likme
likme

@Harmless_Venom
but yeah the cellphone is another $100.

That is an extremely poor expenditure of money. That's $1,200 per year from your net income, which means you'll have to gross $1,600 a year or more to pay for that phone. I'm not sure how you use your phone but it should be difficult to easily live life with a $60/month plan or even one of the really inexpensive plans from Ting. Cable television and high-priced mobile plans are some of the worst ways to waste money as you really have nothing to show for it after the money is gone.

As for saving, you should some savings into the company's 401K immediately. The reason being that every dollar you put into the 401K lowers you AGI (adjusted gross income), which lowers the amount of tax you have to pay.

Also, depending on where you live, you ought to be able to keep more than 70% of your gross. Looking at the 2015 tax tables, a $45,000 wage means you pay $7,050 in income taxes plus the ~7.2% in FICA (Social Security, Medicare) taxes. If you contribute $6,000 to a 401K, you AGI is now $39,000 which means you only pay $5,550 in taxes. That's $1,500 you don't have to pay the IRS right now and you can use it to try to earn dividends and capital gains for your retirement.

Methshot
Methshot

@likme
good shit.

this is exactly the type of advice i was looking for.

StonedTime
StonedTime

@kizzmybutt

45k year
forgets to include wage taxes and income taxes

This isn't nearly as much money as you think it is. At $800 rent and $400 student loans I'll be surprised if you have a single dollar left at the end of the month.

Some common things people forget:
- car maintenance and repairs
- gifts for friends and family on special occasions
- clothes and shoes

Dreamworx
Dreamworx

Just got a sick job making 40k a year bros. Am I ready to support having a kid now?

I'm in florida. Not too expensive like NYC or Cali

Crazy_Nice
Crazy_Nice

@Dreamworx
you could if you and your babby momma are literally dedicated to raising the kid.

unfortuantely this likely never appens so ur kids going to grow up to be a failure.

unless u man the fuck up and be the best father you can be

Sir_Gallonhead
Sir_Gallonhead

@takes2long
How?

idontknow
idontknow

@likme
Republic Wireless (runs on the Sprint network) is $10/mo for unlimited talk and text, and I think $15/GB after that. They reimburse you for any data you didn't use, so if you only use like <0.5GB your bill will end up being less than 15 bucks a month. Next cheapest is Cricket at $35/mo for their basic plan; an extra $240+ per year.

Good points on the taxes and stuff, too.

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