I've just received my signing bonus from the company I'm going to work for once I graduate (damn it feels good to say I have a job). While I'm definitely gonna set some of it aside for down payment of apt, new furnitures etc, I was wondering what some of you guys done with the rest. I'm definitely getting a laptop (being wanting one for years) but as far as the other stuff, I don't know. probably put about a 1k aside so I have a nice stash of emergency money when I need it. But like I've said, some information on what you guys doen with your signing bonus would be great.
It always feels good to get some money in your pocket. I'm only a couple of years out of college myself and have been working at a great job. Here is some advice: Save as much money as you possibly can. Question every purchase you make. Do I really need this? Will this really bring me joy? I'm not saying never have fun with your money. Just make sure you will truly enjoy what you are spending it on. My wife and I have been very fortunate and have been able to save HALF of what we make after taxes. We already have a sizeable nest egg and emergency fund and own half the equity in our house. Anybody with a good job (sounds like you have one if you are getting a signing bonus) can save money if they make the right choices. That being said...make sure you get some decent furniture (check out the dump and only shop for furniture on the weekends during sales). Don't spend just to spend. Monthly fees and bills ADD up. Remember that when the cable company tells you its only $5 more for this, or $3 more for that. Make sure you will use all your services and subscription to their fullest if you are going to buy them...if not...cancel them. Tips: 1. Pay yourself first (right off of Dr Phill). Save money first, then pay your living expenses. 2. Avoid "bad" debt. Not all debt is bad (mortage, ect.), but credit cards are. Pay them off in full every month. If you can't, chop them up. 3. Don't buy a new car right off the bat. New cars lose value more than anything else. Do with what you have now for as long as possible, or buy a decent used car. 4. Think about buying a home rather than renting. Often times a decent home can be purchased for not too much more than renting a decent apartment (but don't get in over your head). You will earn equity, you will get a tax break on interest expenses, and your home may appreciate in value, often faster than your interest expenses. You will pay property tax..probably around $3000 per 100,000 of appraised value, but you pay property tax on apartments too, its just hidden in your rent. 5. Don't rack up monthly expenses you can't afford. Track them all. Watch for cycles. Your electric bill will be almost twice as much in the summer than in the winter, ect. Count on those expenses. 6. Don't eat out that much, especially at lunch. Eating out lunch everyday can cost $5-10 a day...$25-50 a week. It adds up. 7. Save some more. 8. When you get a raise, continue to live like you currently do...Save your raise! 9. Invest properly and for the long term. Conservative, safe, tax efficient investments that are well rounded and diversified will pay off BIG in the long run. We've all had that finance class in college, we should all know Time Value of Money. Even a safe 6-8% a year on our investments adds up huge over the long run...and every Dollar you save NOW is worth much more than every dollar you save 10 years from now. 10. Enjoy yourself. Your out of college, have a good job, making more than all of your friends...after you've saved, paid your bills, hold some money every month to have fun with. Go to a nice dinner, buy a DVD or too, take a weekend trip, ect.
Totally agree with most of what you said. I grew up poor and then became a college student just as my family's financial situations better so I know how to save. I don't really see my self spending more then 3 - 400 a month on food and other recreation expenses. + about 600 - 700 for a place to stay and about 500 a month to pay off loans ASAP. That Evena after tax, that should still leave me with over a grand to save/invest a month. My goal is to retire at 50 while being financially secure enough, but hey, we all know how things can just screw up for no reason. My 97 4 runner has plenty left in the tank according to our mechanic (no major operations for atleast 5 years) so I wont buy a new car. Will definitely look into getting a home and renting out the extra rooms, but the risks of possible sue/legal happy roomates makes me want to second guess that. I still have a semester to go, gotta continue working hard in school (damn last semester and no senioritist) so when they decide I'm good enough to invest my grad school education, I can get in. This is still so cool, the first real check I've earned.
I remember when I got my signing bonus when I graduated Rice. My first big purchase was the Laz-y-boy Oasis. It's a leather rocker-recliner with a built in 10 motor massage and heat. Under the left armrest is a fully functional refrigerator with a capacity of 6 beers. This has been one of the best purchases of my life. During football season, using the bathroom is the only reason I have to get up out of the chair all day. It's an incredible asset to my home.
I remember using my first part time job pay check to take my parents out for a nice diner, and I suggest you do the same too.
Definitely, I love my parents and I don't think I showed them enough of that lately (we are all stuborn and had an stupid argument right before I came back to Austin). They say they want to take me and my brother to Europe for a week before we really get away and have a family of our own so I'm probably gonna pick up the tab in most of the dinners when we do go to Europe.
When I graduated college, I used my hefty signing bonus to furnish my entire apartment (including electronics, furniture, etc.)
Yeah, I went to IKEA to look at the furnitures and I'm was like, damn that's a lotta money (in living color refrence if anybody remembers) .
1. Take your parents and family out to dinner and thank them. 2. Get your parents a gift and they'll love you. 3. Pay off any credit card debt immediately. 4. Put money into an IRA ASAP. 5. Get ready to live whereever your job is (get the apartment, basic furniture). 6. Take a couple hundred bucks and do something nice for yourself.
Yeah, well I'm gonna build my own lunar space lander! With blackjack aaaaannd Hookers! Actually, forget the space lander, and the blackjack.
