[wj4]

I have a few questions for the folks in their early to mid 20s that just recently graduated college and are now working. How frugal are you with your money? Are you living your short term goals or going for the long term ones?


The reason I'm asking is because I'm about to graduate in about a semester or two. A lot of my friends have already graduated in the last year or two. Like most other newly graduates, they got their first jobs that pay $40-50K. Which is the normal range for a new kid out of college with no experience. We're all around the same age, 22-23.

Their spending habits are pretty excessive. A lot of them are driving cars in the 6 figure range, eating out often at quite expensive places, obviously their short term goals. Some are still at home, and some split an apartment. They say that they have time later on in life to save up money and buy homes and raise a family.

I only have one friend who's thinking in a long term goal. He goes to work like all of them, except he drives a 'whatever' car. He's not a car hobbyist so he sees no point in spending a grotesque amount of money on something that would depreciate so fast. He's just saving up his paychecks for a nice down on a condo or a house.

Obviously everyone has different lifestyle. I just want to know about the folks on here as I can probably relate to you guys better, as we're all car nuts.

As of now, I can not see myself living the lifestyle of my friends'. I'd probably just treat myself to some nice things like a decent Breitling watch after I get my first job. But as far as getting a new M or a 997 Turbo, it would be quite a stretch.

[Year's_End]

I don't even want to think about life after college atm. I'm just getting ready to get into college actually.

[stooken]

you have to learn to balance the two. the reason why you're friends are spending money like this is because they're not used to having this much money in their pocket. im sure they never learned to save money in college. they spent whatever little money they had. most people tend to increase their debt/expenses as their income increases. they're just not financially educated. that's all.

driving 6 figure cars with $50k income is plain stupid. actually, that's not even affordable unless they're dumping FULL paychecks into the car.

i used to spend a lot on clothes, going out, vacations and etc. then a few months down the road, i looked at my bank account and i have nothing saved. i'm exactly where i was at months ago if not even worse.

some people just want to enjoy their youth. others would rather work hard now and play later. i wouldn't go for either extreme but find the median. work hard but have your fun the smart way. don't splurge but don't be too cheap on yourself.

just figure out your income, subtract all your necessities, subtract a savings goal for yourself per paycheck then whatevers left over is your fun money.

[e92phreak]

You got another buddy here that is living the long term goal... Good job, 4 cars, 3 kids with one on the way, house with only 200k left on it.

[e92phreak]

40-50k... and that's gross amount. Just imagine... After taxes in CA is only about 25-30k for a single person. That's only about $2100 to $2500 a month! Spending $1k or more per month on a 100k car doesn't leave much leftover after food, clothing, gas, insurance, etc...

Stay practical and you will have something to show forth.

[wj4]

Originally Posted by e92phreak

You got another buddy here that is living the long term goal... Good job, 4 cars, 3 kids with one on the way, house with only 200k left on it.

200K..dude, that's 2 E92 M3s!

The funny thing is that these guys never had bad cars in college. They were in G35s, S2000s, etc. I'm just hoping that the 335i lasts for a while. If it becomes 'sucky' in a couple of years, I'll probably just get a new TSX or something for the mean time. I don't want to have car payments at all.

I'm hoping to get my Masters in 2 years after I get my BS. If things go accordingly, I'll be making 6 figure income by the time I turn 30 at the latest..by then I'd like to have a nice toy, ie (a slightly used) 997 S, and a regular car to drive to work or what have you.

[sinnet112]

Don't follow their lead. As much as it sucks, delayed gratification is a very good thing. Not to mention, with the way they spend, if anything bad happens then they're out of luck and won't be able to accommodate for the circumstances, while you will be able to.

Like others have said, they're just not used to the fact that they have so much money at the moment. Hopefully, for their sake, they start being a little wiser with their money.

[isabayo]

This is exactly the type of thing I went through and still go through. I'm 26 and graduated in 2003. I ordered a e92 335i late last year but canceled. It was a very difficult decision because I just fell in love with the car at first sight. It was especially difficult because I'm known to spend lots of money on "toys". I could easily afford a e92 335i and still save plenty of money but with where the housing market is heading and interest rates low I decided it would be better to aggressively save money and buy later this year or early next year. Its better to live in a nice place than to drive a nice car.

[inabis]

As long as you're "smart" with your money it shouldn't be a problem. The best thing to do is create a budget and then spend as you would usually and see how close/far you are from it. You'll be suprised that you spend a lot more than you think.
I just graduated a couple of months ago and wasn't understanding why "all the money" I was making wasn't in my bank account. You'd be surprised how quickly eating out becomes expensive. Just learn to budget and set a "broke limit" in your account meaning a certain amount of money you will never go under kinda like a rainy day fund. Your friends seem like nice guys but god forbid they get into an accident with no backup funds they're screwed. Oh and another thing I've noticed, most people who don't learn to curb their spending habit early on never really get rid of it. Just think how expensive college was for you then try to calculate how expensive college will be when your kids get there...that should scare you pretty well

[iatacs19]

you need to plan for your future, you never know when you will lose your job or fall on hard times. It is then that everyone wishes they hadn't gone out all those weekends and dropped $500+ a night on champagne and bad company. My motto is always save for a rainy day and your 401K.

[Couch]

I'll be 3 years out in August. 26yo.

I'm frugal to a degree. I should have bought a home instead of my car for one. But I had the funds for the car, but don't make enough at my job to warrant paying property taxes and the rest of what goes along with home ownership.

I also had no clue where I want(ed) to live. I'm currently renting a room from a friend. It works out pretty good. Close to work, close to downtown for the bars, etc. I still don't know where I want to live. But I need to find a new job before I do so. Since I'm only making ~$2500 more than when I started 2.5 years ago.

Overall, I'm cautious with my money. I sort of wish I would have just bought a $25K car and had it paid off so I wouldn't have a car payment. Oh well, my dad talked me into doing it. And my dad knows my financial situation. He says go for it, I will.

The best thing to do imo, is not eat out every meal. Go to the store. Cook for yourself. Bring lunch to work. I really need to create a spreadsheet to watch my cashflow. But I'll wait until I finally buy a house.

[nissan]

I just got out of grad school (law & mba) last May and, while I've had jobs all the while I was in school, it was a pretty big bump in terms of salary after graduating. It's been exactly 7 months since I started and it's pretty sad that I have almost the same in the bank account as I did when I started. Stuff adds up quickly when you're living on your own. I got a crapload of student loan debt (equals about a mtg. payment every month) + rent + car + gas and a gf. GF = major drain on funds! Lol I swear I'd have way more $ if I didn't have a gf. Going out every wknd (she can't/won't cook at all) is killer.

I want to buy a house badly b/c I do have enough saved for a down payment from my prev. jobs, but it doesn't make sense here in NJ. My strategy -- stopped eating out (limit myself to 1x a wk, no more than $20/person), not going to the mall or buying junk online, no more drinking out & brown bag lunch everyday. It's working, but it's hard to stop yourself from the temptations. I can't wait to wipe out the fn $200k in debt I have...it feels like having an ax over your head.

[mrwma237]

Originally Posted by wj4

they got their first jobs that pay $40-50K. Which is the normal range for a new kid out of college with no experience. We're all around the same age, 22-23.

Their spending habits are pretty excessive. A lot of them are driving cars in the 6 figure range, eating out often at quite expensive places, obviously their short term goals.

Originally Posted by wj4

He's just saving up his paychecks for a nice down on a condo or a house.

Obviously everyone has different lifestyle. I just want to know about the folks on here as I can probably relate to you guys better, as we're all car nuts.

I'd probably just treat myself to some nice things like a decent Breitling watch after I get my first job. But as far as getting a new M or a 997 Turbo, it would be quite a stretch.

I'd like to see where you got that statistic?? Entry level paying 40k-50k? What type of jobs are you talking about? What industry? I am curious on your findings.

If you're talking about licensed positions, or jobs that requires higher educations credentials, ie. JD, MD, & brokers, buddy, let me tell you, they are not 22-23 years olds.. ..

Open up the newspaper,, watch CNN, shoot, or surf on yahoo..., unemployment rates at 4.8%, california losing more than 20k jobs, economy on a brink of recession..., i think those kids either have a very sound financial backing from their families or they're just not living in reality (racking up huge cc debt).

Though I am an avid watch collector myself & I believe that is a fine piece of crafstmanship, but I feel obligated to tell you, save that Breitling for the future. Earn. Save. Invest Wisely.

[stooken]

Originally Posted by wj4

200K..dude, that's 2 E92 M3s!

The funny thing is that these guys never had bad cars in college. They were in G35s, S2000s, etc. I'm just hoping that the 335i lasts for a while. If it becomes 'sucky' in a couple of years, I'll probably just get a new TSX or something for the mean time. I don't want to have car payments at all.

I'm hoping to get my Masters in 2 years after I get my BS. If things go accordingly, I'll be making 6 figure income by the time I turn 30 at the latest..by then I'd like to have a nice toy, ie (a slightly used) 997 S, and a regular car to drive to work or what have you.

although that sounds wonderful, it's not as easy as it sounds.

a lot of people that graduate college don't make $40k-$50k off the bat. it takes them a year or 2 to get there or even land a job within their field. it's the sad truth. i used to think that right after college i'd be making big bucks then that didn't happen.

[aznshrek88]

So can I ask you guys how much you budget a month on spending, etc.? I'm graduating in December as well, and I'm spending about 2k a month, but I haven't factored insurance into that. Rent is about half and the other half is just living expenses. I'm trying to save up small sums here and there but I find usually I spend about 2k a month, sometimes a tad more. Any advice?

[AndrewAZ]

I think for the most part you are describing grads that had their parents pay for everything in college. 99% of the kids will have debt when they leave and wont be driving 100k cars. And a lot of the kids with expensive cars usually had part of it paid as a graduation present. My father bought my brother for graduating college then another one for graduating law school. And it took him a year and a half before landing a good job.

[Couch]

Originally Posted by mrwma237

I'd like to see where you got that statistic?? Entry level paying 40k-50k? What type of jobs are you talking about? What industry? I am curious on your findings.

If you're talking about licensed positions, or jobs that requires higher educations credentials, ie. JD, MD, & brokers, buddy, let me tell you, they are not 22-23 years olds.. ..

Open up the newspaper,, watch CNN, shoot, or surf on yahoo..., unemployment rates at 4.8%, california losing more than 20k jobs, economy on a brink of recession..., i think those kids either have a very sound financial backing from their families or they're just not living in reality (racking up huge cc debt).

Though I am an avid watch collector myself & I believe that is a fine piece of crafstmanship, but I feel obligated to tell you, save that Breitling for the future. Earn. Save. Invest Wisely.

I thought that too, but $40K-$50K for Cali is probably about right. For Texas, it's upper $20K-mid $30K. I started out at pretty much the bottom tier. If you look above at how much my income has increased, yea I'm still at the bottom. It's ridiculous that I have a college degree and still making crap after 2.5 years. That's with proving myself everyday, only having one sick day. Employee of the quarter a year back, etc.

Every single person I've talked to say's I should be making at least $10K more, and that's being modest. Needless to say, I HAVE TO find something else to do.

[OC Guy]

Originally Posted by wj4

200K..dude, that's 2 E92 M3s!

The funny thing is that these guys never had bad cars in college. They were in G35s, S2000s, etc. I'm just hoping that the 335i lasts for a while. If it becomes 'sucky' in a couple of years, I'll probably just get a new TSX or something for the mean time. I don't want to have car payments at all.

I'm hoping to get my Masters in 2 years after I get my BS. If things go accordingly, I'll be making 6 figure income by the time I turn 30 at the latest..by then I'd like to have a nice toy, ie (a slightly used) 997 S, and a regular car to drive to work or what have you.

Sounds like they weren't taught the value of money in college.

[nmulax]

Originally Posted by wj4

I have a few questions for the folks in their early to mid 20s that just recently graduated college and are now working. How frugal are you with your money? Are you living your short term goals or going for the long term ones?
I'm 25, graduated in December of '04. I'm finally at the point where the long-term goals are beginning to outweighing the short-term ones. That doesn't mean I don't have the occasional impulse, but you have to learn to balance your finances.

The reason I'm asking is because I'm about to graduate in about a semester or two. A lot of my friends have already graduated in the last year or two. Like most other newly graduates, they got their first jobs that pay $40-50K. Which is the normal range for a new kid out of college with no experience. We're all around the same age, 22-23.
You can't make a blanket statement like most first jobs pay $40-50k.
That depends on where you live; and for most of the nation, that's not a reality. I would estimate that on average, a graduate with a Bachelors degree will be between $27-40k in their first position.

Their spending habits are pretty excessive. A lot of them are driving cars in the 6 figure range, eating out often at quite expensive places, obviously their short term goals. Some are still at home, and some split an apartment. They say that they have time later on in life to save up money and buy homes and raise a family.
I'm guessing most of your friends come from well-off families. Would it be a stretch to assume they're graduating without a student-loan debt? A 6 figure car on even a $50k salary is insane, and stupid.

I lived at home for two years after graduating. This gave me the chance to build up a large savings, and if I hadn't, I wouldn't be driving the car I am. Sure, my car's not the greatest out there, but I'm happy knowing that I've had positive equity in it since the day I bought it.
The problem with always putting off saving, is the unexpected. What happens if you lose your job, are in a bad accident, etc. You should have enough set aside to cover you for a few months, should anything happen. I'm not saying "scrape by now, and only think long-term", I'm saying finding a balance is key.

I only have one friend who's thinking in a long term goal. He goes to work like all of them, except he drives a 'whatever' car. He's not a car hobbyist so he sees no point in spending a grotesque amount of money on something that would depreciate so fast. He's just saving up his paychecks for a nice down on a condo or a house.
This is probably your smartest friend.

Obviously everyone has different lifestyle. I just want to know about the folks on here as I can probably relate to you guys better, as we're all car nuts.

As of now, I can not see myself living the lifestyle of my friends'. I'd probably just treat myself to some nice things like a decent Breitling watch after I get my first job. But as far as getting a new M or a 997 Turbo, it would be quite a stretch.
As a treat for my first job, I went out and bought myself some custom suits while in HK. Spent about $2k. A nice gift to myself, but not breaking the bank.

Originally Posted by aznshrek88

So can I ask you guys how much you budget a month on spending, etc.? I'm graduating in December as well, and I'm spending about 2k a month, but I haven't factored insurance into that. Rent is about half and the other half is just living expenses. I'm trying to save up small sums here and there but I find usually I spend about 2k a month, sometimes a tad more. Any advice?
One thing my father forced me to do, and I now thank him for, is keeping track of my spending. At the end of each month I look over an Excel spreadsheet showing where every penny went. Then I go a step further and break it down by category (gas, rent/utilities, car/insurance, food, social activities, other expenses).
It gives you a good idea where you spend your money, and where you can curtail spending. I realized that by bringing my lunch 2-3 times a week, that alone will save me $100 or so a month. Money I can then use to buy a hoodie or shoes, or put towards a car/condo/etc.

I also bartend every weekend, so not only is it an additional income, but it keeps me from spending money at the bar. I spend roughly $3k (about $1,200 of that is rent/utilities) each month. The rest goes into savings. At the first of the year, I also began contributing to my 401k.

hope that helps

[Main33vnt]

Well guys since were on this subject I have a question.... I just turned 20 and I've had a Job for the Gov for about a year and a half now working for servers and networking as a student worker.... I just applied to USC and LA and Irvine but Im tripping out on what the hell is going to happen after I get out... I see alot of people struggling and getting jobs at 40-50K but is it really that hard? I mean moneywise goes Im smart enough to save and opend up a 41k here at work but Im just completley lost... I dont want to be an average Joe and here down in Pasadena its expensive as hell to... My dreams to come out with a condo and a Nice Beam or Porsche but allt his talk is giving me the freak out mode I had before I applied to college...Was it that hard for you guys or did you just hustle it and succeed... Sorry guys its just 14.77 cents isnt going to get me anywhere in life even though its nice money to mod my car but even with that I still go broke ;x

[darkcloud]

I'm 24, graduated in 2005. I got a degree in Sport Management and was going to pursue my dream of working in the MLB. Landed a bottom level customer service job with the Cleveland Indians for $8/hr, no benefits, nothing. To supplement that shitty income I worked for my Dad's legal delivery business during nights and weekends. It came to the point that I was making way more part-time for my Dad then pretty much full-time for the Indians.

Well my Mom passed in the summer of 2006 and I walked from the Indians, because at that point my Dad truly needed the help to grow and move the business forward. Now I'm in the range of 60-80k/yr salary, and am only going to climb from there. Downside is if something were to happen to the business I don't know if I'd be able to duplicate that salary.

Anyways, I wouldn't say I'm frugal with my money but I also don't go blowing it on stupid stuff either. I leased the 325i, kinda like some mentioned about a house. Sure I know I could have bought the car no problem but at the time I didn't want to drop the down payment money and I was unsure where I'd be in the next couple years so the lease made sense. I've been able to save a decent amount of money as well and my fiance and I are in the process of looking and soon buying a house. I have also begun investing in a IRA and through various mutual funds. The great thing is the fiance and I will have a dual income of +100k at 25, which I personally think is great. Her parents don't even exceed that.

So I definitely suggest some sort of investing/saving but at the same time you should also be allowed to have some fun with your money. Maybe tighten the wallet when the time calls for it; house, kids, etc. I've also read that if you are able to put $100-300 away into your 401k, IRA, or whatever at an earlier age like 22-26, you'll have an a ton more saved then if you start in your 30's. It's a tiny amount if you think about it, but the interest alone over the 40 years makes it so worth it.

[Bimmerbaby]

Budget and learn to balance between saving up and having fun.