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  1. #1
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    Default young professionals advice thread

    Hey guys, I was just wondering what other young(er) professionals on Beyond thought of living in Calgary after university/tradeschool and how they spent their money. I'm graduating in a few weeks and I have an engineering consulting job lined up back in Calgary, the pay is pretty cush and I have the option of moving out right away or living with the rents for a while. So I got a few questions for you guys:

    - How long should you live with the parents for? Cause living at home saves a boatload of cash that can be invested.... but then again you're living with your parents. Buying a condo or renting an appartment would mean having to furnish it, which could unncessarily push you into debt if you do it right after graduation.
    - How much of your annual salary do you save/invest? Is it a good idea to buy a shitload of stuff off right off the bat cause that's when you need it and don't have much else, or is it a good idea to invest and take advantage of that compound interest down the road?
    - Is it a good idea to buy a car right away, or save? If I live at home w/ the parents I can take the express bus to and from downtown (where my job is)... so that could potentially save a lot of $$.


    Let's make this the thread for all of beyond's young professonals to share advice and figure this careeer shit out

  2. #2
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    Save a minimum of 5% of your salary before taxes for RRSP / investments.

    I ended up at my parents place for 6 months after I graduated just to get back on my feet after travelling around the world. Ended up buying a car a couple months later, and now paid a good chunk of it off and will soon be buying a condo.

    Living with your parents for a few months isn't that bad if it allows you to save cash for a car and/or a condo, as opposed to falling into the bottomless rent pit, where it is a bit tougher to get that downpayment together.

  3. #3
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    Don't buy a brand new car. It's money down the drain. Save up for a downpayment on a place and do it as quickly as you can.
    This would be my only advice. lol

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    Yeah I've heard that travelling before starting the career is pretty clutch. I'm trying to defer my start date from June 1st to July 1st so I can spend 2 months in Europe instead of just one. Should I try to squeeze in some more travel time, or is 2 weeks a year pretty decent for travelling?

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    Stay at home as long as you can!

    Buy a house or condo before you buy a car. If you buy a car, don't owe anything on it.

    When I started working, I save 20% of my before tax salary.

    If your company has a stock purchase plan, enroll at the max right away.

  6. #6
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    Buy a home right when you get back, although you don't have to necessarily live there. Ride the wave until your home goes up $20-40k and you have an excellent downpayment on a better one.

    Live at home for a year while you figure out what you want to do. Your company should have an RRSP matching plan that will help you with your future savings. You will likely need a car regardless, doesn't have to be new. There is nothing worse than waiting for someone at a bus station.
    Original Post NAZI Moderated


    Originally posted by r3cc0s
    Felon or Mistermeiner

  7. #7
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    Here are my tips.

    - If you live at home and making decent money. You should be able to save HALF of your take home salary. Dont kid yourself, if you are living at home you are far from rich so dont waste your money on $200 bar tabs and $300 jeans. This adds up fast and houses arent getting cheaper anytime soon. Had I delayed buying my house for 3 years I would have paid $140,000 more and probably wouldnt have been able to afford it anyways.

    - Taking an express bus is a great way of saving money. I have a new car and still take the bus. It takes 5 minutes longer than driving on my own and I dont get raped for $18/day parking. That alone saves me $400/month, nevermind gas prices.

    - Buy a house/condo before you consider buying a new car or getting a car loan for a used car. You can always buy a new car after you get your mortgage, but car debt will seriously hinder your ability to get financing for a house. Not to mention it will cut into your downpayment savings.

    - MAX out any RRSP plans at work. Where I work I get 4% from the company and if I add 4% of my own money they give me another 2%. Basically 10% for the price of 4%.

    - Save on your own as well. Put away 10% of your income into a savings fund or investment account. Its amazing how quickly it will add up. After working for a few years you will wish you could retire before 50.

    - If you have a bad spending habit give yourself the "48 hour rule". If you see something you plan to buy plan to buy it in 2 days. Half the time the novelty will wear off and you will realize that you probably didnt need it anyways.

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    I like that 48 hour rule.

    I need to implement that.

  9. #9
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    Originally posted by sputnik
    Here are my tips.

    - If you live at home and making decent money. You should be able to save HALF of your take home salary. Dont kid yourself, if you are living at home you are far from rich so dont waste your money on $200 bar tabs and $300 jeans. This adds up fast and houses arent getting cheaper anytime soon. Had I delayed buying my house for 3 years I would have paid $140,000 more and probably wouldnt have been able to afford it anyways.

    - Taking an express bus is a great way of saving money. I have a new car and still take the bus. It takes 5 minutes longer than driving on my own and I dont get raped for $18/day parking. That alone saves me $400/month, nevermind gas prices.

    - Buy a house/condo before you consider buying a new car or getting a car loan for a used car. You can always buy a new car after you get your mortgage, but car debt will seriously hinder your ability to get financing for a house. Not to mention it will cut into your downpayment savings.

    - MAX out any RRSP plans at work. Where I work I get 4% from the company and if I add 4% of my own money they give me another 2%. Basically 10% for the price of 4%.

    - Save on your own as well. Put away 10% of your income into a savings fund or investment account. Its amazing how quickly it will add up. After working for a few years you will wish you could retire before 50.

    - If you have a bad spending habit give yourself the "48 hour rule". If you see something you plan to buy plan to buy it in 2 days. Half the time the novelty will wear off and you will realize that you probably didnt need it anyways.
    Spoken like a true prophet!

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    It completely depends on your lifestyle as to whether you should stay at home or not.

    For myself, I stayed at home for 3 years because I had no problems living at home - I don't throw wild parties, had the whole basement to myself, parents never gave me any problems for what I did outside the home (Like coming home late at night), got a spot in the garage, and they didn't care what me/my girlfriend did as long as they didn't have to see it. By staying at home, I was able to save up ~100K for a house, and buy any/all toys I wanted, while going out all nights of the week.

    For others I know, they would never stay at home. They like to party, have people over, etc, etc..... and not worry about what the parents think.



    It's really your lifestyle. Hell, if I didn't get my house well below market value I wouldn't have moved out - I was able to say 40K/year without a problem.

  11. #11
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    Good info in here. I'm in a similar position as the thread starter.
    Current Cars:
    2019 BMW X3 M40i Stage 2, 12.44 at 110mph
    1972 Chevy Super Cheyenne C10 Pickup 402 big block, 700R4
    2004 GMC 2500HD 8.1L

    Past Cars:
    1970 Chevy Blazer, 2wd
    2003 BMW X5 4.6IS Doushmobile, moneypit
    2015 Ford Fiesta ST | Cobb Stage 1, catless downpipe
    2008 Corvette Z06 - 11.39 at 123.8mph
    2002 Corvette Z06 - 12.10 at 116.5mph
    2005 Jeep Wrangler LJ
    1993 5L Mustang - 12.59 at 108mph
    1989 5L Mustang
    1990 Jeep Cherokee
    1991 Acura Integra RS 403Honda

  12. #12
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    With the way housing is going right now, you can't save for it anymore. I would just jump into whatever you can afford right away. Even if you decide to live at home, I would still find a property and rent it out. That's what I would do. When you are ready, you can move in or trade up to a nicer place.

    Sounds like you are going to be making pretty good $$$. I still remember getting flamed because people thought I couldn't move out because of my cars. LOL Whatever. If you like cars, and it works in the budget, I would buy one. It's rewarding yourself man, I'm finished school, I'm making good coin, here's one for me!

    I would also:

    Save 3 months living expense just in case.

    Maximize RRSP contribution limit.

    Buy a life insurance policy because you'll eventually need one. I recommend 'Whole Life' but term and universal also have their benefits, depending on your needs.
    Originally posted by rage2
    Shit, there's only 49 users here, I doubt we'll even break 100
    I am user #49

  13. #13
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    1. as long as you can/feel like/they will let you... your situation will inevitably change, however with housing prices nowadays you should take this into consideration, also if anything invest in a rental property you could use later, but if you do stay with your folks, pay them the respect they deserve and offer to pay all the major bills related to the household, keeps them content for your constant presence

    2. my spending habits have only slightly increased after getting my job, therefore i've been able to save upwards of 80% or more

    3. buy a used vehicle, reward yourself but keep in mind your long term goals

    sputnik, that 48 hour rule is a great idea! i never thought of it that way, but i actually do it, more like over the span of a week or month lol

    my friend says it best, "suffer and save now to be comfy and cozy later", money is a wonderful thing just don't let it an abundance of it consume you!

  14. #14
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    you da man Stupnik. I REALLY like that 48 hour rule. I should implement that towards my impulse beer buying.
    "The music business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There's also a negative side"

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    Originally posted by sputnik
    - If you have a bad spending habit give yourself the "48 hour rule". If you see something you plan to buy plan to buy it in 2 days. Half the time the novelty will wear off and you will realize that you probably didnt need it anyways.
    The other half of the time, you research the shit out of it, realize it's not sufficient so you go all out and spend twice as much on something nicer.

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    Originally posted by FiveFreshFish
    The other half of the time, you research the shit out of it, realize it's not sufficient so you go all out and spend twice as much on something nicer.
    There is nothing wrong with buying things. The 48 hour rule is just to prevent pointless impulse shopping.

  17. #17
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    If you are able to, put money down on a condo/house and move when it is complete...anywhere from 12-30 months. That way you get the best of both, you can save while living at home and gain the appreciation from the real estate market.

    Like everyone else has said do not go buy a new car...I was told this numerous times but just had to and will now never buy a new car unless I have millions. I think this is one of those things you have to do in order to learn

    Lastly if you are only saving 5% of your pay your in trouble.

  18. #18
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    Originally posted by Auditor
    If you are able to, put money down on a condo/house and move when it is complete...anywhere from 12-30 months. That way you get the best of both, you can save while living at home and gain the appreciation from the real estate market.
    Hey that sounds like a pretty solid idea! I think the only risk that it rusn is if the condo development doesn't go through... then whatever costs have already been incurred are lost (or that's my understanding of the process, at least). However, the chances of new condo developments not going through in calgary these days are pretty low. This sounds like a great idea! What do you the rest of you guys think?

  19. #19
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    The chances of a condo not getting completed are slim and I believe you get all your money back. All you need is 10% down in order to hold a condo until completion. Try to get one in or around downtown.

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    Save as early as you can. Compound interest is the only way of getting back at the bank . If you have a fairly consistent job/pay, get them to take off 10% or 20% or whatever you're comfortable with and put it into a non-registered savings account, bank account or RSP. When you put in say 200 bucks a month, its actually quite suprising b/c whenever it gets automatically pulled out of your account, it was never that much for me to even notice. Then you get your quartly statements and it really is impressive. I have all mine in equity which is high risk savings. You don't lose money that you've put in but you can lose money on what you COULD have made through different interest rates. At such a young age like myself and not yet dependent on the money, high risk is the way to go IMHO.

    Putting away half of your tax return doesn't hurt either...its all choices. Unless you're the spoiled rich kid who's parents still buys them D&G shirts/jeans at 18 and work one day a week

    Read The Wealthy Barber

    Suprisingly, its not a boring economics book....weird I know!

    As for buying stuff right off the bat, if you're willing to "suffer" another year at home, look for deals on furniture and everything you'll need on your own, like on beyond for example. All those crappy ass prizes you get at christmas parties...16 glass set.....complete dinner plate set etc, I have saved all the crap for when I move out.

    Let us know what you end up doing, but save if you get a chance. When you have most of your mortage paid off and kids are fairly stable on their own, then its time to pull out the mid-life crisis card and pick up that porsche you've been eyeing up for sooooo long!

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