Yippee!

Have you paid off your debt? Managed to save for your dream home? Had an awesome investment pan out? Share your personal finance success stories here.

Moderators: lvergon, Fiscal Fitness Moderator

heallen
Posts: 12
Joined: Thu Jun 18, 2009 1:41 pm
Contact:

Yippee!

Postby heallen » Thu Jun 18, 2009 1:44 pm

Ok.. so I got my first job last year out of college, and I'm getting $25,000 per year. After looking over my finances precisely a year later, I have managed to increase my net worth by about $6000! That's almost 1/4 of my income!!!

Yay! :D

sandi_k
Posts: 548
Joined: Tue Aug 05, 2008 3:22 pm
Location: Northern CA
Contact:

Postby sandi_k » Thu Jun 18, 2009 2:27 pm

Wha-hoo! Congratulations!

Sandi

DebtFreeCrusader
Posts: 322
Joined: Sun Feb 17, 2008 4:39 am
Location: Woodstock, CT
Contact:

Postby DebtFreeCrusader » Mon Jun 22, 2009 12:07 pm

wow how'd you do that
When you're good to others, you're best to yourself - B. Franklin

heallen
Posts: 12
Joined: Thu Jun 18, 2009 1:41 pm
Contact:

How'd I do this?

Postby heallen » Mon Jun 22, 2009 1:16 pm

A $25,000 dollar salary is $2083 a month.

1. I live in a part of the US where rents are not too much for a small apartment -- I paid $665 a month for my 1 bedroom 1 bath, including utilities. This leaves me about $1400 for the rest of the stuff in a month.

2. I am paying back 2 student loans for my undergraduate degree, originally totaling about $20,000 dollars. I put at least $250 dollars a month, but typically more, towards them which reduces the principal on the loan by about 150-200 dollars each month. This leaves me about $1150 for the rest of the stuff a month. But I will increase my net worth by doing this by 2400 dollars in one year.

3. I add $200 to a Roth IRA every month. This leaves me about $950 for the rest of the stuff. This will also increase my net worth by 2400 dollars in one year, leading to a total increase of 4800 dollars, assuming I don't lose much.

4. I fill up my car with gas about twice a month - $20-30 per tank. This leaves me about $850 for the month. My parents still own the car so I don't pay insurance; they do. That will change eventually.

5. I play an instrument, so I get the occasional gig money from a wedding or a church or a party, adding up to the occasional (Read: ~3 times a year) small windfall of $100-200.

6. I pay for food and other expenses at about $400 a month. This leaves me about $450 for the month.

7. I pay for my cell phone bill which averages out to about $50 dollars a month, leaving me <$400 to save and spend where I deem necessary. For example, this year I took a flight to Chicago to see my college roommate, and stayed with her for a week. I was also able to go to the beach for a weekend in late spring. I was able to go rafting on a weekend. I can buy clothes, or deal with emergencies as necessary from the rest of the money.

So, I was as surprised as you are about how much I actually managed to save. I don't think this coming year is going to be quite as efficient because my rent/utilities are going up since I am moving to a better/safer place, but I know I can afford it. Maybe it's because I don't have a family or kids to support, but so far, I think I'm doing alright for myself.

Thanks for the encouragement!!!!

mam219
Posts: 2
Joined: Wed Jul 01, 2009 7:10 am
Contact:

Postby mam219 » Wed Jul 01, 2009 7:14 am

Hmm. I think you are forgetting about taxes. I make 26K a year, right around where you are, and my take home is about $765 every two weeks, thats about $1,550 a month. No the $2,083 you claim. Congrats but after you see your first few paychecks, you will notice you might not be as rich as you thought you were. Keep plugging away.

heallen
Posts: 12
Joined: Thu Jun 18, 2009 1:41 pm
Contact:

Postby heallen » Mon Jul 06, 2009 2:12 pm

My taxes are a strange beast. While it is a "salary" for me, it is actually a grad. student stipend, and so I don't get taxes deducted from every paycheck.
Nor do I get Social Security deducted either, and so I am technically not contributing to that either. It's very interesting -- the school pays me, but I am not considered an employee, otherwise they would have to give me other benefits. So, I get a stipend that is my responsibility.

I have to pay taxes myself at the end of the year, whatever is owed (and it's less than usual, because it falls under all kinds of exemptions). So while I technically don't make $2083.33 every month, I think of taxes as a once yearly bill, as opposed to coming off of every paycheck.

Plus, the statistics I posted earlier were after I had already spent a year doing this when I definitely knew what my budget was and how I spent it.


Return to “Success Stories”

Who is online

Users browsing this forum: No registered users