"You must learn to save first and spend afterwards". Sounds simple right?
You know, it's actually not as hard as you make it out to be. Especially if you set simple goals for saving. Goals like when you get a new job, set up your account to automatically save 10% of that. Since it is a new job you wont be missing that 10%, and you still have 90% to blow. I said this in another thread but when people graduate form college and start a professional career, the #1 thing they must do it take advantage of the companies 401k plan. My current company will match dollar for dollar of the first 6% of my income that I save on my 401k. Yes there is risk with the market, but since the company is giving free money, I only start losing money when my fund choices decrease over 50% in value. Anyways, I've been working and saving in my 401k for 13+ years now, and when I first started doing it I thought it wasnt all that important. It's honestly something I forget I even do from time to time.... So far this year my 401k alone has made me 130,000+, and the year isnt even over. I don't think I know a single person whose 401k hasn't grown by at least 15% this year. My rate of return is hovering around 20%. So yeah... It's crazy what can happen in a little as 13 years of saving like 8% of your income.
I know about taxes. I was just talking about the gross. But after taxes it should still be like $210 a week or so.
You guys really should lay off of the taxes thing. At 9 dollars an hour and maybe 30 hours a week, Erik isnt going to pay anything in Federal Income or even state taxes. Sure he will pay into social security, and medicare, and other job taxes, however that really isnt much. Sure they will take a lot in federal/state taxes, but he will get all of that money back.
$8.50 x 30 hours = $255 Gross. $255 x .7 (approx 30% in taxes) = $178.50 $8.50 x 25 hours = $212.50 Gross. $212.50 x .7 = $148.75 $8.50 x 20 hours = $170 Gross. $170 x .7 = $119
$119 > $0
Again, taxes are too high. Erik should claim like 3 exemptions, and then he'd probable bring home close to 200ish if he gets 30 hours per week. Last year I literally paid like 12% in federal taxes. You really think Erik is going to do worse then that? hardly. And I was hit with AMT
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Congrats on the job though erik.
not bad, but to expect more would be naive