OT: remember the car-refinance thing?

[kannibul]

I remember I took a bit of hell over refinancing the car, and using that to pay off some debt....

Well, I ended up doing it anyway.

Car refinanced for 11995 @ 6.1%/4yrs. Payment 233, was 241. Never knew the APR before, but it was higher, and it was as a balloon payment-type due in June, if I remember correctly, with the unwritten option of continueing the same payment until it'd be paid off - which would be around 3.25 years later. In June, would have had to pay around 8.6K, or refinance, or trust the option to continue making payments was true.

Now my bike is paid off (2yr, 2mo early, 10.25%APR)
Now her medical bill is paid off (Over 600) - 0% APR, payment arrangements were made over 2 years ago, and payments made...
Made a X-Mas trip to Michigan, first time since I moved to Oklahoma (10 years ago). Did it as a surprise present to my Mom and Grandma, as well as a few other family members. Hadn't been to Michigan in 2.5 years as well...
Tax returns just came in, just paid 95% of my credit card off.

My "Fun" money @ $300/mo (keeps me away from credit cards, also acts as a savings account) - plus those debt-payments, plus what we figure what we can cut out our budget, will have my card paid off next month, and have her card (over 10K balanace) paid off by March 2010.

Not bad....then it's a matter of paying off the car, which I have an amortization spreadsheet that really helps with forecasting that (just I've not updated it just yet for us)

I've attached the template I found, excel format. Makes it easy to see what an extra payment here or there will do to your payoff schedule!

 

[kannibul]

Glad things are working out.

I have to say that the $300 "fun" money is a bit ridiculous when you have debt. You need to have better self control.

Not when a set of drum heads cost $150. Or a new cymbal is $300. Or a set of tubes is $200. Or a set of tires for my truck cost $450. Or the engine work I had done cost $500. Or the X-Mas trip we took was over $800. Short of the trip, those are unbudgeted maintenance costs.

Granted, I'm a stingy bastard managing that account, but, it's what is making this whole debt payoff thing work. When we have a bill we pay it. We have no trouble paying our bills, but whatever is left over, gets spent on little things. By adding another "bill", it takes more out of the little bullshit that we buy. Plus, if we're bad, we have a buffer to bounce against.

It's $75/wk. How is that rediculous?

 

[Anonymous]

A lot of people aren't lucky enough to have the extra cash at the end of the month to get "those new drum heads".

 

[kannibul]

A lot of people aren't lucky enough to have the extra cash at the end of the month to get "those new drum heads".

I'm not buying them every month, hell, I've got a stash of mildly used heads for when I think something might sound better....
I've still got the stock tubes in my only amp. Actually, short of the repairs on my truck and me and Liz going to Michigan, and *1* set of heads, I've not bought anything in over several months.

Fun is just a label for that account...

 

[Anonymous]

All I am saying is, don't come on a guitar message board, lay out your entire financial situation WITH EXCEL SPREADSHEET, and then get sassy when people have an opinion on it. I have just never seen a married man that feels the need to have a $300 fun account when they are in debt, that's all.

 

[kannibul]

All I am saying is, don't come on a guitar message board, lay out your entire financial situation WITH EXCEL SPREADSHEET, and then get sassy when people have an opinion on it. I have just never seen a married man that feels the need to have a $300 fun account when they are in debt, that's all.

Uh, I didn't lay out my entire financial situation with an excel spreadsheet. The numbers in the sheet are the default numbers that were already in it. I just found one that's pretty accurate, and found it useful, and decided to share it.

Guess what the balance on that account is right now? $0.00.

Guess what it'll be next week w/ automatic bank transfer? $112.00

That's the combination of my bike payment (split up), and 75/wk.

When my card is paid off, that'll be added to it, when her card is paid off, it'll go in there too.

You start cutting out the bullshit expenses, including new toys of course, it's amazing the amount of money you can stash. For us, it's easier to do that with a virtual bill, than to actually knowingly cut back on something. We hemorrage money without a bill to soak it up, in the 10 years we've lived together, that's been one constant, and that's what I'm trying to change.

Fun is just a label we had for the account when it was used for band expenses. If I called it "short-term savings" would that be more suitable?

 

[tweed]

All I am saying is, don't come on a guitar message board, lay out your entire financial situation WITH EXCEL SPREADSHEET, and then get sassy when people have an opinion on it. I have just never seen a married man that feels the need to have a $300 fun account when they are in debt, that's all.

Uh, I didn't lay out my entire financial situation with an excel spreadsheet. The numbers in the sheet are the default numbers that were already in it. I just found one that's pretty accurate, and found it useful, and decided to share it.

Guess what the balance on that account is right now? $0.00.

Guess what it'll be next week w/ automatic bank transfer? $112.00

That's the combination of my bike payment (split up), and 75/wk.

When my card is paid off, that'll be added to it, when her card is paid off, it'll go in there too.

You start cutting out the bullshit expenses, including new toys of course, it's amazing the amount of money you can stash. For us, it's easier to do that with a virtual bill, than to actually knowingly cut back on something. We hemorrage money without a bill to soak it up, in the 10 years we've lived together, that's been one constant, and that's what I'm trying to change.

Fun is just a label we had for the account when it was used for band expenses. If I called it "short-term savings" would that be more suitable?

Midol.

 

[guitarslinger]

All I am saying is, don't come on a guitar message board, lay out your entire financial situation WITH EXCEL SPREADSHEET, and then get sassy when people have an opinion on it. I have just never seen a married man that feels the need to have a $300 fun account when they are in debt, that's all.

Why can't you just be proud of him?

 

[Bob Savage]

You need to have better self control.

Now, now Dave, let's not overthink this.

 

[Bob Savage]

Guess what the balance on that account is right now? $0.00.

Guess what it'll be next week w/ automatic bank transfer? $112.00

That's the combination of my bike payment (split up), and 75/wk.

When my card is paid off, that'll be added to it, when her card is paid off, it'll go in there too.

Come back in 12 months with your account balance and CC status. That will show whether or not you're making headway, and how much.

 

[kannibul]

Glad things are working out.

I have to say that the $300 "fun" money is a bit ridiculous when you have debt. You need to have better self control.

Not when a set of drum heads cost $150. Or a new cymbal is $300. Or a set of tubes is $200. Or a set of tires for my truck cost $450. Or the engine work I had done cost $500. Or the X-Mas trip we took was over $800. Short of the trip, those are unbudgeted maintenance costs.

Granted, I'm a stingy bastard managing that account, but, it's what is making this whole debt payoff thing work. When we have a bill we pay it. We have no trouble paying our bills, but whatever is left over, gets spent on little things. By adding another "bill", it takes more out of the little bullshit that we buy. Plus, if we're bad, we have a buffer to bounce against.

It's $75/wk. How is that rediculous?

Okay point taken.

How much money are you saving for retirement? How much money do you have for emergency reserves? People should have between 3 and 6 months of monthly payments saved up.

That's coming after I get debt nailed down, and, that also is what the "fun" account handles, to an extent in that it's a container, in a pinch it can hold us afloat, over the long term, no way...but it's better than nothing, which technically, is what I have right now since I just paid the majority of my CC balance. I'm also looking at our finances to see just how much I could squeeze out before something pops, which on paper is quite a bit more - but that's on paper...

I should dive head first into my 401K plan at work, since they match +2%, with their cap at 8%, I think, but I've never felt I could spare the difference in income. Besides the more I throw at debt now, the less I have to worry should an income status change. Once that gets knocked back, that's another item on the table to do. 1-2 years down the road...

Probably after her card is paid off, we'll save up for a good 6 months and set it aside. That, or I may have to replace my truck about then...it's a debate I've been mulling over for the past few months as well, which is fueling this debt-payoff "scheme" - either to make room for another car payment and still pay off some debt, or, just get it all paid off as much as possible, and save a bit for a damn good down payment, and have a vehicle paid off on a 3-year note.

Just depends on how much longer I can "deal" with my truck. Having just dumped nearly $1000 into it in repairs so far, is a good incentive so far - I want to get that much use back out of it....but it needs some more work - windshield replacement, stuck on hot for all the controls, except AC, and the gas tank dumps gas on the ground when I fill it up. Estimates for #2 is $600, don't know on #1, but last time it was around $150. Probably $200 now. #3 I have no idea...

By the time this is all said and done, it's double/triple-house payments.

Sure, I'm aiming for the moon a bit, but it's better than just plodding along status-quo.

 

[kannibul]

You need to put money in your 401k. Not only do you get a tax benefit since it goes in pre-tax, you also get "free" money from your employer. It is a BIG mistake financially to not contribute. It is taking stock in your future. Trust me, Social Security aint gonna be around for you and I… and if it is the age to start taking will be very high… like 70 years old.

I agree, though, the only thing I don't like about 401K, is that it's in the stock market. If it tanks, like recent history has shown, there goes your retirement savings.

I'd rather pack it away in something more secure. Not sure what, but interest-earning savings or CD's (are CD's backed by FDIC?) - is a safe bet. Gold, Silver, Gems...those are pretty safe investments too...

 

[mysticaxe]

You need to put money in your 401k. Not only do you get a tax benefit since it goes in pre-tax, you also get "free" money from your employer. It is a BIG mistake financially to not contribute. It is taking stock in your future. Trust me, Social Security aint gonna be around for you and I… and if it is the age to start taking will be very high… like 70 years old.

I agree, though, the only thing I don't like about 401K, is that it's in the stock market. If it tanks, like recent history has shown, there goes your retirement savings.

I'd rather pack it away in something more secure. Not sure what, but interest-earning savings or CD's (are CD's backed by FDIC?) - is a safe bet. Gold, Silver, Gems...those are pretty safe investments too...

It's already pretty much tanked. When will you need the money? 25 years from now? More? Do you think that prices will be higher sometime between now and then? You're giving away free money if your employer provides any matching and you don't participate..

CD's - only backed by the issuing bank. Worthwhile as a part of an investment strategy, but will get left in the dust when stocks bounce back.

Gold/Silver/Gems - look at their prices the last year. Basically taken a similar beating to everything/everyone else.

 

[kannibul]

You need to put money in your 401k. Not only do you get a tax benefit since it goes in pre-tax, you also get "free" money from your employer. It is a BIG mistake financially to not contribute. It is taking stock in your future. Trust me, Social Security aint gonna be around for you and I… and if it is the age to start taking will be very high… like 70 years old.

I agree, though, the only thing I don't like about 401K, is that it's in the stock market. If it tanks, like recent history has shown, there goes your retirement savings.

I'd rather pack it away in something more secure. Not sure what, but interest-earning savings or CD's (are CD's backed by FDIC?) - is a safe bet. Gold, Silver, Gems...those are pretty safe investments too...

It's already pretty much tanked. When will you need the money? 25 years from now? More? Do you think that prices will be higher sometime between now and then? You're giving away free money if your employer provides any matching and you don't participate..

CD's - only backed by the issuing bank. Worthwhile as a part of an investment strategy, but will get left in the dust when stocks bounce back.

Gold/Silver/Gems - look at their prices the last year. Basically taken a similar beating to everything/everyone else.

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

 

[Anonymous]

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

Fuck me! Unbelievable strategy! I'll be completely revamping my portfolio allocations immediately!

Thanks!

Steve

 

[kannibul]

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

Fuck me! Unbelievable strategy! I'll be completely revamping my portfolio allocations immediately!

Thanks!

Steve

It's realistic, FOR ME. I wouldn't recommend it to others.

 

[Anonymous]

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

Fuck me! Unbelievable strategy! I'll be completely revamping my portfolio allocations immediately!

Thanks!

Steve

It's realistic, FOR ME. I wouldn't recommend it to others.

In all seriousness, it's not realistic for you or anybody.

Steve

 

[kannibul]

Given that I'll be 31 next month, I figure I have another 35-40 years....

I probably won't stop working, unless I have to. There's also one other small factoid...no male in my family has lived to retirement. Usually 57-60...

So, in some ways, what's it worth? I could take out loans against it. I could empty it out every once in a while and drop 25-50% of it down in taxes...or I could just not bother and invest it in more liquidable assets.

Fuck me! Unbelievable strategy! I'll be completely revamping my portfolio allocations immediately!

Thanks!

Steve

It's realistic, FOR ME. I wouldn't recommend it to others.

In all seriousness, it's not realistic for you or anybody.

Steve

OK, whatever. Family history should never have any bearing...

 

[defpearlpilot]

Hey Jeff, more power to ya. It's your life and your business. If you can pay your bills and put food on the table, you deserve to buy toys IMO.

I would keep this stuff to yourself from now on. Otherwise, you'll have to keep hearing from guys that seem to know more than you about your situation.

Chris

I definitely agree that it's his life. And he should keep his business to himself. But at the same time, if he's asking for advice from people that know what they are talking about then he should be prepared for a disagreement. Many of us told him it was a bad idea.

I didn't really expect much different though. A friend of mine who I've mentioned before seems to be a pretty good engineer but has no clue about money. You'd think an engineer would care about numbers but you'd be wrong. And as an engineer he'll never listen to advice. It's gotten to the point where I don't even want to hear what his next scheme is.

Either way Jeff, if it works for you then that's fantastic.

BTW, some personal history of mine. My dad and my grandfather died at 50 and 52, respectively. I'm not waiting to to die at 50. I'm taking control of my finances but more importantly my health. It's up to you to take better care of yourself all around.

 

[Shiny_Surface]

BTW, some personal history of mine. My dad and my grandfather died at 50 and 52, respectively. I'm not waiting to to die at 50. I'm taking control of my finances but more importantly my health. It's up to you to take better care of yourself all around.

A healthy lifestyle doesn't/can't always completely overide genetics. You read stories about the healthnuts running and dropping dead of a heart attack, etc.

In some ways it's a blessing to drop dead early, and not leave your family members the burden of forking out $8000 or whatever it is a month for a nursing home when you're drooling all over yourself...