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What should a fresh college grad making 70k a year do with all that money?
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GasX
Lifer
I thin for most of ATOT, if they were in the OP's position, they would be walking around in this t-shirt
I wouldn't go overboard and start buying stuff left and right. I would live basically how I do now, off about $15k/year, maybe a couple things thrown in that I've been wanting for awhile. I see you're going to get a new car, that's why I say this because you're already thinking of things to buy. As long as it stops at the car you should be fine.
Making $70k/year isn't going to help you in the long run if you change your standard of living to $70k/year as well. The more you save, the earlier you can retire.
Making $70k/year isn't going to help you in the long run if you change your standard of living to $70k/year as well. The more you save, the earlier you can retire.
iversonyin
Diamond Member
Real Estate most definitely....you will gain passive income without getting hit with a 20% tax
buy as much land as possible using leverage. rent them out to support the mortgage
also, 70K after tax is going to be around 55k disposable income
take away food and shelter and life insurance....you should have enough to invest in real estate....looking at you already hav mutual fund, you kno whow to handle your business....just be creative
buy as much land as possible using leverage. rent them out to support the mortgage
also, 70K after tax is going to be around 55k disposable income
take away food and shelter and life insurance....you should have enough to invest in real estate....looking at you already hav mutual fund, you kno whow to handle your business....just be creative
KingNothing
Diamond Member
At this company...they would. The only people working there with a bachelors (other than the janitors, secretaries, etc) are the ones working toward their graduate degree. Not that I'll stay at this company forever, but a masters degree is good in a lot of ways.
iwantanewcomputer
Diamond Member
invest in some index funds at vanguard cause the market is pretty low now. probably better returns than ing
mitaiwan82
Platinum Member
congrats...I'd invest that money you don't spend on the car/monthly expenses
Ok, some serious answers becuase I was in a similar state a few years back when I graduated from college. (and these are some of the things I wish I had done - I did, but a few years later)
1) Take at least 2-4 months to figure things out. If possible, try to find yourself a month-to-month rental when you first move. You need at least 2 months to scope out an area and figure out where you want to live.
2) Buy a good car (not a 95 geo prism 🙂 but nothing crazy. Buy a used 02-03 and get a good deal on it. (try for around $12,000-$18,000, give or take) Pick something you'll be happy with and reliable for 5 years. Finance it over 5 years, but pay off more when it makes sense and you are able to. (every couple months send them a $1000 check) Don't put more than a couple thousand $ down on the car. The cash is more important if you decide to buy a place - and you want to keep your other monthly payments low so that the mortgage approval is easier. (if that is the route you want to go)
3) Save up for a down payment on a house immediately. SAVE CASH. If you have $8k in the bank you want to keep adding to that. Save even if you aren't sure if you want to do it - if you change your mind later, you can always spend that money. If you don't have the money and you decide you want to buy, you're screwed.
4) Start investigating the real estate market immediately. Ask co workers and local Real Estate agents about prices and areas that are appreciating. You may find that you're not so crazy about the job, the area, etc, so don't jump at anything too quickly. Make an informed decision about what you buy and look at it as an investment, but also as somewhere you would like to live.
5) For things you need to buy (like furniture) don't be afraid of 0% finance deals. Remember you will get a sweet tax refund in January after you have worked 6 months (and paying tax on a 70k salary). Take that $3000 or so and pay off whatever you financed or apply to house down payment.
Don't think you HAVE to buy a house, but if the market in that area is priced reasonably and/or is showing signs of appreciation, it is probably the smartest thing you can do. Or obviously a townhouse etc, and if you're the kind of guy that doesn't mind, a roommate will go a long way towards paying that bill.
Sounds like you're in a great situation. Do the above things first and do them right and after 6-12 months you will have PLENTY of cash to blow on having fun. Don't get me wrong - I'm all about having fun. But if you can prioritize doing just a few responsible things ahead of time, you can buy yourself a lot of freedom later.
PS: One last thing - you didn't mention how your credit was - if you have little, you definitely want to start working on that as soon as you can, even if it means borrowing money on things you can easily pay for. A good credit history will make your life easier in a number of ways.
PPS: I am in no way advocating living like a miser. You got a good job, you're making good money, enjoy it. Just don't blow it.
1) Take at least 2-4 months to figure things out. If possible, try to find yourself a month-to-month rental when you first move. You need at least 2 months to scope out an area and figure out where you want to live.
2) Buy a good car (not a 95 geo prism 🙂 but nothing crazy. Buy a used 02-03 and get a good deal on it. (try for around $12,000-$18,000, give or take) Pick something you'll be happy with and reliable for 5 years. Finance it over 5 years, but pay off more when it makes sense and you are able to. (every couple months send them a $1000 check) Don't put more than a couple thousand $ down on the car. The cash is more important if you decide to buy a place - and you want to keep your other monthly payments low so that the mortgage approval is easier. (if that is the route you want to go)
3) Save up for a down payment on a house immediately. SAVE CASH. If you have $8k in the bank you want to keep adding to that. Save even if you aren't sure if you want to do it - if you change your mind later, you can always spend that money. If you don't have the money and you decide you want to buy, you're screwed.
4) Start investigating the real estate market immediately. Ask co workers and local Real Estate agents about prices and areas that are appreciating. You may find that you're not so crazy about the job, the area, etc, so don't jump at anything too quickly. Make an informed decision about what you buy and look at it as an investment, but also as somewhere you would like to live.
5) For things you need to buy (like furniture) don't be afraid of 0% finance deals. Remember you will get a sweet tax refund in January after you have worked 6 months (and paying tax on a 70k salary). Take that $3000 or so and pay off whatever you financed or apply to house down payment.
Don't think you HAVE to buy a house, but if the market in that area is priced reasonably and/or is showing signs of appreciation, it is probably the smartest thing you can do. Or obviously a townhouse etc, and if you're the kind of guy that doesn't mind, a roommate will go a long way towards paying that bill.
Sounds like you're in a great situation. Do the above things first and do them right and after 6-12 months you will have PLENTY of cash to blow on having fun. Don't get me wrong - I'm all about having fun. But if you can prioritize doing just a few responsible things ahead of time, you can buy yourself a lot of freedom later.
PS: One last thing - you didn't mention how your credit was - if you have little, you definitely want to start working on that as soon as you can, even if it means borrowing money on things you can easily pay for. A good credit history will make your life easier in a number of ways.
PPS: I am in no way advocating living like a miser. You got a good job, you're making good money, enjoy it. Just don't blow it.
Tremulant
Diamond Member
I'd buy some stuff that's pre-construction and hold onto until the rest of the houses/condos in the community sold and prices were going up. Then I'd sell it. Make some easy money. Then again, I don't know how the market is in NM. Could be very different than South Florida.
My dad just bought a condo a few months ago for $20,000 down.. it's still being built, but he could sell it today and make $50,000. He's gonna wait a bit though, and then find another place and do it again.
My dad just bought a condo a few months ago for $20,000 down.. it's still being built, but he could sell it today and make $50,000. He's gonna wait a bit though, and then find another place and do it again.
do you work for sandia labs? thats the only place i can even think of that would make you move to new mexico.
i've been out of college almost 2 years and make well almost 60k. i live in los angeles. i'd say just save the money. if you dont know what to do with it, its always good to have cash. if the stock market drops a lot, use your cash to buy it. liquidity is always good.
course i've had my job for about 5 months now. you m ay want to do the initial insane spending just to get it out of your system. i went and bought a new car and a 42" tv. and some new clothes. but im back to being a cheap ass now. haha. but yeah, save . liquidity. real estate in new mexico is likely not as good as it is in los angeles, so if you dont know, just pile upt th emoney put it in a 401k, roth ira, mutual funds, stocks if you know what you are doing etc.
i've been out of college almost 2 years and make well almost 60k. i live in los angeles. i'd say just save the money. if you dont know what to do with it, its always good to have cash. if the stock market drops a lot, use your cash to buy it. liquidity is always good.
course i've had my job for about 5 months now. you m ay want to do the initial insane spending just to get it out of your system. i went and bought a new car and a 42" tv. and some new clothes. but im back to being a cheap ass now. haha. but yeah, save . liquidity. real estate in new mexico is likely not as good as it is in los angeles, so if you dont know, just pile upt th emoney put it in a 401k, roth ira, mutual funds, stocks if you know what you are doing etc.
gourmettea
Senior member
They are building a shyt load of new homes near the military base out there. My friend just bought one ~115K with only 5% down.....he rents it out to the military families...that'll cover your mortgage....when you're ready in 5 years to move...you'll sell those for +50K to double ....
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