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Spermy Smurf posted:Thank you reddit... http://www.reddit.com/r/personalfinance/comments/27r1o6/won_the_lottery_about_342k_after_taxes_i_have/ To be fair, part of the reason he is making that post is to get people to tell him he's dumb and talk him out of it. Honestly the mind boggling part is the 92k spending spree. Jeebus.
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Jun 10, 2014 18:14
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Isn't it general BFC wisdom that you're allowed to blow 30% of unexpected money you come into?
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Jun 10, 2014 18:15
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FrozenVent posted:Having only 10k in retirement savings at 27, though... Yeah. At 27 I only had $3k, and I only had that because one of my previous employers contributed to a 403(b) for me automatically. Luckily for me I started getting serious about saving on my own right in the beginning of 2008, and have done 10% pretax into a 401(k) and maxed out a Roth every year since then. Nothing like getting in at the bottom of the stock market!
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Jun 10, 2014 18:23
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FrozenVent posted:Isn't it general BFC wisdom that you're allowed to blow 30% of unexpected money you come into? Dunno, it was just that way he described the spending that shocked me. Guitar, random internet stuff, clothes. boom $92k O_O
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Jun 10, 2014 18:27
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.Z. posted:Dunno, it was just that way he described the spending that shocked me. A vintage guitar, a few designer bags, dresses and shoes and random electronics off amazon could quickly turn into 90k if you were dedicated. Dude should have bought a new 60k sea ray and set aside the other 30k for gas and maintenance. Boats are awesome if you have the means and stay smart about them. Overall it seems like he did well as long as he puts the rest toward some sort of savings plan or retirement fund.
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Jun 10, 2014 18:48
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drat, does the government always rape 43%+ of lottery winnings or was it because he took the lump sum up front? I'm glad people are reminding him that 100 G's ain't what it used to be. poo poo I get depressed when I think about how $1 million probably won't be worth a drat by the time I "retire".
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Jun 10, 2014 18:52
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fruition posted:drat, does the government always rape 43%+ of lottery winnings or was it because he took the lump sum up front? That word doesn't mean what you think it does.
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Jun 10, 2014 18:53
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I don't think that's really that bad at all. I could probably spend every last penny of that just buy the Jones' monthly payment lifestyle. If I won a similar amount I'd probably do about the same thing Pay off mortgage - $120k Buy two nice vehicles ~ $50k Home renovations (kitchen, porch addition, finish basement) ~ $50k $340k wouldn't be like "Welp I never have to work again" money, so it would be more like "what do you want to do in 25 years when the kids are gone and you should have money again". Of course I'd set enough aside for Roth contrubutions for the next few years, but otherwise spend away.
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Jun 10, 2014 19:12
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Seems reasonable. He paid off a large sum of debts and had money left over, and he was young. Let him have fun instead of living like a miser now so he can have money left over when he's too old and sick to do anything. If he had bought that boat, though... And if you think having "only" 10k in retirement savings at 27 is a bad sign, then you must be clueless to the state of employment for 20somethings.
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Jun 10, 2014 20:54
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Shipon posted:Seems reasonable. He paid off a large sum of debts and had money left over, and he was young. Let him have fun instead of living like a miser now so he can have money left over when he's too old and sick to do anything. Yeah, I'm at just about 10K in retirement savings at 28, and that's all from the last 1.5 years. Before that I just couldn't swing much of anything and my job didn't offer any type of retirement plan whatsoever. Most of my friends are way worse off than that too.
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Jun 10, 2014 21:34
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Shipon posted:And if you think having "only" 10k in retirement savings at 27 is a bad sign, then you must be clueless to the state of employment for 20somethings. Holy crap this a million times. That statement is super out of touch with reality, all traces of hyperbole aside.
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Jun 10, 2014 21:40
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Yeah good luck getting a full-time job out of college now. I was probably the last graduating class that regularly got a full-time job the month after I graduated, but loving everywhere is hiring on 6-month contracts these days. My first job was for 32,000 + benefits, but nowadays the equivalent job in my company pays 24,000 with no benefits. Since they also insist on having their office in the suburbs instead of the city, cost of living tanked me for a while until about two years in when I finally got promoted to an executive position.
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Jun 10, 2014 21:57
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Maybe I'm reading it differently, but I don't think he spent the middle $100k all on fun stuff. I read it as he spent $149k on his mortgage, $92k across his student loans/other debt, the guitar and all the other fun purchases. I usually follow the 40/40/20 rule when I get a windfall: 40% to debt, 40% to savings and 20% to whatever I want. Sometimes it's more to debt, depending on where I'm at.
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Jun 10, 2014 22:06
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Young, likely to live out the yearly payments but took the lump sump and tax hit instead on a less than multi-million dollar payment as someone with the personality to blow through tens of thousands of dollars quickly and have no plan so he has to ask the internet could have been bad with money, also.
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Jun 10, 2014 23:12
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Yeah I'd always take the annuity, I'm not the kind to blow through money but I'd rather have that regular payout either way.
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Jun 10, 2014 23:23
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What about the time value of money for the sake of annuity vs lump sum payment? I understand that age is a factor but still. Wickerman fucked around with this message at 00:17 on Jun 11, 2014 |
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Jun 11, 2014 00:04
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Wickerman posted:What about the time value of money for the sake of annuity vs lump sum payment? Trust me, it's factored into the lump sum payout at a ridiculous discount rate.
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Jun 11, 2014 00:43
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MC Hawking posted:Holy crap this a million times. That statement is super out of touch with reality, all traces of hyperbole aside. It's not out of touch at all. The whole "indentured servant right out of school" thing seems to be mostly an american phenomenon. Canadian here, I'm 26 and everyone I know (including myself) has way more savings than 10k, except for the odd few people who bought a house but even then they probably have significant positive equity there with a large down payment.
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Jun 11, 2014 00:55
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FrozenVent posted:Having only 10k in retirement savings at 27, though... Yeah. Sorry to drag your post up again, but many whose jobs require a graduate or professional degree start them in their mid/late-20s. Those people are often significantly in debt. A 27-year-old tax attorney might very well have six figures of debt from student loans and living expenses accumulated during their education. Zo posted:The whole "indentured servant right out of school" thing seems to be mostly an american phenomenon. It's not great, but it's better than living in Bangladesh.
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Jun 11, 2014 01:34
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I would literally have triple the savings and probably have positive equity into a house if not for student loans. They account for over half of our monthly expenses and something like 80% of our total debt. gently caress student loans.
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Jun 11, 2014 01:40
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FrozenVent posted:That word doesn't mean what you think it does. Thank you, I was temporarily blinded by my privilege. I'm glad you were able to point out my crime against women and shame me for my insensitive use of poetic license.
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Jun 11, 2014 01:45
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Jastiger posted:I would literally have triple the savings and probably have positive equity into a house if not for student loans. They account for over half of our monthly expenses and something like 80% of our total debt. Would you have your job (or whatever prospective career) without your degree though?
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Jun 11, 2014 02:00
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Magic Underwear posted:Would you have your job (or whatever prospective career) without your degree though? I'm not sure. I'm not working in my field, but I'm not sure I'd be well adjusted enough to have this job without my college experience. So, no, Sociology doesn't exactly translate into insurance. The GI Bill took care of most of my debt. The only reason I have any is because I was a stupid 18 year old that didn't know any better. My wife on the other hand...cosmetology school AND a 4 year degree. She WAS working in her field but we moved away because the company she worked for sucked and has now gone bankrupt.
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Jun 11, 2014 02:04
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100 HOGS AGREE posted:Yeah I'd always take the annuity, I'm not the kind to blow through money but I'd rather have that regular payout either way. At least in Texas, if you don't specify you want the annuity, it'll default to the lump sum cash option. On top of that, people who want to rashly spend money will find a way. You know those "It's my money, and I want it now!" commercials from J.G. Wentworth? Those are structured settlement deals... if someone wins a big out of court settlement that would normally be spread out over a long period of time, but the plaintiff wanted $$$ right now, law firms like that are happy to convert it into a lump sum up-front windfall for you. For a fee, of course. You sign over the rest of the settlement payments to them, and they give some fraction of the worth to you as instant gratification. You'd better believe these places are gonna target lottery winners and athletes/actors who sign large multi-year or multi-project contracts.
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Jun 11, 2014 02:34
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canyoneer posted:Never let them watch "extreme cheapskates". It is a stupid TLC show that was on Netflix. One of the moms has her entire family use reusable toilet paper. Little squares of fabric go into a bin next to the toilet once coated with turds. It's like what they do in areas where the plumbing can't handle toilet paper, except the poopy mass of fabric goes in the washing machine for reuse. The episode I watched showed a woman taking a recently deceased rabbit from the side of the road to use its pelt for little craft projects. Later, they showed her serving rabbit stew to her family. They didn't specify that it was the same rabbit, which is understandable - TLC's main demographic is dumb enough to interpret that as a claim that eating roadkill is a legitimate money-saving idea, then get sick from eating something that's been dead too long. And if it wasn't the same rabbit, making it look like it was is exactly the sort of underhanded bullshit one would expect from a reality show dedicated to showing off humanity at its worst. The rest of the episode had people washing and reusing paper towels, haggling with (more like hassling) cashiers over purchases of less than $10 and other things that no sane and rational person would classify as legitimate money-saving tips. Giving five dollar blowjobs in a bus station bathroom would be more profitable and less degrading than most of this bullshit.
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Jun 11, 2014 03:12
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Cockmaster posted:The episode I watched showed a woman taking a recently deceased rabbit from the side of the road to use its pelt for little craft projects. Later, they showed her serving rabbit stew to her family. There was one episode with a Japanese woman who was entirely deranged and hadn't spent money on anything in years. She would dumpster dive to get packaged meals from grocery stores, and then reheat them by mixing a bunch together in a pot. So like, spaghetti, salmon, and two or three other things all mixed and reheated, served to a work friend and his girlfriend, who had to leave to vomit. Also the episode took place in the summer and it was hotter than a snake's nuts in her apartment and she refused to air condition or even use a fan, so it was unbearable, yet she has people over. Its unfair to exploit the mentally ill for ratings, but what can you do. Edit: this lady. https://www.youtube.com/watch?v=z68tH-lnK60 Pants-making GBS threads crazy. olylifter fucked around with this message at 03:49 on Jun 11, 2014 |
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Jun 11, 2014 03:45
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fruition posted:Thank you, I was temporarily blinded by my privilege. I'm glad you were able to point out my crime against women and shame me for my insensitive use of poetic license. For a guy who will suddenly become overwrought over being called out on his dumb poo poo, you'd think you'd be able to come up for a better word to describe something than "rape" https://www.youtube.com/watch?v=SiXNUaSjXRY
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Jun 11, 2014 04:25
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Can we take the fight over to tumblr before derailing the thread for the thousandth time? In bad with money stories, my perpetually broke friend is finally getting around to his 2012 taxes, and hopefully 2013 after that. He thinks he's getting a big refund (would there be anything left after penalties?), and his first planned purchase with that money will be a Playstation 4. As someone who's floated him gas money and picked up some bar tabs over time it's pretty frustrating. I didn't even expect to be paid back when I gave him money, but would love to see any extra cash like that end up in a savings account for those lean times he deals with so often.
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Jun 11, 2014 04:39
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olylifter posted:There was one episode with a Japanese woman who was entirely deranged and hadn't spent money on anything in years. She would dumpster dive to get packaged meals from grocery stores, and then reheat them by mixing a bunch together in a pot. So like, spaghetti, salmon, and two or three other things all mixed and reheated, served to a work friend and his girlfriend, who had to leave to vomit. Also the episode took place in the summer and it was hotter than a snake's nuts in her apartment and she refused to air condition or even use a fan, so it was unbearable, yet she has people over. If I remember correctly from when I watched this a million years ago, this woman also owns her apartment in a big fancy city and dresses like poo poo to go to work and washes her work clothes in the bathtub and hangs them to dry. Her coworker seemed really concerned about her mental health, but his girlfriend acted like kind of a prissy bitch about it, like she'd never sat on a floor and eaten horrible food in a hot apartment - that's basically what dorms are right? That said, that woman needed an intervention.
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Jun 11, 2014 04:43
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nickutz posted:Can we take the fight over to tumblr before derailing the thread for the thousandth time?
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Jun 11, 2014 05:30
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My mom and her girlfriend are really bad consumers; they rent forever, don't have any savings, and are always getting caught up in all sorts of dumb hobbies and never let go of the equipment. At one point my mothers had FIVE loving bikes, and never rode any of them. My father never paid child support and now lives outside the country; I guess I'm the one who's bad with money because I never pursued the back benefits, which would be negligible since they were the minimum amount payable in Texas in '89-90. I'm way past the statute of limitations for the state to get my owed child support because when I was 22 I still held onto hope that my dad would come around on helping me with the whole college thing (he never even called). I used to be really bad with money because I went to a for-profit art school that accepted me with NO portfolio (I had some pics on an iPod color, but no work; I had planned on doing a set of prints for my work for the admissions interview, but they went ahead, enthusiastically); their financial aid department had lots of us just sign into FAFSA and Sallie Mae, and let them, "take care of the rest," for us; and I didn't ask questions until I found out that I couldn't use my student housing loan to find cheaper apartments, and after I found out that wouldn't have mattered, as they took out the "rent" in blocks covering the whole semester. I'm currently settling my private loans and working on killing my federal loans with the military's SLRP, and I even managed to start putting money away for retirement, so all is not lost  An aside: The student housing situation was a nightmare. They moved us from relatively nice units, close to the school, to some apartments further from our school, with a huge crime problem. There were only two RA's and they never intervened with any problems -- one of my roommates, who was much older than us (we were barely in our twenties, he was at least 35), had his special needs son and his girlfriend/ex-wife living in our unit, effectively banning his bunkmate from his own room, while nursing his claimed PTSD with cocaine: the RA's judgement was to do nothing until one day the guy pulled an actual crime and fled the city. The apartments we were moved into were two bed units that rented to private individuals for $800 (minus utilities); AI charged each student $500 a MONTH for the apartments (in a non-refundable block for three-four months) and put four students to an apartment. Wasabi the J fucked around with this message at 06:02 on Jun 11, 2014 |
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Jun 11, 2014 05:55
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Trilineatus posted:If I remember correctly from when I watched this a million years ago, this woman also owns her apartment in a big fancy city and dresses like poo poo to go to work and washes her work clothes in the bathtub and hangs them to dry. Her coworker seemed really concerned about her mental health, but his girlfriend acted like kind of a prissy bitch about it, like she'd never sat on a floor and eaten horrible food in a hot apartment - that's basically what dorms are right? Nothing wrong with hanging clothes out to dry. In fact, I would think it's bad with money to always use a dryer when there's a big nuclear explosion hanging in the sky for most of the day for most of the year. Now I know someone's about to mash Reply and say "B-but what about when it rains or when there's only five minutes of sun in my neck of the Earth?!" so I'd better clarify: I mean, if you put your clothes in a dryer when the sun is shining, it's you. You're bad with money and bad for the environment. Most households in Japan don't have a dryer (but some washing machines have a dryer-like function: no heating, but circulating air for a few hours) and just hang the clothes out on the balcony. The coin laundries have dryers for emergencies, I guess.
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Jun 11, 2014 07:59
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Wasabi the J posted:I used to be really bad with money because I went to a for-profit art school that accepted me with NO portfolio (I had some pics on an iPod color, but no work; I had planned on doing a set of prints for my work for the admissions interview, but they went ahead, enthusiastically); their financial aid department had lots of us just sign into FAFSA and Sallie Mae, and let them, "take care of the rest," for us; and I didn't ask questions until I found out that I couldn't use my student housing loan to find cheaper apartments, and after I found out that wouldn't have mattered, as they took out the "rent" in blocks covering the whole semester. Maybe you should start a for-profit-college horror story thread, because god drat, that would be an excellent OP.
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Jun 11, 2014 08:19
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Weatherman posted:Nothing wrong with hanging clothes out to dry. In fact, I would think it's bad with money to always use a dryer when there's a big nuclear explosion hanging in the sky for most of the day for most of the year. Don't worry, I hang my clothes to dry too. The main focus is that if I remember properly (and god knows I watched that episode at least two years ago) is that she showers with her clothes at the bottom of the shower and used the soap that drips off of her to wash them, and then the lack of dryer means no barely hygienic hot tumble to make me feel better about how gross that is 
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Jun 11, 2014 14:32
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Weatherman posted:Nothing wrong with hanging clothes out to dry. In fact, I would think it's bad with money to always use a dryer when there's a big nuclear explosion hanging in the sky for most of the day for most of the year. In Arizona in summer, it's FASTER to dry your clothes in the sun (if more labor-intensive).
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Jun 11, 2014 15:05
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Trilineatus posted:Don't worry, I hang my clothes to dry too. The main focus is that if I remember properly (and god knows I watched that episode at least two years ago) is that she showers with her clothes at the bottom of the shower and used the soap that drips off of her to wash them, and then the lack of dryer means no barely hygienic hot tumble to make me feel better about how gross that is Holy poo poo that's like the Bachelor frog meme about the soap running down your body was enough to clean your feet. Beyond foul Bachelor frog.
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Jun 11, 2014 15:11
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Trilineatus posted:Don't worry, I hang my clothes to dry too. The main focus is that if I remember properly (and god knows I watched that episode at least two years ago) is that she showers with her clothes at the bottom of the shower and used the soap that drips off of her to wash them, and then the lack of dryer means no barely hygienic hot tumble to make me feel better about how gross that is Yeah OK we're on the same page. That's just nasty  VideoTapir: Brisbane was the same. I had a load dry in 30 minutes flat one time.
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Jun 11, 2014 15:13
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That's fine for a wash cycle, so long as she does a rinse.
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Jun 11, 2014 15:16
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olylifter posted:Edit: this lady. https://www.youtube.com/watch?v=z68tH-lnK60 Pants-making GBS threads crazy. Sometimes you can just tell crazy by the sound of their voice. I feel really bad for her.
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Jun 11, 2014 15:27
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Really? Nobody remembers the highlight of the Japanese woman's episode where she rubs soap against her rear end in a top hat because she's too cheap for toilet paper? I felt bad for the woman because she appeared to have a nice job, but during one of the interviews she admitted that some financial crisis pulled the rug out from under her and she'd never quite gotten over it. Best episode is the one where about the husband and wife who live cheaply so that they can run a small animal shelter out of their home. The film crew paid to take him out to dinner a few times and he ended up going around asking people for their left overs. On their 25th anniversary dinner. At a $12/plate restaurant.
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Jun 11, 2014 16:20
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