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I had to buy a couch on the quick for a visiting friend so I signed up for a card from the retailer. It's not a real credit card and goes through GE Capital. It is 0 interest (for that purchase - I've made no other purchases) for about 36 months unless I miss a payment. There's currently ~1600 left on the balance and I've set up the auto-pay to pay just over the minimum (which is basically cost of couch / 36 months) per month. I have the money to pay it off immediately but since I get 3% in my checking and the couch is interest-free, I don't feel a strong incentive to pay off the couch. Should I go ahead and pay off the couch or is what I'm currently doing okay?
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May 1, 2012 15:20
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totalnewbie posted:I had to buy a couch on the quick for a visiting friend so I signed up for a card from the retailer. It's not a real credit card and goes through GE Capital. It is 0 interest (for that purchase - I've made no other purchases) for about 36 months unless I miss a payment. I see no problem with this, but I would pay it off 6 - 12 months early as GE sometimes likes to play games to get you over the 36 months and hit you with the HUGE amount of accrued interest.
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May 1, 2012 16:09
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Personally, I would have just paid cash for the couch. I also would have bought a much cheaper couch or an air mattress, but that's me  Having that sit over my head for 3 years would drive me crazy, but financially it may be the right decision to keep your money in your own account making interest. Also: how are you getting 3%? I'm assuming you don't live in the US.
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May 1, 2012 16:09
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totalnewbie posted:I had to buy a couch on the quick for a visiting friend so I signed up for a card from the retailer. It's not a real credit card and goes through GE Capital. It is 0 interest (for that purchase - I've made no other purchases) for about 36 months unless I miss a payment. If somebody offered me a credit balance hanging over my head for two years in exchange for $50, I'd tell them to go gently caress themselves. It's hassle and some not insignificant risk in exchange for a miniscule reward.
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May 1, 2012 16:17
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3% through local credit union in USA. I also wouldn't have minded buying a cheaper couch but I needed it by the weekend (I bought it on Monday) and I would eventually like to have "nice things" some day so might as well start with a couch. It is, definitely, by far the best piece of furniture in my apartment. And one day, when I get a house, it will fit nicely in the living room. It's a pretty big couch. I actually couldn't pay cash for it because it was over my daily spending limit that's on my checking account. I would have preferred to pay cash at the time but then I started to see why people like to buy things on payment plans (though I will not head down that road to destruction, don't worry). Anyway, I think I will just take the middle road and up my monthly payments to something significantly over the minimum and pay it off in a year and change. Thanks for the input.
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May 1, 2012 16:49
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You should take a look at the agreement and see what happens if you are ever late with a payment or miss one. I understand that you aren't planning to do that and have set it up to autopay, but poo poo happens and it's very possible that that 0% interest will balloon to some ridiculous 20%+ rate the moment you slip. If you are comfortable taking that risk for the gain you are getting, ok, but definitely keep enough on hand so that you can pay it off on a day's notice.
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May 1, 2012 16:57
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totalnewbie posted:3% through local credit union in USA. No one ever admits that 0% financing caused them to spend more, but the 0% financing caused you to spend more. Nocheez posted:This advice is why you are a mod here. Well said! OK, now you are brown nosing! 
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May 1, 2012 17:12
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If it makes you feel any better, I picked the couch and was going to pay with cash but only got the financing because it wouldn't take my [check] card.  Ashcans posted:You should take a look at the agreement and see what happens if you are ever late with a payment or miss one. I understand that you aren't planning to do that and have set it up to autopay, but poo poo happens and it's very possible that that 0% interest will balloon to some ridiculous 20%+ rate the moment you slip. If you are comfortable taking that risk for the gain you are getting, ok, but definitely keep enough on hand so that you can pay it off on a day's notice. I have, and it does, and I do. I wouldn't have bought the couch in the first place if I couldn't have paid for it on the spot (which was my plan all along). On a side note, I see how people get sucked into debt through payment plans, etc. Thank god I've been following this (and some other) threads because it's so easy to forget that part of the money you have in the bank isn't really your money anymore. "Can I afford this new TV? Oh yeah, I've got a few grand in the bank, it's fine! I'll just put it on this payment plan and..." except oops, that few grand has already been promised to the bank for the car, the couch, the bed, the whatever and suddenly, your expenditures are starting to get on the wrong side of your income and away we go. totalnewbie fucked around with this message at 18:08 on May 1, 2012 |
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May 1, 2012 18:00
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Zeta Taskforce posted:OK, now you are brown nosing! Sometimes while reading a post I say something to myself about what the person should consider, and most of the time I scroll down and see you saying it even better than I could. Free, personal, and accurate financial advice is not something you see very often nowadays. We're lucky to have this community. totalnewbie posted:On a side note, I see how people get sucked into debt through payment plans, etc. Thank god I've been following this (and some other) threads because it's so easy to forget that part of the money you have in the bank isn't really your money anymore. "Can I afford this new TV? Oh yeah, I've got a few grand in the bank, it's fine! I'll just put it on this payment plan and..." except oops, that few grand has already been promised to the bank for the car, the couch, the bed, the whatever and suddenly, your expenditures are starting to get on the wrong side of your income and away we go. Nocheez fucked around with this message at 18:39 on May 1, 2012 |
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May 1, 2012 18:37
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There was a bit of talk a few pages back about good 'advice'/budgeting type books. What are everyone's favourites? I have read and liked All Of Your Worth which was suggested by Moana even though the book could have been half the size and still said just as much (unnecessary testimonials etc.).
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May 1, 2012 22:39
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How can I tell when (or if) I need to bring a money professional into my life, and what kind do I need? My specific circumstances: Job one: I work for a university and make less than 10k a year. I am single, this is per hour, and it gives me no benefits like insurance or 401k. Job two: I self-pub erotica, like a bunch of other people are doing. In all three of the publishes I am publishing through, I think I'm responsible for paying taxes on my royalties. Obviously, this job gives me no benefits either, except for cold hard cash. I'd like to be able to funnel some of my smutbux into retirement, and some to pay off student loans. Maybe even something nice like a vacation, occasionally. I also don't want to evade Uncle Sam for my own piece of mind, and make that process as smooth as possible. You know, I think I'm answering my own question here. I do need a professional, but what kind would I need? A coworker (citing an NPR interview they did recently) suggested an accountant would be enough, but would I be better off trying to find a specific tax lawyer or someone like that? How do I go about finding a good one of whatever I need--what should I look for? I have a little time, I think, before I really start needing real help but I want to get my ducks in a row for when I do. Please help BFC, all this is making my head spin. I'm 25, but all I got was extremely basic financial education in school and from my parents.
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May 1, 2012 23:49
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Meniscus posted:How can I tell when (or if) I need to bring a money professional into my life, and what kind do I need? Probably when you're making 20-30x what you're making now from about 10 different revenue streams. If it's any decent amount of money from the porn thing, you'll get some tax form that you plug into TurboTax and then you'll move on with life.
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May 2, 2012 00:00
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Meniscus posted:How can I tell when (or if) I need to bring a money professional into my life, and what kind do I need? How much are you making from the erotica? How much money are you spending in order to publish? It's definitely taxable income, but your total income level and business expenditures are likely at a point where you won't be itemizing deductions (which would make your taxes pretty darn simple, just track your income and keep receipts).
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May 2, 2012 00:01
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baquerd posted:How much are you making from the erotica? How much money are you spending in order to publish? It's definitely taxable income, but your total income level and business expenditures are likely at a point where you won't be itemizing deductions (which would make your taxes pretty darn simple, just track your income and keep receipts). In April, which pays out in June, I got about $460 across all sites--it might be an odd month, though. It costs me very little to publish. In the last two months, I might have spent about 50 bucks in things like stock photos. I don't have a dedicated business space which would be the only thing (as I understand it) I could also deduct. So if I keep track of my receipts, I should be able to turbo tax it come January? Or should I just re-evaluate in a few months?
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May 2, 2012 00:24
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Meniscus posted:In April, which pays out in June, I got about $460 across all sites--it might be an odd month, though. It costs me very little to publish. In the last two months, I might have spent about 50 bucks in things like stock photos. I don't have a dedicated business space which would be the only thing (as I understand it) I could also deduct. I would ask the tax thread. http://forums.somethingawful.com/showthread.php?threadid=3394641 Its been a few years since I've done taxes so I am getting kind of rusty on things unless they affect me personally, but the key is to keep excellent records and just be honest about what you make and what you spend. You can deduct expenses that are necessary to produce the income. Don't get greedy about deducting things either. Just because you bought a new laptop for $1000 doesn't mean you can deduct all of it, unless you use it 100% for business, which no one does. If you are of at least average intelligence and don't freak yourself out, this is something that you can very much do on your own with Turbotax and asking a few questions here if something is confusing.
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May 2, 2012 00:37
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Meniscus posted:Please help BFC, all this is making my head spin. I'm 25, but all I got was extremely basic financial education in school and from my parents.
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May 2, 2012 08:14
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Zeta Taskforce posted:If you literally can’t pay your card down, you are barely eating, you are barely paying the rent, then hanging on until July is the only strategy you have. I might be wrong, but I’m not hearing that. Instead I’m hearing someone who is certainly not rich, but also a bit stressed and a bit disorganized. If you are not on a written budget, then you need to be. When you know what is happening to your money, it will feel like you got a raise. When people are not on a budget and don’t think about how they are spending money, they go to the ATM on Friday, and by Tuesday their wallet is empty and they have a vague idea at best what happened. They bounce from crisis to whatever bill happens to be due, and they can never get ahead. I'm honestly exactly what you described. I spend money like I earn ten times more than I actually do, and I normally hang on with $20 until payday. I've never actually considered having a budget since my personal finances has been 'working' - in the way where I'm not a homeless person. I've only Google'd some easy budgeting tricks, but I've never actually stuck to an actual budget, as much as I'd love to. Never liked dealing with numbers, never been sure how much I should be paying off each week and looking at my bank accounts just makes me anxious. I'll try withdrawing money each week and just living on that money instead, but I go online shopping a lot as well, so I'll have to try and stop my impulse spending as well.  Thanks for your advice, I'll at least try out budgeting instead of just giving up until July.
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May 2, 2012 13:00
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Not to toot another goon's horn too much but Pillowpants offers a budgeting service which a lot of people have used and is apparently very helpful. He can do all of the stuff with numbers and give you a good budget really fast if you want (though you do have to pay for it obviously but it's a pretty small cost that will pay for itself if you follow what he gives you, and it sounds like you have the money to spare if you need). I haven't gotten one yet but I plan to soon and he has lots of good testimonials. You might want to check him out.
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May 2, 2012 13:10
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Tiara posted:I'm honestly exactly what you described. I spend money like I earn ten times more than I actually do, and I normally hang on with $20 until payday. I've never actually considered having a budget since my personal finances has been 'working' - in the way where I'm not a homeless person. There is no shame in that, we are all in it together, and the best we can do is try to learn from each other. I’ve also heard good things from people who have used Pillowpants tools, and some of those testimonials came from the mod only forum. Don’t get overwhelmed by the process. Goons are a pretty nerdy bunch anyway, and this is BFC, if anything we are overrepresented here. I swear that an excel spreadsheet with 35 spending categories gives some people a hard on. You don’t need to make it complicated to have a grasp of what is happening to your money. If you list rent, utilities, travel/commuting, food, payments on debt, savings, and entertainment/leisure, that might do it, and you can add categories later if you need more detail. Be honest about what you need to spend. Don’t put $50 for food so you can put a big number next to debt payments. It has to reflect reality. The other thing to remember is you this is not a one time deal where you are creating the average budget from Heaven. Each month has its own challenges and opportunities, and if you know that your sister is getting married and you need to buy a plane ticket, you need to plan for it. It takes practice, but eventually it will take a few minutes a month.
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May 2, 2012 15:01
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The only thing I would add is that if you find you are having a hard time sticking to your budget then you need to link your budgeting with actual spending. I mean, don't just estimate "oh, 10 bucks for lunch x 5 = 50 bucks" but actually thinking about "Okay, I am going to go to Subway for a sandwich on Monday, which is 5.35 including tax. I'm going to skip getting a drink because it's a giant rip-off. On Tuesdays, I will eat at a nicer place [because I need to due to work, etc] so when we go to [Applebee's] I'm going to buy a sandwich for 8 dollars + tip and drink water" etc. It may seem like a lot of work but people have said before - and will say again many times - that in order for someone to make the changes necessary to go from financial irresponsibility (or maybe in your case, barely responsible by the thinnest margins) to financially secure/responsible takes a lifestyle change, not just small actions. If all you do is estimate and guess then on Sunday (or whatever day you review your week's spending) I guarantee you're going to find yourself over budget. It's kind of like dieting. If you want to lose 50 pounds, you can't just eat a salad every now and then. It's just not going to work.
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May 2, 2012 15:41
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It sounds like you may be a good candidate for the cash-in-envelopes trick that has been discussed before. You put your budget from that week in envelopes, dining, groceries, etc. Take the cash you need from the envelope, and when the envelope is empty, you're done. Stop spending. No credit cards for online shopping.
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May 2, 2012 21:28
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This thread has helped me a lot with budgeting and paying off debts and now my assets>debt for the first time in a long time. My problem is more in line of what do I do with the money I've saved. I have no debt, and also no assets per se (no car of mine, no rent, only bill is cell phone/netflix) My employer does not offer me a 401k and I've just started my Roth IRA with ING I have about 8k in cash I keep for emergency and my take home is $2500/month What should I do? I'm 24, and I've been thinking about buying a house in the next few years or open up a small restaurant. Buy health insurance? Invest?
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May 2, 2012 22:33
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Red_Fred posted:There was a bit of talk a few pages back about good 'advice'/budgeting type books. What are everyone's favourites? Big fan of Financial Peace by Dave Ramsey. I don't care for Total Money Makeover for the reason of "testimonials".
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May 2, 2012 22:40
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Respekt posted:What should I do? I'm 24, and I've been thinking about buying a house in the next few years or open up a small restaurant. Buy health insurance? Invest? Keep contributing to your 401k, save hardcore for a down payment, and live a little. Take a nice trip or something.
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May 3, 2012 00:50
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I have been looking to get a new credit card or two. Unfortunately that looks like that might be impossible. I notice theres a relatively new change in the wording for income when applying for credit cards... specifically, it appears you can't put a household income, just your own personal income. That poses quite a problem... I don't have any income. I assume this is a deal breaker, even if I should already have some credit? I'm 27, my credit at the moment is a card I now have had since 2007 or so, with a $4000 limit. Never missed a payment, never carried a balance, etc. I also have a couple of cards on my parent's accounts, which appear on my credit reports. I think the limits for those cards are 10,000 and 15,000, and they too have never missed a payment. Is that meaningless because I can't report any income? I presume so but I am still wondering if anyone knows for sure... Thanks for any information!
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May 3, 2012 01:26
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My first and only credit card(with the bank where my account is) expires in September. When should I expect the bank to send me information on renewal?
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May 3, 2012 02:48
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Respekt posted:or open up a small restaurant Whatever you do, don't do this.
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May 3, 2012 03:04
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Koskinator posted:My first and only credit card(with the bank where my account is) expires in September. When should I expect the bank to send me information on renewal? You'll get a new card in July or August.
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May 3, 2012 03:30
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perfektrtw posted:I have been looking to get a new credit card or two. Unfortunately that looks like that might be impossible. I notice theres a relatively new change in the wording for income when applying for credit cards... specifically, it appears you can't put a household income, just your own personal income. That poses quite a problem... I don't have any income. I assume this is a deal breaker, even if I should already have some credit? Why are you collecting credit cards like baseball cards? Why are you still on your parent's cards? Why are you applying for credit cards with no income? This all sounds insane to me, of course they shouldn't extend credit to someone with no verifiable method of repayment.
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May 3, 2012 03:36
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FCKGW posted:Why are you collecting credit cards like baseball cards? 1. I didn't realize having 2-3 cards was "collecting credit cards like baseball cards". Everyone I know has at least that many, and it's not a problem. 2. Why not? Is this a bad thing for some reason? 3. Just because I have no income doesn't mean I have no money, and I want to continue to build credit, and my one card is Discover. I'd like to add a Visa or Mastercard at the least because I find Discover isn't accepted everywhere I go. Well, your response pretty much confirmed my suspicions... but it wasn't a problem before, when you could use your household income. Oh well.
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May 3, 2012 03:46
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If you have money and it's in a bank the bank would probably be happy to offer you a credit card. They'll know how much money you have in there so if it's a lot they should be more than amenable to it. I bank with Chase and they use Visa. I think BoA does too.
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May 3, 2012 04:04
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perfektrtw posted:1. I didn't realize having 2-3 cards was "collecting credit cards like baseball cards". Everyone I know has at least that many, and it's not a problem. You didn't say why you need more credit cards when you have 3 already. I didn't know why you want to get one or two more for some reason. You being on your parent's cards means you're responsible for their debt if something should happen to them or their financial situation (if you're co-signers). If you're just an authorized user or some such then disregard. You have $29k of available credit to you already. Having a Discover card sucks so fine, just get a Visa or Mastercard. Although if you have the funds, why even use a credit card in the first place? What's the point?
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May 3, 2012 04:25
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Sophia posted:If you have money and it's in a bank the bank would probably be happy to offer you a credit card. They'll know how much money you have in there so if it's a lot they should be more than amenable to it. I bank with Chase and they use Visa. I think BoA does too. Thanks, I forgot about bank credit cards... I do bank with BoA. The cards aren't the best, but better than nothing... so I will definitely keep that in mind! FCKGW posted:You didn't say why you need more credit cards when you have 3 already. I didn't know why you want to get one or two more for some reason. Ah, sorry about that! Really, the main reason I want another card is to just get a Mastercard/Visa. The secondary reason I want another one is for rewards that I would like to use... I should have clarified, I am not a co-signer or anything on my parents cards, nor do I use them unless I have to... I just brought those cards up because they showed up on my credit reports and I was trying to provide as much info on it as possible. I don't want to rely on my parents cards. Hence the desire for a new card or two. I want to use credit cards for multiple reasons... build my credit score (it's not like I'm some "baller" that will pay for a Benz with cash.. not even close.), cash back/points, ease of use...etc.
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May 3, 2012 04:45
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perfektrtw posted:I want to use credit cards for multiple reasons... build my credit score (it's not like I'm some "baller" that will pay for a Benz with cash.. not even close.), cash back/points, ease of use...etc. I don't see any problem with getting a Visa/MC because you only have a Discover and that isn't accepted anywhere, but I am also skeptical of the income thing. Do you think you'll have no income for the indefinite future? Do you have a sugar daddy (momma?)? If you're currently unemployed but looking, you should be spending your time looking for jobs, not trying to game out an extra $50 in credit card rewards (and paying in cash for most things).
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May 3, 2012 05:03
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kaishek posted:I don't see any problem with getting a Visa/MC because you only have a Discover and that isn't accepted anywhere, but I am also skeptical of the income thing. Do you think you'll have no income for the indefinite future? Do you have a sugar daddy (momma?)? If you're currently unemployed but looking, you should be spending your time looking for jobs, not trying to game out an extra $50 in credit card rewards (and paying in cash for most things). Yeah, my parents definitely help me out. I don't see getting a "real" job very soon. I have gone back to school, and I am lucky enough to be able to concentrate on that while I live at my parents house... but it will be awhile until I finish.
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May 3, 2012 09:17
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Respekt posted:This thread has helped me a lot with budgeting and paying off debts and now my assets>debt for the first time in a long time. Buy health insurance. I get that you are young and don’t think you won’t ever get sick, but with your savings and income, you are one surgery away from financial ruin. It doesn’t What does it cost these days to get an appendix removed? A broken bone would wipe you out.
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May 3, 2012 16:09
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Cross-posting this from Stupid/Small questions thread. My mother-in-law needs surgery. She has cataracts in both eyes and is basically blind at this point. She's 61 years old and has no medical insurance and doesn't qualify for Medicare until 65 but we can't wait that long anymore. We live in Riverside county in California I'm looking for suggestions on what my best options are for paying for this surgery. Poking around online it looks like it can be anywhere from $6k to $10k to pay for the surgery out of pocket. We were on a waiting list for a year for county assisted health care but that is expiring this month. We've since moved and the new county we live in does not offer anything like that. Medicare doesn't kick in for another few years. We're taking care of her now and we have the cash but it would severely dampen our savings to do so. What resources do I have to help pay for this surgery?
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May 3, 2012 17:06
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FCKGW posted:Cross-posting this from Stupid/Small questions thread. Ironic coming after Zeta's post about getting health insurance. I'm sorry to hear about your mother. I hate that I'm even thinking about this, but strategic default might not be a terrible option in this case. I'll let someone yell at me for suggesting this, but essentially you let her take on the debt, then declare bankruptcy. It is nice of you to offer to pay for the surgery, but even if you do help pay it may be better to have her take on the debt (if she is able) and then help her pay it off. There are a number of morbid reasons for this that I'd rather not bring up, but it is much safer for you to keep it off your books so to speak. For others: has the provision of OBAMACARE  taken effect that prohibits exclusions for pre-existing conditions? If so, you might look into getting her on health insurance if this is even possible. It will reduce the cost considerably. Finally, you may try simply negotiating with the hospital directly. Plead indigence and urgent need, and see if they can come up with some reduction in cost for you. Hospitals should have patient advocates who handle this sort of thing (helping you find ways to pay). I would recommend calling up a local hospital and asking around. It also may seem weird, but this is one of those things where, if you're not on insurance, it might pay to comparison shop. Good luck and I hope this turns out OK for your and your mom.
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May 3, 2012 20:13
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The pre-existing exemption doesn't come into effect for adults until 2014, though I think there is some limited availability to get some kind of higher premium insurance now. I'm not sure at the surgery cost that you are looking at that it would be worth it, since while it's expensive it's relatively low-cost as these things go, and I think the out-of-pocket on those plans will be pretty high. But it might be worth exploring anyway.
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May 3, 2012 20:33
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kaishek posted:I hate that I'm even thinking about this, but strategic default might not be a terrible option in this case. I'll let someone yell at me for suggesting this, but essentially you let her take on the debt, then declare bankruptcy. They might want to hold up for a while on bankruptcy to save it for a larger medical expense, and there might be some kind of deposit required for the surgery, but otherwise it doesn't sound too unreasonable. The US medical system is basically a broken moneypit that a variety of wealthy interests are unwilling to fix, so in my book paying/not paying are about the same, ethically.
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May 3, 2012 20:35
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