1.2M TC Bad at financial management and credit score
Hoping to learn from the super computer brain power we have here on blind. Good financial management seems to be table stakes here and so does credit score. Let me share a case where it’s not. I have very good income, base is north of 300K and pre drop I made 1.2M. However somehow I have not made many assets except buying a house back home on cash. I don’t drink I don’t smoke I don’t party or shop and I rent and I’m single. Somehow I still have only 1000$ in my account and a net worth of 400K in back home real estate. Credit score is 600 mostly because my credit is always maxed out. I tend to over commit to things and I spend a lot of money on day to day things like order in. I am confident my income will go to 2-3M over the next 4 years(not because of SNOW, purely because of promo and comp bands at those levels) and I want to plan things so I can make 10M in assets someday. Where do I start? How do I build discipline ? How do I fix my credit score ? PS I’m a principal eng at Snow previously similar at FAANG and I’m very very good at my job so earning money has always been my superpower. Just don’t know how to manage it.
I am not confident in your bull case thesis unless you get all cash. 🚬 PUT $SNOW
What’s your role? 1.2 M is a pretty good TC.
In most of these shitty growth companies everyone got around 1m TC last year with stock appreciation. But it comes down to earth with rising interest rate
Then he wouldn’t still be at 1M TC but he is
There are a ton of folks like this in tech.
What makes you think your income will go to 2-3M?
Hopium that $snow will go back to moon
What r you doing at snowflake to make that much of money? And how many yoe do you have?
Pre drop? How about post drop?
Open a brokerage account with auto deposit and auto invest into something like VOO. Then FORGET ABOUT IT
I would test the waters to see how you build a new habit in general. For example, before I ask people to make a budget, I see if they can stay regimented with wither food/diet or exercising daily. You need to somehow reward yourself too when you do well. What I do is I move most of my money out of my checking account. And, I don’t really use my credit cards except for bills (for the points). I have cash in hand ($300 per atm stop). Then, i see and feel money leaving my hands.
This is very good advice. Assuming I am terrible at habits eg no exercise no budgets how do I start or is it too late
It’s not too late but you have to make changes. You can’t just say “I’m bad at habits oh well”. Start by looking at every single transaction on your maxed out cards for the past few months. Your money is going somewhere - figure out where and change based on that.
You're playing with fire by blowing all of your money. With that TC you should have 400k put away *each year*, not total. Setup automatic deposits of your pay into investments and shred some of your credit cards. Only spend what's in your paycheck after deducting money for investments
This is very good advice. I only have two credit cards any downside if I get rid of both or one ?
It will fuck your credit score if you don't have enough "open accounts". Get the balance to zero and cut up the cards but don't actually close the account.
You should first start with a budget
I can build a very fancy spreadsheet budget with all the bells and whistles I also used many apps like mint but problem is sticking to the budget
yeah, but start with a budget as affirm said