Financial Goals 2015 - Well done, everybody!

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Financial Goals 2015 - Well done, everybody!

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

2014 has been a poo poo show for me emotionally and financially. This involves totaling one car, getting dicked around on repairs for a new one (as well as signing a terrible predatory loan from a "we finance everyone!!!" dealer, and roommate issues. In 2015, I plan to limit financial risks and plan every cent I spend as best I can. I think the biggest risk I avoided was not getting into a relationship with a girl with 92k worth of student loans and who also can't afford to make payments on them.

Position to begin 2015:

$6,000ish in retirement savings. $5,500 of it is in a Roth IRA and $500 in traditional
$3,000 in savings.
$2,225 take home pay per month after taxes and deductions. Unfortunately no 401k match by my employer.
$1,025 monthly expenses excluding rent A lot of this is due to weekly (yes) car payments of $90.86.
My lease is up at the end of the year, and I will move back home for a spell before moving into a friend's condo. Doing so unfortunately bumps expenses up to $1,725.00.
No credit card debt
$27,000 in student loan debt. Deferred, accruing interest. Which will actually be going up as I continue taking MBA courses.
Around $10,000 in car debt

Other sources of income: $8,800 in student loan refunds unless I choose to decline them, $4,500.00 tuition reimbursement from work ($1500 from 2014)

The main goal for 2015 is contribute to getting out of the red ($28,000) as far as net worth goes, and I want to do it as efficiently as I can.

1. Work 5 hours overtime a week, use proceeds ($5,000) to almost max out Roth IRA. I was deciding between paying down my student loans and losing a year's worth of IRA contributions, and I can always catch up on loans in the future.
2. Pay down car loan if possible. This is the decision I am most ashamed of- I don't know my current balance, whether or not it's simple interest or built in. And the interest is sky high. If it is indeed built-in, that means there is no financial incentive to pay it off early, right? If there is, however, savings to be made by paying it off early, I'm starting there.
3. Start paying back my student loans, though deferred. Question about these- I could actually probably pay for my MBA classes out of pocket if I really budgeted for it, or at the very least, I could decline the refund since I'm awarded $4100 and only use about $1900. If I can pay off my car early, does it make sense to accept all the student loans at 3-6% interest and use it to pay for the much higher interest car loan? It's kind of like robbing Peter to pay Paul
4. Get a higher paying job. This should be #1, but my current position is very secure. It only pays $17.34/hr though and does not have an employer 401k match.

Moneyball fucked around with this message at 03:34 on Dec 17, 2014

# ¿ Dec 17, 2014 03:26

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# ¿ May 9, 2024 23:10

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

In addition to my original post, I noticed I ended the year with a net worth just shy of a negative $30,000. I get paid tomorrow, which will cut that to under $29k.

I'm going to try to never pass that $30,000 mark. Right now I'm going to grad school, so I'll either pay out of pocket or take on loans (which, along with undergrad loans, are also accruing interest), so either one of those things will make it difficult, but if I can cut down on spending, I might be able to do it.

# ¿ Jan 1, 2015 19:39

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

I definitely won't be doing monthly updates. You might see me here a couple more times before a year ending summary, but here goes:

Moneyball posted:

1. Work 5 hours overtime a week, use proceeds ($5,000) to almost max out Roth IRA. I was deciding between paying down my student loans and losing a year's worth of IRA contributions, and I can always catch up on loans in the future.
2. Pay down car loan if possible. This is the decision I am most ashamed of- I don't know my current balance, whether or not it's simple interest or built in. And the interest is sky high. If it is indeed built-in, that means there is no financial incentive to pay it off early, right? If there is, however, savings to be made by paying it off early, I'm starting there.
3. Start paying back my student loans, though deferred. Question about these- I could actually probably pay for my MBA classes out of pocket if I really budgeted for it, or at the very least, I could decline the refund since I'm awarded $4100 and only use about $1900. If I can pay off my car early, does it make sense to accept all the student loans at 3-6% interest and use it to pay for the much higher interest car loan? It's kind of like robbing Peter to pay Paul
4. Get a higher paying job. This should be #1, but my current position is very secure. It only pays $17.34/hr though and does not have an employer 401k match.

1. Done. Not the overtime part (though I did take on two additional jobs lololol!) Maxed out my Roth IRA for 2014 and will slowly contribute for 2015.
2. On hold. Apparently there is little benefit to paying it back early. I will have to check with the finance company and if I can't pre-pay it, I'll have to abandon this goal.
3. In progress Deferred no longer. Currently paying the minimum on existing loans and putting aside money to pay for additional classes out of pocket.
4. Not likely to happen Not this year, at least. I'm going to get as much tuition reimbursement as I can and save some money to jump to another job in 2016 or 2017.

So far, it's only 1/4, which doesn't look too good, but I've managed to raise my net worth by $6,000 in a few months, so that's progress.

Two additional goals:

- Put away $2,500 to open a brokerage account and throw "extra" money at that regularly. Contributing to a 401k would be more beneficial but I want some money that I can access before I'm 65! When I get a job that matches 401k contributions, I will at the very least contribute up to the match.
Extra money is defined as whatever I save by not going to Starbucks or the bar, etc.

- Open an HSA when my employer's open enrollment period begins. I rarely have any medical expenses, so the HDHP will cost less per month and as I understand it, I'll be able to deduct the HSA contributions as well as invest the money? Of course, I could wind up actually needing medical expenses so it's a gamble.

And this is likely for another thread, then again it goes along with good decision making. I finally got another credit card after years of terrible credit. I plan to pay it off every month.
I have it set up to pay the statement balance, rather than the full balance. Is that the way to do it? As in, the statement balance is what's subject to interest, and the remaining balance is applied to next month's statement balance? Or should I just pay it in full?

Moneyball fucked around with this message at 07:12 on Apr 15, 2015

# ¿ Apr 15, 2015 07:08

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

Moneyball posted:

1. Work 5 hours overtime a week, use proceeds ($5,000) to almost max out Roth IRA. I was deciding between paying down my student loans and losing a year's worth of IRA contributions, and I can always catch up on loans in the future.
2. Pay down car loan if possible. This is the decision I am most ashamed of- I don't know my current balance, whether or not it's simple interest or built in. And the interest is sky high. If it is indeed built-in, that means there is no financial incentive to pay it off early, right? If there is, however, savings to be made by paying it off early, I'm starting there.
3. Start paying back my student loans, though deferred. Question about these- I could actually probably pay for my MBA classes out of pocket if I really budgeted for it, or at the very least, I could decline the refund since I'm awarded $4100 and only use about $1900. If I can pay off my car early, does it make sense to accept all the student loans at 3-6% interest and use it to pay for the much higher interest car loan? It's kind of like robbing Peter to pay Paul
4. Get a higher paying job. This should be #1, but my current position is very secure. It only pays $17.34/hr though and does not have an employer 401k match.
Two additional goals:

5- Put away $2,500 to open a brokerage account and throw "extra" money at that regularly. Contributing to a 401k would be more beneficial but I want some money that I can access before I'm 65! When I get a job that matches 401k contributions, I will at the very least contribute up to the match.
Extra money is defined as whatever I save by not going to Starbucks or the bar, etc.

6- Open an HSA when my employer's open enrollment period begins. I rarely have any medical expenses, so the HDHP will cost less per month and as I understand it, I'll be able to deduct the HSA contributions as well as invest the money? Of course, I could wind up actually needing medical expenses so it's a gamble.

Update time with some good news about the car loan.

1. Maxed my 2014 IRA, won't contribute to my 2015 until my tax return next year. I have been working some overtime and a hours at the other jobs, so I've brought in some extra money, however....
2. I found out the balance on the loan as of may, and holy poo poo I am/was getting screwed. I can't remember the dollar figure of the original loan, I'd have to go look it up, but after several months of payments, it went from something under $12,000, to still over $11,000. I've basically been leasing it. I dropped $3,500.00 into it last month, bringing it down to somewhere around $7,000. This is my #1 priority now. I hope to have it paid off by the end of the year.
3. Paying just the interest on my student loans before it capitalizes so I can get the tax deduction and concentrate on the car loan.
4. Job has actually been less secure as of late. Might need to update my resume.
5. As Mr. Money Mustache would say, this is unacceptable until I deal with my DEBT EMERGENCY. Once I get rid of the car loan and my 6.8% student loans, I'll try this one again.
6. Opened up the HSA- only contributed $120 to it so far. My company contributes $500 a year so that's a plus.

All in all, from the beginning of the year I've gone from about a -$29,000.00 net worth to -$19,000.00 , grossing basically $35,000k. I'd call that progress.

# ¿ Jun 5, 2015 02:45

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

Moneyball posted:

Update time with some good news about the car loan.

1. Maxed my 2014 IRA, won't contribute to my 2015 until my tax return next year. I have been working some overtime and a hours at the other jobs, so I've brought in some extra money, however....
2. I found out the balance on the loan as of may, and holy poo poo I am/was getting screwed. I can't remember the dollar figure of the original loan, I'd have to go look it up, but after several months of payments, it went from something under $12,000, to still over $11,000. I've basically been leasing it. I dropped $3,500.00 into it last month, bringing it down to somewhere around $7,000. This is my #1 priority now. I hope to have it paid off by the end of the year.
3. Paying just the interest on my student loans before it capitalizes so I can get the tax deduction and concentrate on the car loan.
4. Job has actually been less secure as of late. Might need to update my resume.
5. As Mr. Money Mustache would say, this is unacceptable until I deal with my DEBT EMERGENCY. Once I get rid of the car loan and my 6.8% student loans, I'll try this one again.
6. Opened up the HSA- only contributed $120 to it so far. My company contributes $500 a year so that's a plus.

All in all, from the beginning of the year I've gone from about a -$29,000.00 net worth to -$19,000.00 , grossing basically $35,000k. I'd call that progress.

As the third quarter comes to a close, my situation is embarrassing, as I have essentially made no progress with my net worth from my original post at the beginning of the year. Still hovering in the high 20s. I've found new and creative ways to cost myself and waste more money.

1. 2014 IRA maxed, not contributing for 2015.
2. Traded my old car, currently have a 2014 Hyundai Elantra. $14,250 @ 7.29%. This is my priority.
3. Still paying minimum. $27,000 to go.
4. Planning to stay for one more year, get my CPA, and bolt next September.
5. Nope
6. Contributed about $1,500 to my HSA so far. Will max this out for 2015.

I went from 29,000 in the red to 19,000, and back to 29,000. I think I'm done loving around, though. I hope to have that car paid off by the spring. After that, my student loans are next.

# ¿ Sep 29, 2015 04:11

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

pig slut lisa posted:

Why do you think this is? Have you considered starting a thread to ask for help/accountability?

No, it's not so much my habits on a daily basis, other than spending a little too much on prepared food vs groceries. I don't have any (other) costly habits like smoking or $5/day on coffee. It's big things.

I actually do pretty well in saving and repaying debt, but I'm dealing with issues from 2014.
I overpaid and then subsequently dumped a lot into the car I bought last year. I took a loss to switch to the car I have now, and overall sunk a lot of money. I'm stress-free about my car situation now, though, because I don't worry about anything breaking and I'm not trying to chase anyone down to pay for repairs (long story). I've closed the book on it now.

I also took on more student loans but won't be returning to that school (though I'll transfer those credits elsewhere)

Combined with my first real vacation since.. well, ever, I'm right back where I started in January.

Despite that, I can see the next several months being similar to how I started the year. Chipping away pretty rapidly at my loans. I won't be taking on any new debt, other than CPA exam-related prep costs, and my expenses are real low. I don't spend too much, so it leaves a lot leftover.

Barring any catastrophe, I should be able to pay off the car in six months, using my tax return, then start working on my student loans. I should see real progress with my net worth.

Moneyball fucked around with this message at 22:21 on Sep 30, 2015

# ¿ Sep 30, 2015 22:13

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

I was looking over my YNAB reports, and while it isn't pretty, in some ways it's encouraging.

Since I started tracking everything in April, I am actually in the red by $443, though the next paycheck should fix that.

So 102% of my income has gone right back out.

However, the breakdown is:
Expenses/Spending: 34.3%
Debt repayment: 65.7%

I consider debt repayment a form of savings (is that wrong?) so that's a 65% savings rate. Once I finally have my loans paid off, I should be able to really put some money away. I'll likely have an even better job at that point, so things look pretty bright in the next couple years.

# ¿ Oct 2, 2015 01:34

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

Moneyball posted:

2014 has been a poo poo show for me emotionally and financially. This involves totaling one car, getting dicked around on repairs for a new one (as well as signing a terrible predatory loan from a "we finance everyone!!!" dealer, and roommate issues. In 2015, I plan to limit financial risks and plan every cent I spend as best I can. I think the biggest risk I avoided was not getting into a relationship with a girl with 92k worth of student loans and who also can't afford to make payments on them.

Position to begin 2015:

$6,000ish in retirement savings. $5,500 of it is in a Roth IRA and $500 in traditional
$3,000 in savings.
$2,225 take home pay per month after taxes and deductions. Unfortunately no 401k match by my employer.
$1,025 monthly expenses excluding rent A lot of this is due to weekly (yes) car payments of $90.86.
My lease is up at the end of the year, and I will move back home for a spell before moving into a friend's condo. Doing so unfortunately bumps expenses up to $1,725.00.
No credit card debt
$27,000 in student loan debt. Deferred, accruing interest. Which will actually be going up as I continue taking MBA courses.
Around $10,000 in car debt

Other sources of income: $8,800 in student loan refunds unless I choose to decline them, $4,500.00 tuition reimbursement from work ($1500 from 2014)

The main goal for 2015 is contribute to getting out of the red ($28,000) as far as net worth goes, and I want to do it as efficiently as I can.

1. Work 5 hours overtime a week, use proceeds ($5,000) to almost max out Roth IRA. I was deciding between paying down my student loans and losing a year's worth of IRA contributions, and I can always catch up on loans in the future.
2. Pay down car loan if possible. This is the decision I am most ashamed of- I don't know my current balance, whether or not it's simple interest or built in. And the interest is sky high. If it is indeed built-in, that means there is no financial incentive to pay it off early, right? If there is, however, savings to be made by paying it off early, I'm starting there.
3. Start paying back my student loans, though deferred. Question about these- I could actually probably pay for my MBA classes out of pocket if I really budgeted for it, or at the very least, I could decline the refund since I'm awarded $4100 and only use about $1900. If I can pay off my car early, does it make sense to accept all the student loans at 3-6% interest and use it to pay for the much higher interest car loan? It's kind of like robbing Peter to pay Paul
4. Get a higher paying job. This should be #1, but my current position is very secure. It only pays $17.34/hr though and does not have an employer 401k match.

One more paycheck to go, which should be around $1,300 split between HSA and checking account, but here's how I did:

1. Max out Roth IRA: I don't contribute at the beginning of the year, but the end- 2014 was maxed out. (2015 will be contributed by tax day)
2. Pay down car loan: Sold the lemon car. Went from a 10 year old high mileage luxury car to a 2014 economy car with about $8,800 left.
3. Pay back student loans: $26,700 left. Just paid the minimum/accrued interest
4. I got a second job that pays way more than it should for what I'm doing. It gives me about $1,000 a month to go towards debt repayment.

I sort of just readjusted my situation from last year. Less car/student debt, but some credit card debt and maxed IRA/HSA accounts.

One year, only a $5,000 increase in net worth. Shameful. I've picked up the pace drastically from fall to now, so 2016 is definitely the year that I get out of the red.

# ¿ Dec 23, 2015 00:32

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# ¿ May 9, 2024 23:10

Moneyball: Jul 11, 2005; It's a problem you think we need to explain ourselves.

I feel the same way about how I finished the year. Progress, but not enough progress. I could use a new tag to liven up my profile a bit. :allears:

# ¿ Dec 30, 2015 04:24

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