I haz monies, now what does i do with it?
I was playing foosball with a couple co-workers this Thursday evening. As we were playing, i made some comment regarding World Of Warcraft, and my foos team mate said something along the lines of "I don't see why anyone would waste there time with games like that, they are such time sinks. They could instead just start up a software company and do something which makes them money." The simple, and more univsersal, response to my team mate's statement would be "But people don't want to think in their free time, starting a company would be more stressful than playing WoW, which is essentially turning one's brain off in the same ways television does", but my personal response would be "I simply don't care about making money." And this response of mine got me thinking about about my own financial situation, which i shall elaborate on now!
To put it down in writing for those who have been oh so curious these past few months, I earn roughly $3000 every two weeks, and lose about $900 of that to taxes. And right now in my life, where i still have about $15000 in student loans, i have a reasonable good idea about where most of my money will go for the time being. But for all the money i don't put directly towards my loans, rent, food, bills, and other living costs, i am slightly perplexed about what i could do with it. Since i know i will be attending grad school, i should obviously save as much as i can, which is what i am doing. But what if i wasn't going to grad school? Or even more, what will i do with all this spare money when i'm done with grad school and referred to as Dr. Stevens?
So to explore the possibilities i same up with rough ideas of what i would be making, and a few assumptions about my situation in life, so let me detail those.
I assume:
- I make roughly 100,000 a year. This is based on the fact that i make 70,000 a year as an intern, and this is guessed to be %70 of my potential full time pay.
- I am married, and my spouse has a bachelors degree in some technical field, and makes about $60,000 or $70,000 a year. To be conservative on the final amount that can be freely spent, let's assume she makes the former amount.
- I have a newly born child.
- Both I and my spouse receive pay raises which match inflation, so we can ignore the affect that has over the next X years. Let's also assume prices stay the same, or at equaled to the inflation matching of our pay raises.
- We do not want to buy a house via a loan from a bank, so we'd prefer to rent for however long it takes to save up for a house, and then pay for it in full
- Neither of us have any loans, or at least nothing larger than a few thousand dollars.
So those are the assumptions, and now i shall detail where pieces of the money go.
- 10% of our total income: Employee benefits, I have no idea how these actually work since i've never received them, so i will just guess and say my total paycheck is reduced by this amount to cover the health care and other benefits i receive, or something like that.
- 33% of our total income: Taxes, enough said.
- $2000 a month, $2400 a year: rent, utilities, food for the two of us.
- $1000 a month, $1200 a year: extra bills such as car insurance, and random expenditures that are relatively minor.
- $666 a month, $8000 a year: two separate car bills, where each car costs about $20,000 and we pay them off over the course of 5 years.
- $1500 a month, $18000 a year: cost of raising a child, this is a high assumption, and an average of the lifetime costs, based estimates by these people
So after making these deductions, we'd be left with roughly $41000 a year. This is a rather ridiculous amount of money in my opinion, but it can be spent wisely. We can split the extra money up by saving $6000 a year for our child's college funds, and the rest ($35,000 a year) can go to buying a house and retiring. So after 18 years, $108000 would have been saved for college, which would be adequate for sending the child to MIT or some other grand school like that, for 4 years. We also would have saved about $630000, which is just enough to buy a nice house in the Fremont area of Seattle. So after all this saving of money for 18 years, we'd have enough money to just buy a house right off the bat, which would then save us about $1300 a month in rent costs. I'd be about 58.
So after digesting this, i really can't see why someone else would really feel a need to have MORE money. What the hell else would you do with it? Buy extravagant things that are completely unnecessary? Not for me, and hopefully not for my spouse.
So that's it, now you all know how much monies i make at google, and what i plan on doing with it all.
To put it down in writing for those who have been oh so curious these past few months, I earn roughly $3000 every two weeks, and lose about $900 of that to taxes. And right now in my life, where i still have about $15000 in student loans, i have a reasonable good idea about where most of my money will go for the time being. But for all the money i don't put directly towards my loans, rent, food, bills, and other living costs, i am slightly perplexed about what i could do with it. Since i know i will be attending grad school, i should obviously save as much as i can, which is what i am doing. But what if i wasn't going to grad school? Or even more, what will i do with all this spare money when i'm done with grad school and referred to as Dr. Stevens?
So to explore the possibilities i same up with rough ideas of what i would be making, and a few assumptions about my situation in life, so let me detail those.
I assume:
- I make roughly 100,000 a year. This is based on the fact that i make 70,000 a year as an intern, and this is guessed to be %70 of my potential full time pay.
- I am married, and my spouse has a bachelors degree in some technical field, and makes about $60,000 or $70,000 a year. To be conservative on the final amount that can be freely spent, let's assume she makes the former amount.
- I have a newly born child.
- Both I and my spouse receive pay raises which match inflation, so we can ignore the affect that has over the next X years. Let's also assume prices stay the same, or at equaled to the inflation matching of our pay raises.
- We do not want to buy a house via a loan from a bank, so we'd prefer to rent for however long it takes to save up for a house, and then pay for it in full
- Neither of us have any loans, or at least nothing larger than a few thousand dollars.
So those are the assumptions, and now i shall detail where pieces of the money go.
- 10% of our total income: Employee benefits, I have no idea how these actually work since i've never received them, so i will just guess and say my total paycheck is reduced by this amount to cover the health care and other benefits i receive, or something like that.
- 33% of our total income: Taxes, enough said.
- $2000 a month, $2400 a year: rent, utilities, food for the two of us.
- $1000 a month, $1200 a year: extra bills such as car insurance, and random expenditures that are relatively minor.
- $666 a month, $8000 a year: two separate car bills, where each car costs about $20,000 and we pay them off over the course of 5 years.
- $1500 a month, $18000 a year: cost of raising a child, this is a high assumption, and an average of the lifetime costs, based estimates by these people
So after making these deductions, we'd be left with roughly $41000 a year. This is a rather ridiculous amount of money in my opinion, but it can be spent wisely. We can split the extra money up by saving $6000 a year for our child's college funds, and the rest ($35,000 a year) can go to buying a house and retiring. So after 18 years, $108000 would have been saved for college, which would be adequate for sending the child to MIT or some other grand school like that, for 4 years. We also would have saved about $630000, which is just enough to buy a nice house in the Fremont area of Seattle. So after all this saving of money for 18 years, we'd have enough money to just buy a house right off the bat, which would then save us about $1300 a month in rent costs. I'd be about 58.
So after digesting this, i really can't see why someone else would really feel a need to have MORE money. What the hell else would you do with it? Buy extravagant things that are completely unnecessary? Not for me, and hopefully not for my spouse.
So that's it, now you all know how much monies i make at google, and what i plan on doing with it all.