I have been very fortunate to receive a union construction job through a relative, and I am very excited about the position. I have no debt of any kind and currently live at home with my parents. The job is 7 days a week, with double shifts during the summer, which gives me a lot of overtime pay. I’m in shape, down 120 lbs, and muscular. I’m also stress-free because my diet is already planned out on a spreadsheet, and I have no college debt (didn’t go) and no credit card debt.
According to my calculations, the job should provide take-home pay of $3,778/week, or $16,400/month during the summer. During the winter, it goes down to $1,430/week, or $6,200/month. The year-round average take-home pay is $8,800/month, which works out to about $2,020/week.
I currently have no money saved except for investments in XMR, and I want to invest around $10k–$12k into it. I also plan to contribute as much as possible to a 401(k). I do not plan on buying anything unnecessary, such as a new car, RV, computer, guitars, or anything else I do not really need.
My expenses are:
- $370/month for car insurance
- $50/month for my phone bill
- $150/week for groceries
- $15/month for Planet Fitness
Total: $1,085/month
I do not pay rent. My parents would not ask me to pay rent and are okay with me staying until I am able to move out and buy a house.
My plan is to build an emergency fund first, then set up automatic transfers into separate accounts for index funds, a house fund, a personal fund, a buffer fund, and a crypto fund so I can invest passively. I do not really want a credit card, but I need to start using one because my credit score dropped to 550 after not making a payment for a while.
Any advice is appreciated. Currently looking into HYSA and IRA, and will adjust this post later to show the amounts I want to transfer over to each account.
Stuff a number - say 10-20% - of your paycheque in for retirement. There’s tax implications that might adjust that number. Everyone told me it was important but I was too busy buying food, transportation, and shelter so I’m rather late to the game. You can back off on this if you need to, but it will help you down the road.
I would recommend that you also pay off any debts, set up deposits to an account for emergency purposes (six months is a goal, and pretend you pay rent or mortgage and a car for the cost estimate) and for home deposit. That should be all at the same time, reducing retirement contributions to make it work.
Get a cash back credit card. It knocks a % off every purchase and it adds up.
Don’t invest in crypto or AI.