nidena
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Post by nidena on Sept 11, 2020 12:19:02 GMT -5
I've mentioned that this new job will double my working income each month. I haven't received the offer yet--next week, after they've hashed out the details--but I KNOW it'll be a gross of AT LEAST $40,000 annually. Once I receive the official offer, I'm going to schedule the second $1000 that I have allocated to student loans this month which will bring that total down to $2700. In October, I will pay them off completely. I haven't been told what my pay schedule will be for the new job so I'm unsure if it's weekly or biweekly. I'm assuming biweekly but, no matter, I'm still going to have $3000-$4000/mo to work with.
Things to pay off: Vehicle $23,000 CC $7,000
Things to fund: Home Improvements $8,000 Funeral Expenses $3,000 IRA $4,500 Other long-term savings goals
The highest my income has ever been is $4400 back when I was Active Duty. It's a little intimidating to have such a huge jump in funds.
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muffyinthered
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Post by muffyinthered on Sept 11, 2020 12:43:10 GMT -5
Way to go Nidena. Best of luck in this new job. I hope the offer is what you think it will be or better.
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debthaven
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Post by debthaven on Sept 11, 2020 18:00:56 GMT -5
That's fabulous news Nidena! My advice would be, don't go crazy.
Things to pay off: Vehicle $23,000 CC $7,000
Things to fund: Home Improvements $8,000 Funeral Expenses $3,000 IRA $4,500 Other long-term savings goals
Here's my advice: - If your car is at a good rate (I think it is) just "set it and forget it" for now. Like your mortgage, don't "race" it (at least for now).
- Same with your IRA ... figure out the monthly amount you need to save and "set it and forget it." - I remember your funeral expenses but Gd willing you'll be around for a VERY long time!!! So again, choose a small amount ($25? $50?) per month and "set it and forget it".
You'll probably have these three items going forward (as well as your mortgage which I remember is very reasonable.)
NOW you can use the rest to: - pay off the CCs - pay off the SLs
- pay for your home improvements Don't forget an emergency fund (don't remember if you already have one or not, sorry).
ETA: I know you're currently "racing" your SLs but I don't know the interest rates ... is it in your interest to pay off the SLs before the CCs?
You might want to post where you stand with the SLs and CCs, you'll get better advice.
You got this!!! Again, congratulations!!!
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nidena
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Post by nidena on Sept 11, 2020 18:52:56 GMT -5
I'm happy to share my detailed financial standings: 3-6 months savings | Goal $6000 | Current $163 | Home Improvements | $8000 | $722 | IRA | $120,000 | $11728 | Funeral Expenses | $3000 | $100 | TSP | $10000 | $921 | Future Rental Repair | $10000 | $0 |
I'm considering adding rental properties to my streams of income sometime down the line. I don't have an EF. Honestly, I had $1000 in an account for ten years that I never used. I just use my CC. There are fewer steps to the process. As for the car, it's currently financially underwater and I'd like to replace it with something larger: a Honda Pilot (2015 or older because I like the design) rather than my Honda HRV. The trade-in value is ~$17,000. The Pilot would be ~$20,000. Is it better to pay down the loan on the car so it's not underwater when I trade it in or save up for a larger downpayment for the Pilot? Debts (current as of this week): CC | 8.9% | $7162 | SL A | 0% until Dec | $1631 | SL B | 0% until Dec | $2118 | HRV | 4.34% | $22983 | Mortgage | 3.5% | $109800 |
I just made my very first mortgage payment on Sep 1st and don't have an online account for them so I don't know the actual amount. Original was $110,00 and payment is $652. My full budget for September: actual amount left in checking 32 1st of the month income 1806 Disability income 1768 Ebates Big Fat Check 19 Zinger Properties Refund 57 Mortgage 652 HRV payment 409 Indy Power 67 Citizens Gas 21 Lawrence Utilities 98 Internet 61 Insurance 73 Nelnet 2000 Savings Tracker (Home Improvements) 61 Misc 140 Visa 100 Total 3682
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jdnstl
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Post by jdnstl on Sept 11, 2020 21:31:19 GMT -5
Shoutouts! Congrats sealy !! byedebtbye - Wow, amazing update! steph08 - Woo hoo for dropping under $10k! nikiz628 - Good update! swordguy - I like your plan. I have payoff fever too, but I have a ways to go yet! forwardwego - I’m sure you’ll find a way, you always do! jdnstl - Congrats on the baby! Sorry for your struggles, and hope things improve soon. ners - Another nice update! chiver78 - Love seeing your updates, great job! bankergurl - Great to hear from you, glad all is well! nidena - Congrats girl! Super excited for you!! Rukh O'Rorke - Its progress in the right direction! Thanks! And I'm so happy to see those smilies again.
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swordguy
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Post by swordguy on Sept 11, 2020 22:25:13 GMT -5
Nidena, I'm really happy for you and your salary bump! I'm a bit confused about the focus on burial expenses. Are they for you or is someone in your family very ill? Because you've got a goal for 3-6 month's emergency fund and an IRA. If the burial expenses are for you "just in case" for the short term, I'm pretty sure you won't be needing your IRA and possibly not the 3-6 month emergency fund either. No guarantees but the odds look pretty good on that prognostication. Personally, I wouldn't be doing ANY home improvements while I had credit card debt. I would do necessary repairs and maintenance, but I wouldn't be fancying the place up until the CC debt was gone. Honestly, same for the student loan debt. But that's me. You do you.
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nidena
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Post by nidena on Sept 12, 2020 8:35:06 GMT -5
The burial expenses are for whenever the time comes. It's an account that is my brother's name--it's his account, really--and I'm putting money in it for when he will have to fly out here to take care of things. It's not an immediate need. It's the kind of money that you'd want if you have to fly somewhere that you don't live because you're the executor of their estate. It will pay for plane tickets for him and if his wife comes with to help him, as well as pay for cremation expenses and such. It's the money that we didn't really have when my mom passed and he had to take care of things. Now, in my case, he'll be able to stay in my house. In her case, he had to stay in a hotel. The amount doesn't need to be saved up immediately but I'd like to have it completed by the end of 2021.
The CC debt, that will be taken care of this year. With the knowledge that I'll be accruing three full months of pay in the remainder of 2020, that's a given so my future plans of funding things don't start until January. (I sometimes forget you guys aren't able to read what's in my head lol)
The home improvements will be big: New carpet and a Murphy bed office system in the spare room is the first project (and the one for which I won't need a general contractor); Turning the smallest bedroom into a bath and closet as part of a master suite to my bedroom; New flooring throughout the rest of the house; Full kitchen redo including appliances
I just really want to be mindful with this increase and not piss it away on frivolous crap.
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TheOtherMe
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Post by TheOtherMe on Sept 12, 2020 9:24:26 GMT -5
You might consider a pre-paid service. I have pre-paid for my eventual cremation. The cost is locked in and it doesn't matter where I might be when that happens. If out of state, my body will be cremated wherever I am. If in state, it will be done where I paid for the plan.
It cost $32 a month for 60 months. It will not cost my heirs more than that for my cremation.
I also have another $1000 + in an annuity to be paid on my death. I've told my executor to spend it on a party or something along those lines since I don't want a funeral.
My stone is already paid for and my parents' burial plot was four spaces. Since I am being cremated, there is room for two more if they choose traditional burial.
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nidena
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Post by nidena on Sept 12, 2020 9:41:37 GMT -5
You might consider a pre-paid service. I have pre-paid for my eventual cremation. The cost is locked in and it doesn't matter where I might be when that happens. If out of state, my body will be cremated wherever I am. If in state, it will be done where I paid for the plan. It cost $32 a month for 60 months. It will not cost my heirs more than that for my cremation. I also have another $1000 + in an annuity to be paid on my death. I've told my executor to spend it on a party or something along those lines since I don't want a funeral. My stone is already paid for and my parents' burial plot was four spaces. Since I am being cremated, there is room for two more if they choose traditional burial. I will look into that. It will make the savings goal less since that will now be for just plane tickets and, maybe, food.
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TheOtherMe
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Post by TheOtherMe on Sept 12, 2020 9:43:03 GMT -5
The place I used only does automatic withdrawals to pay for it, so all I had to do is account for it in my bank spreadsheet.
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nidena
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Post by nidena on Sept 12, 2020 9:51:19 GMT -5
One thing I did decide is, rather than putting the extra money towards my SLs (which aren't accruing any interest), I'll put the extra towards my CC. I guess I had to type it out above to see that made more sense. So Visa will get that extra $1000, this month, when I get the offer letter.
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sealy
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Post by sealy on Sept 12, 2020 14:51:37 GMT -5
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nidena
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Post by nidena on Sept 12, 2020 15:59:08 GMT -5
The place I used only does automatic withdrawals to pay for it, so all I had to do is account for it in my bank spreadsheet. I found a company near me and have requested a callback for information. Thank you for the suggestion. They even do veteran-specific things.
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Maryland Monroe
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Post by Maryland Monroe on Sept 13, 2020 6:30:38 GMT -5
nidena, another thing you can consider is continuing making your vehicle payment to yourself after you pay it off. When I paid mine off two years ago, I never stopped making the payment. It goes into a separate savings account, and when I need a new car, I'll have enough to pay cash for it. I am very fond of the no-payments lifestyle and want to continue it.
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nidena
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Post by nidena on Sept 13, 2020 11:10:42 GMT -5
Maryland Monroe, that's a great idea. Two years ago, I made this post when I was expecting to have an extra $1000/mo during the time that I was in school. I didn't have the SLs at the time but I did have a big ol' HVAC line of credit (that was paid off many months before I sold the house). And then there's this one from early this year regarding debt paydown. Tiny made some great suggestions for "set it and forget it" (much like debthaven said above) and I think, once the SLs are gone and the CC balance is back down to less than $2k, I'll set and forget my various savings transfers. I just need to see what my pay schedule looks like so I can work around it accordingly.
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swordguy
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Post by swordguy on Sept 14, 2020 16:20:30 GMT -5
We've accepted an offer for the charity flip house. Now we're waiting on the written contract and for them to set the closing date.
Not as much as we wanted, but enough. We'll have about $44K to put against the mortgage instead of $54K, but that's ok. We'll only owe about $50K once the escrow checks get here, so paying this off by the end of this year is now very much going to happen!
Technically we're taking a business loss of $20K so that will help with the taxes due next year. It will help offset the taxes we owe for taking money out of our stock portfolio for the down payment.
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ners
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Post by ners on Sept 15, 2020 20:29:12 GMT -5
Update Race 1
68503.26 (1/3/2011 $97,382.42 MPT5)
273.10 paid this month
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swordguy
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Post by swordguy on Sept 15, 2020 21:46:26 GMT -5
Race # | Description | Update Date | Current Amt | Race Start Date | Race Start Amt | 1st Page # | Change | Notes | 2 | HELOC | 2/2/2020 | $ 0 | 11/20/2019 | $ 15,000 | WIRR209 | 0 | Funding Renovations on Houses #6 and #7 | 3 | Mortgage | 8/21/2020 | $ 0 | 11/20/2019 | $145,890 | WIRR209 | 0 | Mortgage for old House SOLD | 4 | Mortgage | 9/15/2020 | $58,799 | 1/16/2020 | $230,000 | WIRR215 | -200 | Mortgage for new House |
Scrounged up $200 to put on the mortgage. Escrow funds should be released about the 23rd by my guess, so it should arrive before the end of the month. That will be a bit over $8,100 to go on the mortgage. Goal is to get below $50,000 by end of month. We expect to close on the last house we're selling for $45,000 in late October, so about $44,000 will go on the mortgage next month. If all goes well, anyway. With house sales, we've learned it's not over until the lawyer says it's over. SwordGuy (2) 2/2/2020 $0 (11/20/19 $15,000 WIRR209)SwordGuy (3) 8/21/2020 $0 (11/20/19 $145,890 WIRR209)
SwordGuy (4) 9/15/2020 $58,799 (1/16/20 $230,000 WIRR215)Hope you are all doing well and stay safe. So far, so good for us. PS -- Keep up the social distancing and wear masks when you have to go out to meet people. Don't believe anyone who tells you differently.[/quote]
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Deleted
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Post by Deleted on Sept 15, 2020 22:07:26 GMT -5
I don't play this 0% interest game well at all. I know I should just be paying the minimums since I have a year to pay it off, but it just drives me nuts having it out there. MPL 1/20/2020 - $8,057 MPL 2/6/20 - $6,057 MPL 2/25/20 - $4500 MPL 3/18/20 - $4000 MPL 4/21/20 - $3500 MPL 5/18/20 - $2300 MPL 6/19/20 - $1800 MPL 7/21/20 - $2422 ($1122 laptop added to debt) MPL 8/17/20 - $1822 I couldn't take it anymore. Raided the emergency fund and paid it all off. MPL 9/15/20 - $0I am going to race the mortgage next, but am going to wait for this refinance to go through first. Which reminds me, I should email them. I locked my rate back in July and still don't have a closing date.
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Maryland Monroe
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Post by Maryland Monroe on Sept 16, 2020 2:11:28 GMT -5
minnesotapaintlady, I did the same when I was almost finished paying my mortgage. I know the feeling!
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swordguy
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Post by swordguy on Sept 16, 2020 10:00:18 GMT -5
Closing for the charity house is scheduled for 9/30/2020. Even better, that's about 2 weeks before I have to buy more insurance to cover the property. Just checked our balance in the rental property account. We've been setting aside money to cover insurance and taxes for 7 properties but now that balance only has to cover 4. We'll have a surplus in it of a bit under $6,000. Coincidentally, that's about what we'll still owe on the house after we apply the escrow money from the old house and the charity house money. So we should be debt free by the end of October. Yeah!!!! Over this year we'll have cut our annual expenses by approximately: $2000 x 12 = $ 24,000 old home mortgage payments
$ 300 x 12 = $ 3,600 old home utilities
$2400 x 1 = $ 2,400 grandma house taxes and insurance
$2400 x 1 = $ 2,400 buddy flip house and insurance
$2400 x 1 = $ 2,400 charity house taxes and insurance
$ 100 x 12 = $ 1,200 charity house utilities
$1600 x 12 = $ 19,200 new home P&I
==================
$ 55,200 in reduced expenses!!!!!
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nidena
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Post by nidena on Sept 16, 2020 15:22:16 GMT -5
swordguy, that's a significant reduction! Awesome sauce! I got my official offer yesterday and, after taxes, I'll be taking home $1807.69 every two weeks which means my SLs will be paid off nlt the 15th of the month. Two fewer debts, here I come! When they're paid, I'll post my next update.
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swordguy
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Post by swordguy on Sept 16, 2020 15:52:52 GMT -5
swordguy , that's a significant reduction! Awesome sauce! I got my official offer yesterday and, after taxes, I'll be taking home $1807.69 every two weeks which means my SLs will be paid off nlt the 15th of the month. Two fewer debts, here I come! When they're paid, I'll post my next update. I'm so happy for you! This is a big deal! Your debts will disappear really fast at this rate. Your new surplus can then be turned into investments and you can build some real wealth. Possibly even retire much earlier than you think!
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Poptart
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Post by Poptart on Sept 16, 2020 15:58:46 GMT -5
Shoutouts! Poptart - Welcome! Can you let me know what state you live in? Do you have a plan of attack for your debts? minnesotapaintlady - If the balance is going down, you're playing the game very well! ners - Nice progress! nikiz628 - Woo hoo! That shiny new $0 looks great on you! swordguy - Congratulations on your win and your amazing paydown! nidena - Happy anniversary! muffyinthered - Awesome update!! Minnesota- I'm in California, my plan is to go slow but steady. I hope to have at least one of the small credit cards done by the end of October, and at least two of them paid off by the end of the year. I then plan on paying my sister her $600.00, after that I need to attack the bigger balances and also start saving to make a big payment on the best buy credit card so that it can be paid off before the zero interest period ends. I will probably throw any birthday/ Christmas money towards my phone so I can lower that bill too.
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debthaven
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Post by debthaven on Sept 17, 2020 15:49:55 GMT -5
Wow so much progress here!!! Hurray minnesotapaintlady !!! You won! Did your mom end up helping out in the end? Hurray swordguy , that's AMAZING!!! So happy the charity house finally sold!!! You're SO close now! And Hurray nidena !!! Congrats on the new job!!! You're in fantastic shape now. I know you'll use that income wisely. Well done!!! Can't wait to see the CC and SLs GONE!!! Just curious nidena , will you be working 5 days a week? Because that will be a huge change for you ...
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nidena
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Post by nidena on Sept 17, 2020 18:35:40 GMT -5
debthaven, yeah, it's going to be M-F, 8-5. Definitely a big change. I've been working on getting up earlier but I know it won't really happen until I have to do it. The first week or two are gonna be challenging.
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nikiz628
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Post by nikiz628 on Sept 17, 2020 20:14:55 GMT -5
swordguy , that's a significant reduction! Awesome sauce! I got my official offer yesterday and, after taxes, I'll be taking home $1807.69 every two weeks which means my SLs will be paid off nlt the 15th of the month. Two fewer debts, here I come! When they're paid, I'll post my next update. I am so stinking excited for you!!!
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swordguy
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Post by swordguy on Sept 17, 2020 22:07:19 GMT -5
Escrow check came in for $7100+. But it didn't include the $1000+ that was from the insurance policy refund, so I have to contact the bank tomorrow about that.
Can't wait to get it deposited and transferred to the mortgage!
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Minnesotagirl7
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Post by Minnesotagirl7 on Sept 18, 2020 8:47:01 GMT -5
Update!
| 3/18/2020 | 8/21/2020 | 9/18/2020 | Total Difference | Mortgage | $403,476.12 | $378,365.97 | $376,124.46 | $27,351.66 |
Diff Last Post | $2,241.51 | Total Amt Pd | $27,351.66 | Total % Pd | 6.8% |
Minnesotagirl7 [6]: 9/18/20 $376,124.46 (3/18/20 $403,476.12 C220)
Just the regular monthly payment this time around.
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chiver78
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Post by chiver78 on Sept 18, 2020 8:47:42 GMT -5
Escrow check came in for $7100+. But it didn't include the $1000+ that was from the insurance policy refund, so I have to contact the bank tomorrow about that. Can't wait to get it deposited and transferred to the mortgage! good luck with that. I had to have my insurance agent contact each of the companies (homeowner's and flood, due to location) to refund the pro-rated premium. I closed 4/29 and only just got the flood policy refund in early August.
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