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Are you not affected at all by the recent government cutbacks? I'm really surprised as every government employee I know is wondering if they'll stil a job over the next year, admittedly all state employees of VIC/QLD not federal. If not, nice job! I would still keep some kind of emergency fund however. Ubank is paying 5.71% if you want more than the 3% for a savings account, few other banks with similar rates but more conditions as well. Otherwise, make sure your super is consolidated (get your partner to do it too) if you've had any other jobs and keep putting the money into your mortage. I'm envious at you being able to buy for 200k though, did you get a 1 bedroom apartment for that or just cheap location? I paid off my student loans as I got the 10% discount last year, now its only 5% for lump sum repayments. So I'd wait until your mortage is fully paid off to worry about them. While its not an ongoing interest rate, its still 1-3% added every June.
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Jul 17, 2012 00:36
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Thanks for the help guys.Devious_05 posted:Are you not affected at all by the recent government cutbacks? I'm really surprised as every government employee I know is wondering if they'll stil a job over the next year, admittedly all state employees of VIC/QLD not federal. If not, nice job! Some state employees are on contracts which don't have to be renewed as they expire. I am now in a position which is permanent and I am secure for reasons like economic downturn, even if the job was no longer necessary (which is really not possible) I can't be sacked. Only for gross misconduct or flatly refusing to my job. Devious_05 posted:I would still keep some kind of emergency fund however. Ubank is paying 5.71% if you want more than the 3% for a savings account, few other banks with similar rates but more conditions as well. Good ideas - I'll definitely look into UBank and I'm planing on having an emergency fund of two months salary. Devious_05 posted:I'm envious at you being able to buy for 200k though, did you get a 1 bedroom apartment for that or just cheap location? It's a two bedroom, very simple house in the country next to the water. It's a 45 minute drive to the city I work in. It's a long commute for someone in our state but not compared to anywhere else. We're going to live there for a few years and then use it as a holiday home. We think that it will be much harder to buy a similar property in 5 years if it's a second house that we won't be living in. This way we get to live in it while we pay it off which is much more affordable. It's on tank water and has a septic tank so it's pretty basic but I love it so much! Thanks again.
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Jul 17, 2012 09:22
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Federal Consolidated Loans: $18,808 at 6.88% Minimum monthly: $168.00 Private Loans: $2,993 at 9.25% Minimum monthly: $51.00 Car: $16,000 at 0.00% (yay) Minimum monthly: $410.00 401(k): ~$20,000 History shows it only gaining ~2% Monthly contribution: ~$271 (ER also matches this amount) My employer match on the 401(k) becomes vested in about 2 months. I realize that if I were to cash out my 401(k) it'd be taxed significantly. But looking at its low return and the high interest rates on my student loans, does it make sense to pay them down as much as I can, as soon as I can? I don't have any credit card debt. I have a credit score in the 700s. Is refinancing the Federal loans an option? I feel money dumb. Thanks for any input!
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Jul 17, 2012 13:32
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Tortilla Maker posted:401(k): What the heck are you invested in that you've only made a 2% return on your 401(k)? Unless you are 55 years old you should get into some more aggressive investments options. That would be my advice for you well before taking any money out of it. Your debts aren't particularly high, especially if you don't have any credit card debt, and the two biggest advantages of 401(k) accounts are their tax advantaged status (which you throw away by cashing it out) and the compounding nature of returns when you invest or save young (which you throw away by cashing it out). The tax penalty you'll take on withdrawing your funds will probably eat away any interest savings anyway, and leave you behind the eight ball when it comes to retirement. So my advice would be to hit that small, highest interest loan hard, change your 401(k) investment strategy to something more aggressive (depending on your age), and go back in time and not buy that car.
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Jul 17, 2012 14:10
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Sophia posted:What the heck are you invested in that you've only made a 2% return on your 401(k)? I know lots of people who's 401K are in the red or just barely green. Usually it's people who started 5-10 years ago and then went through the crash.
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Jul 17, 2012 14:23
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Oh, I assumed he meant he'd made 2% per year historically, not 2% over the entire lifetime. Mine is about 6 years old as well so I get that. That's the point of a long time horizon, though, being able to weather the dips without worrying about it - taking money out of a 401(k) for what is relatively minor debt is still a bad idea.
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Jul 17, 2012 14:37
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Sophia posted:So my advice would be to hit that small, highest interest loan hard, change your 401(k) investment strategy to something more aggressive (depending on your age), and go back in time and not buy that car. Thanks for the advice. My 401(k) investment is currently set to a 2050 life cycle fund which is supposed to be a bit aggressive. I'm reimbursed for mileage through my employer. Love the car and mpg (Prius) and is amazing in comparison to the disaster I was driving before. I did the math before purchasing and went with the new Prius as I was offered 60 months at no interest.
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Jul 17, 2012 15:28
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If you wanna be super aggressive in attacking your debts you can pause the 401k contribution until they're paid off, but I would never cash it out unless you're in a total financial meltdown (like trying to avoid bankruptcy or save your house).
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Jul 17, 2012 16:59
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OK, here goes: Credit Card #1: Current Balance at $6451, 12.9% APR (just moved to a new card at 0% for 18mos) Credit Card #2: Current Balance at $1202, 10.9% APR Credit card #3: Current balance at $6196, 0% APR for another couple months. Car loan: remaining balance at $4605 at 5.9%. I have exactly 11 months left at $396/month. Student loan: Remaining balance $2624, 3% APR, $101/month As you can see, I'm screwed. I make between 44K and 47K a year depending on OT and bonuses. I basically live paycheck to paycheck. About 6 months ago, I started making progress, but a lot went wrong with my car and rather than put it on credit, I used my savings. I haven't caught up yet. This is affecting so much of my life. I miss out of fun with friends, and I don't even date anymore because I can't even afford to buy someone dinner without extending my credit further. Anyway, enough of the E/N...I'm seriously considering some sort of debt consolidation. Is it worth it? I went to a credit union who will give me 7.9% on a loan...doing the math I'd be paying approximately my current car payment for all of my debt. My dilemma is this: my car is going to be paid off in 11 months, which has been my touchstone for quite a while now. With nearly 400 dollars free per month I know I can tackle the other debt much more efficiently. Should I just continue to wait it out and hope nothing major comes up in the next year? Or is instant breathing room with the consolidation loan the way to go? I've eliminated all the unnecessary expenses I can, and I make more than the minimum payments on everything but the car loan every month. BAGS FLY AT NOON fucked around with this message at 02:32 on Jul 18, 2012 |
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Jul 18, 2012 02:28
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You seem like an ideal candidate for the debt snowball. Get a small emergency fund going and knock out card #2 right away. The student loan is your next priority and the car happens 11 months from now. If you consolidate your debt into a smaller monthly payment, it will take even longer to get rid of. edit: and look up the budget thread bring your lunch to work and blah blah blah
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Jul 18, 2012 02:56
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MrKatharsis posted:You seem like an ideal candidate for the debt snowball. Get a small emergency fund going and knock out card #2 right away. The student loan is your next priority and the car happens 11 months from now. If you consolidate your debt into a smaller monthly payment, it will take even longer to get rid of. I should explain that I'm already bringing lunch to work, etc. I'm serious about getting out of debt, the problem is that even basic food and gas requires at least one credit purchase a week. My sanity/not being a depressed miserable prick requires that I have one night a week with friends, but I limit it to $40 cash. I guess deep down I know the best thing to do is suck it up and wait out the end of the car loan. Once that's done, the student loan will be done in a mere couple months, and I can work on the rest. I guess I just needed to hear it from somewhere else.
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Jul 18, 2012 03:53
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Sounds like you're on the right track. It's a hard way to live but you'll thank yourself when it's over. The only other thing I would suggest is instead of this: pignition posted:I make more than the minimum payments on everything but the car loan every month.
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Jul 18, 2012 04:28
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MrKatharsis posted:You seem like an ideal candidate for the debt snowball. Get a small emergency fund going and knock out card #2 right away. The student loan is your next priority and the car happens 11 months from now. If you consolidate your debt into a smaller monthly payment, it will take even longer to get rid of. He needs to be going after card 3 after card 2.
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Jul 18, 2012 04:34
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pignition posted:OK, here goes: What type of loan is your credit union offering? 7.9% is a good rate for an unsecured loan, not so much for a car loan. I’m all in favor of the debt snowball, but that loan could be a good idea IF you decide that you will never open up another credit card and use debt again. My guess is the 7.9% is not a car loan and if you were to go forward with it, your car loan would not be included and you would still pay it off in 11 months. I would move all the credit cards over to it, I don’t care if they are coming off 0% or just starting 0%. I calculated your credit card debt at 13,850 and if I run that at 24 months your payment is $625. 3 years is $433.00. If you decided to do the credit union loan, you can still do a debt snowball. You would hit the student loan first, then the car loan, and when these are done, you would start paying an extra $500/mo on the consolidation loan at the credit union. Once you start paying $1000 or so a month on that, it will melt away. You are not rich, but you are making too much to be broke. You are also making too much to need to use credit anytime you want to go on a date. $40 a week going out with your friends is not the problem. Something about your math doesn’t work though. Are you on a written budget? What are you spending on rent? Do you have any hobbies that you are spending a lot of money on, are you a member of crossfit?
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Jul 18, 2012 16:49
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Putting that $6451 into a 7.9% loan is absolutely crazy. Even the most aggressive payment plan he'll be paying an extra $500 for no good reason. He'd be much better off just cutting up the card and make the minimum payments while sorting everything else out. His debt load is serviceable enough where he shouldn't have a problem paying everything off within 18 months.
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Jul 18, 2012 19:55
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Harry posted:Putting that $6451 into a 7.9% loan is absolutely crazy. Even the most aggressive payment plan he'll be paying an extra $500 for no good reason. He'd be much better off just cutting up the card and make the minimum payments while sorting everything else out. His debt load is serviceable enough where he shouldn't have a problem paying everything off within 18 months. You mean he will pay it off in 18 months the same way he managed to pay the 0% card #3 off?
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Jul 18, 2012 20:14
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In October I will be losing my primary job, and I graduate school in December. Right now I am in the process of deciding what I need to take out in federal loans for my final semester. After subtracting grants, I have $2,900 I still need to pay. Currently I owe: $5,158 in unsubsidized loans at 6.8% $1,456 in subsidized loans at 5.6% $179 in subsidized loans at 3.4% The government is offering $3,000 in a subsidized loan @ 3.4%. I currently have $2,800 in my savings and checking accounts, and I am currently able to save at least $250 month after expenses. I also will receive severance pay in October, although corporate still has not told us the amount. My secondary job only pays $300 a month but that is enough to cover my basic expenses such as gas and food. I live at home rent free. My problem is that I don't know how long it will take me to find another job, and I want to have some sort of nest egg. Usually I pay as much of my tuition with cash as I can, but now I don't know if that is such a good idea. I was debating taking out the entire $3,000 and then starting to pay off some of the unsubsidized loans with the money from my savings. Help me goons!
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Jul 18, 2012 20:22
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Zeta Taskforce posted:You mean he will pay it off in 18 months the same way he managed to pay the 0% card #3 off? Well if we're going to play this game, why assume he'll pay off the 7.9% loan since he hasn't paid off the 10.9%? If he actually tries to budget and stop blowing all his money the 0% card will be the better option, and if he doesn't the 0% card is still the better option.
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Jul 18, 2012 23:08
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Harry posted:Well if we're going to play this game, why assume he'll pay off the 7.9% loan since he hasn't paid off the 10.9%? It is a term loan. He has to pay it off if he wants to keep good credit and stay out of their collections department. He tends to do well with term loans, his car is almost done. Also the 7.9% is likely a fixed rate, the credit card is governed by a 12 page cardholder agreement that describe in fine print what will happen to the rate if he breaks any provision of the card holder agreement. But your plan will get him out of debt slightly quicker if nothing ever goes wrong.
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Jul 19, 2012 01:50
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pignition posted:Credit card #3: Current balance at $6196, 0% APR for another couple months. Most of these type of deals around here jump up to 20-25% after its over so I'd likely focus that.
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Jul 19, 2012 01:55
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Zeta Taskforce posted:What type of loan is your credit union offering? 7.9% is a good rate for an unsecured loan, not so much for a car loan. I’m all in favor of the debt snowball, but that loan could be a good idea IF you decide that you will never open up another credit card and use debt again. My guess is the 7.9% is not a car loan and if you were to go forward with it, your car loan would not be included and you would still pay it off in 11 months. I would move all the credit cards over to it, I don’t care if they are coming off 0% or just starting 0%. I calculated your credit card debt at 13,850 and if I run that at 24 months your payment is $625. 3 years is $433.00. The 2 highest balance cards are locked in a box and aren't used. The lowest balance card is what I use for gas/food when needed. My rent is $810 a month with heat included, so all I pay extra is electricity ($30-$70) and my Internet connection ($65). Definitely not a Crossfit member, I go to LA Fitness for $40 a month. I'll never drop the gym membership, starting that a year ago was the best thing I've dne in a long time. I was going to do a personal loan from the credit union, that way I could use it to include the car payment. Devious_05 posted:What interest rate does this go to after the 0% is up? Surprisingly, it will go up to only 8.9%. Harry posted:Well if we're going to play this game, why assume he'll pay off the 7.9% loan since he hasn't paid off the 10.9%? I do have a written budget, and I don't blow my money. I take home approximately $2400/month. -$810 for rent, $400 for the car, $150 each on 2 CC's, $50 on 1 CC, ~$110 Internet/ utilities, $160 for gas, ~$150-200 for food, $70 for my phone (I don't have a landline) and the $160 I allow myself for fun money leaves me with an extra $47 per week that I squirrel away for emergencies, like this months car tax bill of $334. Something always comes up. Anyway, I ran my numbers again, and I think that between my bonus at the end of the year and my tax return next year, the lowest CC should be gone, and a large chunk of the student loan removed as well. Thanks everyone for helping me figure this out. I'm going to take the advice and instead of trying to pay more than the minimums on everything, I'm now going to pick the lowest balance and funnel everything I can into that. I guess a taking out a 5 year personal loan that includes money for a car that will be paid off in less than a year is pretty silly, so I guess I'll just keep trudging along until August when the car will be paid off. BAGS FLY AT NOON fucked around with this message at 02:57 on Jul 19, 2012 |
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Jul 19, 2012 02:54
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$2400 is very low for your gross, what's your state income tax and what are you withholding? You really shouldn't be going after your student loan when you have $12,000 in credit cards looming over the horizon. Harry fucked around with this message at 03:22 on Jul 19, 2012 |
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Jul 19, 2012 03:19
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Harry posted:$2400 is very low for your gross, what's your state income tax and what are you withholding? $2400 is my net take home after taxes, benefits, etc. I live in CT, with a tax rate of 5%. I can only claim myself, and I usually break even on state tax returns, sometimes even needing to pay in a few dollars, so I cant really squeeze anything else out of that. Some good news is that I'm up for a raise in September, and that should net me about another hundred dollars a month. The student loan is the next smallest balance after the lowest balance credit card, and it's also on schedule to be paid off a few months after my car, so I figure the sooner it's gone that's another $100 I can put towards the CC's. I used last years bonus to pay off another student loan, so I'm hoping to do the same again. Basically, I think that knowing a little breathing room is less than a year away got me a bit impatient, and I was looking for a quick "fix" in the form of the loan.
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Jul 19, 2012 04:39
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Cheaper apartment/roommate?
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Jul 19, 2012 05:37
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remove
biceps crimes fucked around with this message at 21:43 on Apr 14, 2017 |
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Jul 19, 2012 07:46
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I usually advocate living at home for as long as you can stomach it, but your mom sounds insufferable. Give yourself a couple of months to save up another few grand, and then move out when you have found the right place.
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Jul 19, 2012 11:29
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You can afford to move out and you're unhappy where you are, so I would move out. Stay frugal, stay aware of your finances, but while I do love to save me some money, the point of making money is so that it can be spent on stuff. It's not all about hoarding. One thing I would think about in your "move out" budget, though, is the scenario in which your fiance's dad is no longer paying for her stuff, and how that will affect you. It's a real possibility and one you should be prepared to be able to handle if you need to.
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Jul 19, 2012 11:31
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Move the hell out. Texas is cheap and you're in fantastic shape.
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Jul 19, 2012 14:10
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Sinten posted:$260 gas (work is 27 miles away one way) If you are moving anyway, have you thought about relocating someplace closer to work? That isn't a horrible commute (depending on traffic), but it adds up - not only in gas/wear and tear on the car, but also with the time that you could be doing something else.
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Jul 19, 2012 15:16
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Sinten posted:I'm just very tired of living here. My mom is a stay at home fundamentalist Christian with OCD and very high amounts of anxiety. She cleans all day, finds every excuse to go digging through my poo poo, and has fox news blaring from sun up to sun down. A recent event that just makes me dread living here is her flipping her poo poo over digging through my laundry and finding a receipt in a pair of my pants with a beer purchase on it. She screamed at me until she was red in the face and then said I was going to kill her with my alcoholism. (I drink once a month if not less). My father is like your mother. Moving out will be the best thing for your relationship with your mother and your sanity. You are in a position to be able to really shop around for a good apartment so I'd take my time on that one and don't rush it. Moving sucks. I've done it at least 1x a year, so find a place you'd think you could stay in for a bit. Make sure you find a place with good windows and insulation so you're not throwing money away on A/C. The poo poo gets pricey, especially in a hot area like Texas.
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Jul 19, 2012 15:30
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gone
biceps crimes fucked around with this message at 21:44 on Apr 14, 2017 |
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Jul 19, 2012 17:38
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double post
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Jul 19, 2012 17:44
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Sinten posted:Her dad also has great income, and he likes me. Despite that, her part time income could support the additional expenses if they were to be dropped by her dad, she would just have less savings and breathing room. I think... it's all guessing for me at this point. Right, that's why it shouldn't be guessing. You don't have to plan for every single remote worst case scenario, but her family not paying for her things any more is not necessarily a remote possibility. If her dad loses his job or her brother needs expensive care or treatment or they just decide it's time to stop paying and they can no longer afford to support her in the same way, you need to be able to say "okay, we've thought about this, here's how our budget would change but still be sustainable." Basically I'm saying make sure you're not stretching your budget further than you can really afford because your fiance currently has supplemented income. It sounds like you'll be fine from the numbers you posted, but it can be tempting to overspend.
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Jul 19, 2012 17:58
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Been wondering about this for a while so might as well ask in the newbie thread. I have the 'basic' stuff figured out with finances and have been saving for a while. I don't really know what to do with the rest of my money which is sitting in a savings account and in today's market obviously not making much off it. I do the whole 401k up to match, max out roth IRA, have plenty cash for 6 months+, no debt, blah blah blah. But I have ~60k just sitting in a bank and not much to do with it. I want a good portion of it liquid, as I plan on leaving my job in about a month (with nothing lined up, I am going on hiatus for a bit). But I don't need all of it. I was fine getting 3-4% in interest years ago but now that it's more like .8%, there is nothing going on there. What makes sense to do with that cash? As I said before I want some liquid for the time off I am taking. I've considered taking ~5k to play the stock market, and leaving 5-10 aside as potential capital to start a business. There still would be a pretty decent chunk. Savings is worthless, as is a money market really, so where does it make sense to invest some of that?
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Jul 20, 2012 00:31
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Infinotize posted:I have the 'basic' stuff figured out with finances and have been saving for a while. I don't really know what to do with the rest of my money which is sitting in a savings account and in today's market obviously not making much off it. I do the whole 401k up to match, max out roth IRA, have plenty cash for 6 months+, no debt, blah blah blah. Not so much an investment, but are you planning on getting a house at any point in the near future? You'll want that money for a down payment. Depending on your part of the country, even a very modest house can run several hundred thousand dollars.
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Jul 20, 2012 00:46
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Infinotize posted:But I have ~60k just sitting in a bank and not much to do with it. I want a good portion of it liquid, as I plan on leaving my job in about a month (with nothing lined up, I am going on hiatus for a bit). ... I've considered taking ~5k to play the stock market, and leaving 5-10 aside as potential capital to start a business. It sounds like you need to figure out your goals before we can help you. Are you leaving your job because you want to start a business? Or is that just a "Maybe I'll start a business of some kind eventually maybe" sort of thing? What are your plans for the next couple of months or beyond while you're not working?
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Jul 20, 2012 00:52
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baquerd posted:Not so much an investment, but are you planning on getting a house at any point in the near future? You'll want that money for a down payment. Depending on your part of the country, even a very modest house can run several hundred thousand dollars. In the near future, no, not in the cards at all. Not for several/5+ years at least I would say. Though I am a peculiar animal and will probably elect to build a house so the longer I save for that, the better. Eggplant Wizard posted:It sounds like you need to figure out your goals before we can help you. Are you leaving your job because you want to start a business? Or is that just a "Maybe I'll start a business of some kind eventually maybe" sort of thing? What are your plans for the next couple of months or beyond while you're not working? You're right I probably don't know what to do with cash because I don't have much of a plan. I am in software and leaving because it's just become a grind. I honestly can't tell you if I don't like the industry or I'm just burnt out from my current employer. So I'm planning on doing some travel with my time off, but also I have some side software projects lined up to dip my toes into other fields/technologies. I figure software being software, and now that I have about 5 years of experience I can pretty much hop back into a salary job whenever (and I have a decent buffer of savings in case 'whenever' takes a year or so). The business is more of the eventually maybe type; I've considered a freelancing business, and who hasn't felt like they've had a decent idea for a food truck or something. I am just musing on that last one, it hasn't taken much reading to figure out food businesses are pretty much a black hole. With the time off I'm also going to be thinking about other potential business, and investigating feasibility of pursuit other fields I am interested in, including space/aerospace/aviation. I guess the TLDR version of my story is I don't know WTF I am doing!  But I want to start exploring how to use capital to generate revenue as opposed to work compensation as sole revenue.
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Jul 20, 2012 16:56
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I don't think you have enough capital to generate revenue off of. It would be a lot smarter for you to look into getting a different job while you're still employed, rather than taking time off and bumming around for a while and then trying to re-enter the market. I am not in software but it's my understanding that it's generally easier to find a new job while still employed than when unemployed. If you're planning on taking that leap then I'd leave those savings somewhere pretty liquid since you have no way of knowing how long you'll need to support yourself off them. Don't be too expensive in your travel plans, either. As for a business, yes, I have heard the same thing about food businesses. I am reeeally doubtful as to whether $5-10k is even enough to start a business of any kind in any case. Do some more looking and thinking before you quit your job.
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Jul 21, 2012 02:53
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Yeah I agree the business idea is too pie in the sky and I'm not willing to risk enough for one anyway. I am pretty set on bumming though, I have been at the same place for 5.5 years and am ready for a break. I have enough cash liquid to last 3 years on my current expenses and that is including IRA contribution. It may not be the best financial decision but I'm fine with that and I have enough buffer. I still think having ALL that money in savings is a waste though. I'm considering taking half or so and just putting it in one or a mix of vanguard funds. Is there anything 'better' to do with them? Appreciate the insight.
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Jul 21, 2012 19:09
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Infinotize posted:Yeah I agree the business idea is too pie in the sky and I'm not willing to risk enough for one anyway. Honestly, the current market environment is just flat out awful for short term investing. Risk-free rates are incredibly low, so for or a three year window you're (probably) going to eat a huge amount of volatility for very little reward if you reach for higher risk. If you're investing for 20 years out, that's one thing, but for money with a three year horizon you're going to have to take a LOT of risk to get any sort of noticeable return. Don't fight the market, just focus on your career/life. Whether or not you make 0 or 9k over the next 3 years on that money should be essentially immaterial to your outcome.
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Jul 21, 2012 19:18
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