|
Bozart posted:While that is very cool and I like that site - I'm going to be a (hopefully helpful) critic. It essentially moves the time when all of your goals are met to as soon as possible. The only problem is that your priorities should be different! Gonna  the hell out of the new page. Apologies in advance.A few quick things to note. 1: I use YNAB for my overall budget, and I love it. This plan complements that. 2: I typically have between 1600-2000 left over each month after my normal spending (rent, utilities, food, fun, treats, 401k, insurance, car issues, minor saving goals, minor inconveniences, etc.) so this just highlights goal planning for that specific money. 3: The $4000 car fund is something I'm going to save up and stash away so I can upgrade my self-insurance car failure/wreck plan from "commute by bike, reduce my amusement budget and work overtime for two months, then pay cash for something serviceable" to "finance a nice newer car with a 40% down-payment." I still intend to run whatever I'm driving at that point into the ground before I buy something nicer. Even if I finance a car in the next two years (which I won't) I could very easily afford it. I can certainly see the argument for bumping the dire emergency fund above that, but since it's a bolster to my self-insurance, I feel comfortable having it at third. We'll see, though—that goal is a ways off. 4: The 6-months expenses is meant to support me in a dire emergency. By "dire emergency," I mean something like unemployment or some debilitating loss/injury that isn't covered by insurance. I'm not referring to "aww, crap" things like having to pay a deductible, or for a significant car repair (or replacement, as previously noted), or for dad needing a significant loan last month. I can handle those without touching my credit cards. I've been told many times that I should move the 6 month dire emergency fund to the top, and I know that's a general recommendation, but I've yet to hear an argument that makes it a lock for my specific situation. I think it makes more sense for me to prioritize elimination of the debts, both best-case mathematically and especially emotionally. If a dire emergency happens before I've saved up a dire fund, then I'll simply refill the cards I just paid down. Before you slap your forehead, recall my definition of "dire emergency" and hear me out. A few months ago, I asked myself which of the two situations would feel better at the end of the year. Option 1: I have zero credit card debt, but no dire fund. Option 2: I have a 10K dire fund, but $12,000 CC debt (across 4 cards). Option 1 sounds much better to me. Mathematically, it makes a bit more sense, assuming all goes well (less interest paid). Emotionally, it's night and day. But what if all doesn't go well? I considered the best- and worst-case scenarios of both. Option 1 - Best case: CC's dead at year's end. By the end of summer 2012, I am 100% debt-free. Now I can work on the rest of my goals without thinking about CC statements. For the first time in my life, I don't owe nobody nothing!  - Worst case: DISASTER STRIKES and I can't work, get family help, get uninsurance benefits, or otherwise help myself for 6 months. I somehow lose my short-term savings, so I'm forced to charge everything to the cards I was working to pay down, plus a cash advance to pay the CC minimums.  Option 2 - Best case: I have a 10k dire fund at year's end, and I've started paying my CC's. By the end of summer 2012, the CC's are about killed off and I'm circling the 2013 month which will mark the end of my student loans.  - Worst case: DISASTER STRIKES but at least I'm able to pay these expenses out of pocket, rather than adding to my (still-high) credit card balances.  I find way more appealing than , but I don't think that is shitloads worse than , so I'll take my chances with in pursuit of . It's a survivable risk with a very inspiring upside.In the past 3 months, I've reduced my credit card debt from $13,600 to $8300. I've gone from 4 cards to 1. My emotional state has improved tremendously and I feel fantastic about where things are going. And if poo poo hits the fan tomorrow, welp, I'll live v  v
|
#
?
Jun 18, 2011 10:46
|
|
|
|
| # ? Jun 13, 2024 05:17 |
|
|
I don't understand the reasoning behind building up an emergency fund when paying of credit cards. You have credit cards, those are your emergency fund. So pay them down, save on interest and use them in an emergency.
|
|
#
?
Jun 18, 2011 18:29
|
|
|
modig posted:I don't understand the reasoning behind building up an emergency fund when paying of credit cards. You have credit cards, those are your emergency fund. So pay them down, save on interest and use them in an emergency. Beause most people who have carried credit card balances in the past are more prone to spending credit card money differently than real money. And credit cards can be revoked at any time, especially when something happens like you are no longer making money, that is a time the credit card company is liable to dump you.
|
|
#
?
Jun 18, 2011 19:23
|
|
|
Bozart posted:Sorry about double posting, but I just realized that there isn't a marriage thread from a financial perspective. Know where each other stands financially 100%, before you get married. Get on the same page as far as money is concerned; one of the best things I think my wife and I did before we got married was go through the entire Dave Ramsey course together, because it generated a lot of good discussion and got us on the same page. It helped get some of my poo poo in order, and I worked hard to pay off my credit card debt before our marriage. It took some major adjusting on my part getting used to a much more strict budget breakdown, but now that it's set up I wouldn't have it any other way. Discuss your budget together every month. Even if one or the other is more financially inclined, the other partner needs to be involved in the discussion and decision making. It's far too easy for the one person who is financially inclined to do everything, and then resentment can build. My wife is much more financially minded, so she handles the budget creation, checkbook balancing and the like where as I handle all the bill paying since she doesn't like seeing money go out. We have a shared google docs spreadsheet that we can update with transactions, and every month we talk over any tweaks we'd like to do, anything that came up that we'd like to save for, etc. Money is the absolute last thing that I would worry about causing any kind of issue in our marriage.
|
|
#
?
Jun 20, 2011 02:53
|
|
|
Alright guys, I think I know the answer to this but I figured I'd ask in here. I just graduated my engineering program, and got a job right away. However, the car I had through college is old, and beginning now down the path of (potentially) endless repairs. Right now the rear brakes need to get done ($350), and my radiator is leaking (albeit not TOO quickly, right now I've just been filling it up until I decide what to do). One of the bearings is noisy, but I've had it checked and they said there's no safety issue yet as there's no play in it. The ball joint is also loose. Also, after talking to a mechanic in my extended family he alerted me that the 3.1V6 in it is known to blow its intake, sigh. As one can see, that's a lot of potential repairs. Probably about $1200 when all is said and done. I drive a lot for work, much of it paid mileage, so another factor to consider is it's a 1997 Cutlass Supreme, and the gas mileage is poo poo. Right now my financials look as such: Debt: ~21000 in student loans, but they're government (Canada), and I don't have to start paying until November. Expenses: $460/month rent (with utilities) $20/month internet $160/month car insurance $200/month gas (?) Income: $3480/month Credit cards: $500 Bank balance: $0 (This isn't what my situation actually is, but for the purposes of numbers it might as well be) What I'd love to do is be able to save for a few months then get a newer car, but I'm a little afraid I'm just going to have to keep throwing money into this car in the mean time, at which point it would have been worth just getting one now. Any thoughts?
|
|
#
?
Jun 20, 2011 13:56
|
|
|
Bozart posted:While that is very cool and I like that site - I'm going to be a (hopefully helpful) critic. It essentially moves the time when all of your goals are met to as soon as possible. The only problem is that your priorities should be different! I would not put the 6 month nest egg in front of the CC debt. Why build up that much savings when you are losing money to interest on the cards at the same time? I would save up enough of a fund that you aren't going to be flat broke in an emergency, maybe 2k, and then pay off the CC asap. That will give you even more extra per month to then put towards your savings. Corrupt Cypher posted:Alright guys, I think I know the answer to this but I figured I'd ask in here. I just graduated my engineering program, and got a job right away. However, the car I had through college is old, and beginning now down the path of (potentially) endless repairs. Right now the rear brakes need to get done ($350), and my radiator is leaking (albeit not TOO quickly, right now I've just been filling it up until I decide what to do). One of the bearings is noisy, but I've had it checked and they said there's no safety issue yet as there's no play in it. The ball joint is also loose. Also, after talking to a mechanic in my extended family he alerted me that the 3.1V6 in it is known to blow its intake, sigh. It sounds like you are trying to justify the purchase of a new car. Theres nothing wrong with getting a new car if you want and you have the income to do so, just don't go crazy on it. As someone who recently replaced an older vehicle with a brand new car here is my take: Whatever it would have cost to maintain or repair my vehicle that I felt would have been "wasted" and could have gone towards a new vehicle is still a hell of a lot cheaper then the costs associated with a new vehicle, depreciation etc. A few grand in repairs SEEMS like a lot of money but it really doesnt compare to even tax and all the other goodies that goes along with a new vehicle. I would drive your current one for as long as you can stand it while you pay off you loans and save for a down payment on a new vehicle. I would have liked to keep driving my current vehicle for at least a couple more years, but I got into an accident and it was no longer worth it to fix. Any money you are going to save on gas mileage will not make up for the cost of the new vehicle itself so don't think about it that way. It's just something to keep in mind when you DO get another one. I'm incredibly happy with my new vehicle but I do wish I had put it off for another year or so financially.
|
|
#
?
Jun 20, 2011 18:51
|
|
|
asmallrabbit posted:It sounds like you are trying to justify the purchase of a new car. Theres nothing wrong with getting a new car if you want and you have the income to do so, just don't go crazy on it. As someone who recently replaced an older vehicle with a brand new car here is my take: Isn't $1200 equal (or almost equal to, depending on options, mileage and condition) the value of the car? I'm curious if this changes your advice any.
|
|
#
?
Jun 20, 2011 19:31
|
|
|
asmallrabbit posted:I would not put the 6 month nest egg in front of the CC debt. Why build up that much savings when you are losing money to interest on the cards at the same time? I would save up enough of a fund that you aren't going to be flat broke in an emergency, maybe 2k, and then pay off the CC asap. That will give you even more extra per month to then put towards your savings. Yeah, I am very much trying to justify it to myself. I'm just afraid that I could sink $2000+ into an $1100 car to get an extra 10000km out of it. I definitely have the income to support it, it's just that I'm in such a weak position now because I just got out of school. The other option being to get a $5000 or so vehicle but I'd really rather just get something 0-60000km and pay for it knowing I can get some good km/$. Bleh!
|
|
#
?
Jun 21, 2011 00:16
|
|
|
Brennanite posted:Isn't $1200 equal (or almost equal to, depending on options, mileage and condition) the value of the car? I'm curious if this changes your advice any. Well consider the alternative, could you get another vehicle to replace it for $1200 or less? I didn't want to fix my vehicle at the time because it was going to cost as much as it was worth, but had I fixed it I know I could have gotten a few more years out of it. It was in pretty good shape and I knew anything I would have to fix on it. Other option is to buy a used which you don't know the history on so it could be good or might also need repairs, or get a new car. If you can find a good used car for close to the same price or not much more thats a good option. I wanted something new because I had been saving for a car for awhile. The costs that went along with it beyond just thec ar itself quickly added up to the point where I could have just fixed my old one and continued to drive it but I don't regret it. Corrupt Cypher posted:Yeah, I am very much trying to justify it to myself. I'm just afraid that I could sink $2000+ into an $1100 car to get an extra 10000km out of it. I definitely have the income to support it, it's just that I'm in such a weak position now because I just got out of school. The other option being to get a $5000 or so vehicle but I'd really rather just get something 0-60000km and pay for it knowing I can get some good km/$. Bleh! Well like I said, theres nothing wrong with wanting or getting a new vehicle. If you think that $2000 is only going to get another 10000km out of your current car you might be better off looking for another used vehicle if not new, especially if you drive a lot. Just don't overbuy before you are comfortable in your job and get settled in. If you can get by with your current car for a bit more with minimal repairs I would do that while you look around and save up some cash. Keep in mind I'm one of those people who never wants to buy used, I'll buy something new then keep it until it no longer works before I get something else hence why I bought a new one. asmallrabbit fucked around with this message at 20:19 on Jun 22, 2011 |
|
#
?
Jun 21, 2011 16:30
|
|
|
asmallrabbit posted:Well consider the alternative, could you get another vehicle to replace it for $1200 or less? I didn't want to fix my vehicle at the time because it was going to cost as much as it was worth, but had I fixed it I know I could have gotten a few more years out of it. It was in pretty good shape and I knew anything I would have to fix on it. Other option is to buy a used which you don't know the history on so it could be good or might also need repairs, or get a new car. If you can find a good used car for close to the same price or not much more thats a good option. I wanted something new because I had been saving for a car for awhile. The costs that went along with it beyond just thec ar itself quickly added up to the point where I could have just fixed my old one and continued to drive it but I don't regret it. The second quote was actually from Corrupt Cypher. He's/She's the one debating buying a new car. I was just curious.
|
|
#
?
Jun 21, 2011 22:00
|
|
|
I have about 200k in student loans. I also have own a condo, flat out, worth about 400-500k, which was given to me. The student loans are all over the palce with different lenders, etc. Is there any way to use the value of the condo in order to knock out the student loans, then just pay back the condo loan?
|
|
#
?
Jun 21, 2011 22:13
|
|
|
Koppite posted:I have about 200k in student loans. I also have own a condo, flat out, worth about 400-500k, which was given to me. The student loans are all over the palce with different lenders, etc. Is there any way to use the value of the condo in order to knock out the student loans, then just pay back the condo loan? Edit: Durrr reading comprehension, been reading too much about Bitcoin and it has rubbed off on me. Koppite - Look into a HELOC and see if the rate is better. If so take it out and pay down the student loans, if not then you don't really have a better option. alreadybeen fucked around with this message at 23:25 on Jun 21, 2011 |
|
#
?
Jun 21, 2011 23:08
|
|
|
Koppite posted:which was given to me. I imagine that's why.
|
|
#
?
Jun 21, 2011 23:23
|
|
|
Koppite posted:I have about 200k in student loans. I also have own a condo, flat out, worth about 400-500k, which was given to me. The student loans are all over the palce with different lenders, etc. Is there any way to use the value of the condo in order to knock out the student loans, then just pay back the condo loan? Why would you not sell the condo and become debt free? Do you need that much house? It would seem to me you could do that, buy a reasonably nice (but perhaps not AS nice) place, and own a paid for house.
|
|
#
?
Jun 21, 2011 23:46
|
|
|
Zeta Taskforce posted:Why would you not sell the condo and become debt free? Do you need that much house? It would seem to me you could do that, buy a reasonably nice (but perhaps not AS nice) place, and own a paid for house. A 500k condo may not even be a 2 bedroom depending on where it's at.
|
|
#
?
Jun 22, 2011 13:18
|
|
|
baquerd posted:A 500k condo may not even be a 2 bedroom depending on where it's at. Exactly. If Koppite has $200,000 in student loans, he doesn't need to live in such a fancy neighborhood at this point in his life.
|
|
#
?
Jun 22, 2011 14:06
|
|
|
Zeta Taskforce posted:Why would you not sell the condo and become debt free? Do you need that much house? It would seem to me you could do that, buy a reasonably nice (but perhaps not AS nice) place, and own a paid for house. It depends entirely on where you live, and I don't mean where in town, but where in the country (or world). Even post-bubble, there are places (like Washington, DC) that still have loony real estate prices. Presumably, his parents gifted him the condo, and I would imagine very much that they would much rather him live there than farther out in the suburbs or deep in a high-crime neighborhood. I think this is far too conservative of advice. Especially when you factor in the social politics involved. We know nothing about his living situation, where he lives, how much he makes, what his commute is, nothing. If you had a $400,000 condo in NYC you would be living pretty drat cheaply. Good luck finding a $200,000 condo in NYC. Nevermind the fact that you'll pay like 3x as much in fees and commissions selling one place and buying another rather than just taking out a HELOC. 6% to the realator, moving expenses, closing costs, etc etc. You're paying the realator $25,000 to sell your place off the top. Edit: Oh and don't forget the taxes. KennyG fucked around with this message at 16:16 on Jun 22, 2011 |
|
#
?
Jun 22, 2011 16:09
|
|
|
Zeta Taskforce posted:Exactly. If Koppite has $200,000 in student loans, he doesn't need to live in such a fancy neighborhood at this point in his life. Thanks guys, I'm looking into the HELOC.
|
|
#
?
Jun 22, 2011 16:12
|
|
|
Koppite posted:Thanks guys, I'm looking into the HELOC. I disagree with everything KennyG said, but I wont’ debate him or you since it sounds like you are going to keep the condo. I would look at doing a cash out 15 year fixed rate mortgage, not a HELOC. You should be able to get a 15 year fixed somewhere in the low 4’s. That is slightly higher than the high 3’s because it is a cash out. A HELOC may start out a bit lower, but it will be variable and we don’t know what will happen to rates. They are at record lows, they can only go up. A mortgage will also look better on your credit. I almost never tell people to manage their finances with an eye on the credit and say that the credit will take care of itself as long as you borrow responsibly and stay current. This is an exception. A HELOC gets reported as a big credit card. In your case it will be a big fat $200,000 maxed out credit card. It will be years before you can pay this down by half or 2/3 to get to the point lenders like to see. A lender won’t even blink if a mortgage is barely paid down.
|
|
#
?
Jun 22, 2011 16:29
|
|
|
Brennanite posted:The second quote was actually from Corrupt Cypher. He's/She's the one debating buying a new car. I was just curious. Yea, sorry about that, I was adressing Cypher, I messed up the quote tags.
|
|
#
?
Jun 22, 2011 20:18
|
|
|
Hey all, quick question about my credit card. I have a Secured MasterCard with a $200 limit, it's all I could get while my credit is still in the dumps. I pay it off in full every month but I also usually max it out in a week or two. I use it for gas and groceries and other daily living expenses and with a house of three including a baby, $200 doesn't go that far. Anyway, my question is, am I hurting myself by maxing it out so quickly? Does that look bad on my credit even thought I pay the statement in full each month?
|
|
#
?
Jun 23, 2011 22:47
|
|
|
It could. It can show you have a high debt utilization. What are you gaining from using the card?
|
|
#
?
Jun 24, 2011 00:24
|
|
|
I got it so that I could have another account in good standing on my credit. Having it has raised my score several points since I got it 4 months ago.
|
|
#
?
Jun 24, 2011 00:33
|
|
|
Make a payment before your statement date and it will lower the number that gets reported to credit agencies. But if your credit is already rising, you may not have much to worry about.
|
|
#
?
Jun 24, 2011 01:40
|
|
|
I'm 18 and moving out for college so a lot of this is new to me and coming down on me really fast. I bank with Sun Trust, using a checking account so that I can get money from relatives for things like groceries and so I can pay off any bills. What is weird though, is starting March of 2012, my bank will require a monthly fee for using a debit card. I'm thinking if there is a way to bypass this (at least online) by using a Paypal account. And actually, I would hope those of you with experience can give me a run down and tips for Paypal. I never used it before, and I do a lot of online purchases.
|
|
#
?
Jun 24, 2011 12:15
|
|
|
Why don't you open an account at a less lovely bank instead of complicating your life by trying to avoid one of if not the most common methods of payment. If you really need to keep the Sun Trust account open then write checks from it into your other account.
|
|
#
?
Jun 24, 2011 14:13
|
|
|
dr.bateman posted:Hey all, quick question about my credit card. I have a Secured MasterCard with a $200 limit, it's all I could get while my credit is still in the dumps. I pay it off in full every month but I also usually max it out in a week or two. I use it for gas and groceries and other daily living expenses and with a house of three including a baby, $200 doesn't go that far. Anyway, my question is, am I hurting myself by maxing it out so quickly? Does that look bad on my credit even thought I pay the statement in full each month? I wouldn’t worry about maxing out a $200 credit card. It is true that it looks bad to be maxed out, but unlike the other parts of your credit like payment history that will be with you a long time, utilization is something that will instantly change when your balances change. The time your balance gets reported is on the statement cycle date. You can pay it off before it cycles if you want. There are no short cuts to improving your credit. You want to pull your credit as https://www.annualcreditreport.com to look for and fix any inaccuracies. Once you get current on everything, settle and/or payoff any bad debt, the only thing that will fix your credit is time and good behavior going forward.
|
|
#
?
Jun 24, 2011 14:14
|
|
|
transient posted:Why don't you open an account at a less lovely bank instead of complicating your life by trying to avoid one of if not the most common methods of payment. It's basically because of my parents, who have been banking through them for years.
|
|
#
?
Jun 24, 2011 22:05
|
|
|
I was at a bar with my boss and one of our student workers and the topic credit came up. The student just turned 21 and doesn't have a credit card, and was thinking of getting one to build a history. He was just going to put his normal purchases on one. My coworker and I said that's fine, just pay it off every month. My boss says "No, no, that's not right." He says get three cards from three different banks and let them sit there and that's all you need to do. Knowing that details of how credit score is calculated are unknown to the common man, he's wrong and I'm right, correct?
|
|
#
?
Jun 26, 2011 00:08
|
|
|
FISHMANPET posted:I was at a bar with my boss and one of our student workers and the topic credit came up. The student just turned 21 and doesn't have a credit card, and was thinking of getting one to build a history. He was just going to put his normal purchases on one. My coworker and I said that's fine, just pay it off every month. My boss says "No, no, that's not right." He says get three cards from three different banks and let them sit there and that's all you need to do. While he will get better credit taking out the cards and letting them sit there than not having any credit lines at all, no credit utilization is not practically a useful metric for creditworthiness. You're right, he needs to use the credit to maximize his credit score. I would follow your boss's advice on getting multiple cards, but space out the requests a few months so it doesn't look like you're trying to do a run on credit.
|
|
#
?
Jun 26, 2011 15:50
|
|
|
place fucked around with this message at 04:55 on Feb 10, 2017 |
|
#
?
Jun 26, 2011 17:19
|
|
|
Chill. You're fine.
|
|
#
?
Jun 26, 2011 17:34
|
|
|
Seriously, have a beer and sit down for a bit or something, there's not going to be any problems.
|
|
#
?
Jun 27, 2011 02:32
|
|
|
place fucked around with this message at 04:55 on Feb 10, 2017 |
|
#
?
Jun 27, 2011 02:53
|
|
|
I hope this hasn't been covered before, I skimmed 50 pages and didn't see it. If it has been covered, I apologize. Basically, I had health and job issues where I couldn't pay my credit card debt for a few months last year. Chase gave me some wonderful penalty APRs on my two cards with them and then closed the cards because I owed too much/didn't pay. When I finally got money, I paid as much as I could and I currently am making all payments, but the penalty APR (30%) is really awful. Is there anything I can do to lower it? Is there anything specific I can say to them? Edit: I don't qualify for anything but the cards with $300 balance because of the job/health/debt issues, so I can't transfer the debt to a new card. Thin Privilege fucked around with this message at 22:45 on Jun 27, 2011 |
|
#
?
Jun 27, 2011 22:43
|
|
|
JoeyJoJoJr Shabadoo posted:I hope this hasn't been covered before, I skimmed 50 pages and didn't see it. If it has been covered, I apologize. How much debt are we talking about? Are you at least able to afford the payments? How long have you been current? Per the credit card act of 2009, they have to reset penalty rates back after you have been current for 6 months. If you have not been a day late in 6 months, then you should call them and remind them of the law. You can do this without applying for anything or opening up new accounts. That said, you should try to go to your local credit union or community bank to get an unsecured loan. Credit Unions can not charge more than 18% by law, and you will likely do better than this, again assuming you are current. They will give you a fixed rate and you will pay them off instead. And then don't ever open another card with one of these major issuers. I'm looking at you Bank of America, you too Capital One, I didn't forget about you AMEX. As you have seen, the way they treat their customers is horrible, and they only survive by the strenght of their marketing departments.
|
|
#
?
Jun 27, 2011 23:42
|
|
|
But how will I know if they are a safe repituable bank that I can trust not to lose my money  It's the sad secret like passive investment strategies in the Long Term Investing thread. Because they don't gouge you with fees, they don't have the money to tell you that they really are better than the competition. In 2011, with debit cards, direct deposit, online banking and all the financial tools available, there is no longer any reason (not even travel) to deal with the lovely big banks. I lived for 6 months in a town that was 500 miles from my nearest bank branch and it did not affect me at all.
|
|
#
?
Jun 28, 2011 14:02
|
|
|
KennyG posted:But how will I know if they are a safe repituable bank that I can trust not to lose my money I've gone 2 years in a town that's 14 hours or 800 miles away from my bank  the only problem I have is cashing T-bills and checks sometimes.
|
|
#
?
Jun 28, 2011 14:42
|
|
|
UCS Hellmaker posted:I've gone 2 years in a town that's 14 hours or 800 miles away from my bank Fair point. I don't have either of those issues very much. I currently have a local CU, but if I didn't and I was somewhere that I would need to be doing signficant banking (6+ months) I guess I would open a local account and use online transfers
|
|
#
?
Jun 28, 2011 14:57
|
|
|
|
| # ? Jun 13, 2024 05:17 |
|
|
With most credit unions, you can do shared branching. You can walk into practically any credit union anywhere in the country and be able to make deposits, do withdrawals, and get general member service. http://www.cuswirl.com/Home/p/295627/Default.aspx
|
|
#
?
Jun 28, 2011 15:20
|
|