I Got a New Job That Doubled My Income, What Do I Do With The Extra Money?

I Got a New Job That Doubled My Income, What Do I Do With The Extra Money?

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[CreativeCashflow]

Shoutout to the people who haven't felt ok lately, but get up everyday and refuse to quit. Stay strong.

[fhuber]

The higher cost of living in NY will take half of the raise. Taxes will eat the rest...

[Mr.Rogers]

DO NOT LIVE IN NYC check out Westchester County or something outside the city. It's still EXTREMELY expensive but now as much as NYC

[thetruth]

My man went from 70k to 140 god dam thats amazing even though 140 in nyc is not the best

[raysilva]

Wow this guys story is so insane so hapoy to hear him where he’s at he’s worked hard for it

[Je.rone_]

Daves subconscious:"Your doing great but sell the car just to be safe"

[GeoffreyHart_ClementsHS]

A bit simplified. It sounds like he will be riding the threshold of the Roth IRA Contribution Income Limit. Rolling a traditional 401k into a traditional IRA could set him up for Pro Rata penalties if he plans on contributing to a backdoor Roth IRA in the future. Rolling the traditional 401k into another traditional 401k would shelter his future backdoor Roth contributions from the Pro Rata Rule. However, if his old 401k was a ROTH 401k, rolling it directly into a Roth IRA would be a no-brainer. Just something to think about before jumping the gun with a direct IRA rollover.

[rocketmom]

He's going to need the extra money just for living in NYC.

[fishingangler]

Max out 401k. Max out IRA. Dump the rest into the mortgage.

[LittleMopeHead]

Easy answer: get an underwater left-handed puppetry tuba weaving degree.

[Sizukun]

What a shame Dave didn't point out the American dream again; guy came here with $100 in his pocket and is doing very well. Better than the whiney babies saying its impossible to get ahead.

[kickandblock]

New York City also has an income tax on top of the state and federal state income tax. So beware

[kara]

That's awesome!! I love this story! In all reality though with NY city income tax and extra cost of living, you probably jumped up maybe 30% in income, not double.

[censored]

140k in NYC is poor or lower middle class at best

[stevenporter]

Off the top of my head - Pay off any debt and invest in an Index Fund. If you change priorities you can always redirect some or all the funds from the Index Fund.

[auroramothergoddess]

People really out here calling about what to do with extra money LOL no wonder dave is a millionaire

[rogers]

Nice story from someone who worked hard and came from very little 👍🏼
Unfortunately, he will not have much left moving to the NY/NJ/.CT TRI state area . That area is very expensive .

[wayward]

Me too, just so happens that my rent, utilities and food(almost) bills doubled as well.

[NoNegotiations]

It's same pay, you're just moving from cheaper location to an insane pricey location. That extra money will be gone in no time in NY.

[BrandonMinguez]

The answer from this group is going to be follow the baby steps.