the future in my finance

I am going to briefly run through my plans on building my wealth. Including forecast, potential twists in the path. worst cased and best scenarios will eventually be ran. That will be taken to the next level as soon as I get that program written.

Briefly may be simplification. I plan to jot down all my nonsense until it suffices my intentions. I have been jotting these for years now and it brings great satisfaction to run the numbers again and again.

Even to see the slowness of it all. If I continue on the engineering path of design, my already fair pay will increase substantially with 3 years experience (by upwards of 100% increase) and another 30% increase at the 5 year mark. And by then, I believe I will transition to some other role. I assume my job outlook will change or morph around learned skills.

I began my trip towards a career just a few years ago. I started late, at the age of  29, yet as a bonus, the varied work experiences from over the years helped me apply basic design principles. At the local tech school, I earned a diploma for welding and an associates degree for drafting. Now with a full 3 years experience using CATIA as my primary tool in the aerospace industry, my opportunities will expand.

Along with this, my net weekly income will jump as such

  • $590 My current income; (19 x 40 = 760 x 23% tax = 590) *I rarely get OT.

  • $1350 A reasonable pay increase; [(35 x 40 = 1400) + OT <avg 10 hrs/week> (10 x 35 x 1.5 = 525) = 1925 x 30% tax = 1,350

  • monthly:

    • 590/wk = 2,550/mo

    • 1,350/wk = 5,800/mo

  • The current bills setup runs in the ballpark of 1,900/mo, plus investments where I’ve been spending ~350/mo there. With only twenty five hundred, I don’t have much loose cash, but my savings are expanding.
  • However, with a jump of 3,300/mo, I could easily put away my petty squabbles with cash. I will put all my bills on automatic payments. And the with the water bill, do like I did when I was rich two years ago…pay them in chunks of 200 in advance.
    • putting 3,300 in my scenario would finish all renovations at my house, allowing it to be put up for sell or rent to a family (as planned at purchase). I could finish this in 3 months of pay.
    • Then, I would be able to save my cushion. My three months or more of living expenses… a great number would be $8,000 of highly liquid funds… lots of cash just sitting there in the bank. *That’s another 2-1/2 months.*
  • After those 5-1/2 months of settling in and squaring away my basic needs, I’d have a free and clear extra 3,300 cash over budget coming at me.
    • 3,300 x 6-1/2 months (28 weeks) = 21,450
    • split up 40% for p2p 60% for my dividend portfolio; expecting an overall apy ~8% at minimum

This concludes year 1 of pay increase:

  • 10,000_____House renovations/restoration

  • 8,000______Cash stockpile

  • 21,000_____Investments

    • Total of 39,000 towards wealth building; my total investment pile will be at 23,000 with this added. @ 8% apy, this will grow by 1,840

If I manage a 2nd year with those same pay rates of hours, I could extrapolate:

  • End of year 2, adding 39,000 added to the current 25,000

    • Totals 64,000 x 1.08 interest =

    • $69,120

Year 3: 69,000 + 39,000 = 108,000 x 1.08 = $116,000

Year 4: 116,000 + 39,000 = 155,000 x 1.08 = $167,000

 

*reading over this, today at work, i notice there are some errors in here, but i think the overall #’s are correct… i will have to look into this later, if i remove this note, it is fixed*

By now, with 5 years experience, pay will increase another 30% and with hours remaining the same…[(55 x 40)+(55*10*1.5)] x 30% tax <$3,025/wk or 13,000/mo>. *expect time off, between jobs. high pay comes risk losing a position abruptly*.

  • Even still, this adds 7,000/mo which is insane. But at this level, I could save 84,000 in a single year.

Year 5: 167,000 + 84,000 = 251,000 x 1.08 = 271,000

…year 6: 37k

…year 7: 480k

…year 8: 580k+

Nothing to it, just hang in there.

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