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Making the most out of $50k

TripleSeven

TripleSeven

...
Joined
Jan 1, 2011
Location
Austin, TX
Moto(s)
sold.
Name
Robert
This is a hypothetical scenario. Yet similar to a situation someone I know will be in. I'm curious how others would play this out.

The scenario:

You currently live in the Bay Area. Own no property. Just graduated from college and now need to find housing. You're currently unemployed. Have no kids or other significant other to tie you down. No debt (like I said hypothetical). Own a car that's paid off.

You're now looking for work in tech or perhaps the entertainment industry. Meaning certain hubs of the country are most applicable (Bay Area, Los Angeles, Texas, New York, Oregon, etc.).

You have $50k cash in the bank. You need to make this last.

You would start at $60-70k per year in your field. Though there is no guarantee you'll find work in your field immediately.

How would you go about making the most of your money? Where would you live? Would you stick it out in the Bay Area? Or perhaps find some very cheap area until you land work in your field (you're able to apply online). Would you invest, if so how?

What's your plan for long term success and survival?

Hookers and blow are not an option. :)
 
You would start at $60-70k per year in your field. Though there is no guarantee you'll find work in your field immediately.
- Change fields and research salary caps / upwards mobility / etc.

How would you go about making the most of your money?
- cut the shit I don't really "need" right off the bat. Alcohol, cigarettes, weed, anything like that.
- Next to go - food expenses. Chop your budget. Cook for yourself. Go on a diet. Cut desserts. Bare essentials. Don't eat out a lot.
- Cut travel expenses. Can you commute by bicycle, even if it means adding 30 min to your commute? Well, if it saves you $100 a month in gas, do it. Also gives you exercise, so between that and doing pushups and other stuff at home, cancel the gym membership. Commute by motorcycle whenever possible vs car. And for that matter, if you can get by without a car, sell that too and use Uber/bicycle/moto to get around. It's raining? Suck it up, buy a good waterproof 1 piece oversuit, and learn to get a feel for a bike twisting under you when the rear slips out a bit.
- Treat your credit cards as debit cards, get one with good returns for groceries and gas.
- Cut your cell phone plan and usage
- Take shorter showers
- Minimize heating and such, other bills (more on that below in living)

Where would you live?
- As close as possible to work/school, depending on overall cost of living in that area. Factor in travel to a local grocery store, gas station, and post office at a minimum. Most places that demand checks or money orders will accept cashier's checks, which are $1.50 at the post office vs $10 or more at your local bank for a money order (depending on the account type you have there, and if you even have an account there). Grocery store so that it's more convenient than a place to eat out, further incentivizing you to cook for yourself. Gas station so that you don't have to spend extra gas just getting gas.
- Apartment complex or "all inclusive" room rental for sure. 2+ roommates (best deals are 3 bedrooms or more). Usually much cheaper utilities/bills for an apartment plus free maintenance and such.


Would you stick it out in the Bay Area?
- Depends on finding work. If I had an offer for somewhere else and nothing in particular tying me down here, I'd take it if I was desperate. Then again, it's far easier to leave than come back, so...YMMV.

Or perhaps find some very cheap area until you land work in your field (you're able to apply online).
- If you're counting on internet access and such, there's no reason not to work online, take free courses, etc. Plenty of consulting positions to be found.

Would you invest, if so how?
- As the money coming in increases, don't ramp up your standard of living to match. Keep the same frugal habits and dump the difference into savings. I'm not the best one to give advice on this beyond that, all I do is dump money into an IRA and let USAA handle it.

What's your plan for long term success and survival?
- Live frugal, focus on work > career > home > family in that order. If one should happen to come before the other due to opportunity, then by all means. But those should be your priorities.
 
Live in a cheaper place until you can land a job and gain a few years of experience. Commute from somewhere and work in Silicon Valley?
 
Get rid of everything. Buy a motorcycle. Ride it around the world for a while.
 
That 50k would make a great deposit on a house. If you could find a 3 bedroom, and get roommates, they would almost pay for your mortgage. Something to think about.
 
th3_d0c said:
That 50k would make a great deposit on a house. If you could find a 3 bedroom, and get roommates, they would almost pay for your mortgage. Something to think about.
Click to expand...

No way could he get a mortgage with $50k down and no job

Cmon that's what helped get us to the first crash
 
50k could float me with zero drop in lifestyle, for a year easy. Stretched thin Nd frugal i could exist for two years without work

Start pounding pavement amd find s job within a year. Pay myself out of that money, just like a paycheck. 700$ a week gives me 71 weeks to find employment


At 6 months, if I haven't found a job, adjust spending and withdraw accordingly


That being said if I somehow got 50k cash I would instantly begin planing to leave this area.
 
Last edited:
Yakoo752 said:
No way could he get a mortgage with $50k down and no job

Cmon that's what helped get us to the first crash
Click to expand...

a15tzd.gif
 
So many variables, it's impossible to answer. How old is this person? If they're still in their 20's, then come to SF and rent for a couple years and enjoy what it has to offer. If on the other hand they're older, then find a cheaper place where that $50K could actually be used as a downpayment on a home. Otherwise I'm not sure why you even mentioned the $50K, it's a meaningless sum here in the bay area. Pocket lint.
 
TripleSeven said:
This is a hypothetical scenario. Just graduated from college. You have $50k cash in the bank
Click to expand...

Yes, sounds very hypothetical. In America, "just graduated from college" is supposed to mean "$200k in student loan debt." :p

$50k here is nothing, simply nothing.
 
I would be completely irresponsible. 50K in the bank, no gf/wife, no house, nothing tying me down? I would sell everything I own, buy a touring bike on the cheap and travel the country for 6-9 months.

I've already missed my chance (for now)...I wouldn't let it happen again.
 
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