I got a new job! Time to make some decisions about my finances

I got a new job! Time to make some decisions about my finances

Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes

Hi BP! I'm leaving the REIT where I did accounting and short-term leasing for retail shopping centers and heading to a property management software company where I'll be doing sales. Wages are likely to be 60% salary, 40% commission my first year. While it's a little unnerving to see my salary drop a chunk, it'll still enough to live on, and my income will actually see a 25% increase if I hit the low end of their expected commissions in my first year.

I am hoping this job will connect me with more people on the residential side such as property manager and landlords. I'm also looking to build sales skills while increasing my income so I can prepare for my next step, which is getting my license and becoming an investor agent (and, of course, scaling my portfolio of rental properties). I hope I'm making a smart move!

One adjustment will be unevenly distributed income. I might make $15k+ more a year, but it won't be regular. Any suggestions for dealing with that are welcome. 

Finally, I'm researching solo 401k's and self-directed IRA's. I'll be collaborating with my financial planner to determine which investment vehicle is best to roll my 401k into. Since my new company's match is so small, I'm contemplating no 401K contributions through my new company. I think it may be better to use that money to knock out my student loan debt or invest it on my own. I'm open to thoughts on that as well.

TIA! And thanks to @Scott Trench for writing Set For Life. I wouldn't have made the decision to take control of my income without him. 

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JD MartinBusiness Member
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Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 17k+ votes
6y

Congratulations! Thoughts:

1. Spend only on absolute necessities first 6-12 months. It takes some time to figure out your baseline. 

2. Send any unpaid to bills to @Scott Trench - it's his fault, after all 馃槄

Seriously, I'm sure you've thought it out well and will do fine. 

Skyline Properties
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  • Austin, TX 路 Member since 2019 路 5k+ posts 路 5k+ votes
    6y

    Hi Nicole,

    Congratulations on the new job, and I'm sure you'll do a GREAT job there!

    Good Luck!

  • Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y

    Thank you very much, @Scott Mac!!

  • Philadelphia, PA 路 Member since 2017 路 824 posts 路 1k+ votes
    6y

    Congrats @Nicole Heasley Beitenman! Hopefully the move is a positive one for you both professionally and personally.

    Because your income is not guaranteed, I would try and curb what spending you can early on to get a handle on things.

    If anything isn't necessary, consider putting it on hold, e.g. non-utilities, restaurant spending, etc. Once you have a handle on things, and perhaps enough of a backup fund built-up, then you can re-evaluate after a month or two.

    I know you have rentals already, so make sure you're set there with reserves that you wouldn't have to dip into...sometimes when it rains, it pours. A bad period at commission work could coincide with needing a new boiler for example. Your RE investments should not put a strain on your personal money, and vice versa.

    Other than that, which you may have already taken care of, I wish you the best!

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 17k+ votes
    6y

    Congratulations! Thoughts:

    1. Spend only on absolute necessities first 6-12 months. It takes some time to figure out your baseline. 

    2. Send any unpaid to bills to @Scott Trench - it's his fault, after all 馃槄

    Seriously, I'm sure you've thought it out well and will do fine. 

    Skyline Properties
    View Page
  • Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y

    Thanks very much, @Joe P.! I am already a pretty low spender. My new salary will the same as I made about 5 years ago when I first got out of college, so I know how to live off of it. And the city I live in now has a slightly lower cost of living than I had back then. My car payment is also lower than it was back then because I traded down before I started job hunting. I knew I wanted something that was half or mostly commissioned, so I've already looked over my monthly expenses and made cuts where possible.

    My personal savings account is not quite where I'd like it, but our rental account is strong and self-sufficient; I don't even count my cash flow after reserves. It stays in our rental account as a nest egg for the next investment. It's out of sight and out of mind, and I'm very very good at pretending it's not even there.

    I will receive a draw for the first 3 months which will actually put my income at the same level it is now. I keep forgetting about that. 

    I still think I'm going to have a tough 6 months ahead, but I am optimistic. Hopefully the days of relying on someone else for decent wage increases are close to over! 

  • Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y
    Originally posted by @JD Martin:

    Congratulations! Thoughts:

    1. Spend only on absolute necessities first 6-12 months. It takes some time to figure out your baseline. 

    2. Send any unpaid to bills to @Scott Trench - it's his fault, after all 馃槄

    Seriously, I'm sure you've thought it out well and will do fine. 

    I love this idea. I can send my entire student loan balance. To be fair, it's kind of all of BP's fault, so I'll just pass it on to HQ. I wouldn't have found Scott's book if it weren't for BP. 


     As I mentioned to Joe, I did prepare for this as much as I could before the opportunity fell into my lap. Ideally, this would have happened closer to June. But I couldn't pass it up. I was raised frugally, so I spend little by nature. Of course, I'm sure everyone thinks they're frugal, and everyone's definition of frugal is subjective. But I follow Paula Pant's anti-budget mentality. The bills (including groceries) will all be paid instantly when my check is direct deposited, my savings will be automatically withdrawn from my paychecks so I never even see it, and what's left over is mine allocate as I see fit.

  • Attorney 路 New York, NY 路 Member since 2019 路 72 posts 路 27 votes
    6y

    In terms of income, you should always have an emergency fund account for a rainy day. The 15k+ salary will be nice, but if its not regular like you've said, it would be smart to have a backup account of some sort just in case. Congratulations on making a jump toward the next phase of your life.

  • Rental Property Investor 路 Annapolis, MD 路 Member since 2011 路 232 posts 路 170 votes
    6y

    @Nicole Heasley congrats! I鈥檓 in sales too and have a comp plan set up like yours. We use the base salary for all of our day to day living expenses and any commission money goes into a separate investing account. Sometimes we splurge and take a nice trip but for the most part we save and wait for an investment opportunity. Good luck in the new role!

  • Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y
    Originally posted by @Matt Nusbaum:

    @Nicole Heasley congrats! I鈥檓 in sales too and have a comp plan set up like yours. We use the base salary for all of our day to day living expenses and any commission money goes into a separate investing account. Sometimes we splurge and take a nice trip but for the most part we save and wait for an investment opportunity. Good luck in the new role!

    I have a similar plan. My rental cash flow is my investment savings. I'd like to use my salary to cover day-to-day costs and use commissions to knock out my debt. If you have any advice for me--sales books to read, lessons you've learned in the field--I'd very much appreciate them! 

  • Rental Property Investor 路 Annapolis, MD 路 Member since 2011 路 232 posts 路 170 votes
    6y

    @Nicole Heasley Beitenman Never stop learning and networking! Always keep moving forward even when you feel stuck, defeated or unsure even if it's just the smallest action. 

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 17k+ votes
    6y
    Originally posted by @Nicole Heasley Beitenman:
    Originally posted by @JD Martin:

    Congratulations! Thoughts:

    1. Spend only on absolute necessities first 6-12 months. It takes some time to figure out your baseline. 

    2. Send any unpaid to bills to @Scott Trench - it's his fault, after all 馃槄

    Seriously, I'm sure you've thought it out well and will do fine. 

    I love this idea. I can send my entire student loan balance. To be fair, it's kind of all of BP's fault, so I'll just pass it on to HQ. I wouldn't have found Scott's book if it weren't for BP. 


     As I mentioned to Joe, I did prepare for this as much as I could before the opportunity fell into my lap. Ideally, this would have happened closer to June. But I couldn't pass it up. I was raised frugally, so I spend little by nature. Of course, I'm sure everyone thinks they're frugal, and everyone's definition of frugal is subjective. But I follow Paula Pant's anti-budget mentality. The bills (including groceries) will all be paid instantly when my check is direct deposited, my savings will be automatically withdrawn from my paychecks so I never even see it, and what's left over is mine allocate as I see fit.

     I love that you mentioned PP... I listen to her podcast all the time, she has some great interesting guests and is pretty reasonable about FIRE.

    Skyline Properties
    View Page
  • Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y
    Originally posted by @Matt Nusbaum:

    @Nicole Heasley Beitenman Never stop learning and networking! Always keep moving forward even when you feel stuck, defeated or unsure even if it's just the smallest action. 

    I appreciate that!

  • Investor 路 Youngstown, OH 路 Member since 2017 路 2k+ posts 路 2k+ votes
    6y
    Originally posted by @JD Martin:
    Originally posted by @Nicole Heasley Beitenman:
    Originally posted by @JD Martin:

    Congratulations! Thoughts:

    1. Spend only on absolute necessities first 6-12 months. It takes some time to figure out your baseline. 

    2. Send any unpaid to bills to @Scott Trench - it's his fault, after all 馃槄

    Seriously, I'm sure you've thought it out well and will do fine. 

    I love this idea. I can send my entire student loan balance. To be fair, it's kind of all of BP's fault, so I'll just pass it on to HQ. I wouldn't have found Scott's book if it weren't for BP. 


     As I mentioned to Joe, I did prepare for this as much as I could before the opportunity fell into my lap. Ideally, this would have happened closer to June. But I couldn't pass it up. I was raised frugally, so I spend little by nature. Of course, I'm sure everyone thinks they're frugal, and everyone's definition of frugal is subjective. But I follow Paula Pant's anti-budget mentality. The bills (including groceries) will all be paid instantly when my check is direct deposited, my savings will be automatically withdrawn from my paychecks so I never even see it, and what's left over is mine allocate as I see fit.

     I love that you mentioned PP... I listen to her podcast all the time, she has some great interesting guests and is pretty reasonable about FIRE.

     Agreed! I also am a proponent of spending my time trying to increase my income rather than laboring to save minuscule amounts, so her material resonates with me. I am only about 30 episodes in. After about 2 years of hanging out on BP, I'm just now branching out into other communities that focus more on personal finance. It's been great hearing other stories from folks outside of real estate, and I find that many of their ideas are still relevant to me in my own entrepreneurial endeavors even though they're doing stuff I have no interest in like reselling on eBay or running online retail stores. 

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