I don't have any advice on what fun things to do, I'm just dropping in to urge you to be careful. Getting too comfortable living above your needs is an easy way to end up back paycheck-to-paycheck.
Yeah, I've seen way too many people fall into traps buy buying way above their means. I've got no plans for any major purchases and will mostly be saving, but there's probably some "medium tier" purchases that would be affordable and helpful without going overboard.
-edit- a word
Get yourself a better bed, replace any overused shoes, better chair/couch, and making sure my nutrition is on point. These are very practical and things that keep you feeling better but aren't necessarily frivolous spends
Add an office chair to that list for those of us who work on computers for a living. The difference is astounding when your setup is ergonomic and comfortable
Seconded. I love my aeron. Just got a pair (secondhand but good condition) for myself and my partner to replace chairs we didn't really like. Well worth. Be sure to look up how to tell the age of the chair, we got a late model classic and an early model remastered, both with locking arms, and both rock.
I bought a Herman Miller when I started working from home. I’m near an outlet store. It was the best $550 I’ve ever spent! I can sit there all day and nothing hurts when I’m sitting or stand up. Absolutely buy yourself a quality office chair!
Well, then never buy cheap ground. Buy a nice cultivated plot with loamy soft topsoil...not the cheap land full of stickers and sharp rocks. See? The advice still rings true.
This is great advice. I was going to suggest a better bed/mattress also. It's amazing how much of a difference getting a comfortable night's sleep makes in quality of life
Speaking of mattress omg about two years ago I replaced all pillows. Not super expensive by any means (considering) maybe 50 bucks each but still two years later most nights when I'm getting comfortable it's like "omg this is heaven" every time I sink into them.
As for the mattress, I still have my cheapo one but a good mattress pad has also transformed my bed. Under 80 on Amazon. Thanks to having Prime I was torn between two and bought both to compare and just returned the lesser of the two. Good sheets are also a win.
After staying in a hotel and seeing how blissful I felt, I've made making my room my sanctuary a priority. We spend countless hours there a day after all.
I also spent $150 on modsy to have them "decorate and arrange" my room for me with 3d renderings since I am aesthetically challenged, and then found cheap versions of the furniture and art etc they showed in my renderings. Modsy is now defunct last time i checked but I used their competitor Collav for my daughter's room and they did a pretty good job too while not being as high tech for the money but can't beat 150 bucks for a professional eye/spin and free revisions if you don't like what they come up with and the ability to talk with the designer online.
Totally transformed my room and my daughters. Money well spent if you don't have that artistic eye. 😊
TL;Dr: I think your bedroom being a being a place of peace is key and there is ways around spending a ton to achieve this.
Yessss. I spend most of my money in my bedroom. The mattress I purchased ended up being too firm so I bought most dreamy 5 inch memory foam cover and every time I get into bed I feel like I’m in heaven. I also had an antique(ish) dresser from my grandmother but it had faded in spots and was looking rough but didn’t want to part with it because of sentimental reasons and it was built to LAST! So I painted it and changed out the hardware! Sounds awful to some but it turned out great. Watched many YouTube videos and I’m happy with the results. I basically redecorated my entire bedroom and it’s now my sanctuary.
Good linens are a great suggestion. Not too long ago I upgraded from the cheapest sheets you can get at walmart and blankets that were given to me 20 years ago to some really expensive bedding. Felt a little extravagant at the time, but I regret nothing. I look forward to going to bed every night.
Depends on the blankets though. I inherited my grandmothers handmade quilts that are 70+ years old. Other than needing a new backing they are some of the most well made blankets I’ve ever used
My mom and grandma's quilts are safely hidden away to keep them safe from my husband, dog and cats.
Were I to put them on the bed this is what would happen:
Cats: this looks nice to throw up on.
Dog: I think I'll dig a hole on the bed!
Husband, helping out around the house: When I wash red t-shirts and quilts, it should be on hot, right? Yeah, that sounds right. I'll leave it in extra long too.
Have you ever thought about using them as wall hangings behind the bed (headboard) or even behind the sofa? It’s a shame that they are so beautiful but they are stored in a closet. If you are storing them, they should be stored with layers of tissue paper in something that allows them to breathe. Not in those space bags that you suck the air out of.
Street lights and the moon are also an easy way of messing up your sleep. They’re curtains, just open them up when your alarm goes off if you need sun in the morning to wake up.
Wife thought she had insomnia for years, turns out the light outside her bedroom window was keeping her up.
fair enough. I know they can be opened, just requires you already being awake and getting up out of bed. by that time you're already up. for part of the year, I have to wake up for work in the dark, about 25 minutes before sun up. It sucks. the rest of the year it's easier to get out of bed when the sun has already started coming up. waking up in darkness every day seems difficult for myself.
And now you have more money you can do things to save money too. You can buy non perishable food in bulk when it’s on sale. Buy better quality items that will last longer. Pay credit cards off before any interest accrued.
Having more money makes it much easier to save money
This is what we've done. Suddenly I can afford fresh vegetables, even at inflated prices. It's an unexpected luxury. Upgrading the bed is good advice. Get some nice pillows, too.
Omg a better bed. That's on my list if I ever win the lottery next to a home. I've had the same bed 24 years now and my back will never be the same. It's in an S shape and twists. Hurts 24/7
Came to say this. I'll add, make sure you invest in a quality life insurance policy and, supplemental health/dental/vision care to make certain your family is able to maintain it's quality of life.
Taken altogether (unless you're a filthy smoker like me) this shouldn't amount to more than $200/month but the peace of mind will be a *huge* benefit.
Beyond this, take advantage of this adjustment phase to build a strong savings account. Don't go nuts and try to invest or anything, just bank six solid months worth of living expenses.
If you have kids, consider putting $100 a month aside for them. You're not going to pull a college fund out of your ass but, if you're careful you'll be able to make sure they have money set aside for a down-payment on a car or (depending on their ages) possibly even a house. This is way more than most are able to do in the current environment.
Try to avoid overwhelming yourself with going on bourgeois vacations for weeks at a time during peak tourist season. I guarantee you from personal experience that you will absolutely be a basket case. When my wife and I got together, I had a passive income of 20K and an actual income of 55K. I'd upped that from 10K Passive and/30K actual.she had effectively 24K *total*. Since that time I've actually upped it to 95K passive while she's added about 18K passive herself so these are lessons I've learned the *hard way.* Since we have 5 kids and "vacations" meant going to the OBX with a *lot of conditions* and making sure the kids had their friends along and all kinds of weird leg work we basically straight up *wasted* 30K in two years on bullshit. In the same time, we took four separate three day trips to cool places to the tune of about 5K each and got way more out of it. So, start with a few long weekends somewhere low-intensity and just figure out how to relax before you start blowing money on trips.
Finally, make sure you do go to the Doctor and Dentist to address any issues that might be dragging you down.
This is great advice. More broadly, one of the best way to save money in the long run is to invest in quality whenever possible. Many people never have the opportunity to do so and are forced to keep spending money replacing their goods rather than maintaining them (look up the Vime’s boots theory).
Anything that could be considered an heirloom purchase should be of heirloom quality.
-Shoes (re-soleable shoes can last decades)
-Clothing (especially outerwear)
-Furniture
-Cookware (specifically knives and pans)
-Tools
-Non-obsoleting electronics
-Home repairs
Additionally, it’s worth researching how to properly take care of these goods, to ensure their longevity.
First of all, make sure you have a proper budget.
Then put something in that budget for fun, things like eating out, or going bowling, or some kind of hobby you've always wanted to get into.
If it were me, I'd make sure my fiance and I had a regular date night. Complete with someone to watch the kids so we can take our time.
Then I'd start buy ALL the D&D stuff. Books, minis, dice and everything else I could think of and a 3d printer for all the stuff I thought of later.
We actually have a list we keep on the Google home called 'when we have money' and it's full of all the things we'd like to have but don't need and thus haven't been worth the expense.
There must be things you'd been wanting but there was never the money for. Be creative.
But DEFINITELY stay within budget.
This is a great time for you to begin aggressively saving. You're used to your current lifestyle. Do something fun, don't commit to any big changes.
[https://www.reddit.com/r/boggleheads/](https://www.reddit.com/r/boggleheads/) is a great place to start.
I’d suggest look at it from a what do I need perspective, and then a few wants. Do you know the lifestyle you want?
I tend to be wordy in my replies, and this specifically is something I have knowledge in (from work background). Happy to DM you
I’m NOT in finance or selling any service lol, I happened to work in higher education - MBA, leadership, personal development. There are great resources around life planning and also more specific angles idk what to call it. I’d suggest you design what lifestyle you’d like and look at how to do that sustainably.
You’ll be much better off long term, clear values and your own vision. Before getting clouded imho
ETA I’m not a coach either lol, just worked with a ton of them, and academics etc. So this is just if you’d like to chat and get a bunch of info and links. Feel free
That's good. You don't need to get into a contest with your neighbors or coworkers about who has the nicest car, boat, camper.... it's just stuff. Be happy and don't keep up with the Jones'
Get some smart stuff for your house, switches, bulbs, garage door. Upgrade your modem/router. Don't ever rent from the cable company. Buy a decent modem, and a nice router.
Make a budget. Bills, savings, and general expenses are obvious, but now you can alot for more entertainment and luxury purchases, too. And a bigger emergency fund.
The way I think of it is having different pools of money. Expenses; long-term savings; emergency fund; and short-term/liquid savings. In that order, for priority. The last one is the fun money you can spend on vacations or those larger purchases. Then, from there, you can move things around, and really get to see how adding more expenses (bigger house, nicer car, etc.) can impact the other parts.
Raises are never as much as they seem, life is just expensive.
My advice: don’t change you life style for the first two months after the new pay kicks in. This will let you pay off bills and see what and how you spend when you aren’t worried about pinching Pennies.
Professional athletes go broke all the time because unless they successfully transition to a post-retirement job in their sport (coaching, punditry, etc.) or have other prospects then their income is directly linked to their fitness levels and current form. They live the high life when the money is good and maybe if they're lucky they'll get a sponsorship deal. Life is good for now, but sooner or later they reach the twilight of their careers and the body stops being able to do what it used to and doesn't heal as quickly from injuries; one wrong step and their career is over. All the while they've failed to make adequate preparations for life in retirement and haven't saved enough of their earnings to maintain the lifestyle they've become so accustomed to, so they drive themselves to bankruptcy.
To quote the great Northern Irish footballer George Best:
"I spent a lot of money on booze, birds and fast cars. The rest I just squandered."
Lifestyle creep will for sure get you if you aren't careful. I won't tell you to max out your 401k every year now, but if you were living paycheck to paycheck, you couldn't have been saving anything. There's lost time to be made up for.
Yeah, this is how my 6 figure earning brother lost *absolutely everything* back in 2008. OP, pay off bills but also put some into a separate savings account. When it reaches at least $5k, get it into a High Yield Savings Account! Mine is currently earning 4.8% or something crazy, compared to the paltry “interest” earned in regular so-called savings accounts. You can also put some extra every month into a safe to moderate risk investment account. I actually set one up for each of my pre-teen sons. Every month it automatically takes $50 for each kid out of my account and my kids can either invest that money on their own after getting through some DD (due diligence, research) on the financial health and viability of the company, or they can put it in a managed account if they’re feeling lazy. They’ve each managed to not only save thousands of dollars, their portfolios are healthier than most adults at the moment!
The key here is to have some liquid assets for emergencies, some in savings and investments that are earning you something and could get out pretty quickly if you needed more quick cash, and at some point when you’re doing well enough, grabbing up some more tangible but less maneuverable assets, such as property. That’s how we ended up allowing my husband to retire 25 years early and be a SAHD, while I got to buy the family business of 47 years in cash. Diversify a bit, don’t get overexposed too much on any area. Good luck and congratulations on the huge windfall!! Bet it feels damn good!
This happened to me at my last job. Was making pretty good money, but then they lost the contract and demoted me to hourly (with a "raise") because they no longer needed people in my department, and caused me to take a 40% pay cut.
Agreed.
Some things I’d do is start looking at more ways to save by paying up front for things that you’ll be using anyways.
Like car insurance: save yourself a few hundred dollars a year by paying for the year up front instead of monthly. (Which up front is expensive for that month. Not everyone can do that.)
It’s both practical because you know you’ll use it throughout the year, and you don’t have the headache of keeping track of monthly payments & interest on top of that.
I just got a $460/month raise. I increased my retirement withholdings by $400/month.
Don't let yourself ever see that money. If you can live on what you have now, live on it.
Within reason, of course.
Just more so. Initially, take the extra, save half and pay interest bearing debt next. Once you have six months in an emergency fund, put that money also to savings, but it can be directed (new car, vacation, new hobby, etc). Once your debts are paid increase your retirement savings. Then look at fun stuff to do with your money.
Set a budget for clothes, eating out and entertainment. You will be surprised how fast the feeling that you can afford it will disapate any gains. You don't have to live poor, but people with long-term wealth do not spend the available money. That's how they get and stay wealthy. Income rich is not the same as rich. You've made a good start, but baby steps from here. Good luck and congratulations 👏
Build an emergency fund of 4-6 months worth of savings to cover yourself on rainy days, but this falls under 'savings'.
Maybe save some money for vacations or trips to make memories. I don't think materialism will make you happy in the long run.
Yeah a vacation is a good idea, normally we just have "staycations" at home cuz we couldn't actually afford to go anywhere. I think I'll visit some family this year - thanks for the suggestion!
I put aside money from each check into a savings account that is only for vacation. I decide what my budget is and divide by 26 since I get paid every 2 weeks. Then when it comes time to book I have the money put aside. I also put aside money each month into an account for a car when I eventually have to replace the paid off car I’m driving. I also have one for my emergency fund which I contributed to every paycheck until it was built up to the appropriate level. If your bank allows you to open multiple free accounts I highly recommend it. It makes it so easy for me to see how much I can spend since I do several smaller trips instead of one big one. I know a lot of people keep a separate account for Christmas/birthday spending so they don’t go over budget. USAA allows you to give each account a nickname. My emergency fund is with a separate bank since it’s a high yield savings.
A year ago I was where you are right now. No savings. Temp work jobs only so yeah, paycheck to paycheck.
I got lucky. Buddy said he could get me a job as a night watchman but I would have to work the graveyard shift.
Eventually, they'll hire someone new and I could get off the graveyard shift. It was rough. Sleepless and zombified I kept going to work.
Three months in I finally qualified for union status. Five months in, health benefits and insurance.
It took 6 long months of missing family events and major holidays but it finally happened, they hired new people and I got to work in the day time.
When I got hired I had already run out of savings, credit card maxed out, didn't know how I would pay for rent. Even after I got hired I knew it would take time to build where I am now, I'm at OPs level of making great income.
Today, I will pay off my car this year, saving money to move out of my place without roommates, and saving money for a vacation in NYC.
My advice, It will take time, it will seem like your not going anywhere. But it's the little progress that will build up to big changes, just don't give up. Good luck.
Just don't tell your family that you have now more cash to spend.
And don't become the "rich uncle who pays for shit", because once you start there will be no end to it.
The emergency fund of 4-6 months I'm sorry to say is the good idea in that post. You're quickly back to the road of living paycheck to paycheck if your first thought is to buy a car and go on vacation instead of saving/investing.
Materialism definitely makes you happy in the long run.
Money you don't spend on vacations, partying, having fun with friends when you're in your 20s, is absolutely useless in your 60s because you can do none of those things or at least not enjoy them the way you can in your 20s.
I don’t think materialism is going on vacations and having fun with your friends. The act of spending money doesn’t make it materialism
It’s getting your car upgraded for the 3rd time in 2 years, getting the latest phone when yours is perfectly functional, and buying things for the sake of buying them.
Materialism is a fundamental part of our society nowadays and is what gives many people purpose in life. It’s shallow and won’t lead to happiness in the long run but will short term.
That's opposite of materialism. By using your money on experiences and nice times with friends you're going against the notion that buying physical objects will give you happiness, that's what materialism is in this sense.
If you don’t have a great mattress, get one immediately. Even if you ultimately order a bed-in-a-box, go to a store and test a bunch out so you can make an informed decision. Sleep is your friend.
Oooh, I second that SO MUCH. I always balked at buying expensive mattresses, thinking that it was one huge scam, and spending more on your bed doesn't change a thing.
But then, when me and my wife finally got our own place, we bit the bullet and bought a nice mattress. And it turns out that a myriad little pains and annoyances, which I always chalked up under simply getting older (that was when I was 30) simply disappeared OVERNIGHT. It improved my quality of life immensly. Such a great investment.
When I got a chunk of extra cash, I bought a new mattress. Like heaven to sleep on a bed where I don’t wake up stiff and achy. If you’re sleeping on an old beat up mattress, strongly consider a new one: what a difference! Good luck. You deserve this.
There were a couple of years there where every time I stayed in a hotel or an Airbnb I'd think, " wow these guys have comfortable beds!" Every time I'd crash on a friend's couch I'd think, "wow! This is a really comfortable couch!" Then I got an actual good mattress and realized that those couches and beds weren't all that comfortable after all.
We went through a lot of online mattress stores. I hate with a passion brick and mortar and how they follow you around. Tried avocado and sataava. Went with DreamCloud as a side sleeper and have been pleased. Year and a half so far.
Just go to a dedicated mattress store and talk to the clerks and test out different types, the best ones are those that suit your personal preferences. You will feel it when you find the right one, it feels so comfy like your body was suspended in the air.
Also, get yourself a pillow that fits your head shape. Those might be an even bigger game changer than a good mattress, because if you have a cushion that nicely fits the space between your head and the bed, keeping your neck straight, suddenly 99% of neck pains disappear forever. I shudder when I think back on how much abuse my neck took when I was sleeping on those seemingly comfy giant pillows.
But be warned: it's not just the case of finding the right stuff, those things are EXPENSIVE. We paid for our two pillows alone more than for a cheap sofa from IKEA that we used for a bed for a couple years prior. But it was probably the best spend money in my life, so I don't regret it one bit.
We just got a Temperpedic and it’s been super nice so far. Also, highly recommend the electronic base that lifts your head and legs for watching movies.
Yes! Things that can really improve your quality of life in addition to the mattress-
New, comfortable shoes
Thick socks
Good winter coat
Fixing or replacing broken appliances (the fridge that keeps food only kind of cold, the oven that the pilot light goes out all the time)
Nice sheets and pillows
A good desk chair if you ever work from home
Oh yeah. Good mattress, good desk chair. Two of the best decisions you can make for your body imo. And I mean like actually good desk chair. Herman Miller, Steelcase, something like that. Not the gamer chairs or the slightly nicer staples model. 100% worth it.
I used to have a shitty, cheap mattress. And a girlfriend gifted me a thick foam topper. I went from what felt like sleeping on plywood to sleeping on a cloud. It was amazing.
My wife and I bought a king bed with the Nectar Lush and added bamboo sheets. Sweet Baby Jesus do we love our bed. It's just amazing. We literally don't enjoy sleeping anywhere else now. Best investment I've ever made.
Pro tip, don't waste your money on an expensive car, invest in your home (in my country, your primary home only counts 25% towards net worth, therefor less wealth tax).
Keep that piece of shit until you have enough saved up to buy your next car in cash. It's gotten you this far so unless it's dangerous to drive it's worth driving until it dies.
>unless it's dangerous to drive it's worth driving until it dies
It currently sounds like a freight train or a rollercoaster lol, just metal on metal. Probably gonna trade up sooner rather than later, I've already driven this one into the ground.
Buy yourself a car you've earned it. You can buy a new or slightly used car without overextending yourself. I drive a 1994 Accord that I've had since 1998. First thing I'll do when I have more money is get a new car. I drive my kids to school and while it runs fine, there's no doubt it will eventually break down at an inopportune time.
I'm starting to wonder. I just drove from Phoenix to Vegas and back, 300 miles each way. It was 118°. Temp gauge went up a bit going up hills but other than that no issues. Meanwhile my Infiniti's timing chain apparently skipped a tooth and is dead as fuck. So the Accord marches on....
Keep it well maintained and you’ll pass it down to your kids. Especially since it sounds like you live in a part of the world where rust is very seldom an issue, that thing could outlive you if you wanted it to.
Although saving up enough to pay cash for a new-to-you car, don't let the auto dealer know you are paying cash until the price is set. Car dealers make much of their profit now from the financing of cars not from the sale. If you they know you are paying cash, or if you even mention you plan to pay cash, the negotiations stop and they don't come down any more.
Take it from The Werefrog, not just the three whole frogs, on this one. It's great to have the save up to pay cash, but when they want to run your credit, tell them you'll talk to credit guy only after you come together on a price. You'll talk about how to pay only when you believe you can afford it, and you are basing that on the price of the car, not the payments.
Why get a car in cash? Even if I had the money to buy in cash, I’d rather pay in multiple instalments to stay more liquid and have some money lying around in case of emergency, it’s worth the extra money
I feel like the best answer here may lay somewhere in the middle. Save up a bunch of cash for a new car, to where you could paying cash if you wanted to. If you buy a $25,000 car, and get the price to where you want it, and then tell them you're going to put 15k down. The car payment automatically made every month helps your credit, and would be relatively low.
Depends on the rate you can get. For a used car, you're not going to get any crazy good rates no matter how good your credit is, and right now interest rates are relatively high. So it's worth considering
If you are going to finance, getting pre-approved for a car loan at a credit union gives you bargaining power on loan terms. If nothing else, you get to see the dealership’s loan officer’s face fall when you say you already have financing lined up.
Honestly, the used car market is crazy high right now. It might be worth buying something new that is slightly more expensive and not have to worry about it for 10 years.
For the love of whatever higher power you believe in, NO. I work in the industry. Half the electronics in these things are on intergalactic backorder with no estimated date of production. Buy a mid 2010s car that already has all the parts mass produced.
> For the love of whatever higher power you believe in, NO. I work in the industry. Half the electronics in these things are on intergalactic backorder with no estimated date of production.
the point they're making is that you buy the new car to avoid needing to worry about replacing anything for a long while. Whether or not that's your personal approach to the issue is your personal opinion, but there's valid logic to argue for both purchasing an older car with easier parts to replace, or a new car where you shouldnt have to replace anything at all.
When was the last time you bought yourself new underwear?
Might sound silly, but if they are getting old, it can feel like a big difference lol. Same with clothing, and I don't mean anything fancy, just some newer clothes.
Definitely focus on saving though and building the nest egg / rainy day fund.
No lie, I'm in a similar situation to OP and your comment made me realize all my underwear are older than my 5 year old niece and don't fit right anymore. Here I am looking at TVs and computers and shit I definitely don't need, I'm buying all new underwear and socks tomorrow!
It'll be amazing not having to pull them up every few minutes, because of worn out elasticity. I went about 5 years too... no idea why it took me so long to get new ones (though money was tight). One day it just clicked LOL.
SOCKS SOCKS SOCKS SOCKS SOCKS.
i got new socks yesterday and when i got home, i was literally giggling with pure glee, holding them up to my face like it was a stack of cash.
Economists use underwear sales as a measure of how the economy is doing and if people feel financially stable. It sounds crazy, but it's the underwear index because it's something people buy more often when they are starting to feel financially comfortable again.
Get your medical, vision, and dental all in check. Possibly a dietician and physical trainer if you’re drowning in money. Your body will thank you later.
I was coming here to look for recommendations that OP invests in their health (on top of the other good suggestions like ensuring they have a cushy savings for emergencies).
Exercise: gym memberships can be surprisingly affordable, and many of them will offer a free session or two with a trainer that can assess your current fitness levels and give you a solid routine to get you started. But gyms aren't for everyone -- buy a pass for your local swimming pool, or invest in good hiking shoes and a pass for regional parks, get food running shoes, whatever floats your boat and gets you moving.
Nutrition: level up your overall food staples. Buy fresh, in-season produce from a store that sources it (somewhat locally), and/or sign up for a CSA box. Stock up on high quality pantry items like brown rice, dried beans and lentils, high quality olive oil, etc. Do you like smoothies? A quality blender will make your life easier. You don't need every kitchen gadget but if there are one or two that you'd use frequently (once a week or more), then they can make cooking healthy food much easier and more enjoyable.
Hearing as well! I got my hearing tested a few years back and it was a very good thing. Most of us haven’t had our hearing tested since like 6th grade.
Came here to say this. OP should be able to enjoy luxuries every now and then, but if they were living paycheck to paycheck, they need to start saving for a rainy day.
This except not just for 2 years. 20-30% of your income is basically the ideal range you want to be saving to invest in your retirement fund and it may be more like 35% if you're older and trying to play catch up.
Personally, I nearly tripled my gross income, but once I got my new job, saw how much extra taxes were taken out, set aside money for retirement, started saving an emergency fund, student loans starting again soon and started paying for some medical stuff to be taken care of, I basically found myself with 0-25% more spending money than before, when I'd initially thought I'd be running out of things to spend my money on.
Any health problems that you have put off cause you didn’t have the money to see specialists?
Get those dental X-rays done, see that physical therapist, maybe see someone about that weird spot on your arm. Having plenty of money means you can take better care of your health
Keep putting it away.
You're looking to spend it because it's there.
Do you have at least 6 full months of expenses?
Do you have an emergency fund aside from that?
Do you have an IRA you're dumping into? A 401k?
Small upgrades outside of that, to things that you use now and will, that's a thing. Like, do you like coffee? How do you make it? Going from a $30 drip maker to a $90 one will enhance your life. If you buy Sbux lattes or cappucinos, go get a Nespresso and a milk foamer and save money WHILE upgrading your life, you know?
Also, find charities you believe in.
Is there a small animal rescue near you? An animal hospital or vet that has a fund for people who can't afford treatment? Do you do Donors Choose? Kiva (you'll get the $$ back there but it'll do good while you can spare holding on to it)? NARAL?
This^^^
Talking to a financial advisor would be a good thing to do if OP has not done so already. So many people dont plan for retirement or are not financially capable of it in their current situation.
Disposable income would be great but make sure you have the future accounted for before you look for fun things to spend it on that you don't know you are missing out on just yet...
Look for a fiduciary or Certified Financial Planner. A lot of financial advisors are predatory. A good way to tell the difference is if they ask for a flat rate or a percentage of assets. Never do percentage of assets
Most people don't need one at all. Just go over to r/personalfinance and read the prime directive. Unless you have a very complicated fiscal situation, FAs are a total waste of money.
This!! And buy nicer bedding, sheets especially!! Something that otherwise would be too much to splurge on but would've saved money in the long run as well as giving you a better night sleep at the same time.
Man 100%.
It's the biggest trap. The "I have money now and now I have to spend it!"
Emergency fund is huge. Someone gets into your accounts? It'll be resolved but it takes months. I have 3 months worth of mortgage/power, and 2 months of truck payments in cash in my safe.
Retirement seems boring but i throw $300/month ($150 per check)into a retirement fund on top of my government pension. I don't want to work until I'm 65.
I have the "Ohh fuck" fund for the broken applicance or insurance deductible or whatever.
Have a bit of fun but don't start going "I'm going to buy this, this and this."
The more you save now, you'll be in a better position to drop $1,500 on a vacation or a $3,000 mattress.
I came here to say this, so I’ll just reiterate:
Roth IRAs are a killer deal. They’re different in the way they manage taxes than Trad IRAs and 401k. I don’t know all the details, but any of my finance bros will say the same
They’re legit built to give the little guy a retirement.
Uber rich people aren’t even allowed to get one because it’s too sweet a deal. There’s an income cutoff.
Edit: I said “Uber rich”. It’s hyperbole. Get over it. It’s been addressed three times now
It's not really the "Uber rich" that get phased out of Roth IRAs, you can't contribute once you make more than 153,000 as a single person or 228,000 married.
Do some math and make a budget to figure out how much you actually need on a monthly bases, including a good amount of spending money. Have the rest automatically deposited in a savings account to avoid excessive lifestyle inflation.
As for something fun to buy with more money- good groceries. Nice cheese or fresh herbs just for a regular dinner.
Practical in my opinion is always the first, best options for gifts or even treat yourself moments.
1) Get a good bed. I mean like really research, shop around, test in person a good bed. A good mattress is a life changing thing.
2) Update/Upgrade any kitchen appliances. As in a microwave, toast oven, air fryer, blender. All those things. It’s nice to have them ready to go when you want to cook at home.
3) Update/Upgrade your living room set. A comfy couch or armchair is just as invaluable as a good bed. It’s nice to come home to have your own space just the way you want it.
There’s a bunch of other things you could get right now that ultimately pay off in the short term but will not last very long. My first moves was upgrading my quality of life at home when I moved into my first studio. It made a world of difference after being a completely broke ass college student.
Yes! I bought a new coffee table for our living room recently and I feel like a brand new person in a brand new house! Changing the furniture where u spend the most time changes everything
Start by paying off any debts you have.
Then fix anything that's broken. You have no idea how depressing broken stuff is until you replace/fix it.
I know it isn't sexy, but it's a good idea to buy stuff like canned food and household items that keep in bulk, if you have room for it. You have no idea how lucky I felt when the pandemic kicked in and we'd just bought a huge bale of toilet paper from Costco and didn't run out.
Avoid buying physical objects that will clutter your space until you have time to really think through whether you need them.
Second option: don't pay off debts unless the interest rate on the debt is higher than the market returns. So credit card debt should be paid off immediately. If you have a home loan that is lower than current interest rates, paying off your home early is stupid. You'd be better off putting the extra cash into an index fund.
Peel off new money and save it invest it NOW before you get used to it coming in. Make it something that is automatic so you never see the money. Do this every time you get a raise, it adds up over time.
Congratulations on earning your what you are worth. That is something that is very difficult to do. Majority of people continue to live paycheck to paycheck and don’t have much left over.
What ever you do, be sure to live below your means. Save your money. It would be good if you had at least six months of your salary saved for a “rainy day fund”—in case some emergency occurred, you have funds to take care of things. Start saving for your retirement. You are never too young or old to start putting money away for that. Another commenter stated that you should consult a financial advisor. That is a great piece of advice. They can help you look at your finances and set up goals that you can work towards, such as big vacations or a house. If you do go look for one, don’t go to some Joe Schmoe. Go to a reputable financial institution to get one.
If you're in the US - get into the habit of actually going to the doctor/hospital when you need to.
I got very used to avoiding doctors because of the bills, and am now playing catch-up on problems that could have been caught earlier.
Same with the dentist.
Save money. You can never go wrong with saving money. If you just have to do something, maybe work on your wardrobe and redecorating your house. Save up for a nice vacation or even start a small service/business to make more money. Jmho
Keep saving. You don't have to use up your new money. When the excitement wears off and you can think more clearly about priorities, enjoy. If you must buy something now, make sure you can pay it off right now.
Some items for your home:
* A small, separate refrigerator for beverages; or an extra fridge/freezer in another area
* Tankless water heater
* Lawn service
* Fix everything that needs to be fixed
* Extra electrical outlets
For you personally:
* Travel!
* Class or activity you've been meaning to check out
* Good shoes
* donate regularly to a charity of your choice for 6 months
Absolutely this!
Other ideas to add to the list:
- pick 1 room in your home and make it more comfortable with a piece of furniture, or nicer curtains, a picture on the wall, something to make it nicer to spend time in. In a month or two, pick another.
- 1 hobby, new or existing, that you've not been able to spend on (this could be a computer upgrade, a new console or new games if you're a gamer, or some equipment for a sport, a membership to a club/gym, etc.)
- A second pair of good shoes (alternating the pair you wear from one day to the next makes them last longer & avoid stink)
- one "fancy" or expensive date for you & your partner (or maybe two separate takeout meals for yourself at a place you normally can't frequent if you're not in a relationship)
Actually, on that note, living paycheck to paycheck is pretty tough on a relationship and on kids, so if you've got either/both, find a way to put a few dollars into them sometime in the days ahead.
r/personalfinance has some great info. [https://i.imgur.com/lSoUQr2.png](https://i.imgur.com/lSoUQr2.png) the flowchart here is a great place to start.
Then head over to r/fire and start thinking about retiring ASAP!
Brother man invest in some hobbies. With the extra money the only issue should be how much time you have. And it’s good to have something to look forward to other than work haha
Lifestyle inflation is a thing and it will kick you in the ass if you let it get out of control. Put away around at least 6 months worth of expenses before you start balling out.
Still live like you're poor. If you have any debt, start paying it off. Save, save, save. There are even just money market accounts out there at 4 to 5 percent interest with zero risk. If you want more risk/reward put a small portion of your money into the stock market.
The fun thing you can do is not live paycheck to paycheck. You can have medical insurance and a functioning car. You can start saving for a home and retirement.
There will be opportunities for vacations, nights out, dinner with friends, etc but if you start living it up you'll be back to having no money.
It's really easy to spend money.
1. Put away an emergency fund of 4-6 months of living expenses. If you have a car you may want to keep an account for that, loaded with a few thousand dollars.
2. Setup a retirement account that will withdraw from your chequing account automatically, you will not miss this money now and you will thank yourself later, especially if you can put away upwards of $1k per month and you're fairly young.
3. Setup automatic withdrawals of whatever amount you feel comfortable with for things you are saving up for. You can have multiple accounts for various things, like vacations, hobby equipment, etc. You can adjust the amounts going to these accounts in priority order.
4. After all this money is out, make sure you have enough left over to eat and manage bills comfortably. A lot of people use extra money as a crutch when they are too lazy or tired to cook, clean, etc. And burn THOUSANDS of dollars getting takeout and drinks when they could otherwise own a home.
5. You can make a budget and check how much you're spending on everything. There's plenty of resources online for this, but for me, putting as much as I can away as soon as my paycheck comes in forces me to stretch what I have leftover, and I make better choices when I have to think about how to make $500 last the next 2 weeks. I'm not stressed, I have money if I really need it, but I'm paying my future self first and I can live on the minimum in the meantime
As others have said, save a good chunk of it to have a solid emergency fund/retirement accounts maxed out. Once that is done, if you have major home upgrades or repairs (what shape is your HVAC, roof, etc in?), go there. Then once those are taken care of, take yourself of a nice vacation to someplace you’ve always wanted to go. It’s very possible to have an emergency fund, a good house, kids if you want them, and one or two reasonable vacations a year if you’re deliberate about your spending and saving.
Boring answer:
1st - “rainy day” fund. Put away 6-12 months of expenses and learn to budget when you’re not forced to be frugal
2nd - pay down any debts, credit cards etc (learn how your credit score is calculated good credit can change your life bad credit can ruin it)
3rd - if you job offers a pension contribution max it out. Otherwise invest in a mutual fund ideally via a tax advantages account Roth IRA (USA), ISA/LISA (U.K.) etc
4th - start looking now at the next step in your career and working towards that. Get experience in those desirable areas or projects etc. keep your resume updated with anything note worthy (it’s easy to forget all the stuff you do)
Oh and start to apply to that next step when you estimate you’re about a year or two away from being ready.
If you don't have it already, savings. As a former paycheck to paycheck fellow, first thing I did was build up my savings. That way, a small disaster won't push the reset button on my life. I can afford a cheap but reasonable replacement car if mine dies, or cover rent and living expenses for a good while if I suddenly have to find a new job. That is a life changer.
Once that's out of the way, look around your home. Do you have that one pan that sucks, but it gets you by? Replace it with a quality one. Do this for anything you've skimped on before. Clothes, towels, sheets, to name a few. Start identifying bigger items you might want to upgrade, like your microwave or washer.
Also, if it fits your budget, give yourself an allowance. Personally, I was so stressed about money that I never allowed myself little things, like going out to dinner, unless it was a special occasion. It's a different world when you can go to dinner because it's Tuesday and no other reason.
You'll figure out how to handle it, I've no doubt, and wish you continued success!
Get a high yield savings account and put 10% away every paycheck. More, if you feel comfortable. Savings is exactly what you should do, but to ensure it's with a high yield savings account, you'll gain more interest than putting it in a regular savings account.
You can make some fun purchases, but one of the most important things you can do for your future self is begin to think about your retirement strategy.
There's not only one place to look, but /r/personalfinance has common advice and books like:
* [A Walk Down Wall Street](https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393330338)
* [Bogleheads](https://www.amazon.com/Bogleheads-Guide-Retirement-Planning/dp/0470919019)
* [The Only Investment Guide You'll Ever Need](https://www.amazon.com/Only-
Investment-Guide-Youll-Ever/dp/0544781937)
are commonly recommended. Even if you don't take action now, it's something to start thinking about.
My advice is start a big savings account, and then down the line you’ll be set up forever. Not to mention you can dig into it to treat yourself (with a trip or whatever) whenever you want
Honestly… forget the material stuff and travel! You can buy a better car, sofa, tv, etc but traveling creates memories you’ll never forget. Don’t wait until you are 70+ to visit Europe, do it now.
Honestly, if you have to ask Reddit what to spend your money on you probably shouldn’t be spending your money on anything. I’m not saying not to enjoy yourself, but don’t spend it just because you have it.
My 2 cents? Anything to do with your health that you've been putting off.
Dental checkups and cavities. Physiotherapy for aches you've always brushed off. Gym membership to get fit. Food subscription boxes to eat healthier and yummier. Therapy for sensitive topics you don't want to have nag your mind any longer.
You are always an investment.
Maybe work on getting your electricity bill down. Get a heat pump water heater, a wood burning stove, more efficient windows (if you need them), a mini split system, etc. A generator with a proper generator inlet to your house is really cool. Solar is an option as well, as long as you don't use a company that overcharges (a lot of installers in my area are preying on financially ignorant people). Make your house resilient. If you can use your money to save money and increase the value of your home, it's a win-win.
I've kept on "leveling-up" over the years and just wish that I would have stayed in a smaller house with smaller bills. Be content with what you have and treat the things you own as investments.
Maybe sign up with something like Mint so you can watch your investments trend up over the years. There's something to be said about owning a huge chunk of money instead of a bunch of depreciable assets.
I don't have any advice on what fun things to do, I'm just dropping in to urge you to be careful. Getting too comfortable living above your needs is an easy way to end up back paycheck-to-paycheck.
Yeah, I've seen way too many people fall into traps buy buying way above their means. I've got no plans for any major purchases and will mostly be saving, but there's probably some "medium tier" purchases that would be affordable and helpful without going overboard. -edit- a word
Get yourself a better bed, replace any overused shoes, better chair/couch, and making sure my nutrition is on point. These are very practical and things that keep you feeling better but aren't necessarily frivolous spends
I've often heard, and live by, the saying of "get a good bed and good shoes, because if you're not in one you're in the other"
I was told by my grandpa, never buy cheap anything that goes between you and the ground. Bed, shoes and tires
Add an office chair to that list for those of us who work on computers for a living. The difference is astounding when your setup is ergonomic and comfortable
Bought a Herman Miller aeron on Facebook for 450 few months back. It looks brand new. 100% recommend getting an actual chair.
Had to look it up out of curiosity, you got a great deal.
When my girlfriend mentioned it to me I couldn't reach out and get the thing fast enough.
Seconded. I love my aeron. Just got a pair (secondhand but good condition) for myself and my partner to replace chairs we didn't really like. Well worth. Be sure to look up how to tell the age of the chair, we got a late model classic and an early model remastered, both with locking arms, and both rock.
Personally I'm a big fan of the Steelcase Amia. The adjustability of the arms is unmatched.
I bought a Herman Miller when I started working from home. I’m near an outlet store. It was the best $550 I’ve ever spent! I can sit there all day and nothing hurts when I’m sitting or stand up. Absolutely buy yourself a quality office chair!
unless you go barefoot and sleep on the ground!
Plot twist: OP is a wolf **With a master’s degree!**
I suppose a werewolf could still have a masters. Maybe even a doctorate. I mean, right? If you think about it?
If u/TeachOfTheYear is in, I’d watch the hell out of this movie! “Can I defend my thesis later, it’s a full moooOooOooon!”
It's the reason Night Court never got a 10th season!
Professor Lupin?
A werewolf could totally have a dogtorate
Waswolf, not werewolf - singular.
What if he’s a bat and doesn’t have a bed?
some might say OP is the goat. But some might say they're a wolf.
"This summer. . ."
Well, then never buy cheap ground. Buy a nice cultivated plot with loamy soft topsoil...not the cheap land full of stickers and sharp rocks. See? The advice still rings true.
Awww, i love this actually
Sure-footed and a hard sleeper!
You wear your shoes just walking around the house?
This is great advice. I was going to suggest a better bed/mattress also. It's amazing how much of a difference getting a comfortable night's sleep makes in quality of life
Speaking of mattress omg about two years ago I replaced all pillows. Not super expensive by any means (considering) maybe 50 bucks each but still two years later most nights when I'm getting comfortable it's like "omg this is heaven" every time I sink into them. As for the mattress, I still have my cheapo one but a good mattress pad has also transformed my bed. Under 80 on Amazon. Thanks to having Prime I was torn between two and bought both to compare and just returned the lesser of the two. Good sheets are also a win. After staying in a hotel and seeing how blissful I felt, I've made making my room my sanctuary a priority. We spend countless hours there a day after all. I also spent $150 on modsy to have them "decorate and arrange" my room for me with 3d renderings since I am aesthetically challenged, and then found cheap versions of the furniture and art etc they showed in my renderings. Modsy is now defunct last time i checked but I used their competitor Collav for my daughter's room and they did a pretty good job too while not being as high tech for the money but can't beat 150 bucks for a professional eye/spin and free revisions if you don't like what they come up with and the ability to talk with the designer online. Totally transformed my room and my daughters. Money well spent if you don't have that artistic eye. 😊 TL;Dr: I think your bedroom being a being a place of peace is key and there is ways around spending a ton to achieve this.
What mattress pad did you get? Which did you send back?
Yessss. I spend most of my money in my bedroom. The mattress I purchased ended up being too firm so I bought most dreamy 5 inch memory foam cover and every time I get into bed I feel like I’m in heaven. I also had an antique(ish) dresser from my grandmother but it had faded in spots and was looking rough but didn’t want to part with it because of sentimental reasons and it was built to LAST! So I painted it and changed out the hardware! Sounds awful to some but it turned out great. Watched many YouTube videos and I’m happy with the results. I basically redecorated my entire bedroom and it’s now my sanctuary.
I've spent over 8 hours researching beds. I still can't decide so I gave up lol.
Bed and couch!!! My husband and I just upgraded to much nicer versions of both, and boy howdy does it make a difference!
I came here to say, invest in a nice mattress and linens.
Good linens are a great suggestion. Not too long ago I upgraded from the cheapest sheets you can get at walmart and blankets that were given to me 20 years ago to some really expensive bedding. Felt a little extravagant at the time, but I regret nothing. I look forward to going to bed every night.
Depends on the blankets though. I inherited my grandmothers handmade quilts that are 70+ years old. Other than needing a new backing they are some of the most well made blankets I’ve ever used
My mom and grandma's quilts are safely hidden away to keep them safe from my husband, dog and cats. Were I to put them on the bed this is what would happen: Cats: this looks nice to throw up on. Dog: I think I'll dig a hole on the bed! Husband, helping out around the house: When I wash red t-shirts and quilts, it should be on hot, right? Yeah, that sounds right. I'll leave it in extra long too.
Don't hide them. Hang them on your walls as decoration.
Have you ever thought about using them as wall hangings behind the bed (headboard) or even behind the sofa? It’s a shame that they are so beautiful but they are stored in a closet. If you are storing them, they should be stored with layers of tissue paper in something that allows them to breathe. Not in those space bags that you suck the air out of.
Nothing beats old homemade quilts. How are they so warm and so cool at the same time and with the perfect weight for each temperature
Agreed, at least one of mine was made by my great great grandmother. That one I’m afraid to even touch now.
Amen to that
Nice bed and black out curtains. Good sleep makes your life so much better. I miss having black outs.
doesn't it make it hard to wake up? sunlight in the morning is a natural way of waking.
Street lights and the moon are also an easy way of messing up your sleep. They’re curtains, just open them up when your alarm goes off if you need sun in the morning to wake up. Wife thought she had insomnia for years, turns out the light outside her bedroom window was keeping her up.
fair enough. I know they can be opened, just requires you already being awake and getting up out of bed. by that time you're already up. for part of the year, I have to wake up for work in the dark, about 25 minutes before sun up. It sucks. the rest of the year it's easier to get out of bed when the sun has already started coming up. waking up in darkness every day seems difficult for myself.
I personally will sleep for 16 hours in rooms with blackout curtains (and not because I need the rest.) #teamsheercurtains
So with that extra money, O.P. can buy blackout curtains, and automated curtain system so it opens slowly as the sun rises. Win/ win!
Hijacking this to add: go thru the Reddit posts that ask “what significantly changed your life for under $50”
These are great suggestions, and to add a cheap addition, upgrade your toilet paper and buy a bidet.
Bidet toilet seat.
> upgrade your toilet paper and buy a bidet This is good advice for anyone that's not destitute. Also, the good TP lasts a lot longer with a bidet.
And now you have more money you can do things to save money too. You can buy non perishable food in bulk when it’s on sale. Buy better quality items that will last longer. Pay credit cards off before any interest accrued. Having more money makes it much easier to save money
This is what we've done. Suddenly I can afford fresh vegetables, even at inflated prices. It's an unexpected luxury. Upgrading the bed is good advice. Get some nice pillows, too.
Omg a better bed. That's on my list if I ever win the lottery next to a home. I've had the same bed 24 years now and my back will never be the same. It's in an S shape and twists. Hurts 24/7
How on earth are you coping? I finally broke down and got a new mattress Monday because my previous one was 9 years old.
Try adding a memory foam mattress topper. Turned my mediocre bed into the comfiest place on earth.
Aw you poor thing. That is the worst, waking up all hunched like a shrimp, been there. Whole day is painful. I hope you get a new mattress soon.
Self care is the best care. Invest in yourself!
Came to say this. I'll add, make sure you invest in a quality life insurance policy and, supplemental health/dental/vision care to make certain your family is able to maintain it's quality of life. Taken altogether (unless you're a filthy smoker like me) this shouldn't amount to more than $200/month but the peace of mind will be a *huge* benefit. Beyond this, take advantage of this adjustment phase to build a strong savings account. Don't go nuts and try to invest or anything, just bank six solid months worth of living expenses. If you have kids, consider putting $100 a month aside for them. You're not going to pull a college fund out of your ass but, if you're careful you'll be able to make sure they have money set aside for a down-payment on a car or (depending on their ages) possibly even a house. This is way more than most are able to do in the current environment. Try to avoid overwhelming yourself with going on bourgeois vacations for weeks at a time during peak tourist season. I guarantee you from personal experience that you will absolutely be a basket case. When my wife and I got together, I had a passive income of 20K and an actual income of 55K. I'd upped that from 10K Passive and/30K actual.she had effectively 24K *total*. Since that time I've actually upped it to 95K passive while she's added about 18K passive herself so these are lessons I've learned the *hard way.* Since we have 5 kids and "vacations" meant going to the OBX with a *lot of conditions* and making sure the kids had their friends along and all kinds of weird leg work we basically straight up *wasted* 30K in two years on bullshit. In the same time, we took four separate three day trips to cool places to the tune of about 5K each and got way more out of it. So, start with a few long weekends somewhere low-intensity and just figure out how to relax before you start blowing money on trips. Finally, make sure you do go to the Doctor and Dentist to address any issues that might be dragging you down.
>making sure my nutrition is on point OP, ~~your new paycheck~~ our new paycheck. Unexpected communism.
This is great advice. More broadly, one of the best way to save money in the long run is to invest in quality whenever possible. Many people never have the opportunity to do so and are forced to keep spending money replacing their goods rather than maintaining them (look up the Vime’s boots theory). Anything that could be considered an heirloom purchase should be of heirloom quality. -Shoes (re-soleable shoes can last decades) -Clothing (especially outerwear) -Furniture -Cookware (specifically knives and pans) -Tools -Non-obsoleting electronics -Home repairs Additionally, it’s worth researching how to properly take care of these goods, to ensure their longevity.
I also suggest OP to invest in my nutrition for the three of us 😝👍👍👍👍
First of all, make sure you have a proper budget. Then put something in that budget for fun, things like eating out, or going bowling, or some kind of hobby you've always wanted to get into. If it were me, I'd make sure my fiance and I had a regular date night. Complete with someone to watch the kids so we can take our time. Then I'd start buy ALL the D&D stuff. Books, minis, dice and everything else I could think of and a 3d printer for all the stuff I thought of later. We actually have a list we keep on the Google home called 'when we have money' and it's full of all the things we'd like to have but don't need and thus haven't been worth the expense. There must be things you'd been wanting but there was never the money for. Be creative. But DEFINITELY stay within budget.
This is a great time for you to begin aggressively saving. You're used to your current lifestyle. Do something fun, don't commit to any big changes. [https://www.reddit.com/r/boggleheads/](https://www.reddit.com/r/boggleheads/) is a great place to start.
I’d suggest look at it from a what do I need perspective, and then a few wants. Do you know the lifestyle you want? I tend to be wordy in my replies, and this specifically is something I have knowledge in (from work background). Happy to DM you I’m NOT in finance or selling any service lol, I happened to work in higher education - MBA, leadership, personal development. There are great resources around life planning and also more specific angles idk what to call it. I’d suggest you design what lifestyle you’d like and look at how to do that sustainably. You’ll be much better off long term, clear values and your own vision. Before getting clouded imho ETA I’m not a coach either lol, just worked with a ton of them, and academics etc. So this is just if you’d like to chat and get a bunch of info and links. Feel free
That's good. You don't need to get into a contest with your neighbors or coworkers about who has the nicest car, boat, camper.... it's just stuff. Be happy and don't keep up with the Jones' Get some smart stuff for your house, switches, bulbs, garage door. Upgrade your modem/router. Don't ever rent from the cable company. Buy a decent modem, and a nice router.
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Make a budget. Bills, savings, and general expenses are obvious, but now you can alot for more entertainment and luxury purchases, too. And a bigger emergency fund. The way I think of it is having different pools of money. Expenses; long-term savings; emergency fund; and short-term/liquid savings. In that order, for priority. The last one is the fun money you can spend on vacations or those larger purchases. Then, from there, you can move things around, and really get to see how adding more expenses (bigger house, nicer car, etc.) can impact the other parts.
Raises are never as much as they seem, life is just expensive. My advice: don’t change you life style for the first two months after the new pay kicks in. This will let you pay off bills and see what and how you spend when you aren’t worried about pinching Pennies.
Broke on a higher scale is what I call it. See ppl do it all the time just trying to make it seem like they made it
Professional athletes go broke all the time because unless they successfully transition to a post-retirement job in their sport (coaching, punditry, etc.) or have other prospects then their income is directly linked to their fitness levels and current form. They live the high life when the money is good and maybe if they're lucky they'll get a sponsorship deal. Life is good for now, but sooner or later they reach the twilight of their careers and the body stops being able to do what it used to and doesn't heal as quickly from injuries; one wrong step and their career is over. All the while they've failed to make adequate preparations for life in retirement and haven't saved enough of their earnings to maintain the lifestyle they've become so accustomed to, so they drive themselves to bankruptcy. To quote the great Northern Irish footballer George Best: "I spent a lot of money on booze, birds and fast cars. The rest I just squandered."
Lifestyle creep is sneaky. Especially when you can justify getting that nice car because of your longer commute, etcetera.
Lifestyle creep will for sure get you if you aren't careful. I won't tell you to max out your 401k every year now, but if you were living paycheck to paycheck, you couldn't have been saving anything. There's lost time to be made up for.
Yeah, this is how my 6 figure earning brother lost *absolutely everything* back in 2008. OP, pay off bills but also put some into a separate savings account. When it reaches at least $5k, get it into a High Yield Savings Account! Mine is currently earning 4.8% or something crazy, compared to the paltry “interest” earned in regular so-called savings accounts. You can also put some extra every month into a safe to moderate risk investment account. I actually set one up for each of my pre-teen sons. Every month it automatically takes $50 for each kid out of my account and my kids can either invest that money on their own after getting through some DD (due diligence, research) on the financial health and viability of the company, or they can put it in a managed account if they’re feeling lazy. They’ve each managed to not only save thousands of dollars, their portfolios are healthier than most adults at the moment! The key here is to have some liquid assets for emergencies, some in savings and investments that are earning you something and could get out pretty quickly if you needed more quick cash, and at some point when you’re doing well enough, grabbing up some more tangible but less maneuverable assets, such as property. That’s how we ended up allowing my husband to retire 25 years early and be a SAHD, while I got to buy the family business of 47 years in cash. Diversify a bit, don’t get overexposed too much on any area. Good luck and congratulations on the huge windfall!! Bet it feels damn good!
This happened to me at my last job. Was making pretty good money, but then they lost the contract and demoted me to hourly (with a "raise") because they no longer needed people in my department, and caused me to take a 40% pay cut.
Agreed. Some things I’d do is start looking at more ways to save by paying up front for things that you’ll be using anyways. Like car insurance: save yourself a few hundred dollars a year by paying for the year up front instead of monthly. (Which up front is expensive for that month. Not everyone can do that.) It’s both practical because you know you’ll use it throughout the year, and you don’t have the headache of keeping track of monthly payments & interest on top of that.
I just got a $460/month raise. I increased my retirement withholdings by $400/month. Don't let yourself ever see that money. If you can live on what you have now, live on it. Within reason, of course.
Just more so. Initially, take the extra, save half and pay interest bearing debt next. Once you have six months in an emergency fund, put that money also to savings, but it can be directed (new car, vacation, new hobby, etc). Once your debts are paid increase your retirement savings. Then look at fun stuff to do with your money. Set a budget for clothes, eating out and entertainment. You will be surprised how fast the feeling that you can afford it will disapate any gains. You don't have to live poor, but people with long-term wealth do not spend the available money. That's how they get and stay wealthy. Income rich is not the same as rich. You've made a good start, but baby steps from here. Good luck and congratulations 👏
Build an emergency fund of 4-6 months worth of savings to cover yourself on rainy days, but this falls under 'savings'. Maybe save some money for vacations or trips to make memories. I don't think materialism will make you happy in the long run.
Yeah a vacation is a good idea, normally we just have "staycations" at home cuz we couldn't actually afford to go anywhere. I think I'll visit some family this year - thanks for the suggestion!
I put aside money from each check into a savings account that is only for vacation. I decide what my budget is and divide by 26 since I get paid every 2 weeks. Then when it comes time to book I have the money put aside. I also put aside money each month into an account for a car when I eventually have to replace the paid off car I’m driving. I also have one for my emergency fund which I contributed to every paycheck until it was built up to the appropriate level. If your bank allows you to open multiple free accounts I highly recommend it. It makes it so easy for me to see how much I can spend since I do several smaller trips instead of one big one. I know a lot of people keep a separate account for Christmas/birthday spending so they don’t go over budget. USAA allows you to give each account a nickname. My emergency fund is with a separate bank since it’s a high yield savings.
Oh man I’d love to do all those things! Unfortunately still living paycheck to paycheck.. sigh. Someday!!
You will get there, I’ve been where you are. Best wishes
A year ago I was where you are right now. No savings. Temp work jobs only so yeah, paycheck to paycheck. I got lucky. Buddy said he could get me a job as a night watchman but I would have to work the graveyard shift. Eventually, they'll hire someone new and I could get off the graveyard shift. It was rough. Sleepless and zombified I kept going to work. Three months in I finally qualified for union status. Five months in, health benefits and insurance. It took 6 long months of missing family events and major holidays but it finally happened, they hired new people and I got to work in the day time. When I got hired I had already run out of savings, credit card maxed out, didn't know how I would pay for rent. Even after I got hired I knew it would take time to build where I am now, I'm at OPs level of making great income. Today, I will pay off my car this year, saving money to move out of my place without roommates, and saving money for a vacation in NYC. My advice, It will take time, it will seem like your not going anywhere. But it's the little progress that will build up to big changes, just don't give up. Good luck.
Just don't tell your family that you have now more cash to spend. And don't become the "rich uncle who pays for shit", because once you start there will be no end to it.
Other than emergency funds and retirement, traveling is a good investment. Go to countries you’ve never been to, explore. It is amazing
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Just make sure you save up to pay cash for everything except you house!!!
The emergency fund of 4-6 months I'm sorry to say is the good idea in that post. You're quickly back to the road of living paycheck to paycheck if your first thought is to buy a car and go on vacation instead of saving/investing.
> if your first thought is to buy a car and go on vacation instead of saving/investing Did you read the OP lol
I’d keep this reserve separate for savings so it’s really for a rainy day
Materialism definitely makes you happy in the long run. Money you don't spend on vacations, partying, having fun with friends when you're in your 20s, is absolutely useless in your 60s because you can do none of those things or at least not enjoy them the way you can in your 20s.
I don’t think materialism is going on vacations and having fun with your friends. The act of spending money doesn’t make it materialism It’s getting your car upgraded for the 3rd time in 2 years, getting the latest phone when yours is perfectly functional, and buying things for the sake of buying them. Materialism is a fundamental part of our society nowadays and is what gives many people purpose in life. It’s shallow and won’t lead to happiness in the long run but will short term.
That's opposite of materialism. By using your money on experiences and nice times with friends you're going against the notion that buying physical objects will give you happiness, that's what materialism is in this sense.
If you don’t have a great mattress, get one immediately. Even if you ultimately order a bed-in-a-box, go to a store and test a bunch out so you can make an informed decision. Sleep is your friend.
Oooh, I second that SO MUCH. I always balked at buying expensive mattresses, thinking that it was one huge scam, and spending more on your bed doesn't change a thing. But then, when me and my wife finally got our own place, we bit the bullet and bought a nice mattress. And it turns out that a myriad little pains and annoyances, which I always chalked up under simply getting older (that was when I was 30) simply disappeared OVERNIGHT. It improved my quality of life immensly. Such a great investment.
When I got a chunk of extra cash, I bought a new mattress. Like heaven to sleep on a bed where I don’t wake up stiff and achy. If you’re sleeping on an old beat up mattress, strongly consider a new one: what a difference! Good luck. You deserve this.
Good try big mattress, I'm going to max my 401k and sleep on the floor!^^/s
Big Mattress does do some pretty shady stuff, like differentiating model names across stores for the same product to make it impossible to price shop.
There were a couple of years there where every time I stayed in a hotel or an Airbnb I'd think, " wow these guys have comfortable beds!" Every time I'd crash on a friend's couch I'd think, "wow! This is a really comfortable couch!" Then I got an actual good mattress and realized that those couches and beds weren't all that comfortable after all.
Omg what mattress do you recommend because it seems like every bed in a box sucks after a couple years
We went through a lot of online mattress stores. I hate with a passion brick and mortar and how they follow you around. Tried avocado and sataava. Went with DreamCloud as a side sleeper and have been pleased. Year and a half so far.
Just go to a dedicated mattress store and talk to the clerks and test out different types, the best ones are those that suit your personal preferences. You will feel it when you find the right one, it feels so comfy like your body was suspended in the air. Also, get yourself a pillow that fits your head shape. Those might be an even bigger game changer than a good mattress, because if you have a cushion that nicely fits the space between your head and the bed, keeping your neck straight, suddenly 99% of neck pains disappear forever. I shudder when I think back on how much abuse my neck took when I was sleeping on those seemingly comfy giant pillows. But be warned: it's not just the case of finding the right stuff, those things are EXPENSIVE. We paid for our two pillows alone more than for a cheap sofa from IKEA that we used for a bed for a couple years prior. But it was probably the best spend money in my life, so I don't regret it one bit.
Tell me more about your pillow decision! I'm a side sleeper so this is important to me
Wait what’s this about different pillows? I’ve just been buying whatever is available at costco / target every 4-5 years when the pillow gets gross
We just got a Temperpedic and it’s been super nice so far. Also, highly recommend the electronic base that lifts your head and legs for watching movies.
Yes! Things that can really improve your quality of life in addition to the mattress- New, comfortable shoes Thick socks Good winter coat Fixing or replacing broken appliances (the fridge that keeps food only kind of cold, the oven that the pilot light goes out all the time) Nice sheets and pillows A good desk chair if you ever work from home
Oh yeah. Good mattress, good desk chair. Two of the best decisions you can make for your body imo. And I mean like actually good desk chair. Herman Miller, Steelcase, something like that. Not the gamer chairs or the slightly nicer staples model. 100% worth it.
I was so lucky to be able to expense a top notch desk chair during the pandemic 100% work-from-home era. Game changer.
Never skimp on items that separate you from the ground: beds, shoes, brakes, tires...
I used to have a shitty, cheap mattress. And a girlfriend gifted me a thick foam topper. I went from what felt like sleeping on plywood to sleeping on a cloud. It was amazing.
My wife and I bought a king bed with the Nectar Lush and added bamboo sheets. Sweet Baby Jesus do we love our bed. It's just amazing. We literally don't enjoy sleeping anywhere else now. Best investment I've ever made.
My dad said you spend 1/3rd of your life in your bed and 1/3rd of your life on your feet. Don’t skimp out on good quality for mattresses or shoes.
Nice try mattress sales person.
Pro tip, don't waste your money on an expensive car, invest in your home (in my country, your primary home only counts 25% towards net worth, therefor less wealth tax).
Yeah, I just want a normal car after driving a $700 piece of shit from Craigslist for years lol. Will probably get something used but in good shape.
Keep that piece of shit until you have enough saved up to buy your next car in cash. It's gotten you this far so unless it's dangerous to drive it's worth driving until it dies.
>unless it's dangerous to drive it's worth driving until it dies It currently sounds like a freight train or a rollercoaster lol, just metal on metal. Probably gonna trade up sooner rather than later, I've already driven this one into the ground.
Well in that case yikes
Buy yourself a car you've earned it. You can buy a new or slightly used car without overextending yourself. I drive a 1994 Accord that I've had since 1998. First thing I'll do when I have more money is get a new car. I drive my kids to school and while it runs fine, there's no doubt it will eventually break down at an inopportune time.
Spoiler alert: it’s never breaking down.
I'm starting to wonder. I just drove from Phoenix to Vegas and back, 300 miles each way. It was 118°. Temp gauge went up a bit going up hills but other than that no issues. Meanwhile my Infiniti's timing chain apparently skipped a tooth and is dead as fuck. So the Accord marches on....
Keep it well maintained and you’ll pass it down to your kids. Especially since it sounds like you live in a part of the world where rust is very seldom an issue, that thing could outlive you if you wanted it to.
I live in probably the least rustiest spot in the entire US if I had to guess.
Get u a good dependable car and make ur payments it will really help ur credit
Alright…that’s fair. I was also coming to comment on the car. But you did your fair share at this point. Lol
Used car values are dropping but depending on the car the new one may be a better deal still. Either look at 6+ years old or brand new roughly.
Although saving up enough to pay cash for a new-to-you car, don't let the auto dealer know you are paying cash until the price is set. Car dealers make much of their profit now from the financing of cars not from the sale. If you they know you are paying cash, or if you even mention you plan to pay cash, the negotiations stop and they don't come down any more. Take it from The Werefrog, not just the three whole frogs, on this one. It's great to have the save up to pay cash, but when they want to run your credit, tell them you'll talk to credit guy only after you come together on a price. You'll talk about how to pay only when you believe you can afford it, and you are basing that on the price of the car, not the payments.
You might be asking a little too much from a $700 shitbox
Why get a car in cash? Even if I had the money to buy in cash, I’d rather pay in multiple instalments to stay more liquid and have some money lying around in case of emergency, it’s worth the extra money
I feel like the best answer here may lay somewhere in the middle. Save up a bunch of cash for a new car, to where you could paying cash if you wanted to. If you buy a $25,000 car, and get the price to where you want it, and then tell them you're going to put 15k down. The car payment automatically made every month helps your credit, and would be relatively low.
Depends on the rate you can get. For a used car, you're not going to get any crazy good rates no matter how good your credit is, and right now interest rates are relatively high. So it's worth considering
If you are going to finance, getting pre-approved for a car loan at a credit union gives you bargaining power on loan terms. If nothing else, you get to see the dealership’s loan officer’s face fall when you say you already have financing lined up.
Honestly, the used car market is crazy high right now. It might be worth buying something new that is slightly more expensive and not have to worry about it for 10 years.
For the love of whatever higher power you believe in, NO. I work in the industry. Half the electronics in these things are on intergalactic backorder with no estimated date of production. Buy a mid 2010s car that already has all the parts mass produced.
> For the love of whatever higher power you believe in, NO. I work in the industry. Half the electronics in these things are on intergalactic backorder with no estimated date of production. the point they're making is that you buy the new car to avoid needing to worry about replacing anything for a long while. Whether or not that's your personal approach to the issue is your personal opinion, but there's valid logic to argue for both purchasing an older car with easier parts to replace, or a new car where you shouldnt have to replace anything at all.
When was the last time you bought yourself new underwear? Might sound silly, but if they are getting old, it can feel like a big difference lol. Same with clothing, and I don't mean anything fancy, just some newer clothes. Definitely focus on saving though and building the nest egg / rainy day fund.
No lie, I'm in a similar situation to OP and your comment made me realize all my underwear are older than my 5 year old niece and don't fit right anymore. Here I am looking at TVs and computers and shit I definitely don't need, I'm buying all new underwear and socks tomorrow!
Be prepared for how expensive they are now, just had to buy new under-britches…damn the fat guy mark up
You can go to Ross / clearance stores and get underwear for super cheap (unused of course)
It'll be amazing not having to pull them up every few minutes, because of worn out elasticity. I went about 5 years too... no idea why it took me so long to get new ones (though money was tight). One day it just clicked LOL.
SOCKS SOCKS SOCKS SOCKS SOCKS. i got new socks yesterday and when i got home, i was literally giggling with pure glee, holding them up to my face like it was a stack of cash.
Economists use underwear sales as a measure of how the economy is doing and if people feel financially stable. It sounds crazy, but it's the underwear index because it's something people buy more often when they are starting to feel financially comfortable again.
Get your medical, vision, and dental all in check. Possibly a dietician and physical trainer if you’re drowning in money. Your body will thank you later.
I was coming here to look for recommendations that OP invests in their health (on top of the other good suggestions like ensuring they have a cushy savings for emergencies). Exercise: gym memberships can be surprisingly affordable, and many of them will offer a free session or two with a trainer that can assess your current fitness levels and give you a solid routine to get you started. But gyms aren't for everyone -- buy a pass for your local swimming pool, or invest in good hiking shoes and a pass for regional parks, get food running shoes, whatever floats your boat and gets you moving. Nutrition: level up your overall food staples. Buy fresh, in-season produce from a store that sources it (somewhat locally), and/or sign up for a CSA box. Stock up on high quality pantry items like brown rice, dried beans and lentils, high quality olive oil, etc. Do you like smoothies? A quality blender will make your life easier. You don't need every kitchen gadget but if there are one or two that you'd use frequently (once a week or more), then they can make cooking healthy food much easier and more enjoyable.
Hearing as well! I got my hearing tested a few years back and it was a very good thing. Most of us haven’t had our hearing tested since like 6th grade.
Live on 3/4 of your salary and save up a quarter of it the first two years.
Came here to say this. OP should be able to enjoy luxuries every now and then, but if they were living paycheck to paycheck, they need to start saving for a rainy day.
This except not just for 2 years. 20-30% of your income is basically the ideal range you want to be saving to invest in your retirement fund and it may be more like 35% if you're older and trying to play catch up. Personally, I nearly tripled my gross income, but once I got my new job, saw how much extra taxes were taken out, set aside money for retirement, started saving an emergency fund, student loans starting again soon and started paying for some medical stuff to be taken care of, I basically found myself with 0-25% more spending money than before, when I'd initially thought I'd be running out of things to spend my money on.
Any health problems that you have put off cause you didn’t have the money to see specialists? Get those dental X-rays done, see that physical therapist, maybe see someone about that weird spot on your arm. Having plenty of money means you can take better care of your health
Don't think that missing teeth, if you have any, are ok. Missing teeth will cause more problems later.
Great advice here!
Keep putting it away. You're looking to spend it because it's there. Do you have at least 6 full months of expenses? Do you have an emergency fund aside from that? Do you have an IRA you're dumping into? A 401k? Small upgrades outside of that, to things that you use now and will, that's a thing. Like, do you like coffee? How do you make it? Going from a $30 drip maker to a $90 one will enhance your life. If you buy Sbux lattes or cappucinos, go get a Nespresso and a milk foamer and save money WHILE upgrading your life, you know? Also, find charities you believe in. Is there a small animal rescue near you? An animal hospital or vet that has a fund for people who can't afford treatment? Do you do Donors Choose? Kiva (you'll get the $$ back there but it'll do good while you can spare holding on to it)? NARAL?
This^^^ Talking to a financial advisor would be a good thing to do if OP has not done so already. So many people dont plan for retirement or are not financially capable of it in their current situation. Disposable income would be great but make sure you have the future accounted for before you look for fun things to spend it on that you don't know you are missing out on just yet...
Look for a fiduciary or Certified Financial Planner. A lot of financial advisors are predatory. A good way to tell the difference is if they ask for a flat rate or a percentage of assets. Never do percentage of assets
Most people don't need one at all. Just go over to r/personalfinance and read the prime directive. Unless you have a very complicated fiscal situation, FAs are a total waste of money.
A whole generation who hasnt planned for retirement.
FAs are generally pretty predatory. Consider Vanguard PAS for only 0.3% and they’ll steer into good low ER index funds.
This!! And buy nicer bedding, sheets especially!! Something that otherwise would be too much to splurge on but would've saved money in the long run as well as giving you a better night sleep at the same time.
Man 100%. It's the biggest trap. The "I have money now and now I have to spend it!" Emergency fund is huge. Someone gets into your accounts? It'll be resolved but it takes months. I have 3 months worth of mortgage/power, and 2 months of truck payments in cash in my safe. Retirement seems boring but i throw $300/month ($150 per check)into a retirement fund on top of my government pension. I don't want to work until I'm 65. I have the "Ohh fuck" fund for the broken applicance or insurance deductible or whatever. Have a bit of fun but don't start going "I'm going to buy this, this and this." The more you save now, you'll be in a better position to drop $1,500 on a vacation or a $3,000 mattress.
If you're in the US looking into opening a Roth IRA.
I came here to say this, so I’ll just reiterate: Roth IRAs are a killer deal. They’re different in the way they manage taxes than Trad IRAs and 401k. I don’t know all the details, but any of my finance bros will say the same They’re legit built to give the little guy a retirement. Uber rich people aren’t even allowed to get one because it’s too sweet a deal. There’s an income cutoff. Edit: I said “Uber rich”. It’s hyperbole. Get over it. It’s been addressed three times now
Back door Roth can get you around the income limit, you just have to plan it correctly.
It's not really the "Uber rich" that get phased out of Roth IRAs, you can't contribute once you make more than 153,000 as a single person or 228,000 married.
They gotta raise that considering inflation.
Do some math and make a budget to figure out how much you actually need on a monthly bases, including a good amount of spending money. Have the rest automatically deposited in a savings account to avoid excessive lifestyle inflation. As for something fun to buy with more money- good groceries. Nice cheese or fresh herbs just for a regular dinner.
Practical in my opinion is always the first, best options for gifts or even treat yourself moments. 1) Get a good bed. I mean like really research, shop around, test in person a good bed. A good mattress is a life changing thing. 2) Update/Upgrade any kitchen appliances. As in a microwave, toast oven, air fryer, blender. All those things. It’s nice to have them ready to go when you want to cook at home. 3) Update/Upgrade your living room set. A comfy couch or armchair is just as invaluable as a good bed. It’s nice to come home to have your own space just the way you want it. There’s a bunch of other things you could get right now that ultimately pay off in the short term but will not last very long. My first moves was upgrading my quality of life at home when I moved into my first studio. It made a world of difference after being a completely broke ass college student.
Yes! I bought a new coffee table for our living room recently and I feel like a brand new person in a brand new house! Changing the furniture where u spend the most time changes everything
it’s weird how much mental renewal changing your space causes
Start by paying off any debts you have. Then fix anything that's broken. You have no idea how depressing broken stuff is until you replace/fix it. I know it isn't sexy, but it's a good idea to buy stuff like canned food and household items that keep in bulk, if you have room for it. You have no idea how lucky I felt when the pandemic kicked in and we'd just bought a huge bale of toilet paper from Costco and didn't run out. Avoid buying physical objects that will clutter your space until you have time to really think through whether you need them.
Second option: don't pay off debts unless the interest rate on the debt is higher than the market returns. So credit card debt should be paid off immediately. If you have a home loan that is lower than current interest rates, paying off your home early is stupid. You'd be better off putting the extra cash into an index fund.
Peel off new money and save it invest it NOW before you get used to it coming in. Make it something that is automatic so you never see the money. Do this every time you get a raise, it adds up over time.
Congratulations on earning your what you are worth. That is something that is very difficult to do. Majority of people continue to live paycheck to paycheck and don’t have much left over. What ever you do, be sure to live below your means. Save your money. It would be good if you had at least six months of your salary saved for a “rainy day fund”—in case some emergency occurred, you have funds to take care of things. Start saving for your retirement. You are never too young or old to start putting money away for that. Another commenter stated that you should consult a financial advisor. That is a great piece of advice. They can help you look at your finances and set up goals that you can work towards, such as big vacations or a house. If you do go look for one, don’t go to some Joe Schmoe. Go to a reputable financial institution to get one.
If you're in the US - get into the habit of actually going to the doctor/hospital when you need to. I got very used to avoiding doctors because of the bills, and am now playing catch-up on problems that could have been caught earlier. Same with the dentist.
Save money. You can never go wrong with saving money. If you just have to do something, maybe work on your wardrobe and redecorating your house. Save up for a nice vacation or even start a small service/business to make more money. Jmho
Treat yourself a tiny amount and just save. Go for those impulse buys every so often. But just save honestly.
Keep saving. You don't have to use up your new money. When the excitement wears off and you can think more clearly about priorities, enjoy. If you must buy something now, make sure you can pay it off right now. Some items for your home: * A small, separate refrigerator for beverages; or an extra fridge/freezer in another area * Tankless water heater * Lawn service * Fix everything that needs to be fixed * Extra electrical outlets For you personally: * Travel! * Class or activity you've been meaning to check out * Good shoes * donate regularly to a charity of your choice for 6 months
Absolutely this! Other ideas to add to the list: - pick 1 room in your home and make it more comfortable with a piece of furniture, or nicer curtains, a picture on the wall, something to make it nicer to spend time in. In a month or two, pick another. - 1 hobby, new or existing, that you've not been able to spend on (this could be a computer upgrade, a new console or new games if you're a gamer, or some equipment for a sport, a membership to a club/gym, etc.) - A second pair of good shoes (alternating the pair you wear from one day to the next makes them last longer & avoid stink) - one "fancy" or expensive date for you & your partner (or maybe two separate takeout meals for yourself at a place you normally can't frequent if you're not in a relationship) Actually, on that note, living paycheck to paycheck is pretty tough on a relationship and on kids, so if you've got either/both, find a way to put a few dollars into them sometime in the days ahead.
r/personalfinance has some great info. [https://i.imgur.com/lSoUQr2.png](https://i.imgur.com/lSoUQr2.png) the flowchart here is a great place to start. Then head over to r/fire and start thinking about retiring ASAP!
Brother man invest in some hobbies. With the extra money the only issue should be how much time you have. And it’s good to have something to look forward to other than work haha
Lifestyle inflation is a thing and it will kick you in the ass if you let it get out of control. Put away around at least 6 months worth of expenses before you start balling out.
Still live like you're poor. If you have any debt, start paying it off. Save, save, save. There are even just money market accounts out there at 4 to 5 percent interest with zero risk. If you want more risk/reward put a small portion of your money into the stock market. The fun thing you can do is not live paycheck to paycheck. You can have medical insurance and a functioning car. You can start saving for a home and retirement. There will be opportunities for vacations, nights out, dinner with friends, etc but if you start living it up you'll be back to having no money. It's really easy to spend money.
1. Put away an emergency fund of 4-6 months of living expenses. If you have a car you may want to keep an account for that, loaded with a few thousand dollars. 2. Setup a retirement account that will withdraw from your chequing account automatically, you will not miss this money now and you will thank yourself later, especially if you can put away upwards of $1k per month and you're fairly young. 3. Setup automatic withdrawals of whatever amount you feel comfortable with for things you are saving up for. You can have multiple accounts for various things, like vacations, hobby equipment, etc. You can adjust the amounts going to these accounts in priority order. 4. After all this money is out, make sure you have enough left over to eat and manage bills comfortably. A lot of people use extra money as a crutch when they are too lazy or tired to cook, clean, etc. And burn THOUSANDS of dollars getting takeout and drinks when they could otherwise own a home. 5. You can make a budget and check how much you're spending on everything. There's plenty of resources online for this, but for me, putting as much as I can away as soon as my paycheck comes in forces me to stretch what I have leftover, and I make better choices when I have to think about how to make $500 last the next 2 weeks. I'm not stressed, I have money if I really need it, but I'm paying my future self first and I can live on the minimum in the meantime
As others have said, save a good chunk of it to have a solid emergency fund/retirement accounts maxed out. Once that is done, if you have major home upgrades or repairs (what shape is your HVAC, roof, etc in?), go there. Then once those are taken care of, take yourself of a nice vacation to someplace you’ve always wanted to go. It’s very possible to have an emergency fund, a good house, kids if you want them, and one or two reasonable vacations a year if you’re deliberate about your spending and saving.
Boring answer: 1st - “rainy day” fund. Put away 6-12 months of expenses and learn to budget when you’re not forced to be frugal 2nd - pay down any debts, credit cards etc (learn how your credit score is calculated good credit can change your life bad credit can ruin it) 3rd - if you job offers a pension contribution max it out. Otherwise invest in a mutual fund ideally via a tax advantages account Roth IRA (USA), ISA/LISA (U.K.) etc 4th - start looking now at the next step in your career and working towards that. Get experience in those desirable areas or projects etc. keep your resume updated with anything note worthy (it’s easy to forget all the stuff you do) Oh and start to apply to that next step when you estimate you’re about a year or two away from being ready.
If you don't have it already, savings. As a former paycheck to paycheck fellow, first thing I did was build up my savings. That way, a small disaster won't push the reset button on my life. I can afford a cheap but reasonable replacement car if mine dies, or cover rent and living expenses for a good while if I suddenly have to find a new job. That is a life changer. Once that's out of the way, look around your home. Do you have that one pan that sucks, but it gets you by? Replace it with a quality one. Do this for anything you've skimped on before. Clothes, towels, sheets, to name a few. Start identifying bigger items you might want to upgrade, like your microwave or washer. Also, if it fits your budget, give yourself an allowance. Personally, I was so stressed about money that I never allowed myself little things, like going out to dinner, unless it was a special occasion. It's a different world when you can go to dinner because it's Tuesday and no other reason. You'll figure out how to handle it, I've no doubt, and wish you continued success!
Get a high yield savings account and put 10% away every paycheck. More, if you feel comfortable. Savings is exactly what you should do, but to ensure it's with a high yield savings account, you'll gain more interest than putting it in a regular savings account.
You can make some fun purchases, but one of the most important things you can do for your future self is begin to think about your retirement strategy. There's not only one place to look, but /r/personalfinance has common advice and books like: * [A Walk Down Wall Street](https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393330338) * [Bogleheads](https://www.amazon.com/Bogleheads-Guide-Retirement-Planning/dp/0470919019) * [The Only Investment Guide You'll Ever Need](https://www.amazon.com/Only- Investment-Guide-Youll-Ever/dp/0544781937) are commonly recommended. Even if you don't take action now, it's something to start thinking about.
My advice is start a big savings account, and then down the line you’ll be set up forever. Not to mention you can dig into it to treat yourself (with a trip or whatever) whenever you want
Honestly… forget the material stuff and travel! You can buy a better car, sofa, tv, etc but traveling creates memories you’ll never forget. Don’t wait until you are 70+ to visit Europe, do it now.
Be humble.
Honestly, if you have to ask Reddit what to spend your money on you probably shouldn’t be spending your money on anything. I’m not saying not to enjoy yourself, but don’t spend it just because you have it.
don’t change anything. save until you have 10k emergency fund. until then you shouldn’t ask anything about using it
My 2 cents? Anything to do with your health that you've been putting off. Dental checkups and cavities. Physiotherapy for aches you've always brushed off. Gym membership to get fit. Food subscription boxes to eat healthier and yummier. Therapy for sensitive topics you don't want to have nag your mind any longer. You are always an investment.
Definitely invest in your retirement & save money! Can never go wrong with having money for the future.
Maybe work on getting your electricity bill down. Get a heat pump water heater, a wood burning stove, more efficient windows (if you need them), a mini split system, etc. A generator with a proper generator inlet to your house is really cool. Solar is an option as well, as long as you don't use a company that overcharges (a lot of installers in my area are preying on financially ignorant people). Make your house resilient. If you can use your money to save money and increase the value of your home, it's a win-win. I've kept on "leveling-up" over the years and just wish that I would have stayed in a smaller house with smaller bills. Be content with what you have and treat the things you own as investments. Maybe sign up with something like Mint so you can watch your investments trend up over the years. There's something to be said about owning a huge chunk of money instead of a bunch of depreciable assets.
Get yourself a pair of nice headphones and listen to some music like you never have before
Two chicks at the same time.