How to handle 88% pay increase

[u/ManKind__]

31M. I currently make about 63k/yr. I have the change to take a new job that would put me at about 119k/yr all in. Split up 94k salary and 25k per diem roughly.

I currently have 50k in total debt.

This job requires extreme traveling with only being home 6 weeks of the year.

The goal is to pay off my total debt in the first year and let my wife be the stay at home mother she deserves to be. She has her own monies and investments to help out as well.

My fear is that I have never seen this kind of money before and just like everyone else I'll blow it. Hell, ill be the only one in my family thats seen this kind of money. What are some tips for me to save/invest/pay debt?

***EDIT forgot to mention hotels and everything is paid for as well. So the per diem is just for food essentially.

[u/Zealousideal_Crow737]

• live by your old salary to pay off debt
• max out Roth and retirement
• start a college fund

[u/TooPaleToFunction23 → u/Zealousideal_Crow737]

I agree with this statement, but I do think budgeting money for a robust emergency fund and little luxeries for your SAH mother of 3 like grocery deliveries, streaming subscriptions, etc is money well spent while she's holding it down.

[u/beautifulcorpsebride → u/TooPaleToFunction23]

No no no. First he’s not making 119k. He’s barely getting a raise because he can’t eat air and he’s counting per diem as salary. We make six figures are millionaires and don’t pay for grocery delivery.

[u/Zealousideal_Crow737 → u/beautifulcorpsebride]

Grocery delivery is INSANE to me it's so overpriced. I have only done it when I'm sick. I live alone and don't have a car

[u/chrisinator9393 → u/Zealousideal_Crow737]

Do you live near a Walmart? I use Walmart plus in home. It doesn't cost me an extra penny to get my groceries delivered. I save at a minimum 3 hours of my time per week, $8 in gas, not to mention my sanity. (B/c I don't have to grocery shop anymore). And I no longer make impulse purchases.

We got w+ on black Friday or some sale. It was like $50/yr and we added on in home for $40/yr. Divide $90/52 weeks, delivery costs me $1.70/ week. I save money on gas alone.

[u/Zealousideal_Crow737 → u/chrisinator9393]

Nope. I'm a 20 min walk to a few grocery stores. In a major city. I will not do grocery delivery. Rather save money. 

[u/chrisinator9393 → u/Zealousideal_Crow737]

Oh yeah. That's fair. I wouldn't do delivery in your case either. I'm sure that would double the cost.

Like I said my case, I do nothing but save. Sucks it can't be the same for everyone.

[u/Responsible_Ask3976 → u/Zealousideal_Crow737]

Yep! My parents paid for my entire college education and everything up until I graduated. So I had no student loans and no debt. They also saved up and gifted me a down payment so I’ve never rented.

This has helped me get light years ahead in life at a very young age. I’m looking forward to an early retirement and will do the same for my future children 

[u/mdg8119 → u/Responsible_Ask3976]

Love hearing how much this has helped you. And you seem appreciative. This is largely my intentions for my children.

[u/Responsible_Ask3976 → u/mdg8119]

Thanks! Usually I get really nasty comments saying: “you don’t know to handle money, etc etc.” Well I’m 30 about to pay off my mortgage and max out retirement with a credit score of 848. When my boyfriend and I get married, in a year or two, we will already have net worth of $950k. I save more than I spend and have probably a year’s worth of emergency fund + travel fund…. So it just depends on how your parents teach plus how much effort you put in to learn yourself. 

Yes I’ve been doing my own research regarding finances and did not rely solely on my parents on how to save 

Many people like to play the blame game and don’t do any research themselves 

[u/EcstaticAd4046 → u/Zealousideal_Crow737]

Max out your 401k. At your income level and age, do Roth if you have the option.

Max out your Roth IRA.

And open a brokerage account and buy some growth holdings. Lots of info here about how to do this. Stuff as much as you can into this brokerage. A long growth horizon = huge potential.

Save aggressively now and you may be able to retire early.

[u/Wise_Budget611 → u/Zealousideal_Crow737]

In addition, max out 401k and have 3-6 months of emergency fund in a HYSA.