Just got offered a job

[Supermercado]

I graduated almost a year ago and I've not gotten a job yet, between bad luck and medical/family circumstances. I had a phone interview with a small web development company about 2 hours from where I live and they said, if I want the job, it's mine.

Seeing how this would be my first real job and the first time I'll truly be on my own, what sorts of things do I need to know and do? As in, roughly how much money should I budget for things, what things I'm going to have to pay for (rent, food, car insurance, utlities, etc.)? What all is involved in renting an apartment? Those sorts of things. What I'm really looking for is any advice, tips, or information that I can get for someone who's moving out of their parents' house on a more permanent basis than off to school.

One thing that I'm most concerned about is how tight money is going to be. I didn't have the best grades in school (just over a 3.0 GPA) and none of my previous work experience was computer-related, so the salary isn't going to be terribly high: roughly $30,000. I know that's enough for a single guy to live on, but for those of you with more experience in this type of thing, how much money is $30,000 really? I haven't figured up what that will be after taxes, so any guesses on that would also be appreciated.

This has gotten long enough, I think. Cliffs notes: just looking for general (or specific) advice on moving out. Thanks.

 

Where is this job located? $30K in San Francisco is a LOT different than $30K in Wichita.

 

[Supermercado]

Oh, right. Sorry. It's in Hilton Head Island, SC. About an hour south of Charleston.

 

Originally posted by: SuperCommando
Oh, right. Sorry. It's in Hilton Head Island, SC. About an hour south of Charleston.

Sounds expensive. In that case, don't make large-percentage contributions to your 401K or other pension plan (AT FIRST...when you start getting more $$, then contribute larger percentages), and when they offer you medical benefits, just take basic medical, and forget about vision, dental, and all that other crap, assuming you're pretty healthy.

Clip coupons, look for food on sale, and bargain to find a cheap apartment. Apartment rent prices are almost never set in stone, so if you can come down $20/month, that's $240/year that you can spend on food/other stuff.

Good luck.

 

[iversonyin]

max ur credit card out right away and start buying thigns that you dont need

 

[Amplifier]

$30,000 is fine as long as you can keep you money balanced properly.

Income: $2,500/month

Less
Taxes/Social Security: $XXX
Car Payments: $XXX
Rent Payments: $XXX
Gas: $XXX
Food: $XXX
Leisure: $XXX
Savings: $XXX

Like Jumpr said, alot of this will depend on where you live. Either way you'll want at least $500 going into your savings each month so keep that in mind.

 

[Passions]

Buy a new car to show off your new success!

Make the ladies drip wet with your Italiano suits and BMW 330!

Be a man and flash your wealth.

Dont be like those frugal fools who penny pinch with their 401K.

You're only young once!

 

[Supermercado]

I've never actually been there, but I think it is more on the expensive side. Lots of tourist-type places and country clubs.

Any guesses on what health insurance might run? I've always been covered under my parents and they don't know what it will cost since my dad gets his insurance from being retired military. Skipping vision and dental makes sense, though. I wear contacts so I'll need a new prescription roughly every year, and I usually go to the dentist twice a year under my parents' coverage, but I think once a year would be workable, and I've never had any major teeth-related issues.

I think I'm pretty good about food. I lived in an off-campus apartment my senior year at school and didn't have a meal plan or anything. I'm thinking that food will cost between $200 and $250/month. I almost always buy store brands and try to stick to the buy one, get one type sales.

Edit: I'd like to buy a few nice new things but I know that's not going to happen. Not right away, at least. I will, however, be needing a new(er) car soon. Mine is 16 years old and has seen much better days. I don't want to have to be relying on a car that might not work.

 

[mitaiwan82]

congrats on the new job! At that pay level, I think you should be get by just fine, but I'm not sure how much money you can save up. You might be able to get some plan at work where you can deduct your medical expenses pre-tax...could save you some money in the long run.

FYI, I get about 70% of my salary back in cash after withholding tax/SS/retirement. Of course yours will vary due to different tax rates and retirement plans.

 

[Amplifier]

Income: $2,500/month

Less
Taxes/Social Security: $700
Car Payments: $350
Car Insurance: $70
Rent Payments: $800
Gas: $150
Food: $250
Leisure: $80
Savings: $500

Assuming you have health insurance. Stay cheap and in two years you'll have a down payment for your first house .

Edit: I'd find a roommate and split rent, that way you'd have more than 80 bucks a month for fun stuff

 

[Patt]

Congrats on the new position ... but seriously, if I were moving to Hilton Head, I've have to budget for a golf membership!

 

[Supermercado]

mitaiwan82: Good idea on the health insurance. I'll ask about it and see what they say.

Amplifier: Yeah, $80 is a bit low and I'd like to put money in savings, if not necessarily $500/month. My plan is to buy a few things here and there (I'm talking mostly cheap things for now, like a new game every few months or so, but looking down the road, I'd like a new TV, home theater, that sort of thing, and that's definitely the more expensive stuff) and then put the rest in savings. I'd say I'm pretty content with toys and gadgets right now so I really don't see myself buying a lot of that type of stuff right away. More the living things that I didn't already have from two years living in an apartment while still in school. I'm lucky in that I've already got a vacuum cleaner, almost everything for a functional kitchen, I think I can take most of the furniture in my bedroom at my parents' house, etc. I won't be sleeping on the floor or living with just one plate and a fork or anything like that. But I am kind of a cheapskate which will probably come in handy when I'm on a strict budget.

Patt: Yeah, golf... I need to learn to play golf. I'm not very good at it. Tried going to the driving range with my brother one time but I had to use my dad's clubs and he's a good three inches shorter than me. Didn't work so well. Living on Hilton Head will pretty much require learning to play golf, though, hehe.

 

[mAdMaLuDaWg]

Ouch, I'd bargain for a slightly higher salary. Pick up the phone and say: "I'm thinking about taking the job but I was expecting $40,000. Could you work with me on that?" If they ask you why tell them that the industry average is about $50k for a new college grad and highlight your skills. They will more than likely meet you half-way. Remember, right now you have leverage on your salary... they want you so it is slightly negotiable.

Believe me, I live by myself in a fairly highpriced area and get by on a salary of around $40k. And it can get tough at times.... granted, I'm still a fulltime college student (so thats about -~$5k/ year after $5k tuition reimbursement from my company). You really have to be stingy with your money... obviously, you won't be able to upgrade your PC every year/by all the games you need etc etc. Control your spending and you should be in a pretty good shape in a couple of years.

 

[astrosfan90]

$30,000 is plenty. I started out making $25k after college and made it work in a VERY expensive area, you'll just have to budget yourself. Spend more time posting here and less time out partying and spending money and you'll do fine. Work your tail off and you'll probably earn yourself a raise or a bonus within a year.

Familiarize yourself with company protocols when you get there, even if they aren't adhered to. It may come in handy down the road.

Also, keep your resume updated at all times. Update it once you know what your duties are at this place, and if they change, update it again. That way, you won't find yourself needing an updated resume three years from now, you won't be trying to remember when you got that raise or promotion.

I can tell you that my biggest expenses for that first year out of college were happy hours. I went out drinking a lot and spent a lot doing so, and it adds up quick. At $4/beer, a night of drinking can easily turn into $70 if you factor in dinner and a cab home. When your cash for the month after rent is $800, that's a bundle of money, so watch that.

 

[jadinolf]

Originally posted by: iversonyin
max ur credit card out right away and start buying thigns that you dont need

Yes, we need more CC threads here.

 

[cerebusPu]

first step is figuring out what you have to work with after taxes...then figure out apartments and rent.

the rest will come easy just figure your normal cost of living in your current area plus a healthy margin.

 

[sygyzy]

Good question. This is not too difficult to figure out. It'd help if you could list your expected bills and deposits. You don't have to be specific. For example: you can lump all your phone, cable, and internet bills into one and just provide an estimate.

Your Pay Check Results

Bi-weekly Gross Pay
$1,153.85
Federal Withholding
$125.58
Social Security
$71.54
Medicare
$16.73
South Carolina
$69.23
----------------
Net Pay
$870.77

$870 x 2 = $1740 a month.

Rent allocation (MAX 25-30% of gross) = ~$625.00 a month

If you can afford to, contribute up to the amount of company matching 401k. Then to Roth, then back to 401k. Though honestly, you won't have this problem.

Then you start paying "yourself" as they say. The amounts vary but usually in chunks of 10%

10% utilities
10% debts (credit card)
10% savings


It's easy and fun. Congrats on being an adult.

Good reading

 

[Landroval]

congrats on your job! good to hear you are planning for the future and not going wild

 

[Zugzwang152]

Originally posted by: Amplifier
Income: $2,500/month

Less
Taxes/Social Security: $700
Car Payments: $350
Car Insurance: $70
Rent Payments: $800
Gas: $150
Food: $250
Leisure: $80
Savings: $500

Assuming you have health insurance. Stay cheap and in two years you'll have a down payment for your first house .

Edit: I'd find a roommate and split rent, that way you'd have more than 80 bucks a month for fun stuff

do you realize that your totals add up to $2900?

 

[cerebusPu]

Im still paying the debt i owed in CC when i graduated college 3 years ago. lol...

 

[sygyzy]

60% rule. GOOD STUFF!

 

[EpsiIon]

Originally posted by: iversonyin
max ur credit card out right away and start buying thigns that you dont need

munny!

 

[kranky]

You're smart to plan instead of just winging it like most people do.

You'll need to fill out a W-4 form that will determine how much Federal tax is withheld from your check. I'd recommend putting down one exemption which ought to be the right number for you.

When you rent an apartment, you're probably going to have to sign a lease that obligates you to rent the place for one year. They might want one month rent as a security deposit. Try to scout around before you sign to make sure you're in the type of neighborhood you want. A roommate isn't a bad idea but remember if things don't work out, the people who sign the lease are the ones responsible for paying, no matter what happens.

Your utilities might want deposits, too, since you may not have sufficient credit history, so plan for that.

Buying the Sunday paper might give you enough grocery coupons to far offset the cost of the paper itself.

Don't go overboard on the car. Try to stick to a three-year loan max and watch your payment. Using syzygy's numbers, you definitely have enough to live on, but not so much that you can squander it.

You said you're kind of a cheapskate, and I think that will work in your favor. Check the local classifieds if you need furniture or other household stuff. You can usually get quality stuff used for cheap and that's better than new junk. Especially watch yourself for the first couple months until you know for sure what your monthly expenses are going to be. Make sure you remember to budget for things that don't come up monthly like car insurance.

Regarding the on-the-job aspects, don't be afraid to work hard. I work with quite a few people your age who want to do the bare minimum. The people who put forth effort move up quickly because the competition is so lame. Don't watch the clock and run out the door every day at 4:30 sharp or whenever you are finished.

Since you're in a small company, probably everything you do will be noticed. Watch what the more senior people do - do they take long lunches or eat at their desks? Do they come in early? Late? Each company has a culture like astrosfan90 mentioned. Try to fit in. That doesn't mean change your entire personality, but if no one at the company goes out to lunch, and you go out every day, you're going to stick out.

I don't know how small or how new the company is, but if they are just getting started be prepared for the possibility that you might not get paid on time every single time. It probably won't ever happen, but if you can't get through the next two weeks without your check, start saving enough to cover it just in case. Small companies somtimes have big fluctuations in cash flow and that might mean small delays in getting paid.

It's nice to have friends you work with, but be careful. Some people will try to befriend you and then use what they know to hurt you at work. It's a shame, but it happens. Especially be careful about dating someone you work with, especially in a small company. If there's a nasty breakup, everyone is going to find out the details and that won't be good.

 

[mugs]

Originally posted by: Amplifier
Income: $2,500/month

Less
Taxes/Social Security: $700
Car Payments: $350
Car Insurance: $70
Rent Payments: $800
Gas: $150
Food: $250
Leisure: $80
Savings: $500

Assuming you have health insurance. Stay cheap and in two years you'll have a down payment for your first house .

Edit: I'd find a roommate and split rent, that way you'd have more than 80 bucks a month for fun stuff

No way he needs a $350 a month car payment, that's a good way to start off on the wrong food.

 

[QuitBanningMe]

Originally posted by: SuperCommando
I've never actually been there, but I think it is more on the expensive side. Lots of tourist-type places and country clubs.

Any guesses on what health insurance might run? I've always been covered under my parents and they don't know what it will cost since my dad gets his insurance from being retired military. Skipping vision and dental makes sense, though. I wear contacts so I'll need a new prescription roughly every year, and I usually go to the dentist twice a year under my parents' coverage, but I think once a year would be workable, and I've never had any major teeth-related issues.

I think I'm pretty good about food. I lived in an off-campus apartment my senior year at school and didn't have a meal plan or anything. I'm thinking that food will cost between $200 and $250/month. I almost always buy store brands and try to stick to the buy one, get one type sales.

Edit: I'd like to buy a few nice new things but I know that's not going to happen. Not right away, at least. I will, however, be needing a new(er) car soon. Mine is 16 years old and has seen much better days. I don't want to have to be relying on a car that might not work.

I'm from there (actually Beaufort). Lived and worked on HH for a couple years. You won't be living in Hilton Head / Bluffton on 30K. It is possible but I couldn't.

Find a place in Beaufort or Ridgeland. Figure ~35-45 minute commute from either depending on which end of the island. More if they decide to fvck with the light at Moss Creek. If you work on the south end the Cross Island Expressway (toll) is your friend.

Ridgeland is small with nothing to do. Beaufort would be my choice.


Like I said it would be possible. Living on HH is awesome.

Rent for the cheapest apartments is 750-900/ month. You will need a deposit and possibly last months rent.

You will need a deposit for electricity and possibly other utilities.

Health insurance is ~ 120/ month or less with higher deductibles.

Car insurance? What car? Full coverage?