According to Naviance I can likely count on making $120,000 each year in my future job as a materials engineer. My education/training to get that job will cost $160,000 total for all years of training.
I want to save $7,500 for my rainy day fund each year, and $2,600 for retirement each year. If I save $2,600 for retirement each year, by the time I am 65 years old I will have $105,000 plus interest.
Comparing my future income and expenses makes me think that I should spend more money saving for retirement, and less money on the cost of living, which is currently well over 30% of my expected income. However, the amount I make each year is greater than the amount that I am planning to spend, which means that I most likely will not go into debt, and if I do, I know there are places I can cut out spending.
Those are a lot of expenses, but with that kind of salary you're going to be just fine, I think. And if there ends up being a problem anyway, you can cut down on gas money or eating out if times get tough!
ReplyDeleteI had no idea material engineers had such a high salary. It looks like you have your expenses all figured out. Only thing I have to add is don't forget about saving for the rainy day fund, just in case.
ReplyDeleteI would definitely consider rearranging as much as you can to save more for your retirement. A lot of things can occur in that time period and I'm not sure if you're planning to have kids as well? It would be best to have a comfortable living during the retirement age even if it means skipping a restaurant dinner or other unnecessary expense here and there.
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