Young professionals need financial advice what do we do with money

posted 1 week ago in The Lounge
Post # 2
Member
5720 posts
Bee Keeper
  • Wedding: July 2018

Honestly I would totally ignore the “predicted” salaries and work with what you have right now.  There is no guarantee your fiance will earn that much next year, and the same for you.

How much do you actually earn right now? The expenses you listed total $2783 – is that actually accurate or do you actually spend more when you look at your statement? 

Post # 3
Member
13678 posts
Honey Beekeeper
  • Wedding: November 1999

How on earth do you spend $480 a month on gas? 

Don’t make any financial decisions on money you think you might take in. If you end up in the situation you described (which, honestly, to me seems unlikely), go see a financial planner to get real advice from someone who can see all of your assets/liabilities and help you make a solid plan for your future. 

 

Post # 4
Member
168 posts
Blushing bee
  • Wedding: December 1969 - Montsalvat, Victoria

Hi OP, my husband and I are also young/graduate professionals. I recommend buying shares in your company (if that’s on offer). I work at a Fortune 500 firm and their share buyback program gives me a 30% discount so I contribute a portion of my salary immediately to this. The other thing I think you should look at doing is paying down your student debt to avoid accruing further interest. I don’t know what’s it’s like working on commission, but if your partner is getting any additional bonus’ I’d be using that to pay down your loans/outstanding debt quicker. Lastly agree with pp, wise to just work with what you are genuinely bringing in each month first. Once you’ve got a handle on this figure, I’d then work out what your additional monthly capital is and put that into various saving mechanisms. 

Post # 5
Member
118 posts
Blushing bee
  • Wedding: November 2019

winry12 :  Dave Ramsey’s Financial Peace University.

it has completely changed my life and way of spending/ getting out of divorce debt. The number 1 reason for divorce is money, rich or poor. I wish y’all the best 🙂

Post # 6
Member
118 posts
Blushing bee
  • Wedding: November 2019

JiminyCricket :  I have to commute and travel (agency/ hospice nurse here) and I’ve spent up to $600 with gas and tolls. It’s possible 

Post # 10
Member
118 posts
Blushing bee
  • Wedding: November 2019

winry12 :  No problem – Dave’s baby steps lay out exactly what to do with it no matter the income. He makes it so simple. He’s all over YouTube, Pinterest lol – very accessible. I really hope it helps!

Post # 11
Member
13678 posts
Honey Beekeeper
  • Wedding: November 1999

winry12 :  I’m surprised he can’t expense that to the company. At the very least, he should be documenting the mileage for tax purposes. 

Post # 14
Member
994 posts
Busy bee
  • Wedding: August 2019 - City, State

Another vote for Dave Ramsey. We’ve been “-ish”ing for the past few years and are doing very well. 

Post # 15
Member
13678 posts
Honey Beekeeper
  • Wedding: November 1999

winry12 :  Makes sense. As an independent contractor, he’s going to have different financial obligations to take care of than a standard employee of a company. Make sure he’s saving the appropriate amount of money to pay his taxes! If they are not  being deducted from a paycheck, he is responsible for paying the IRS directly, and I think the requirement is that this is done quarterly.   You will also need to figure out health insurance and other benefits – since he is likely not offered these benefits as an independent contractor. Taking in 120,000 a year might be great – but he’s liable for the tax payments on top of that.

All of this to say — I stand by my previous advice to get a financial planner. If he is truly an independent contractor (in the legal sense of the phrase), he should sit down with a CPA focused on small business taxes and make sure everything is going by teh book. 

(I’m not a CPA and I do not focus on tax, but I work at a Big 4 Accounting Firm)

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