Soooo... I know there are lots of posts on HOW MUCH we make, but what about HOW we should use it (arguably more important)...
WHO on this board can act as the wise elder to tell me what I should be doing with my paycheck since I never in a million years thought I would have any disposable income until I was 35???
Seriously, I don't feel like putting it into the stock market (i.e. kiss it goodbye), I'm not married, not pay child support, etc. I don't want to buy a house/condo in the bethesda/dc area for the same reason as the stock market...
Uh... yeah...
I'm sure there are a few other people out there besides me who have some car already spec'd out in their internet explorer favorites... I just get the feeling that it isn't the best use of my salary.
I met some guy a few years ago at a financial conference who was from West Point who acted as the "investment adviser" for his class, since there were a lot of people who literally had no idea what to do with their earnings and weren't saving for later in life (of course, my question is: is that something I should REALLY care about at 24?!? Does a Range Rover have a better rate of return???)
Edit: the other thing to consider is that there is very little "uncertainty" in our income/paychecks (I for one don't plan on failing out of med school...) so that might change the whole save/spend ratio that we are often taught since "you could always lose your job", etc.
Approach financial management as you would for MCAT. Start with some unbiased, quality information on the basics. Any of the For Dummies or Idiot books would work. Read as much as you can reasonably tolerate.
Unlike dealing with a car salesman or mechanics, in financial management our own ignorance and fear are our own worst enemy. Do some self evaluation: identify your financial goals, time line, spending habit, tolerance for risk, etc. Set a budget, then regularly verify that your spending habit, budget, and financial goals are consistent with each other.
Educate yourself on different types of insurances
www.iii.org. Understand the relationship between insurances and your overall financial health. Shop for as much much insurance as you need.
Start saving for 3 to 6 months of emergency fund. For example, figure out how much you spend on necessities (e.g. rent, gas, utilities, food, loan payments, etc) and multiply by 6.
Next comes saving for retirement. For military, the Thrift Savings Plan (TSP) is bar none (don't take anyone's word for it. evaluate it yourself). Put as much as you can into retirement without compromising your other financial goals. The monthly allotment is a good way to put this into auto-pilot.
After retirement comes savings for short to midterm goals (car, down payment for a house, etc.). By this time you should understand what investment instrument is good for you (bank saving account, stocks, cash under the pillow, etc.)
What remains is your discretionary beer money, a reward for maintaining/elevating your financial health.