‘I'll be starting soon, and my base salary will be $129,000’: How can I manage my finances wisely as a new graduate with a high-paying job in Atlanta, Georgia?

Hi Money Minder,

I’m a 23-year-old who just landed my first gig after college in Atlanta, Georgia. My starting salary is $129,000 with a $40,000 sign-on bonus added to the mix. I need your expertise on how to tackle and manage the financial goals below:

Pay Off Credit Card Debt: I have around $4,300 spread across four credit cards.
Buying a Car: My office is a 25-mile drive away, which means I’ll be spending roughly 45 minutes on the road. Should I get a car as a newbie driver? How much should I set aside for this? Also, do I go for a certified pre-owned (CPO) or a used car? My credit score hovers between 750-760.
Supporting My Sibling: My bro is in college, and I want to pitch in for his room and board costs, which amount to about $1,000 monthly.
Personal Expenses:

– Rent: $850 per month (roomie discount!).
– Utilities: Around $150 monthly.
– Groceries: $350-500 a month.
– Eating Out: $100-200 per month.
– Subscriptions and Phone Plan: $65 a month, plus $100 yearly for MacBook Apple Care.
– I’m eyeing a gym/yoga membership too.

Credit Cards:
– Chase Amazon Prime Visa
– Bank of America Cash Rewards
– Apple Card
– Amex Delta SkyMiles (annual fee <$100)
– PayPal Credit

Bank Accounts:
– One checking account at Bank of America

I’m all ears for any advice on budgeting, saving, or investing. I’m lost on what my financial goals should be and need some clarity. Also heard about FIRE but can’t wrap my head around my monthly expenses to crunch those numbers.

Thanks for your help!

Farewell from Financially Confused in Atlanta,

Response from THE MONEY MINDER:

Hello There,

Congratulations on landing your first job in Atlanta, Georgia! Starting a new chapter in your professional life can be both exciting and overwhelming, especially when it comes to managing your finances. Firstly, let’s address your financial goals in a practical manner.

Given your base salary of $129,000 and a $40,000 sign-on bonus, you have a solid financial foundation to work with. It’s crucial to prioritize paying off your credit card debt first. With a total of $4,300 spread across four cards, consider consolidating the debt or focusing on paying off the card with the highest interest rate first.

Regarding purchasing a car for your commute, setting a budget is essential. Factor in not just the initial purchase price, but also ongoing maintenance and insurance costs. With your credit score between 750-760, you can secure favorable financing options. Consider opting for a certified pre-owned (CPO) or used car to save on depreciation costs.

Supporting your sibling’s room and board expenses is a noble gesture, but ensure it aligns with your overall financial goals. Communicate openly with your brother about any financial assistance you can provide without compromising your own financial stability.

When it comes to personal expenses, your current breakdown is detailed, and it’s great that you have a clear picture of your monthly spending. Setting a budget for each category and tracking your expenses can help you identify areas where you can potentially save.

Considering your various credit cards and bank accounts, review the benefits and fees associated with each to optimize your finances. Budgeting tools and apps can assist in tracking expenses and setting financial goals. As for investing, starting with a diversified portfolio and seeking guidance from a financial advisor can help you grow your wealth over time.

Remember, financial goals are personal and can evolve as your circumstances change. Take the time to reflect on your short and long-term goals, and create a plan that aligns with your values and priorities. All the best from THE MONEY MINDER as you navigate this exciting phase in your financial journey.