My take home is 5K per month and I have a B.S+M.S in Computer Science coupled with 2 years of work experience(including pro-rated parttime). I realize most people at my age(26) are in the high six figures, but as I work for the local goverment it is less.
I am presently saving most of my savings in a savings account/CD'S
which are giving me about 5% as I want to purchase a home which in my
area(Tallahasse, FL, U.S) are about 150-200K. Presently, I am single
and my total savings are about 40K. My total expenses are about 700
per month(including everything and I don't have a vehicle) which I
realize is quite high as I have heard college students in my area
typically survive on 300-400 per month in my area by sharing an
apartment and I am staying alone to avoid noisy roomates. 5% is pretty
low considering 4% inflation and taxes.
I have one IRA account with just 2K and am participating in my
agency's deferred compensation plan and have chosen the investment
plan(instead of pension plan). I understand that people of my age will
not be most likely not receiving any social security(40 years from
now) so need to depend on only on their savings/investments for
It seems from the below links that most people today start their own
business part/full time and generate side revenue and some are even
Some folks have advised me to work part time designing blogs, sell
items on e-bay, work as a part time real estate agent, trade in stocks
aggressively, buy/sell homes on interest only loans(particularly the
way market is at present), drive buses/taxis on weekends or work for
another agency part time on evenings/weekends. They mentioned two full
time jobs or full time job plus full time college or one full time and
part time job is pretty common for people at my age with no family
responsibilities. Some have advised me to take part time MBA classes
which could help in eventual promotion at my work place which I am
considering. Few have told me to invest in international funds which
are doing well at this time.
I am just puzzled how so many people from other countries achieve
things like becoming governor of California, starting
companies(founder of Intel) and many more bright migrants while I am
struggling to even save for retirement.
I am trying to learn as much as I can about investment vehicles and
talking to many bankers as possible while avoiding their investment
services until I understand how it can assist me in the future.
It appears quite a lot of people achieve it in our country from
but most have more qualifications/skills than me.
The links I mentioned are one of the many myriad such links and in the
actual world there are lot more people who do well considering New
York City alone has 45 billionaires(in addition to lot of people who
still don't reach that level).
Can moving to a different place like New York City or California boost
income after taxes, expenses etc of living in that area and working
for the coprorate sector?
Some have told me being an independent consultant you can charge 100$
per hour assuming you can market and sell yoursel properly. For a 1
year contract(working 1950 hours per year) with 100$ per hour someone
could bring 195K after Federal, state, self-employment tax, medicare,
health/business insurance/vacation/annual leave,training leave etc.
could still net about 100K which is better than my present take home
of 60K per year but I would lose job security and have to be mobile
which people have suggested me most people at my age without a family
typically do to boost their income. Some have told me it is advisable
to work for goverment in late thirties or forties and presently earn
as much as possible by investing aggressively, working as a contractor
starting a part time business/franchinse/real estate etc.
As I am a newbie I would appreciate the advice of experienced folks in
this team on how to reduce outgo, increase income and invest properly
for eventual retirement.
Thanks a lot.
- posted 12 years ago