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iranfromthezoo · Mar 23, 2008, 09:25 AM

Hey guys, you all know I am a firefighter. I love my job, albeit I don't make a lot of money doing it (around 27,000 a year). I have two credit cards but no balance on them (they are paid off). The only debt I have is a car loan, car insurance, cell phone, your normal expenses. I have about $1200 in my savings account right now which is about a month and a half old. I am really trying to save up my money where I can have about $40,000 to put down on a house I want in 5 year years. WHat is the best way to do my finances? Should I contact and investment firm like Edward Jones? Or should I open a money market account through capital one? I really want to be smart with my money and not wind up in trouble for when I get married or close to it I can be financially free.

Cold Warrior · Mar 23, 2008, 10:03 AM

You won't ever be free making $27k a year. Although firefighting is a noble profession, I'd consider something else. You might look for something in the federal government along the lines of disaster response, as fed jobs tend to pay more and have better benefits.

moonmonkey · Mar 23, 2008, 10:09 AM

Consider linking your savings to a foreign currency, you should get close to a 10% return per year. Then buy property as soon as you can.

Mrjinglesusa · Mar 23, 2008, 10:46 AM

If you want to be "smart about" your money, make a budget and STICK TO IT. Figure out how much you actually bring home each month after taxes. From that, subtract your fixed expenses (rent, car loan, car insurance, cell phone, electric bill, cable bill, etc.). These shouldn't change much month to month. Now, from what you have left, you have to pay for food, entertainment, etc. Allocate some money for that.

If you want to save $40,000 in five years that's $8,000/year or ~$670/month.

Let's assume after taxes you bring home ~$19,000/year (~1,500/month). After taking out fixed expenses, I don't see how you can save $40,000 in five years on that salary (unless you can pay rent and all bills for ~$900/month - unlikely).

Cold Warrior offers good advice. You either need to find a job that offers more money or you need to adjust the amount of money you want for a down-payment or the time you are going to allow yourself to save said money.

SVass · Mar 23, 2008, 01:24 PM

Open a Kemp-Roth IRA with someone low cost like Vanguard. Put your money in a VISVX or a similar mutual fund. No taxes on its earnings and...
" First-home exemption
Then there's your home. Uncle Sam offers various tax breaks for homeowners. He'll even bend the IRA rules a bit to help you get into your house in the first place.

You can use up to $10,000 in IRA funds toward the purchase of your first home. If you're married, and you and your spouse are both first-time buyers, you each can pull from retirement accounts, giving you $20,000 in residential cash.

Even better is the IRS definition of first-time homebuyer. Technically, you don't have to be purchasing your very first abode. You qualify under the tax rules as long as you (or your spouse) didn't own a principal residence at any time during the previous two years. In fact, you can even share your IRA wealth. The IRS says the first-time homebuyer using your IRA funds for a down payment can be you, your spouse, one of your children, a grandchild or a parent.":

sam

turtle777 · Mar 23, 2008, 04:21 PM

I'd say Coldwarrior is right.

$ 27k / year is too low, especially considering the risk you're taking every day.

Are there any extra certifications or qualifications that would make you more valuable in the marketplace ? Anything extra training that your employer would pay for ?

-t

Peter · Mar 23, 2008, 05:00 PM

How old are you?

dampeoples · Mar 23, 2008, 05:23 PM

People don't become firefighters because of the money, so I would think a career change would be out of the question for him.

Are there any benefits to being a FF? Such as a 401k or whatnot? Most employers match those, and also have other programs geared towards saving/future purchases, you could look into those as well.

turtle777 · Mar 23, 2008, 05:44 PM

Originally Posted by dampeoples

People don't become firefighters because of the money, so I would think a career change would be out of the question for him.

That's the wrong attitude.

I'm sure he loves what he is doing, so the right attitude is to think about how he can continue to do what he loves while making more money doing it.

Just accepting it as fate that a FF makes a poor salary is not a good option.

-t

alligator · Mar 23, 2008, 05:57 PM

I can't affirm strongly enough that with your situation, you need a detailed budget and you need to stick to it. What do you want more, cable TV or a house? How about a cell phone, or a house? You may need to sacrifice in the short term to achieve your longer term goals. A house is possible with your income, you just need to work harder to get to it.

No, there are no magic solutions to getting 10% returns without any risk. Stop trying to figure out how to play the stock market. Suck it up, learn about managing your own money and earn what you want. A double shift of two will go a long way toward a few extra spending bucks in a month you need more money.

KeriVit · Mar 23, 2008, 06:00 PM

I would avoid IRA and money market stuff if you want to actually access the money in 5 years. Assuming you can continue to save, I'd try CDs, then keep adding to them every 6 months and rolling them into new ones.

Regardless of your income, I admire your resolve to save. You will make more eventually. Consider adding some EMS to your FF title to help you as well, it could be worth the investment.

Peter · Mar 23, 2008, 06:35 PM

or consider a better paying job.
You're exceptionally lucky if you have a great job that pays well.

dampeoples · Mar 23, 2008, 06:46 PM

Originally Posted by turtle777

That's the wrong attitude.

I'm sure he loves what he is doing, so the right attitude is to think about how he can continue to do what he loves while making more money doing it.

Just accepting it as fate that a FF makes a poor salary is not a good option.

-t

I understand, but there is no other job than a firefighter that's gonna be a firefighter. If he's a FF for a city/town, going to be a Federal FF is going to be a lot different, the part of the job he likes might be running into our houses and carrying our dogs out on his back.

Walking around New Orleans making cryptic marks on houses denoting who's living or not isn't the same thing at all. He's not responded back, though, so who knows why he's there, and he might actually like something else better.

He also didn't ask how to make more money, so nobody seems to be accepting anything as fate, he simply wants to save money.

Railroader · Mar 23, 2008, 07:52 PM

Don't listen to the people who are saying you should get a better paying job. If you gain a sense of accomplishment and satisfaction from what you are doing then you are ahead of 99.98345% of the population who wsih they worked somewhere else.

My wife and I went from making a combined over $150k/yr income to $15k/yr income and we are happier than every. Helping people has its rewards. And knowing you, by what you have shared on here, I know that you know your "retirement" is taken care of. You'll have your reward.

turtle777 · Mar 23, 2008, 07:56 PM

Originally Posted by Railroader

My wife and I went from making a combined over $150k/yr income to $15k/yr income and we are happier than every. Helping people has its rewards. And knowing you, by what you have shared on here, I know that you know your "retirement" is taken care of. You'll have your reward.

Easier said than done.

What enabled you to go from $ 150k to 15k is that you were able to save a lot of money and buy / pay off a house.

The OP will not easily get there with 27k.
Don't you realize that your high income earlier in your life enabled you to be where you're at right now ? Comparing it to his 27k now is a complete apples to oranges comparison.

-t

Laminar · Mar 23, 2008, 10:02 PM

You said you have two credit cards...can't you just put the house on those? You can always pay them off later.

imitchellg5 · Mar 23, 2008, 10:18 PM

A house is generally a bit much to put on a credit card. They have limits ya know. My parents with perfect credit (a credit score of almost 950) couldn't even put down more than 5k with their credit card.

turtle777 · Mar 23, 2008, 10:20 PM

Originally Posted by imitchellg5

A house is generally a bit much to put on a credit card. They have limits ya know. My parents with perfect credit (a credit score of almost 950) couldn't even put down more than 5k with their credit card.

Well, depends on how much credit limit you have.

I could probably buy a small house just on my credit cards.

But I wouldn't wanna live in that house.

-t

Cold Warrior · Mar 23, 2008, 10:24 PM

Originally Posted by imitchellg5

A house is generally a bit much to put on a credit card. They have limits ya know. My parents with perfect credit (a credit score of almost 950) couldn't even put down more than 5k with their credit card.

What credit system is that? FICO scores go only up to 850.

turtle777 · Mar 23, 2008, 10:43 PM

Originally Posted by Cold Warrior

What credit system is that? FICO scores go only up to 850.

Credit Karma goes to 950.

Transunion goes to 990.

-t

Railroader · Mar 24, 2008, 12:59 AM

Originally Posted by turtle777

Easier said than done.

What enabled you to go from $ 150k to 15k is that you were able to save a lot of money and buy / pay off a house.

The OP will not easily get there with 27k.
Don't you realize that your high income earlier in your life enabled you to be where you're at right now ? Comparing it to his 27k now is a complete apples to oranges comparison.

-t

He's making more than I did at his age. He has a much better head start than I did. Easily doable.

Plus, my house is sitting empty right now costing me money in property taxes.

Eug · Mar 24, 2008, 01:05 AM

Hmmm... That seems low.

Are your area's FFs just paid worse than others? (I guess it all evens out if your area has lower living expenses though.)

turtle777 · Mar 24, 2008, 02:33 AM

Originally Posted by Railroader

He's making more than I did at his age. He has a much better head start than I did. Easily doable.

Plus, my house is sitting empty right now costing me money in property taxes.

But he's not working for GM. *MINOR* difference.

-t

moonmonkey · Mar 24, 2008, 03:16 AM

Originally Posted by alligator

No, there are no magic solutions to getting 10% returns without any risk.

Yes, when your currency is declining as fast as the USD, there are plenty of ways.
You can get a guaranteed minimum 5% return on a 180 day deposit, or 10% for a year.
Having large sums in the bank in USD at moment is bordering on moronic.

turtle777 · Mar 24, 2008, 03:18 AM

Originally Posted by moonmonkey

You can get a guaranteed minimum 5% return on a 180 day deposit, or 10% for a year.
Having large sums in the bank in USD at moment is bordering on moronic.

So you can *guarantee* that the US $ will keep falling ?

REALLY ?

And why exactly aren't you a multi-billionaire, if you have all this awesome foreknowledge ?

-t

moonmonkey · 04:17 AM

I am. not really, there is no way to guarantee anything, but if its a safe bet you are silly not to take a little risk.
This is an example of timed deposit from HSBC (a little English bank).
Its a currency linked timed deposit account:

Deposit Currency: NZD
Linked Currency: HKD
Deposit Period: 184 Days
Deposit Amount: NZD 35,000.00
Interest Rate: 9.5875% p.a.
Conversion Rate: 6.2581 Place Deposit on: 04 Feb 2008
Fixing Date: 05 Aug 2008
Maturity Date: 06 Aug 2008
The Bank shall repay and credit:
(i) NZD 36,715.10 to NZD Savings if the Final Exchange Rate is less than or equal to 6.2581, or
(ii) HKD 229,766.77 to HKD Current if the Final Exchange Rate is greater than 6.2581.

So worst case scenario you make 1,715 New Zealand dollars interest in 184 days, best case you make 10,732 HK$.

iranfromthezoo · Mar 24, 2008, 08:54 AM

Sorry for the delay in reply, I was working yesterday.

A little more info on my situation. I am 21. I work the 24/48 schedule where I work 24 hours and off for 48. I have a graphic design degree. I am also a nationally registered EMT. I live in Mississippi so 27k is pretty decent and plus I have great job security. I am guaranteed a 5% raise this year. Any advice?

Dakar the Fourth · Mar 24, 2008, 08:56 AM

Originally Posted by Laminar

You said you have two credit cards...can't you just put the house on those? You can always pay them off later.

Originally Posted by imitchellg5

A house is generally a bit much to put on a credit card. They have limits ya know. My parents with perfect credit (a credit score of almost 950) couldn't even put down more than 5k with their credit card.

Originally Posted by turtle777

Well, depends on how much credit limit you have.

I could probably buy a small house just on my credit cards.

But I wouldn't wanna live in that house.

-t

I don't think people realized you were joking, Laminar.

turtle777 · Mar 24, 2008, 09:38 AM

Originally Posted by Dakar the Fourth

I don't think people realized you were joking, Laminar.

I knew Laminar was, but my response was to Mitch (who obviously took Laminar seriously).

But I'm glad YOU finally caught up

-t

Dakar the Fourth · Mar 24, 2008, 10:03 AM

You mean by actually reading the thread?

Laminar · Mar 24, 2008, 07:36 PM

Originally Posted by Dakar the Fourth

I don't think people realized you were joking, Laminar.

Unfortunately, the intended party didn't take the bait.

What's this, RR, some self-control?

hahaha

Railroader · Mar 24, 2008, 09:29 PM

Busy...

Plus your bait was like a stale doughnut under a box with a stick on a string holding it up. In other words, very tempting.

Railroader · Mar 24, 2008, 09:30 PM

Originally Posted by turtle777

But he's not working for GM. *MINOR* difference.

-t

I didn't work for GM until I was 25. He's got a couple years, and so far he's doing better than I did at his age salary-wise. But I did save nearly every penny and lived ultra-scrooge-like.

Housing is much cheaper in Mississippi than it is in Michigan too.

KeriVit · Mar 24, 2008, 09:33 PM

Pursue the design degree and make more money faster. Do the FF part time or as a volunteer. Trust me coming from a Paramedic and Graphic Designer household,

Railroader · Mar 24, 2008, 09:39 PM

Firefighters retire early with pretty good pensions don't they?

My dad's uncle was a Paramedic Firefighter and made a VERY good living. Retired pretty young and he now owns a couple houses on lakes (one in Michigan and the other in Florida). After retirement he got his contractors license and keeps busy with that.

KeriVit · Mar 24, 2008, 09:43 PM

Paramedic Firefighters make better money- around here, rougly $55K

Eug · Mar 24, 2008, 09:46 PM

Average Fire Fighter Salary. Fire Fighter Job, Career Education & Unemployment Help

Railroader · Mar 24, 2008, 10:37 PM

Originally Posted by KeriVit

Paramedic Firefighters make better money- around here, rougly $55K

Well, there's his (the OP) answer. Become a Paramedic FF.

James L · Mar 25, 2008, 01:25 AM

Salaries for Fightfighters and paramedics can really vary widely based on Geography and experience.

For example, here is the NYFD grid (in a city that is ultra expensive to live in mind you):

Firefighter Benefits and Salary

In Canada where I work it is not uncommon for a full time paramedic (EMS only... 90% or more of EMS in Canada is a stand alone service rather than fire based) to start at $24 - $30 per hour... which works out to a starting salary of $50,000 - $60,000 or so. (plus benefits).

Dakar the Fourth · Mar 25, 2008, 08:20 AM

Originally Posted by Railroader

Plus your bait was like a stale doughnut under a box with a stick on a string holding it up.

It's true, we keep hoping you're starving when you see it.

iranfromthezoo · Mar 25, 2008, 09:10 AM

Yeah I don't think I want to become a para-God. I thought about it but it truly doesn't make much of a difference. I think my EMT-B is good enough. I am thinking of working part time for an Ambulance company though.

Railroader · Mar 25, 2008, 11:27 AM

Originally Posted by Dakar the Fourth

It's true, we keep hoping you're starving when you see it.

You have not seen any recent pictures of me. If I stopped eating right now I might be starving in October.

Dakar the Fourth · Mar 25, 2008, 11:34 AM

Originally Posted by Railroader

You have not seen any recent pictures of me. If I stopped eating right now I might be starving in October.

You're in luck, we will still be using this joke then.

Railroader · Mar 25, 2008, 05:06 PM

The chances of me stopping eating is slim to none.

Laminar · Mar 25, 2008, 07:32 PM

A good pun is its own reword.

LOLERZ!