This channel is to discuss budgeting, saving, getting out of debt, credit, and retirement planning.

Awesome channel idea!

@Zyzz thanks 😃

@Zyzz since you're here, I want to ask your opinion on something. I heard a wonky idea on TastyTrade that might actually make sense. They were pointing out that since IRAs are for really long-term investing, especially when young (I'm like 30+ years out) that you should load them with high risk-reward. Sosniak (one of the main host) suggested buying straight /ES futures in there. Since IRAs are for very long term investing, this actually makes sense to me when your time horizon is 30 years out. What do you think?

I agree with the high risk/high reward. With that said I wouldn’t advise being 100% invested in high risk/high reward stocks/funds if you think a recession is on the near horizon. I’ve scaled back my IRA/401k investments into cash/more defensive focused funds

But when you think the economy is about to turn up I absolutely advise going all in

@Zyzz cool thanks! it makes a lot of sense, strange that my current employer's 401k options are so limited when you think of it all this way.

Yeah I have the same issue with my 401k although I think it's workable. I am given access to a whole host of Vanguard funds with "target retirement dates" between 2015 and 2065. Obviously the longer out the retirement date, the higher the risk. Recently I switched into 40% cash, 30% 2065 target retirement, and 30% 2015 target retirement. I don't want to exit the market entirely but I want to position myself to be more defensive. If this January rally continues then I think I may pull a little more out of the 2065 fund

This is the 2nd longest bull market cycle in our country's history

the dotcom bubble (120 months) is the longest on record

if we make it to July 2019 w/o a recession then we will have broken it

historical data and the law of average dictates that we are near the peak of the cycle

I'd rather keep my money on the sidelines and wait for a really good deal to spring up and then buy

The way to get rich is to keep $10 million in your checking account in case a good deal comes along. - Charlie Munger.

What is a "good" starting salary right out of college?

That depends on profession, geographic location, private / public section, etc...

Cost of living and familial plans may dictate your impression of a “good” salary.

What are you studying?

computer science

but by "good" I don't mean "good for what I'm studying", I mean, "enough to live a comfortable life"

though I imagine that depends on region

That’s a worthwhile major. It’s useful across multiple industries. I work with a large technology company that does some CS / software engineering (in your general geographic area) that starts people around $60k -$70k

I’m sure there’s better and worse starting points, contingent on your internships, externships, experience, grades, focus, etc.

salary after 1 year for my school is $49,000

Seems “good” if you are a single guy with minimal commitments.

I am lol

I suggest reading The Millionaire Next Door. It gives wise guidance on frugality and living within ones means. Making a lot is irrelevant if a man can’t understand how to spend properly. There are men that make $250k per year but live paycheck to paycheck because they spend $245k per year. The key is making $50k (or $75k or $100k or $150k) but spending a fraction of it with the long game in mind.

ahaha ya I don't need to live like that

I'm more looking at this out of curiosity than anything

I don't need a super high standard of living

though it would be nice to have some extra money to fund IE

That’s the goal. Spend enough to live, and even live well, but have the discretionary funds to leave a legacy.

When do you graduate? How far are you from Portland?

I have this year plus one more, and I'm pretty far from Portland

I'm in the Spokane area

Fair enough. I’m here to help.

thanks

NP... I’ve been in business / tech / engineering a while. If and when you have questions I’m here.

Going into the job market can be a shaky experience.

>I don’t need a high standard of living

You need a high salary to attract a higher quality woman.

You need a higher salary to afford 6 children with a stay-at-home mother and avoiding public schooling.

You need a higher salary to achieve financial independence and provide a stable environment for your family.

You need a high salary to give more to causes that help our people.

A high salary isn’t about indulging in luxuries, it’s about ambition and providing for others.

The Millionaire Next Door is excellent and accurate.

$49,000 with a comp sci degree is unacceptable. Average starting should be $60,000+. The data is easily found online.

ya I did find that data online

that's the median for my school

@Tanner - SC Agreed. The starting salary should be much higher, especially is a decent metro area. Cost of living in his area may be one offset to the initial starting salary.

Eastern Washington is super cheap cost of living

my rent is 470

Me and my bf did the math. We can pretty easily live off an 80k salary to with 5-6 kids while I stay at home. You just need to DIY everything and never buy anything new. But we’re planning on homesteading so I don’t know if that budget is applicable to you.

Guys, do we have any accountants who are looking for clients?

Tyler, you can message me if you’d like to discuss.

@Tyler0317 ^

@ThisIsChris thx

Does anyone know if there's any job I can get if I'm not ready for a computer science internship but want something better than fast food?

@Jacob why not do a paid internship or co op program in your field of study?

"if I'm not ready"

computer science *is* my field of study

@Jacob the world is your oyster. Lots of options out there.

right

so what are those options?

Your university should have a bunch of job boards with a bunch of listings.

@Jacob I’d pursue something related to your field of interest. Does your college offer a co op program?

can't say I know what that is

but I looked it up and nothing came up

so I imagine they don't

Paid co op programs are similar to internships, but the co op generally allows you to work one semester and then work one semester in the related field.

oh

I mean I know internships are a thing

but the whole problem here is that I don't have enough coursework done for an internship

I could be wrong, I don't know

but I don't actually know much yet

@Jacob If there is a particular company or tech firm in your city that interests you, I suggest talking with the HR people. There may be entry level things to do and flexibility in hours. You’ll also have the opportunity to get a feel for corporate culture.

well, there's not much at all in my city

I'll probably have to go back to the Seattle area

if I want an internship

but that's a whole different issue

I guess I could just check with different companies and see if they have something really entry level

@Jacob Finding an entry level position shouldn’t be difficult. I suggest finding a company and an entry level position that is strategic to your future goals. In my opinion...

internships seem to usually require a lot of knowledge

but I might be wrong

maybe they just don't post the easy ones

Talk to your professors. Talk to the head of your Computer Science department. Start networking. Shake some hands. Ask lots of questions.

ya I think you're right

I just need to talk to advisors and stuff more

If you’re not in a position to get an internship then your focus should be getting yourself in a position to get an internship. And if that means not working for a summer and doing whatever it takes to get yourself in a position to get an internship then you should do that. Think of it as a long term investment in your future

no dude I'm fucked if I don't work in the Summer

I'm already low on money

I'd be seriously screwed if I just took a Summer off

Speaking from personal experience, you make A LOT more as a waiter than working fast food. If there are any summer tourism areas near you, they'd probably be in need of seasonal workers and white families on vacation tip especially well

thanks

haha I don't think anyone comes to Spokane for tourism, but there's definitely restaurants

>don’t have enough course work for an internship

There’s a wide variety of internships out there, not all are looking for juniors with 4.0 GPAs. Some just need a body to do grunt work. Go to your school’s career center and get on it fast. This is late in the semester to be locking in an internship. The upside is that the grunt work ones are still available.

Go to career fairs on campus and within driving distance.

well, I have quarters, not semesters, so maybe the schedule is different

but I'd be looking for something in the Summer

nothing is really driving distance for me since I don't have a car, but that's something I'm trying to get sorted out

that's why I'm looking into buying that Kia Spectra

You could bicycle to work.

That sounds less convenient than just taking the bus

It can be much faster than the bus

And good for physical health

Women have complemented me on my legs often recently

Don't you want nice legs, Jacob

^^

Tbh, nothing is better than bicycling through the city. It's a huge thrill riding between cars

Fast and the furious: Little cuba drift

https://youtu.be/iuJDhFRDx9M

This could be you

Gotta go fast

I think decadence is the #1 ruiner of personal finance for Millenials

For sure

The guys at work have no savings because they smoke $200 worth of weed a week

Among other forms of decadence

I saved $1,200 last month because I'm incredibly frugal and I have a very good income. It's not hard

$200 a month is still pretty good

I’m good at saving money myself. My mom always said buy things that will last even know it might be more expensive not cheap junk from China

tbh some cheap stuff is pretty good

A lot of people in my town blow money on drugs and beer 🍺.

Ehh my little pony collectibles are to much

I remember when I worked at hot topic people would come in and get them

Grown men in there 30s Generally who are obese

There is a concept in philosophy called reductionist which is super essential only buy essentials

Cooking at home saves a lot of money

@Jacob You mentioned internships.

Perhaps join a club/interest group at your school. Many of these have benefactors that will hook you up with jobs.

I know the local frats at my school had older members who would hire/get interns from their frat.

I hire thru the veterans office at my local college.

Thanks

@Tyler0317 do you ever hire guys who outranked you? I can see that being kind of a problem because a lot of my vet family members are dicks about that kind of stuff

@John O -
Yes, a couple of them.

I feel like I've earned my seat at the table of men. I don't often feel inferior to other military bros.

But, I know what you mean though. I have a high ranking officer in my state group, I sometimes second guess my tone of voice, as a former Corporal giving directions to a field grade Officer.