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Step one: wife on board is your wife on board? This is probably the single most important step you'll take into fixing this. Also good work on the thread title!
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Apr 8, 2014 21:04
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Wifes on board. Mostly on board. Seems reasonable enough. Step 2 is figuring out how you're going to start budgeting. YOu're going to need a spreadsheet of some sort or some decent budgeting software. If you need recommendations throw it out there, otherwise can you make an expected out/actual out spreadsheet to make this easier for us to visualize and easier for you to use? I use and loving love YNAB. Others have different preferences. You can get a demo for 30 days for freee! Veskit fucked around with this message at 22:42 on Apr 8, 2014 |
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Apr 8, 2014 22:37
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Can you guys explain to me why it's a good idea to gently caress with your Roth IRAs to pay down this debt? Isn't that stealing from your future self and setting up a horrific precedent? These seem like great ideas if you're good with money, but however long term doesn't it not solve the problem at heart? Pulling tons of cash out of the Roth IRA feels like getting gastric bypass surgery without having tried dieting. Yeah it may take longer, but learning to diet and exercise will be better for your well being even though the numbers aren't as good. HOWEVER, gently caress your cash fund you have way too much cold cash to carry that much debt.
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Apr 9, 2014 01:55
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Foma posted:Because your average stock market return is 7% and hand is paying 16% on AMEX. He can make a 9% better return on his cash paying down his AMEX then he would keeping it in his ROTH IRA. Being good with money is about efficiency. Also dude has saved up $12k for some unthinkable reason, he isn't doesn't seem like your typical BFC screwup case. I have been warned, REPEATIVELY that even the best of the best people at financials do not ever recommend getting into the habit of raiding your retirement accounts for ANYTHING. Roth IRA money is money you can't put back in, so taking money out of it seems like a insanely risky and dumb idea to me. Hell you may as well just go and get a 401k loan instead at least with that you get an interest free loan. Here are some posts in regards to raiding your retirement accounts when I was asking about pulling money out of them for a home purchase and if there's a good time to ever do it. Echo 3 posted:OK, the thing to understand here is that you only get a limited amount that you can put in your Roth IRA per year. So say the amount is $5,000, and you're going to be putting money into it for another 30 years, that means you get $5,000 * 30 = $150,000 of contributions that you can ever put into your Roth IRA. If you contribute $10,000 in the first year, then take it out a few years later, you can never go back and put that $10,000 back in, it's just gone now. The new total amount that you'll be able to put in to your IRA has been reduced to $140,000. Even worse, the $10,000 you just pulled out is money you put in at the start of your Roth IRA's lifetime, which is worth more than the money you're going to put in when you're old. You've sacrificed all the tax-free gains that money would have made over the next 30-odd years. Eyes Only posted:Let's say you want to save $4000 in cash this year for a house. For the sake of simplicity we'll assume that you are also saving for a decent amount for retirement in the form of a 401k, but not a Roth IRA. slap me silly posted:You can always toss the money into an IRA at the end of the year if you don't buy a house. So the only time this is true is if you're talking a 2 year time frame where Option 1 would cost you a year of contributions. The main problem is that taking out $10k for a house costs you (roughly) two years of contributions, no matter what. You can't justify using IRA space for house savings unless you truly weren't using it for retirement in the first place. Your point about the psychology is dead on - be clear about what you are using your money for so you don't trip yourself up. From a psychalogical stand point you're telling this man that raiding your retirement is an acceptable practice and psychologically this seems like a horrific lesson to teach someone who is in this much debt. Especially when he originally said that he is ok with his spending, and this budget you're looking at is revised. All in all, I think touching your Roth IRA is a horrific idea. Numbers work out better, but bad bad bad idea.
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Apr 9, 2014 02:28
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It's a good plan. It's a great plan even! however..... Really really really need to sit down and make your budget. Unless you're great at spreadsheets I really recommend the 34 day free trial of YNAB. Also you are 100% correct in that that is a good amount to have saved up... when you aren't 80k in debt yeah that's about right.
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Apr 9, 2014 02:53
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Not going to lie. Slow motion motivated me to get my poo poo together. Reading that thread made it ghastly apparent that I had to change, or things would be really bad. Really really bad.
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Apr 9, 2014 03:47
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It's hard to argue with people about their pets and their pets health, but I'm going to try. I severely doubt that there would be a noticeable difference in your animals health or behavior if you switched to chicken soup for the cat lovers soul wet food. In fact it's fairly arguable that it'd be better for them because you wouldn't have to feed them dry food. There might, MIGHT be an adjustment period and they might throw up a couple times, but after that you're saving yourself easily 50 dollars a month in cat food. That's fairly big savings on something that is arguable zero benefit to your cats house. I think the toll road is a good idea. However it's disheartening that your job is so volatile. That would scare me shitless into getting the budget in order. Try this all out and we'll see at the end of the month how you do. I hope you're already starting to track this month!
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Apr 9, 2014 04:50
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Of course he's from Southern California. He called it THE 5 and THE 405. Also dork I-5 goes from border to border. Wet food is considered better by goons because it has far less carbohydrates, and carbs are not good for cats. Like I said hard to argue with cat owners but buying the most expensive cat food just because is..... overboard.
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Apr 9, 2014 05:40
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Hand of the King posted:I checked out my 401k and my wife's. We're both at about $30k right now, so $60k total. Our company matches up to 4% and puts in another 5% for retirement contributions. However, I'm only 60% vested in the retirement contributions while, my wife is 80% vested. That is a grown up rear end step not a baby one. Way to go! Please make your budget in excel or YNAB so we can tweak it some pleaseee.
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Apr 9, 2014 17:41
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Hand of the King posted:
It's because people from Southern California have poo poo for grammar. I-5 is a proper noun, so you don't put a THE in front of it. Hand of the King posted:Nah, we just shop at Vons/Ralphs and occasionally at Costco and Gelson's. You didn't put a the in front of any of those stores. You drive up I-5, but you drive up the freeway.
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Apr 9, 2014 23:21
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Where's that updated budget with expected in/actual out in a super pretty excel format so we can all look at it and congratulate/chastise you for hitting/missing your targets!
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Apr 11, 2014 18:31
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Expected in actual out please and thank you. Usually you only do those at the beginning of the month, but I'm curious to see where everything is sitting. In a nice spreadsheet. Also you're going to have 3 bank accounts? One that houses all the money, and 2 separate ones in which you transfer 200 dollars into each month? Veskit fucked around with this message at 00:36 on Apr 14, 2014 |
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Apr 13, 2014 21:56
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That is a good point. Are you scared your wife is going to cook the books? Why the gently caress do you have multiple separate accounts for your fun money if you're properly budgeting? Unless she wants to hide her purchases from you? Does she have a reason to hide what she buys from you?
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Apr 14, 2014 05:09
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I'm not going to be chill about seeing your expected out actual out excel spreadsheet 
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Apr 14, 2014 06:37
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Expected out, actual out. In a spreadsheet. Pronto!
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Apr 16, 2014 05:16
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How was this thread made 10 days ago and still there's no sign of this excel spreadsheet.  Mr hands.
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Apr 17, 2014 19:06
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Well, I came in, told you the sky is falling and that you need to do these updates so you can get proper help. What happened? Did you talk to the wife and things didn't work out? Are you stalling because it's daunting? Updates Mr hands come on now.
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Apr 23, 2014 00:34
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I mean, like... Why not budget a line in your spreadsheet for reimbursements so that way you can budget money out of your real money, and then add it as income later? That way you have a good grasp on your current money, but also a solid grasp on how much you'll be getting back. You know though, in a spreadsheet or on ynab or something. Or do you just hate the idea of spreadsheets/ynab showing us your detailed budget or what?
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Apr 24, 2014 18:39
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OP please come back for a monthly update. Something something Lannister.
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May 9, 2014 00:58
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I'm not going to harp on you for the lack of budget if you feel like this is working. If it is working great! More power to you. I will ask though, why no budget...
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May 9, 2014 03:20
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| # ¿ May 10, 2024 15:34 |
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How are all the numbers looking?
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May 23, 2014 17:01
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