Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Feeling overwhelmed
I just graduated this month with a bachelor degree in nursing. Today I had my second interview for a federal primary care clinic position. It is looking like I will most likely get the job which is very exciting! The director basically told me she would call tomorrow with the official answer but to schedule my NCLEX asap and be prepared to start right after I take it and get the results. This is all very good news. However, I found out today I will likely be making around 20 dollars an hour which will equal out to about 42,000 a year (slightly less). At first that sounded fine but then I started plugging in the numbers for my budget and I realized that things are going to be much tighter than expected. I have a 2 year old DD that lives with me full time at my parents house. Her father and I are together but he is currently living at his mothers house (We split up last spring for a variety of reasons, but have gone to couples therapy for 6 months now, but are waiting to move in together until we are actually married this time). He pays child support and splits all her daycare with me.
Anyway I am feeling very overwhelmed about the idea of paying for all my living expenses and trying to save for a wedding. I have no emergency fund or savings to speak of. Right now I am down to about $800 dollars to my name. I need to move out of my parents house this summer and am also in need of a new car. (I have a 1996 Toyota Camery with over 256,000 miles on it, however there were some repairs done in January and it is running fine at this time). I guess I'm just wondering what the first step I should take is and what some pointers are to thing about when making decisions around finances. I also have about 10,000 in student loans and $800 on a credit card. Any advice would help or even just encouragement lol.
Re: Feeling overwhelmed
Congrats on the degree and the pending new job!
Can you post your proposed budget on here with as much detail as possible?
Without seeing anything yet, I am wondering what has you overwhelmed. $42k seems like a pretty decent starting salary to support you and a DD comfortably in NM along with shared child care costs and child support. And, $10k in SLs and $800 on a CC don't seem too worrisome either (based on what else I've seen/read about on here and elsewhere) for debts.
I think with some guidance from the smart ladies here, you can have your debts figured out, an e-fund up and going, a plan for a new car, and retirement savings too.
You are going from the certainty of a known home into all new circumstances with this job, moving out, moving back in with your significant other and life in general....some anxiety is normal.
What's your budget???
The first step would be to post your budget, the ladies here are very helpful.
IMO, 42k seems like a pretty good starting salary, especially if you are getting child support and help with dc. I don't know what is in your budget, but it seems like it should be plenty to cover living expenses and some savings.
If money is really that tight.. I would hold off on a wedding. Easier said than done, but in hindsight I wish we would have put the money we spent on our wedding into our home or savings or something else and just eloped.
It is easier to give advice if we know exactly what you are working with though.
I agree with considering the possibility of delaying your wedding. It's really important to be on solid financial ground when you start a marriage, because all the debts can weigh you down.
I imagine you are feeling overwhelmed because you have a lot on your plate. To be honest, that starting salary sounds pretty good. I was a single mom supporting my now 25 y/o son on a lot less than that for YEARS. Granted, the cost of living was lower back then, but that is still a very good salary. I owned a condo, sold that and moved into the house we have now when he was 7.
Federal jobs come with great benefits. Your benefits will cost you less than people who work for private companies. Also, a little known fact (something I learned from my son who has worked for non-profits for 3 years), if you repay student loans for 120 months, or basically 10 years, while working for any government employer or non-profit, any loans remaining are forgiven. Not that you are looking that far in advance, but it's something to keep in mind. The 120 payments don't have to be consecutive either.
I'm in my 50's and own a 1999 Toyota Corolla with 125,000 miles on it. It has 3 dents from my teenaged daughter's use, LOL. There are things you can wait to buy until you've built up your emergency funds.
Now that I'm married, we are still thrifty. I shop at Aldi's grocery stores, we only eat restaurant food maybe once a month. Since you will probably have scrubs, you don't need a lot of "office attire" and will probably have a couple of pairs of comfortable shoes.
Start out with a positive attitude and depend on advice from friends and family regarding your finances.
Good luck.
Go to the Justice of the Peace to get married.
PLAN your spending - AKA - budget.
Housing 25% of takehome pay (do not rent or buy too much or you are "house poor)
What do you spend on groceries, gas, medical co-pays/deductible, and other NECESSITIES?
Be sure to set aside money for an emergency fund and savings for larger needed items.
THEN - look at non essentials (eating out, new clothes, vacations etc.)
Track ALL of your spending for a few months and then categorize . If needed reduce or eliminate
You should have no problem living on your income and child support IF you plan your pending .
ETA: You do not NEED a NEW car - you need a new to you vehicle. Buy a slightly used, low mileage, economical vehicle. A new car depreciates a ton the minute you drive off the lot. What ever you buy, finance for no longer than 3 years. It that payment is not affordable, then you are buying too much car for your budget. Save for as large a downpayment as possible.
Getting into an apartment you will need first and last month's rent, security deposit, utility deposits and any moving costs. Furniture? Decorating?
Congrats that the interview went so well!
As other people said, post your proposed budget so we can take a look at it and help you. Unless you live in a seriously HCOL area though, you will be making a pretty decent salary, so you should do fine. (I believe the average income for a family of 4 right now is $50k in the US)
Keep your rent down- and I would definitely rent. Do not buy anything until you have been out on your own for several years and know that you can sustain that payment. About 25-30% of your take home pay is a good range to be looking at for that, like PP said. If you are getting child support that will also help give you some extra wiggle room. I maybe would plan your budget without that income if he isn't reliable in paying, or if you just want to leave it as wiggle room if you estimate wrong the first couple of months.
Thank you for all the posts! I did receive the job offer and will start of the 13th. Again I am thrilled for the job! As a PP said it is more the newness of the situation and trying to get organized that is overwhelming rather than that I think its not feasible on this salary.
As another PP suggested I am not planning on getting an actual new car just new for me. I was was thinking no older than 5 years and with no more than 65,000 miles on it. Something reliable such as a CRV or Rav4. Also I have done a lot of reading on consumer reports on small SUVs (which is what I really want), so I will go around what seems reasonable.
Here is my budget breakdown for everyone that suggested I post a little more details
$58- cell phone
$70-car insurance
?-internet
?-rent
$275-daycare
$100-child expenses (almost done potty training so should go down!)
$300-food
$200-eating out, entertainment
$160-gas
[$100-clothes
$50-miscellaneous
I receive about $200 in child support each month.
Our wedding is not going to be for awhile as we both think its important to have a big wedding and want to save for it first. I need an amount to put towards and e-fund as well as some to put to the wedding.
I see no savings line, car payment, gas and maintenance, personal care nor gifts
Your grocery combined with eating out seems really high for one person and a toddler, but not sure what other entertainment you are accounting for.
Do you also need to buy clothes every month? I would think this may be a one time big expense for scrubs and could then be applied elsewhere. Unless you buy other clothes monthly?
Have you looked at any places yet or have an idea of what rent may be?
Keep your rent, apartment utilities (water, sewer, trash, gas, electric), and renter's insurance total per month in the 25-28% range of your after tax income if you live in a low or mid cost of living area and in teh 30% range if you're in a high COL area.
So your base salary is $42k annually. If you take home $37k annually (I made this number up) after taxes that means all the of the above should cost you between $771 ($25%) and $863 (28%) per month. Or, around $925 (30%) if your in a high COL area.