nidena
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Post by nidena on May 30, 2019 18:16:00 GMT -5
I don't have to move quickly. Hell, I don't even have to move at all. lol. I could easily stay put and continue as I am. You missed my point. No, I didn't. I don't care if I use the CC again. If a cost is more than the cash I have on hand, I'll use it. Oftentimes, I'll use it instead of the cash on hand. It doesn't really bother me, one way or another. I realize that many on YM have a serious abhorrence for CCs. I don't.
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Post by The Walk of the Penguin Mich on May 30, 2019 18:22:50 GMT -5
No, I didn't. I don't care if I use the CC again. If a cost is more than the cash I have on hand, I'll use it. Oftentimes, I'll use it instead of the cash on hand. It doesn't really bother me, one way or another. I realize that many on YM have a serious abhorrence for CCs. I don't. Yes, you did. Most of us do NOT have a problem with credit cards. I carry them and pretty much use them exclusively, as do many. Where cash is good is if your relationship with your friend turns to shit, you will need more than $1000 for first/last/security deposit on an apartment, along with deposits. I’m not saying it will, but if you spend all your money paying down cards without a sufficient EF, you might find yourself needing to take a cash advance against said credit cards. That is expensive money. All out are doing is giving yourself a Plan B.
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justme
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Post by justme on May 30, 2019 19:33:46 GMT -5
Or if something happens to the friends. From the worst to just something that causes them to have to sell the house or move away. It's great they're helping you out, but it does put your housing in a possibly precarious situation since it relies 100% on something you can't control.
The $1000 won't get you far if you suddenly need housing and while there are credit cards it'd get you back into this position you're trying to get out of.
I put 99% of my spending on credit cards, but I only carry a balance if they have a 0% promotion.
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resolution
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Post by resolution on May 30, 2019 21:42:11 GMT -5
Rather than a disaster, I prefer to think of the emergency fund for if you see a fantastic opportunity in another area, you would have first month, last month, and deposit available so you could take advantage of it. Other than that, I agree the credit card is a clear choice. After that, the student loans vs. the car is less clear to me, since the rates are low enough that potential investment returns become a factor.
I wanted to add that you did a fantastic job paying off the hvac so fast.
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hoops902
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Post by hoops902 on May 31, 2019 7:43:07 GMT -5
No, I didn't. I don't care if I use the CC again. If a cost is more than the cash I have on hand, I'll use it. Oftentimes, I'll use it instead of the cash on hand. It doesn't really bother me, one way or another. I realize that many on YM have a serious abhorrence for CCs. I don't. You did miss the point. I'll rephrase it making it a bit longer. You have a $1000 EF. You are selling your house. Once your house is sold, you have no place to live other than with friends. That $1000 will not get you into a new apartment in many places if "something" happens which necessitates you leaving the place you are with your friends. There's also no guarantee your cc may not cancel you, or cut your credit limit back to your current balance, etc. It's an EF (EMERGENCY fund) because there are lots of things out there beyond your control that may result in an emergency. You're fine using your cc, but you have no guarantee that the cc will allow you to charge anything else, they can cut your limit at any time for any reason.
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nidena
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Post by nidena on May 31, 2019 8:05:59 GMT -5
Ah, gotcha. Sometimes delivering a message succinctly doesn't get the *intended* point across. Thank you for the expansion.
The last payment to the HVAC is scheduled for next week. I think, for the remainder of June, I will put any extra funds into the EF. I will receive, if I calculated right, six paychecks between now and the end of June, totaling $1000 (subject to change based upon hours worked) so that'll get me off to a good start of building it up. After that, 1/3 to the EF and 2/3 towards the CC for the rest of the summer.
I'm hoping the house will sell for enough that I can completely knock out whatever is left on the CC. Then, it's future balances shouldn't be more than can be paid off at the end of the month.
Thank you, all. Sometimes the messages get through on the first go-round; sometimes I'm thick in the head.
On a totally separate note, where is a good place to learn about investing? I've dug into some of the message boards on YM but most of the threads are written with a foundation of knowledge already in place. Where would I go to learn the language?
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resolution
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Post by resolution on May 31, 2019 8:38:17 GMT -5
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debthaven
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Post by debthaven on May 31, 2019 13:58:12 GMT -5
That sounds like a good plan nidena. The other thing I wondered is, might you need to spend any money on the house before you sell it?
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nidena
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Post by nidena on May 31, 2019 17:40:06 GMT -5
That sounds like a good plan nidena . The other thing I wondered is, might you need to spend any money on the house before you sell it? I will. I'm going to explore a HELOC for that, maybe $10,000 limit. Then it'll go when the house sells.
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Tiny
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Post by Tiny on Jun 2, 2019 11:12:13 GMT -5
Nidena, it's awesome that you have guaranteed income for the rest of your life. Don't fall into the trap of spending it before you actually have it. If you don't have any money on hand, and you spend the guaranteed income as you receive it - it means when you NEED more than the monthly amount of guaranteed income you will have to borrow (or spend future guaranteed income). Borrowing money is basically paying a premium to use your "future" money. If you are not careful you might pre-spend months and months and months of future income - and then you won't have any money during those months and months and months. Even though you have money coming in. I think that's why there's the suggestion of keeping (saving up) some money on hand (or in savings or investments). In other words, spending your money (that you saved,) and not having to "pay" for that money when you do use it.
You seem really comfortable with paying a premium (credit card interest, loan interest) for your guaranteed income. I'm the kind of person who isn't comfortable with that.
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debthaven
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Post by debthaven on Jun 2, 2019 12:02:45 GMT -5
Last question ... will you need a DP in Indy? Or are you planning to rent? (I mean after you leave your friends' house.)
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nidena
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Post by nidena on Jun 2, 2019 13:53:31 GMT -5
Last question ... will you need a DP in Indy? Or are you planning to rent? (I mean after you leave your friends' house.) DP? I'll rent for a period of time until I get a feel for the place and then go from there.
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debthaven
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Post by debthaven on Jun 2, 2019 13:59:07 GMT -5
DP = down payment Sounds like a good plan. I REALLY like what Tiny posted! Once you get your CC paid off, you should be in great shape going forward. But she's right, it's better to save than to borrow (and you know from WIR that I'm not always great at that either. But it IS something I strive for.)
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nidena
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Post by nidena on Jun 2, 2019 14:33:53 GMT -5
Debt is definitely something that I'm accustomed to, having bought my first house at 23 with a purchase price of $100,000 and a takehome pay of $1100/mo. I didn't start tracking it until I found the WIRR in 2007 via MSN Money page. And even though I may not yet make the best choices by an outsiders viewpoint, I make the best choice based upon the information that I have at hand. That's all anyone can do.
12 years ago, I had nearly $40,000 in CC and personal loan debt and $185,000 in house and vehicle debt; a total of ~$223,000. I don't remember what my savings was but I know it wasn't much. Now, it's $7500 in CC debt, $6000 in SLs, and $148,000 in house and vehicle debt, a total of ~$165,000. And nearly $18,000 in various "savings" accounts. In six months, I'm aiming for <$1000 in CC debt, $0 in SLs, $0 in house debt, and $25,000 in vehicle debt. With nearly $30,000 in the various accounts.
My struggle/challenge/goal is to be more mindful with the $3500/mo that is my income.
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phil5185
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Post by phil5185 on Jun 5, 2019 12:22:24 GMT -5
In six months, I'm aiming for <$1000 in CC debt, $0 in SLs, $0 in house debt, and $25,000 in vehicle debt. With nearly $30,000 in the various accounts.
Your assets will be: Savings $30,000 Car about $20,000
Your debits will be: Car loan $25,000 So your Net Worth will be about $50k - $25k = $25,000 IMO, you would do better by tracking your NW (rather than your debt.)
Eg, you may not be helping your NW by selling the house, you would need to do the math. Also, I would not spend $10,000 on the house, I would sell it "as is". I have sold several rental houses, you almost never get your 'make ready' costs back, more likely you will spend $10000 and only get an extra $5000 in the sale.
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nidena
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Post by nidena on Jun 9, 2019 12:12:30 GMT -5
In six months, I'm aiming for <$1000 in CC debt, $0 in SLs, $0 in house debt, and $25,000 in vehicle debt. With nearly $30,000 in the various accounts.
Your assets will be: Savings $30,000 Car about $20,000
Your debits will be: Car loan $25,000 So your Net Worth will be about $50k - $25k = $25,000 IMO, you would do better by tracking your NW (rather than your debt.)
Eg, you may not be helping your NW by selling the house, you would need to do the math. Also, I would not spend $10,000 on the house, I would sell it "as is". I have sold several rental houses, you almost never get your 'make ready' costs back, more likely you will spend $10000 and only get an extra $5000 in the sale.
Thank you for the input. I don't plan to live in Delaware ever again so don't want to hang on to the house. And I don't plan to spend $10k on it, just get the $10k HELOC (rather than an HEL) so that I need pay off only what I spend on replacing the carpet (which is pretty gross after 12 years with three animals) and other little piddly things.
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phil5185
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Post by phil5185 on Jun 9, 2019 13:37:23 GMT -5
""so that I need pay off only what I spend on replacing the carpet (which is pretty gross after 12 years with three animals) and other little piddly things.""
Ok - but be careful. A new carpet has the effect of emphasizing the age/wear on other things nearby. But if you leave the worn carpet, buyers will focus on that - and quickly consider maybe a $1000 or $2000 cost - that will be their first negotiating point. So concede that point immediately, cut your price by $1000 or $2000. That establishes your sense of fairness/reasonableness. (Personally I would have the carpet cleaned and leave it )
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nidena
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Post by nidena on Jun 9, 2019 13:51:26 GMT -5
""so that I need pay off only what I spend on replacing the carpet (which is pretty gross after 12 years with three animals) and other little piddly things.""
Ok - but be careful. A new carpet has the effect of emphasizing the age/wear on other things nearby. But if you leave the worn carpet, buyers will focus on that - and quickly consider maybe a $1000 or $2000 cost - that will be their first negotiating point. So concede that point immediately, cut your price by $1000 or $2000. That establishes your sense of fairness/reasonableness. (Personally I would have the carpet cleaned and leave it ) The other aspect is that the carpet doesn't meet the tile in the places where I had *that* installed. There's a good 2"-3" gap in at least three places with just plywood between the living space and the crawlspace. Plus, it's only two 14'x18' rooms that need carpet. I'll leave the upstairs as is. My house is nearly 200 years old, I don't think noticing the age of it is unavoidable. But I do get your point. Replacing cosmetic stuff is a crapshoot and there's little to no point to going all out so I'll throw some bandaids on and call it a day.
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nidena
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Post by nidena on Jun 22, 2019 11:45:10 GMT -5
Got the definite 1st payment due date on my SLs: Dec 4th, 2019. I've some time to pay down as much as I can on the other stuff, save up a bit, and then obliterate them.
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