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User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "IMO, find a new job.\n\nAny company that consistantly pays late is likely going down the tubes soon." ajsmitty (ajsmitty): "I hate how this is always the top answer to an employer-related issue. "Just go get a new job." "Quit!"\n\nIt's almost never just that easy." Self: "> I hate how this is always the top answer to an employer-related issue. "Just go get a new job." "Quit!"\n> \n> \n> \n> It's almost never just that easy.\n\nI don't think any of us who suggest "find a new job" are implying that it's easy to do so.\n\nBut it's better start looking for and hopefully find a new job and get out now, then to go to work one day and find the doors locked with an eviction & bankruptcy notice taped to the front and have to fight for months to maybe get your final pay cheque." ajsmitty (ajsmitty): "But "find a new job" because OP gets his/her paychecks on Monday rather than the "traditional payday" Friday? Really?" puterTDI (puterTDI): "The reason to skip a payday is because you don't have the money to pay.\n\nHence "find a new job". It's not because it's a shitty place to work or any other reason - it's because it's a sign that your job is going away either way."
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "Report them to the DOL and find a new job."
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "IMO, find a new job.\n\nAny company that consistantly pays late is likely going down the tubes soon." ajsmitty (ajsmitty): "I hate how this is always the top answer to an employer-related issue. "Just go get a new job." "Quit!"\n\nIt's almost never just that easy." Kalkaline (Kalkaline): "The alternative is to keep putting up with a late paycheck or going to the Department of Labor and filing a complaint since you are supposed to have payday posted and your checks are to be made available to you on those days."
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "You said you aren't leaving. So I suggest you need to mentally adjust. If you knew payday was Wednesday the following week, instead of Friday, you would organize your bills and spending to make it work. So tell yourself that payday is Wednesday the following week. Expect not to get payed on Friday and make sure you have enough to get you to the following Wednesday instead. But don't brag about this, keep it to yourself. You don't want your employer to think his behaviour is acceptable, he may try to push things further.\n\nSeriously though, if things get worse, then that business is dying and you need to move on. This is how it starts. If he is late to pay you, what do you think he is doing with vendors? If this pattern gets worse, move on."
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "Go to Labor Board after you find a better job"
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "IMO, find a new job.\n\nAny company that consistantly pays late is likely going down the tubes soon." User (sauvignonbleu): "I've worked here for going on 7 years and made more money year over year every year. I definitely won't be leaving - it's just frustrating how cavalier my boss is about not getting these paychecks out on time." Self: "> I've worked here for going on 7 years and made more money year over year every year. I definitely won't be leaving - it's just frustrating how cavalier my boss is about not getting these paychecks out on time.\n\nIf you're certain the company isn't going under and your boss is just being too lazy to get payroll in on time... then y'all need to save up a good buffer in your bank account to tide you over during these delays." neomage2021 (neomage2021): "Good advice. I make sure my main bank account always has at least $2000 in it. This is completely separate from the emergency fund but it is there as buffer just incase something like a paycheck doesn't come in on time or i've been traveling for work and there is a delay in processing my reimbursement. Happens rarely but nice to have that buffer\n" JoeTony6 (JoeTony6): "Agreed. I have a month of expenses buffer in my checking, separate from my emergency fund. \n\nIt actually came in hand earlier this year when switching jobs. New job pays a week after the end of a two week payroll period. Starting at the beginning of a new period? 3 weeks to receive my first pay. Plus the first pay is a live check instead of direct deposit, as too many companies still do. Plus I was still a new Schwab checking customer, so they held my check mobile deposit for another 4 business days. Basically went a month without pay. \n\nLuckily I had more enough in my checking (and using my CCs for regular spending as usual) to more than handle it, but I basically went a whole month without being paid."
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "You provide a service for compensation. If the compensation is late then adjust your service to be late as well. Show up to work late or do your work slower. If the employer does not respect you enough, you will have to ask yourself whether or not you want to continue working somewhere you are not valued. Know your worth and that you have invested time in this company which is directly related the money the company invested in you. "
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "IMO, find a new job.\n\nAny company that consistantly pays late is likely going down the tubes soon." User (sauvignonbleu): "I've worked here for going on 7 years and made more money year over year every year. I definitely won't be leaving - it's just frustrating how cavalier my boss is about not getting these paychecks out on time." Self: "> I've worked here for going on 7 years and made more money year over year every year. I definitely won't be leaving - it's just frustrating how cavalier my boss is about not getting these paychecks out on time.\n\nIf you're certain the company isn't going under and your boss is just being too lazy to get payroll in on time... then y'all need to save up a good buffer in your bank account to tide you over during these delays." puterTDI (puterTDI): "They should be doing this anyway.\n" Self: ">They should be doing this anyway.\n \n\nYup but op mentions that some people are paycheque to paycheque so they definitely need to work on creating a buffer somehow."
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "IMO, find a new job.\n\nAny company that consistantly pays late is likely going down the tubes soon." User (sauvignonbleu): "I've worked here for going on 7 years and made more money year over year every year. I definitely won't be leaving - it's just frustrating how cavalier my boss is about not getting these paychecks out on time." motytrah (motytrah): "The cold hard fact is you make more money by moving jobs every 2-4 years. Unless you typically get double digit % raises each year you are leaving a lot of money on the table." ctarbet (ctarbet): "Do you have some legitimate evidence for this statement? I'm not trying to be a dick at all - I want to read it." motytrah (motytrah): "Here's the first Google Result. Article from Forbes "Employees Who Stay In Companies Longer Than Two Years Get Paid 50% Less":\n\nhttp://www.forbes.com/sites/cameronkeng/2014/06/22/employees-that-stay-in-companies-longer-than-2-years-get-paid-50-less/#4e5304d4210e"
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "IMO, find a new job.\n\nAny company that consistantly pays late is likely going down the tubes soon." User (sauvignonbleu): "I've worked here for going on 7 years and made more money year over year every year. I definitely won't be leaving - it's just frustrating how cavalier my boss is about not getting these paychecks out on time." Palendrome (Palendrome): "How long have you been getting paid late?" User (sauvignonbleu): "It's been happening intermittently for several years now." Palendrome (Palendrome): "It's usually a sign that the company is at the bottom of the barrel in terms of cash in the bank. But if it's been going on for years it may just be that person is lazy. \n\nI would bring it up with their superior or if they're at the top of the chain, bring it up to them in a sit down meeting type situation. Explain all of the reasons why it's not acceptable and hope it changes. If it doesn't or if they blow you off, either live with it or look for a comparable job at another company if it's that big of a deal to you." TheOneTrueTrench (TheOneTrueTrench): "Usually, yeah. In some cases, the person doing payroll is a derp, like my job. I know there's plenty of money for payroll, but sometimes my boss leaves on Wednesday without remembering to do payroll, and the direct deposit gets delayed. You can tell it's because he derped out because it's always Thursday morning when he posts "shit shit shit fuck, I forgot to do payroll".\n\n(And yes, he curses in company chat. That kind of environment)" Anon_Subber (Anon_Subber): "Boss here.... \n\nWe get very busy and yes, we can forget to run the payroll. It happens. \n\nTell your bosses to look into Gusto Payroll. It's cloud based and very easy to process even in your phone. Solves a lot of problems. " w1ngzer0 (w1ngzer0): "Second the Gusto reference. My company used them before their rename to Gusto and it was one of the best things they did. "
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "Is your boss an asshole about punctuality? My checks are always 3 days to one week late, so Ive gotten used to getting them late. But since they are always late and relatively the same amount of time late it still makes it a two week split so it works out, plus no one ever says a word if I'm 30 min late or about other little minuet details that don't really matter in the end as long as you get your shit done. "
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "IMO, find a new job.\n\nAny company that consistantly pays late is likely going down the tubes soon." User (sauvignonbleu): "I've worked here for going on 7 years and made more money year over year every year. I definitely won't be leaving - it's just frustrating how cavalier my boss is about not getting these paychecks out on time." motytrah (motytrah): "The cold hard fact is you make more money by moving jobs every 2-4 years. Unless you typically get double digit % raises each year you are leaving a lot of money on the table." anon445 (anon445): "I think getting 5% consistently is worth considering (though from what I've seen, that just tends to be the maximum yearly a company is willing to give without a promotion). \n\nThat's 10% (actually slightly more) raise every two years, which is about as often as you can switch jobs. Taking into account the hassle of transitions and increased benefits for long-term employees, I think I'd consider going as low as 4%, depending on how much I liked working there. " motytrah (motytrah): "I would say that depends on what you are doing and how you perform. If you are doing clerical work that really doesn't have a much visibility than the raises are going to be lower than someone who's in a demand job like IT. The same could be said for positions that have a lot of visibility based on the output such as business analysis, product/process ownership, sales, certain management jobs, etc. \n \nBefore I became an overpaid consultant I was an overpaid salary employee in IT. My raises were in the 8-12% range. So I wouldn't just say 5% is the max. That depends on your performance and your willingness to ask for more. The biggest increase I've had when changing jobs was 40%." anon445 (anon445): "Yearly 10%? When was this? Is that still available? "
User (sauvignonbleu): "I live in NYC. It's a clerical job and we're all on salary. Not sure what to do....she refuses to switch is to direct deposit though I don't know why. It usually means getting paid on Monday or Tuesday instead of Friday...but for some of the lower paid folks who live paycheck to paycheck that means bill payments bounce." Self: "I worked for an employer who hired young guys in a furniture factory. He payed on Monday in cash. If you didn't go to work on Monday you pay accumulated and was payed the following Monday. The result was no Mondayitis. Everybody worked on Monday\n\n" swimfan229 (swimfan229): "My boss did this. I went in 1 Monday a year. "
User (nextchapterthrowaway): "My lovely personal finance gurus and friends… I am hoping you can help me.\n\n\nMy story: I am 29, and just took a promotion for a new role that pays me $95,000 a year before taxes. Prior to this promotion, I was making $55,000 a year, and I have spent the last 5 years of my life rebuilding my credit and paying off debt my exboyfriend left me with 4 years ago. Before I got the promotion, I worked my butt off to pay off the majority of credit card debt I racked up, paid off my car loan 4 months ago, etc. The only debt left I want to tackle the right way is my Student Loan debt, and I want to create a savings plan for myself. My past financial history suggests I am easily tempted, and want to make sure I start this new chapter of my life in the right financial direction. I never want to feel the unhappiness, stress, and darkness that I felt drowning in $20,000 of credit card debt and upside down auto loan debt like I did in the past.\n\n\nSo, now that I got this pretty nice raise, and am in a good financial situation with truly manageable debt, and decreased living expenses, I want to know what I should tackle first, and how. I want to make responsible financial decisions, and not become reckless. Having relatively low monthly bills/expenses compared to my new income is something I really want to take advantage of.\n\n\nI am currently of the mindset that I want to keep my credit score and health high, as I have worked hard to rebuild this, and would like to keep building it higher. I know I could afford to totally pay off my student loans in a very short timeframe, but I also want to make sure I keep my credit score as healthy as it is now, so I can buy an investment property in the near future. I want to have an emergency fund, be able to go on vacation, buy myself nice things every once in a blue moon, and start investing, but I don’t know where to begin. What are your thoughts/guidance?\n\n\nFew snippits of info:\n\n\nI do not currently participate, but I have the opportunity to enroll in my company’s 401K @ 5% match \n\n\n\nAnnual Salary before Taxes: $95,000\n\nMonthly Income after Taxes: $5,000\n\nCredit Score: 775 \n\n\n \n \nCurrent Checking Account Balance: $4,033.36 \n \n \nMonthly Bills: \n \nHousing $0 \n\nCable/Internet $115 \n\nElectric & Gas $65 \n\nCar Insurance $70 \n\nTransportation: $120 \n\nUSAA Credit Card Payment $400 \n\nStudent Loans $403 \n\nCell Phone $110 \n\nTOTAL MONTHLY OBLIGATIONS: $1,283\n \n\nUSAA Credit Card Debt $3,718 3.60%\n\n\n\nDOE Stafford Unsub Loan Principal Balance: $22,107.74\n\n\nI make 1 lumpsum monthly payment of $403, that goes toward the following breakdown of the above $22,107.74 Loan:\n\n\nDOE Federal Student Loan 1 $2,921 6.80%\n\nDOE Federal Student Loan 2 $4,735 6.80%\n\nDOE Federal Student Loan 3 $7,447 6.80%\n\nDOE Federal Student Loan 4 $7,005 6.80%\n\nTOTAL STUDENT LOANS: $22,108 \n\n" Self: ">I have the opportunity to enroll in my company’s 401K @ 5% match \n\nPriority #1. Contribute to get the match. You've already got some liquid funds in your checking that can act as an emergency fund. Next because you mention your concern about your credit score, I would focus on your credit card. The interest rate is lower than your student loans, but carrying a balance will negatively effect utilization. Furthermore, you should just get in the habit of never carrying a balance on any credit card ever... if possible. \n\nAfter that I would just start picking off your student loans one by one. Since they are all at the same rate, start with the smallest balance first.\n\nYou are in a good situation, especially with having zero housing expense. Your biggest challenge is going to be fighting lifestyle inflation as you have more money coming in. Nothing wrong with treating yourself here and there, but in general you want to avoid this. I would look into maxing out an IRA, and then contributing more to your 401k (maybe even up to the max). Tough to go wrong following [the flowchart](https://i.imgur.com/1rPEkGQ.png)." User (nextchapterthrowaway): "Thank you! I should have started contributing to the 401K a long time ago, even on the $55,000 salary, but I could not afford it in past years of playing catch up. That is not the case anymore. \n\nAlso mentioning for the record that Credit Utilization isn't too much of a factor here, as I'm only utilizing 4% of my total available credit at this time.\n\nAppreciate your help :) "
User (nextchapterthrowaway): "My lovely personal finance gurus and friends… I am hoping you can help me.\n\n\nMy story: I am 29, and just took a promotion for a new role that pays me $95,000 a year before taxes. Prior to this promotion, I was making $55,000 a year, and I have spent the last 5 years of my life rebuilding my credit and paying off debt my exboyfriend left me with 4 years ago. Before I got the promotion, I worked my butt off to pay off the majority of credit card debt I racked up, paid off my car loan 4 months ago, etc. The only debt left I want to tackle the right way is my Student Loan debt, and I want to create a savings plan for myself. My past financial history suggests I am easily tempted, and want to make sure I start this new chapter of my life in the right financial direction. I never want to feel the unhappiness, stress, and darkness that I felt drowning in $20,000 of credit card debt and upside down auto loan debt like I did in the past.\n\n\nSo, now that I got this pretty nice raise, and am in a good financial situation with truly manageable debt, and decreased living expenses, I want to know what I should tackle first, and how. I want to make responsible financial decisions, and not become reckless. Having relatively low monthly bills/expenses compared to my new income is something I really want to take advantage of.\n\n\nI am currently of the mindset that I want to keep my credit score and health high, as I have worked hard to rebuild this, and would like to keep building it higher. I know I could afford to totally pay off my student loans in a very short timeframe, but I also want to make sure I keep my credit score as healthy as it is now, so I can buy an investment property in the near future. I want to have an emergency fund, be able to go on vacation, buy myself nice things every once in a blue moon, and start investing, but I don’t know where to begin. What are your thoughts/guidance?\n\n\nFew snippits of info:\n\n\nI do not currently participate, but I have the opportunity to enroll in my company’s 401K @ 5% match \n\n\n\nAnnual Salary before Taxes: $95,000\n\nMonthly Income after Taxes: $5,000\n\nCredit Score: 775 \n\n\n \n \nCurrent Checking Account Balance: $4,033.36 \n \n \nMonthly Bills: \n \nHousing $0 \n\nCable/Internet $115 \n\nElectric & Gas $65 \n\nCar Insurance $70 \n\nTransportation: $120 \n\nUSAA Credit Card Payment $400 \n\nStudent Loans $403 \n\nCell Phone $110 \n\nTOTAL MONTHLY OBLIGATIONS: $1,283\n \n\nUSAA Credit Card Debt $3,718 3.60%\n\n\n\nDOE Stafford Unsub Loan Principal Balance: $22,107.74\n\n\nI make 1 lumpsum monthly payment of $403, that goes toward the following breakdown of the above $22,107.74 Loan:\n\n\nDOE Federal Student Loan 1 $2,921 6.80%\n\nDOE Federal Student Loan 2 $4,735 6.80%\n\nDOE Federal Student Loan 3 $7,447 6.80%\n\nDOE Federal Student Loan 4 $7,005 6.80%\n\nTOTAL STUDENT LOANS: $22,108 \n\n" Self: "Pretend you never got it: \n\n* Put 20% into your 401k. \n* Have direct deposit split your paycheck into 3 accounts\n * expenses: rent, estimated bills, student loan payments, etc. Nothing discretionary in here. Keep a floor of ~2 months expenses at a nice round number for easy tracking.\n\n * Spending money - this is your regular checking account. This is the only place you should be getting cash out of. This is your 'petty cash' - dining out, gifts, toys, gizmos, etc.. If you have extra at the end of the month, move it into your savings account.\n\n * Savings: this is a holding fund for your savings - the balance of your check should go here. This is your future. Do not spend it now. As this reaches various levels (emergency fund & whatever) put it into less liquid assets like CDs or investments. Funds from here should never go into your spending account, and should rarely go into the other one.\n\nDividing things up like this really helps you combat unconscious lifestyle inflation. You have more money available to divert from savings when things change, but it requires a willful act to change the setup. As a bonus, any additional raises or bonuses you may get will go right into savings, again making spending it require more than whipping out the credit card.\n\nYou'll have a good start on your retirement, your loans will be paid off in less than a year, and you'll have a great feel for what your budget really is.\n\nFurther advice: I'd bet you could get away with a much cheaper cell phone plan. Look into a pre-paid or something like Ting. And what's the balance on that credit card? You should start paying it off completely every month." letuswatchtvinpeace (letuswatchtvinpeace): "I would not advise to put 20% in the 401K, can add more but split it up into another retirement account, IRA or Roth IRA." Self: "Why not? Max out both at with those ratios." letuswatchtvinpeace (letuswatchtvinpeace): "in my experience if the economy tanks so does the 401k because of the investments. " Mr_Jolly_Green (Mr_Jolly_Green): "\n\nIgnoring the fact that a 401k has a wide variety of investment mix choices, why should a 29 year old be worried about market fluctuations in a 401k he won't touch for 30+ years? Answer: He shouldn't. He should be maxing all tax deferred vehicles."
User (nextchapterthrowaway): "My lovely personal finance gurus and friends… I am hoping you can help me.\n\n\nMy story: I am 29, and just took a promotion for a new role that pays me $95,000 a year before taxes. Prior to this promotion, I was making $55,000 a year, and I have spent the last 5 years of my life rebuilding my credit and paying off debt my exboyfriend left me with 4 years ago. Before I got the promotion, I worked my butt off to pay off the majority of credit card debt I racked up, paid off my car loan 4 months ago, etc. The only debt left I want to tackle the right way is my Student Loan debt, and I want to create a savings plan for myself. My past financial history suggests I am easily tempted, and want to make sure I start this new chapter of my life in the right financial direction. I never want to feel the unhappiness, stress, and darkness that I felt drowning in $20,000 of credit card debt and upside down auto loan debt like I did in the past.\n\n\nSo, now that I got this pretty nice raise, and am in a good financial situation with truly manageable debt, and decreased living expenses, I want to know what I should tackle first, and how. I want to make responsible financial decisions, and not become reckless. Having relatively low monthly bills/expenses compared to my new income is something I really want to take advantage of.\n\n\nI am currently of the mindset that I want to keep my credit score and health high, as I have worked hard to rebuild this, and would like to keep building it higher. I know I could afford to totally pay off my student loans in a very short timeframe, but I also want to make sure I keep my credit score as healthy as it is now, so I can buy an investment property in the near future. I want to have an emergency fund, be able to go on vacation, buy myself nice things every once in a blue moon, and start investing, but I don’t know where to begin. What are your thoughts/guidance?\n\n\nFew snippits of info:\n\n\nI do not currently participate, but I have the opportunity to enroll in my company’s 401K @ 5% match \n\n\n\nAnnual Salary before Taxes: $95,000\n\nMonthly Income after Taxes: $5,000\n\nCredit Score: 775 \n\n\n \n \nCurrent Checking Account Balance: $4,033.36 \n \n \nMonthly Bills: \n \nHousing $0 \n\nCable/Internet $115 \n\nElectric & Gas $65 \n\nCar Insurance $70 \n\nTransportation: $120 \n\nUSAA Credit Card Payment $400 \n\nStudent Loans $403 \n\nCell Phone $110 \n\nTOTAL MONTHLY OBLIGATIONS: $1,283\n \n\nUSAA Credit Card Debt $3,718 3.60%\n\n\n\nDOE Stafford Unsub Loan Principal Balance: $22,107.74\n\n\nI make 1 lumpsum monthly payment of $403, that goes toward the following breakdown of the above $22,107.74 Loan:\n\n\nDOE Federal Student Loan 1 $2,921 6.80%\n\nDOE Federal Student Loan 2 $4,735 6.80%\n\nDOE Federal Student Loan 3 $7,447 6.80%\n\nDOE Federal Student Loan 4 $7,005 6.80%\n\nTOTAL STUDENT LOANS: $22,108 \n\n" Self: "You new income breakdown:\n\n* Monthly total: $5,000\n* Living Expense: $1,283 + food = ~$2,000/month\n* Remaining: $3,000\n\n* What to do with this $3,000?\n\n> I do not currently participate, but I have the opportunity to enroll in my company’s 401K @ 5% match.\n\nThis should be your #1 priority hand in hand with the one below. This 5% will be before taxes (which is great), 5% per check will be right below $400.\n\nIt is very important you do this because at $95,000 salary, you are no longer in the lowest tax bracket (25%). If you contribute to your 401k at the rate of 5%, the contribution will not count towards your gross and get you back into the lowest tax bracket, potentially savings you thousands.\n\n* Remaining monthly salary: $2,200 -- Although it will be more because this deduction is before taxes.\n\n> I make 1 lumpsum monthly payment of $403, that goes toward the following breakdown of the above $22,107.74 Loan:\nTOTAL STUDENT LOANS: $22,108\n\nThis should be your #1 priority hand in hand with the above; paying off this loan. You cannot build savings efficiently if high percentage loans are taking away your money that is not counted towards the principle.\n\nLet's estimate you pay $1,000/month towards this (on top of the $403 payment you already make; total $1,403).\n\nYou are incurring more interest onto this loan the longer you take to pay it off. The faster you pay it off and the higher your monthly payment is, the less interest you will pay overall.\n\nTotal time to payoff at this rate: 15-16 months\n\n* Remaining monthly salary: $1,200\n\n> I know I could afford to totally pay off my student loans in a very short timeframe, but I also want to make sure I keep my credit score as healthy as it is now, so I can buy an investment property in the near future\n\nYour credit score will not drop if you are utilizing your card for your monthly expenses such as gas, groceries, phone/internet bills, transportation and then making your credit card payments on time. Thus enabling you to have the score you need when you are ready to buy a property.\n\nIt would be a mistake to buy the property before the loan is paid off.\n\n> I want to have an emergency fund.\n\nCurrently, you have $4,000, and you need 6-8 months expense emergency fund. With your monthly expenses of ~$1,300 (with loan repayment; $900 without) you need an emergency fund of ~$5,400 - $7,800.\n\nYou should open a high interest (usually around 1% APY) savings account with a bank such as Ally's and set up an auto transfer for each paycheck of around ~$200 ($400/month assuming bi-weekly pay) into that emergency fund account.\n\n\n* Remaining monthly salary: $800\n\n> be able to go on vacation, buy myself nice things every once in a blue moon, and start investing\n\nNumber 1 priority: Investing: into a ROTH IRA. Your salary is only (likely) going to increase in the future and you can only contribute to the IRA until your salary is below $117,000 (single). You are nearing the limit soon, but can delay it a few years by maxing out your 401k.\n\nYou need to start putting money into the IRA now post-tax while you can still stay in the lower tax bracket. If your employer doesn't offer it, open an account yourself with Vanguard or Fidelity.\n\nSuggested percentage of salary: 3% ($150/month) now while you are paying off your student loans, and max it out at $5,500 yearly ($458/monthly) limit once you are done with student loans.\n\n* Remaining monthly salary: $650\n\nNumber 2 priority: Vacation savings: depends on how many you want to take per year. Let's go with 2 ($1,000 each) vacations per year. If you are to open a high interest savings account with Ally's or Barclay's or similar bank (or Credit Union), you can set goals in there.\n\nSet this goal in your high-interest savings account and transfer $170 into it every month and you will have $2,000 vacation money in a year.\n\n* Remaining monthly salary: $480\n\nNumber 3 priority: Buy yourself nice things. Let's say you go shopping once a month for the estimate and spend $300 month on shopping for clothes, shoes, purses, etc. That's $3,600/year, but I would only go shopping once in a blue moon (as you stated) and focus on the loan first.\n\n* Remaining monthly salary: $180\n\nUltimately, you need to decide what is best for you. In my opinion, the top priority should be the student loans (giving away free money in interest is not going to help you).\n\n\nOnce the student loans are done, your top priority should be in this order: \n\n* Matching company 5% on 401k \n* Maxing out IRA at $5,500 \n* Maxing out your 401k at $18,500 \n\n\nAfter your student loans are paid off:\n\nNew monthly expenses (rounding up):\n\n- Bills: $900 \n- Max 401k: $1,541 \n- Max IRA: $458 \n- Emergency fund: $800\n- Total: $3,699\n\nYou are still left with $1,301 additional income every month for saving for vacation savings, shopping, etc.\n\nAnd once you have the emergency fund set at 6-8 months of your monthly income, you no longer have to contribute to that and have an additional $800 left every month to save and soon invest into properties, funds, etc."
User (nextchapterthrowaway): "My lovely personal finance gurus and friends… I am hoping you can help me.\n\n\nMy story: I am 29, and just took a promotion for a new role that pays me $95,000 a year before taxes. Prior to this promotion, I was making $55,000 a year, and I have spent the last 5 years of my life rebuilding my credit and paying off debt my exboyfriend left me with 4 years ago. Before I got the promotion, I worked my butt off to pay off the majority of credit card debt I racked up, paid off my car loan 4 months ago, etc. The only debt left I want to tackle the right way is my Student Loan debt, and I want to create a savings plan for myself. My past financial history suggests I am easily tempted, and want to make sure I start this new chapter of my life in the right financial direction. I never want to feel the unhappiness, stress, and darkness that I felt drowning in $20,000 of credit card debt and upside down auto loan debt like I did in the past.\n\n\nSo, now that I got this pretty nice raise, and am in a good financial situation with truly manageable debt, and decreased living expenses, I want to know what I should tackle first, and how. I want to make responsible financial decisions, and not become reckless. Having relatively low monthly bills/expenses compared to my new income is something I really want to take advantage of.\n\n\nI am currently of the mindset that I want to keep my credit score and health high, as I have worked hard to rebuild this, and would like to keep building it higher. I know I could afford to totally pay off my student loans in a very short timeframe, but I also want to make sure I keep my credit score as healthy as it is now, so I can buy an investment property in the near future. I want to have an emergency fund, be able to go on vacation, buy myself nice things every once in a blue moon, and start investing, but I don’t know where to begin. What are your thoughts/guidance?\n\n\nFew snippits of info:\n\n\nI do not currently participate, but I have the opportunity to enroll in my company’s 401K @ 5% match \n\n\n\nAnnual Salary before Taxes: $95,000\n\nMonthly Income after Taxes: $5,000\n\nCredit Score: 775 \n\n\n \n \nCurrent Checking Account Balance: $4,033.36 \n \n \nMonthly Bills: \n \nHousing $0 \n\nCable/Internet $115 \n\nElectric & Gas $65 \n\nCar Insurance $70 \n\nTransportation: $120 \n\nUSAA Credit Card Payment $400 \n\nStudent Loans $403 \n\nCell Phone $110 \n\nTOTAL MONTHLY OBLIGATIONS: $1,283\n \n\nUSAA Credit Card Debt $3,718 3.60%\n\n\n\nDOE Stafford Unsub Loan Principal Balance: $22,107.74\n\n\nI make 1 lumpsum monthly payment of $403, that goes toward the following breakdown of the above $22,107.74 Loan:\n\n\nDOE Federal Student Loan 1 $2,921 6.80%\n\nDOE Federal Student Loan 2 $4,735 6.80%\n\nDOE Federal Student Loan 3 $7,447 6.80%\n\nDOE Federal Student Loan 4 $7,005 6.80%\n\nTOTAL STUDENT LOANS: $22,108 \n\n" Self: "Pretend you never got it: \n\n* Put 20% into your 401k. \n* Have direct deposit split your paycheck into 3 accounts\n * expenses: rent, estimated bills, student loan payments, etc. Nothing discretionary in here. Keep a floor of ~2 months expenses at a nice round number for easy tracking.\n\n * Spending money - this is your regular checking account. This is the only place you should be getting cash out of. This is your 'petty cash' - dining out, gifts, toys, gizmos, etc.. If you have extra at the end of the month, move it into your savings account.\n\n * Savings: this is a holding fund for your savings - the balance of your check should go here. This is your future. Do not spend it now. As this reaches various levels (emergency fund & whatever) put it into less liquid assets like CDs or investments. Funds from here should never go into your spending account, and should rarely go into the other one.\n\nDividing things up like this really helps you combat unconscious lifestyle inflation. You have more money available to divert from savings when things change, but it requires a willful act to change the setup. As a bonus, any additional raises or bonuses you may get will go right into savings, again making spending it require more than whipping out the credit card.\n\nYou'll have a good start on your retirement, your loans will be paid off in less than a year, and you'll have a great feel for what your budget really is.\n\nFurther advice: I'd bet you could get away with a much cheaper cell phone plan. Look into a pre-paid or something like Ting. And what's the balance on that credit card? You should start paying it off completely every month." letuswatchtvinpeace (letuswatchtvinpeace): "I would not advise to put 20% in the 401K, can add more but split it up into another retirement account, IRA or Roth IRA." Self: "Why not? Max out both at with those ratios." letuswatchtvinpeace (letuswatchtvinpeace): "in my experience if the economy tanks so does the 401k because of the investments. " Self: "Meh. At this age, just ride it out. Most 401k plans have options all along the risk spectrum, too."
User (li0ns): "I'm 24 years old and have saved up a good amount over the past year or so, but it's just sitting in my savings account right now. I want to put $10-15k somewhere where it can make money for me but is still accessible (in case of emergencies) without huge penalties if possible. I have little to no knowledge of this kind of stuff so any advice would help a lot! Thanks! :)" Self: "In case of emergency, use emergency fund. Even if an investment is liquid, you may not want to liquidate it at some points in time. Read [How to handle $](https://www.reddit.com/r/personalfinance/wiki/commontopics)."
User (li0ns): "I'm 24 years old and have saved up a good amount over the past year or so, but it's just sitting in my savings account right now. I want to put $10-15k somewhere where it can make money for me but is still accessible (in case of emergencies) without huge penalties if possible. I have little to no knowledge of this kind of stuff so any advice would help a lot! Thanks! :)" Self: "Best investment accounts? Best savings accounts? They're 2 different things. \n\nThe best savings or checking you can get right now pays about 1% annually -- Ally Bank, Synchrony. NerdWallet.com can help you find the highest rates. Also don't overlook sign-up bonuses. Chase bank offers them frequently, but almost always direct deposit is required. Also Chase charges fees if you don't keep enough of a balance. \n\nRight now, anything that pays more than about 1% interest entails risk or early withdrawl penalty. "
User (noitsgottabeurbull): "$22,500 in student loans. Paying about $100 extra per month than recommended payment. No other debt. \n\nI feel like Chris Farley trying to learn how to sell brake pads with this stuff so any feedback would be greatly appreciated!!\n\nThanks :) \n\n" Self: "718 is a good score so you should be fine." User (noitsgottabeurbull): "Thanks for the response! It's come along way since i paid my credit cards off "
User (noitsgottabeurbull): "$22,500 in student loans. Paying about $100 extra per month than recommended payment. No other debt. \n\nI feel like Chris Farley trying to learn how to sell brake pads with this stuff so any feedback would be greatly appreciated!!\n\nThanks :) \n\n" Self: "718 is more than good enough to get a mortgage."
User (careercrossroads123): "I'm in my late 20s, currently working in a very stable, government job that pays $80k with solid benefits, 10% bonus, pension, etc. The drawback to this, like most government jobs, is the lack of upward mobility/promotions, boring culture and I am overall just mentally rotting and unchallenged in this job. \n\nI've been in discussions with the dream company I've aspired to work for my whole life. The role is in a similar field but it is a contract position (but it still comes with medical/dental benefits, vacation, etc. but no bonus) for one year with hopes to convert to full-time after the one year. They can offer $70k salary. From a company stand point, they have a very youthful and energetic culture, and I am VERY ingrained in their industry (from a consumer standpoint) with a deep interest in their products, etc. \n\nI'm currently locked into a mortgage and car payments with my partner, no kids. I don't know if I'm making a stupid financial decision based on emotion. Goes back to the whole "money isn't everything" debate I suppose?" Self: "I would take it, especially if there's potential for promotion at the new job"
User (careercrossroads123): "I'm in my late 20s, currently working in a very stable, government job that pays $80k with solid benefits, 10% bonus, pension, etc. The drawback to this, like most government jobs, is the lack of upward mobility/promotions, boring culture and I am overall just mentally rotting and unchallenged in this job. \n\nI've been in discussions with the dream company I've aspired to work for my whole life. The role is in a similar field but it is a contract position (but it still comes with medical/dental benefits, vacation, etc. but no bonus) for one year with hopes to convert to full-time after the one year. They can offer $70k salary. From a company stand point, they have a very youthful and energetic culture, and I am VERY ingrained in their industry (from a consumer standpoint) with a deep interest in their products, etc. \n\nI'm currently locked into a mortgage and car payments with my partner, no kids. I don't know if I'm making a stupid financial decision based on emotion. Goes back to the whole "money isn't everything" debate I suppose?" Self: "I'd leave. Government jobs, like you said, don't offer much in terms of promotions/mobility and I can imagine you feel like a robot desk jockey right now. Also, if you didn't like this new job or didn't get hired after the year there is a somewhat decent chance that you could get hired back to your current government job. "
User (noitsgottabeurbull): "I'm guessing this is more about my student loans, but I travel for work every week and have lots of reimbursed expenses that go on my card, generally around 6-8 thousand per month. \n \nI run a high balance on my 18K total credit limit (3 different cards) between work expenses and my own personal. I forget the name of the ratio but I think they want the credit you use over total limit to be about 30% and mine likely goes well over 50% some months. I am requesting limit increases as my income has gone up since i applied for the cards.\n\nAm I right thinking an increase in credit limit will help or does it not matter if the balance is paid in full every month?\n\nThanks!" Self: "You may find these links helpful:\n\n- [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit)\n- [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) \n- [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico)\n- [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (noitsgottabeurbull): "I'm guessing this is more about my student loans, but I travel for work every week and have lots of reimbursed expenses that go on my card, generally around 6-8 thousand per month. \n \nI run a high balance on my 18K total credit limit (3 different cards) between work expenses and my own personal. I forget the name of the ratio but I think they want the credit you use over total limit to be about 30% and mine likely goes well over 50% some months. I am requesting limit increases as my income has gone up since i applied for the cards.\n\nAm I right thinking an increase in credit limit will help or does it not matter if the balance is paid in full every month?\n\nThanks!" Self: "That factor is related to your installment loans not your revolving balances. But yes, generally your statement balance is reported even if you pay it in full later (some banks also report again when your balance hits 0) and so it will be included in your current utilization " MenloParker (MenloParker): "I don't think that's true? I got that message even when I only had credit cards" Self: "> Proportion of loan balances to loan amounts is too high\n> \n> FICO® Scores weigh the balances of mortgage and non-mortgage installment loans (such as auto or student loans) against the original loan amounts shown on a person’s credit report. Your score was impacted because your proportion of installment loan balances to the original loan amounts is too high.\n\nThis is the description of that score factor."
User (Ruben625): "So my status at my job recently changed a little bit and I have tried getting my pay clarified but its still not making sense to me. I have a commission based job so I will do my best to explain how it was and how it is currently. \n\nMy previous pay plan was a $1500 draw on the 25th of every month and then on the 10th of the subsequent month I get commish+bonuses or hourly wage (minimum wage) which ever is greater minus $1500 for the draw.\n\nMy new plan with my slight position change is: $1500 base pay (being paid as a bonus), and the rest the same $1500 draw on the 25th and on the 10th of the following month commish+bonus or minimum wage which ever is greater minus draw of $1500 (it is important to note I cannot claim bonuses with my minimum wage pay). \n\nThe state is washington, am I getting screwed over with how they have this set up? How I would see it, is I will never get my minimum wage pay if its greater than my commish since they set what was supposed to be a base pay as a monthly bonus. \n\nAlso wont I get taxed heavier on a "bonus" pay instead of what should be a base pay?" Self: "All income is treated equal when you file your taxes, so even if something is withheld at a greater rate, when you file, it will balance out. \n\nYou need to just calculate some real world examples and see how you end up. \n\nRegardless of how you are paid, if you are making less than minimum wage per hour then they are violating federal law. So take your gross wages for a period and figure out an hourly wage, if it is less than state or federal minimum wage, there is a problem. \n\n\n\n"
User (Ruben625): "So my status at my job recently changed a little bit and I have tried getting my pay clarified but its still not making sense to me. I have a commission based job so I will do my best to explain how it was and how it is currently. \n\nMy previous pay plan was a $1500 draw on the 25th of every month and then on the 10th of the subsequent month I get commish+bonuses or hourly wage (minimum wage) which ever is greater minus $1500 for the draw.\n\nMy new plan with my slight position change is: $1500 base pay (being paid as a bonus), and the rest the same $1500 draw on the 25th and on the 10th of the following month commish+bonus or minimum wage which ever is greater minus draw of $1500 (it is important to note I cannot claim bonuses with my minimum wage pay). \n\nThe state is washington, am I getting screwed over with how they have this set up? How I would see it, is I will never get my minimum wage pay if its greater than my commish since they set what was supposed to be a base pay as a monthly bonus. \n\nAlso wont I get taxed heavier on a "bonus" pay instead of what should be a base pay?" Self: "I'm not understanding what you're getting at. When is the $1500 bonus paid out? If it's being paid as a bonus, why do you think it's going to affect your minimum wage/commish payment?" User (Ruben625): "The $1500 bonus is paid out with my commision check on the 10th. \n\nOriginally it was supposed to be a base pay of $750 on the 10th and $750 on the 25th. That was changed this morning which is why im questioning it. "
User (Ruben625): "So my status at my job recently changed a little bit and I have tried getting my pay clarified but its still not making sense to me. I have a commission based job so I will do my best to explain how it was and how it is currently. \n\nMy previous pay plan was a $1500 draw on the 25th of every month and then on the 10th of the subsequent month I get commish+bonuses or hourly wage (minimum wage) which ever is greater minus $1500 for the draw.\n\nMy new plan with my slight position change is: $1500 base pay (being paid as a bonus), and the rest the same $1500 draw on the 25th and on the 10th of the following month commish+bonus or minimum wage which ever is greater minus draw of $1500 (it is important to note I cannot claim bonuses with my minimum wage pay). \n\nThe state is washington, am I getting screwed over with how they have this set up? How I would see it, is I will never get my minimum wage pay if its greater than my commish since they set what was supposed to be a base pay as a monthly bonus. \n\nAlso wont I get taxed heavier on a "bonus" pay instead of what should be a base pay?" Self: "I'm not understanding what you're getting at. When is the $1500 bonus paid out? If it's being paid as a bonus, why do you think it's going to affect your minimum wage/commish payment?" User (Ruben625): "To go further I only get my commision/bonus if it exceeds my hourly pay in a month. So instead of being able to have hourly pay+base pay, I can only have commision+bonus pay since I get the greater of the two. \n\nIt is highly possible for my hourly pay to exceed my commision but because my bonus pay gets tacked onto my commision to push it past my hourly pay I can never have my hourly+base\n\nSorry I know this has been super confusing. I appreciate the response"
User (Ruben625): "So my status at my job recently changed a little bit and I have tried getting my pay clarified but its still not making sense to me. I have a commission based job so I will do my best to explain how it was and how it is currently. \n\nMy previous pay plan was a $1500 draw on the 25th of every month and then on the 10th of the subsequent month I get commish+bonuses or hourly wage (minimum wage) which ever is greater minus $1500 for the draw.\n\nMy new plan with my slight position change is: $1500 base pay (being paid as a bonus), and the rest the same $1500 draw on the 25th and on the 10th of the following month commish+bonus or minimum wage which ever is greater minus draw of $1500 (it is important to note I cannot claim bonuses with my minimum wage pay). \n\nThe state is washington, am I getting screwed over with how they have this set up? How I would see it, is I will never get my minimum wage pay if its greater than my commish since they set what was supposed to be a base pay as a monthly bonus. \n\nAlso wont I get taxed heavier on a "bonus" pay instead of what should be a base pay?" Self: "They have it set up such that they've increased your bonus amounts. Not your base rate. It's only sort of a raise in that regard. It's a juiced incentive. \n\nI don't think it's fair to call your compensation a commission, since you're not always entitled to it. \n\nOverall I don't like this scheme. I suspect it's legal but it transfers a tremendous amount of risk from them to you. " User (Ruben625): "Its labled a bonus. So the full way it is set up is as such:\n\nIf my commision+bonus is greater than my hourly pay I get that on the 10th. \n\nIf my hourly pay is greater than my commision/bonus I get my hourly pay on the 10th.\n\nOriginally my 1500 base was supposed to be seperate from all of this. But because my base is now a "bonus" my commision/ bonus will always be greater than my hourly pay. \n\nSo instead of being able to get my base+hourly pay (if my hourly pay was greater than my commision) I can only get my commision+bonus (base pay).\n\n\nSorry this has all been so confusing I really appreciate the answers" Self: "It's a shitty raise. They're essentially paying you with your own money. " User (Ruben625): "....sweet"
User (NetworkingEnthusiast): "Hello everyone\n\nI have been reading up on 401k's including rewatching John Oliver's retirement episode. I am still caught up on a target fund vs the three bond fund referenced in the wiki.\n\nFor some background. I am 25 years old. Just started a job that is offering my first 401k. The company that services my employer is T Rowe Price. I have a selection of funds to invest in or I can choose their target fund. My thoughts are the TRRNX 2055 Target Fund seems to not do that great over its history, as compared with other funds, vanguard for instance. Also it's expense ratio is a bit higher than vanguard at .76% . I was wondering if I should just go with the 2055 fund or go with a custom three fund plan with funds that are much lower expense ratio. It doesn't appear that I have that great of choice in my selection. But here is a picture of them.\n\nInvestment choices performance/expense ratio's: http://imgur.com/a/WnuPj\n\nTarget fund choices performance/expense ratio's: http://imgur.com/a/u7hm5\n\nCan you help a new investor out with some advice?\n\nThanks\n\nEdit: Thanks for the help I have chosen to go with the four funds offered by Vanguard with an allocation of 10% domestic bonds, 90% stocks (of that 90%, 30% is int. stocks, 60% is domestic stocks)" Self: "You may find these links helpful:\n\n- [General Information on Rollovers](http://www.reddit.com/r/personalfinance/wiki/retirementaccounts/rollovers)\n- [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds)\n- [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more)\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (NetworkingEnthusiast): "Hello everyone\n\nI have been reading up on 401k's including rewatching John Oliver's retirement episode. I am still caught up on a target fund vs the three bond fund referenced in the wiki.\n\nFor some background. I am 25 years old. Just started a job that is offering my first 401k. The company that services my employer is T Rowe Price. I have a selection of funds to invest in or I can choose their target fund. My thoughts are the TRRNX 2055 Target Fund seems to not do that great over its history, as compared with other funds, vanguard for instance. Also it's expense ratio is a bit higher than vanguard at .76% . I was wondering if I should just go with the 2055 fund or go with a custom three fund plan with funds that are much lower expense ratio. It doesn't appear that I have that great of choice in my selection. But here is a picture of them.\n\nInvestment choices performance/expense ratio's: http://imgur.com/a/WnuPj\n\nTarget fund choices performance/expense ratio's: http://imgur.com/a/u7hm5\n\nCan you help a new investor out with some advice?\n\nThanks\n\nEdit: Thanks for the help I have chosen to go with the four funds offered by Vanguard with an allocation of 10% domestic bonds, 90% stocks (of that 90%, 30% is int. stocks, 60% is domestic stocks)" Self: "The TRRNX 2055 Target Fund expense ratio of .76% is rather high compared to Vanguard's (I'm rather fortunately to have Vanguard Target Retirement 2035 Trust Select which had an ER of .05% as of 2015), but I understand you're limited by your employer.\n\nThe idea of any of the Target funds is that you don't have to rebalance manually rather than with a 3 Fund which you'll need to do periodically. Given that if you did a manual 3 fund with your current options:\n\n* Vanguard total Bond - 0.06%\n* Vanguard total Int Stock Index - 0.12%\n* Vanguard Inst Index - 0.04%\n\nThat seems way better than the TRRNX's ER of 0.76% at a small cost of rebalancing every so often (and that part if up to you). This is a personal choice though, if you are willing to pay and have the system do it for you - that's fine too, just be sure you make an informed decision.\n\nGood luck! And remember (you probably won't stay at this job until you retire) to move your 401k to an IRA (of your choice) after you leave." User (NetworkingEnthusiast): "I think you are right, I really like how the Vanguard funds perform and the low expense ratio with them. Is there any downside to going with the 4 funds for Vanguard that are offered to me? It looks like that fourth one is a small-medium cap stocks. Does having more funds cost more? than three?" Self: "You'll want to read up on the Bogglehead forums as there's probably been discussion to death about this (and the analysis to go with it). There are mathematical analysis's that you'll have to read to figure out if that is worth it to you. Shorter answer - it'd probably fine, but I'm just a guy on the internet." User (NetworkingEnthusiast): "Guy on the internet? But I thought you were my fiduciary."
User (NetworkingEnthusiast): "Hello everyone\n\nI have been reading up on 401k's including rewatching John Oliver's retirement episode. I am still caught up on a target fund vs the three bond fund referenced in the wiki.\n\nFor some background. I am 25 years old. Just started a job that is offering my first 401k. The company that services my employer is T Rowe Price. I have a selection of funds to invest in or I can choose their target fund. My thoughts are the TRRNX 2055 Target Fund seems to not do that great over its history, as compared with other funds, vanguard for instance. Also it's expense ratio is a bit higher than vanguard at .76% . I was wondering if I should just go with the 2055 fund or go with a custom three fund plan with funds that are much lower expense ratio. It doesn't appear that I have that great of choice in my selection. But here is a picture of them.\n\nInvestment choices performance/expense ratio's: http://imgur.com/a/WnuPj\n\nTarget fund choices performance/expense ratio's: http://imgur.com/a/u7hm5\n\nCan you help a new investor out with some advice?\n\nThanks\n\nEdit: Thanks for the help I have chosen to go with the four funds offered by Vanguard with an allocation of 10% domestic bonds, 90% stocks (of that 90%, 30% is int. stocks, 60% is domestic stocks)" Self: "The TRRNX 2055 Target Fund expense ratio of .76% is rather high compared to Vanguard's (I'm rather fortunately to have Vanguard Target Retirement 2035 Trust Select which had an ER of .05% as of 2015), but I understand you're limited by your employer.\n\nThe idea of any of the Target funds is that you don't have to rebalance manually rather than with a 3 Fund which you'll need to do periodically. Given that if you did a manual 3 fund with your current options:\n\n* Vanguard total Bond - 0.06%\n* Vanguard total Int Stock Index - 0.12%\n* Vanguard Inst Index - 0.04%\n\nThat seems way better than the TRRNX's ER of 0.76% at a small cost of rebalancing every so often (and that part if up to you). This is a personal choice though, if you are willing to pay and have the system do it for you - that's fine too, just be sure you make an informed decision.\n\nGood luck! And remember (you probably won't stay at this job until you retire) to move your 401k to an IRA (of your choice) after you leave." User (NetworkingEnthusiast): "I think you are right, I really like how the Vanguard funds perform and the low expense ratio with them. Is there any downside to going with the 4 funds for Vanguard that are offered to me? It looks like that fourth one is a small-medium cap stocks. Does having more funds cost more? than three?" PoopyDoopie (PoopyDoopie): "The 3 funds in a 3 fund portfolio are US domestic equity, international equity, and US domestic bond. Your 401K doesn't really have one fund that covers US domestic equity, it has two that cover it only when combined. So I would say that to create a 3 fund portfolio with your 401K options you need 4 funds.\n\nSince you want 60% of your portfolio in domestic equity, put 48% in VINIX and 12% in VEXAX.\n\nHaving more funds does not cost more."
User (bearlights): "New bartender here. Tips are great but i dont know how I should declare then\n\nSome say i should declare everything. Some say just 25%. \n\nI dont want to pay the government a huge check later, but I also dont want to get audited. \n\nHow should I report my tips?" Self: "If you want to survive an audit you should report your tips. "
User (bearlights): "New bartender here. Tips are great but i dont know how I should declare then\n\nSome say i should declare everything. Some say just 25%. \n\nI dont want to pay the government a huge check later, but I also dont want to get audited. \n\nHow should I report my tips?" Self: "Put tips in a different pocket than your wallet money. Then report the tips received at the end of each shift or day."
User (bearlights): "New bartender here. Tips are great but i dont know how I should declare then\n\nSome say i should declare everything. Some say just 25%. \n\nI dont want to pay the government a huge check later, but I also dont want to get audited. \n\nHow should I report my tips?" Self: "Gee, I wonder if the IRS has written anything about tip income?\n\nhttps://www.irs.gov/businesses/small-businesses-self-employed/reporting-tip-income-restaurant-tax-tips\n\nhttps://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting\n\nhttps://www.irs.gov/pub/irs-pdf/p531.pdf\n\nhttps://www.irs.gov/pub/irs-pdf/p1244.pdf\n\nAll your tip income is taxable. If you are reporting it to your employer and they include it in your W-2 wages, that will end up on line 7. For any tips you receive that you aren't reporting to your employer, you add them into line 7 manually and also pay social security and medicare tips on them using Form 4137.\n\nhttps://www.irs.gov/uac/about-form-4137\n\nI can't find anywhere that the IRS suggests that only 25% of your tips need to be declared. Wishful thinking on the part of whoever told you that.\n"
User (bearlights): "New bartender here. Tips are great but i dont know how I should declare then\n\nSome say i should declare everything. Some say just 25%. \n\nI dont want to pay the government a huge check later, but I also dont want to get audited. \n\nHow should I report my tips?" Self: "Maybe you can get away with under-reporting. But that's like telling someone who has 2 speeding violations that maybe they can get away with just going 10 miles over the limit. The penalty for getting caught is high. You have to decide if the risk is worth it."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Take the package. You don't like the job, this is your chance. \n\nTo make it work, you need to maximize your war chest. \n1) Cut your spending all you can. \n2) For you last paycheck(s), Change your witholdings, 401(k) contributions, anything you can to maximize the last paycheck(s). \n3) review your savings accounts, checking, etc. include you last resorts in the planning... Roth IRAs. Credit card limits. \n4) find out the rules and amounts and waiting periods on unemployment checks in your state. \n5) compare cobra vs ACA vs you health care needs. \n6) do the math on 1-5 above and figure out how long you have. \n\nOther ways to stretch it:\nAre you paying for a house? If so, can you rent a room with airbnb?\nIf you are renting alone, can you move in with family?\n\nIf you have six months, figure out what to do with it. \nChange careers?\nGet a certification?\nJust get a better job doing what you know?\nEnter a training program?\n\nUpdate your resume, and linked in. \n\nApply for jobs like crazy. \n\nIf you start to approach those last resort spending options, rethink your plan. Take a part time job to stretch it out maybe. \n\nBest wishes!\n\n\n\n" LineBreakBot (LineBreakBot): "You might have incorrectly formatted line breaks. To create a line break, either put two spaces at the end of the line or put an extra blank line in-between lines. ([See Reddit's page on commenting for more information.](http://www.reddit.com/wiki/commenting))\n\nI have attempted to automatically reformat your text with fixed line breaks.\n\n----\n\n> Take the package. You don't like the job, this is your chance. \n> \n> To make it work, you need to maximize your war chest. \n> 1) Cut your spending all you can. \n> 2) For you last paycheck(s), Change your witholdings, 401(k) contributions, anything you can to maximize the last paycheck(s). \n> 3) review your savings accounts, checking, etc. include you last resorts in the planning... Roth IRAs. Credit card limits. \n> 4) find out the rules and amounts and waiting periods on unemployment checks are n your state. \n> 5) compare cobra vs ACA vs you health care needs. \n> 6) do the math on 1-5 above and figure out how long you have. \n> \n> Other ways to stretch it:\n\n> Are you paying for a house? If so, can you rent a room with airbnb?\n\n> If you are renting alone, can you move in with family?\n> \n> If you have six months, figure out what to do with it. \n\n> Change careers?\n\n> Get a certification?\n\n> Just get a better job doing what you know?\n\n> Enter a training program?\n> \n> Update your resume, and linked in. \n> \n> Apply for jobs like crazy. \n> \n> If you start to approach this last resort spending options, rethink your plan. Take a part time job to stretch it out maybe. \n> \n> Best wishes! \n> \n> \n> \n>\n\n----\n\n^(I am a bot. Contact) ^[pentium4borg](https://www.reddit.com/user/pentium4borg) ^(with any feedback.)"
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Grab the money and run. Severance rarely gets better for later rounds." User (telecomgrunt): "Yeah, that's my mindset. But I want to know how best to use the money and time I have now. " CN3RET (CN3RET): "If they're laying people off make sure you track down the 401k and get it transferred to your sole ownership in an IRA."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Take the package. You don't like the job, this is your chance. \n\nTo make it work, you need to maximize your war chest. \n1) Cut your spending all you can. \n2) For you last paycheck(s), Change your witholdings, 401(k) contributions, anything you can to maximize the last paycheck(s). \n3) review your savings accounts, checking, etc. include you last resorts in the planning... Roth IRAs. Credit card limits. \n4) find out the rules and amounts and waiting periods on unemployment checks in your state. \n5) compare cobra vs ACA vs you health care needs. \n6) do the math on 1-5 above and figure out how long you have. \n\nOther ways to stretch it:\nAre you paying for a house? If so, can you rent a room with airbnb?\nIf you are renting alone, can you move in with family?\n\nIf you have six months, figure out what to do with it. \nChange careers?\nGet a certification?\nJust get a better job doing what you know?\nEnter a training program?\n\nUpdate your resume, and linked in. \n\nApply for jobs like crazy. \n\nIf you start to approach those last resort spending options, rethink your plan. Take a part time job to stretch it out maybe. \n\nBest wishes!\n\n\n\n" User (telecomgrunt): "A part is that I can carry over my insurance for 6 months (taken out ahead of time). I have a place to stay. Mostly just need to know stiff like IRA and unemployment. But yes, I would like to get some more education. Thanks for your reply. " Self: "Great. Leave traditional ira and 401(k) alone, penalty not worth it. Roth IRA is a last resort, but no penalties so an option. \n\nStudent loans are an option, just try to keep them to a minimum. " User (telecomgrunt): "My 401k is with fidelity, so I think it should be safe. I'm shy about student loans. I know too many people being crushed by them. "
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Grab the money and run. Severance rarely gets better for later rounds." User (telecomgrunt): "Yeah, that's my mindset. But I want to know how best to use the money and time I have now. " expresidentmasks (expresidentmasks): "Not much information to go off of here." User (telecomgrunt): "What more would you like to know? " expresidentmasks (expresidentmasks): "Not me in particular because I'm not an expert but people need to know more about your savings, debts etc before they can really help." User (telecomgrunt): "Darn, I wish I had known/thought to post those earlier. I don't know if this thread is too aged now. Think it'd be worth rebooting my topic with more detail? " expresidentmasks (expresidentmasks): "Can't hurt. \nSome of the advice on here is A+. The more detail you can give them the better."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "I would check to see what the rules are for unemployment. Voluntarily quitting vs being laid off seems to be quite different. You may not be eligible for unemployment if you quit - so don't just assume you will get it. You might be better off staying with the company and continuing a job search right now. At least if you get laid off you can get unemployment! And if you get laid off you will likely still get a severance. They might be asking for volunteer quiting so they don't have to pay unemployment." User (telecomgrunt): "I wouldn't be heartbroken if I don't get unemployment. And this job is too soul crushing to continue. I'm happier just thinking about not being there. " bomber991 (bomber991): "Ehhh.... it's work. Doesn't matter what you end up doing, in the end you'll still be stuck somewhere at a minimum of 8 hours a day 5 days a week. In the end it's all pretty much soul crushing, though if your job is to slam newborn babies against a tree to kill them that might be a bit more soul crushing." User (telecomgrunt): "I'm an atheist. There's a segment of the community that already thinks that's how I spend my time. "
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Grab the money and run. Severance rarely gets better for later rounds." User (telecomgrunt): "Yeah, that's my mindset. But I want to know how best to use the money and time I have now. " expresidentmasks (expresidentmasks): "Not much information to go off of here." User (telecomgrunt): "What more would you like to know? " expresidentmasks (expresidentmasks): "Not me in particular because I'm not an expert but people need to know more about your savings, debts etc before they can really help." User (telecomgrunt): "Darn, I wish I had known/thought to post those earlier. I don't know if this thread is too aged now. Think it'd be worth rebooting my topic with more detail? " lol_admins_are_dumb (lol_admins_are_dumb): "PF doesn't have so much churn that your topic will be totally lost in the next few hours. Feel free to just edit your original post." User (telecomgrunt): "I won't be of much help to clarify when I lose consciousness here shortly. I'll see what I can add. But in reality, the more I think about it, I've got enough issues that could use their own posts."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "I would check to see what the rules are for unemployment. Voluntarily quitting vs being laid off seems to be quite different. You may not be eligible for unemployment if you quit - so don't just assume you will get it. You might be better off staying with the company and continuing a job search right now. At least if you get laid off you can get unemployment! And if you get laid off you will likely still get a severance. They might be asking for volunteer quiting so they don't have to pay unemployment." lol_admins_are_dumb (lol_admins_are_dumb): "Unemployment benefits are not paid out of the company's pockets, the company pays (by law) for unemployment insurance that covers employees. The insurance is what pays the employees" j_johnso (j_johnso): "Yes, but the number of unemployment claims can increase the amount that the company pays for unemployment insurance in the future."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "I would check to see what the rules are for unemployment. Voluntarily quitting vs being laid off seems to be quite different. You may not be eligible for unemployment if you quit - so don't just assume you will get it. You might be better off staying with the company and continuing a job search right now. At least if you get laid off you can get unemployment! And if you get laid off you will likely still get a severance. They might be asking for volunteer quiting so they don't have to pay unemployment." User (telecomgrunt): "I wouldn't be heartbroken if I don't get unemployment. And this job is too soul crushing to continue. I'm happier just thinking about not being there. " j_johnso (j_johnso): "In some states, severance will impact eligibility for unemployment as well. If your severance is equal to 3 months of wages, then you may not be able to get unemployment for 3 months.\n"
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "I would check to see what the rules are for unemployment. Voluntarily quitting vs being laid off seems to be quite different. You may not be eligible for unemployment if you quit - so don't just assume you will get it. You might be better off staying with the company and continuing a job search right now. At least if you get laid off you can get unemployment! And if you get laid off you will likely still get a severance. They might be asking for volunteer quiting so they don't have to pay unemployment." lol_admins_are_dumb (lol_admins_are_dumb): "Unemployment benefits are not paid out of the company's pockets, the company pays (by law) for unemployment insurance that covers employees. The insurance is what pays the employees" Self: "Unemployment insurance costs have a direct correlation with how many people from their company are able to go on unemployment. Another reason why they may consider asking for voluntary quiting. Trust me, it's all about dollars and cents, their not doing this bc it's better for the employees. "
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "I would check to see what the rules are for unemployment. Voluntarily quitting vs being laid off seems to be quite different. You may not be eligible for unemployment if you quit - so don't just assume you will get it. You might be better off staying with the company and continuing a job search right now. At least if you get laid off you can get unemployment! And if you get laid off you will likely still get a severance. They might be asking for volunteer quiting so they don't have to pay unemployment." User (telecomgrunt): "I wouldn't be heartbroken if I don't get unemployment. And this job is too soul crushing to continue. I'm happier just thinking about not being there. " Self: "Based on this post alone, it's obvious the finances don't matter. Take the money, get out of there, and find a new job. Once you have a new job you can concentrate on financial future. For now, just work to bridge the gap."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Take the package. You don't like the job, this is your chance. \n\nTo make it work, you need to maximize your war chest. \n1) Cut your spending all you can. \n2) For you last paycheck(s), Change your witholdings, 401(k) contributions, anything you can to maximize the last paycheck(s). \n3) review your savings accounts, checking, etc. include you last resorts in the planning... Roth IRAs. Credit card limits. \n4) find out the rules and amounts and waiting periods on unemployment checks in your state. \n5) compare cobra vs ACA vs you health care needs. \n6) do the math on 1-5 above and figure out how long you have. \n\nOther ways to stretch it:\nAre you paying for a house? If so, can you rent a room with airbnb?\nIf you are renting alone, can you move in with family?\n\nIf you have six months, figure out what to do with it. \nChange careers?\nGet a certification?\nJust get a better job doing what you know?\nEnter a training program?\n\nUpdate your resume, and linked in. \n\nApply for jobs like crazy. \n\nIf you start to approach those last resort spending options, rethink your plan. Take a part time job to stretch it out maybe. \n\nBest wishes!\n\n\n\n" User (telecomgrunt): "A part is that I can carry over my insurance for 6 months (taken out ahead of time). I have a place to stay. Mostly just need to know stiff like IRA and unemployment. But yes, I would like to get some more education. Thanks for your reply. " Self: "Great. Leave traditional ira and 401(k) alone, penalty not worth it. Roth IRA is a last resort, but no penalties so an option. \n\nStudent loans are an option, just try to keep them to a minimum. " lol_admins_are_dumb (lol_admins_are_dumb): "Given that he hasn't filed for this year yet, is there really a penalty for taking 401k contributions back out? Just curious" Self: "Good question. I don't know. Would need to check with a tax accountant"
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Thought on it:\n\n1. Start saving more now. It'll be a couple paychecks between you taking the deal and it actually happening. \n\n2. Figure out your basic most budget for the after tax severance package and try to max it out.\n\n3. Start looking for new work now. Your new job is to find a new job."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Sounds like a great deal overall - you want to leave anyhow, and they're paying you to do so. As others have mentioned, it's rare for these deals to get better over time. \n\nOut of curiosity, why do you think $25k is insulting? That's a pretty good chunk of money - in fact, it will roughly double your current net worth. Generally speaking, for most lower to mid-level roles, severance of 2-4 months worth of pay is common (and I'm guessing you fall into this bucket based on your financial situation).\n\nI'd be pretty happy if I were in your shoes - you hate the job and have been unhappy, but haven't been able to get yourself to make a move. Maybe this is the kick in the pants you need to go find a better job that will make you happier. Good luck!" User (telecomgrunt): "The way they get that figure is based on how many years you've been with the company. And people have gotten more in the past. Internal politics...."
User (telecomgrunt): "Yesterday I had submitted a post and [Reddit begun to have technical difficulties](http://currentlydown.com/reddit.com#2016-12-01) around the same time that I ask, so while I appreciate the few who did respond, I do not feel as though I got as well rounded of a plan for what I should do next.\n\n[My original post](https://www.reddit.com/r/personalfinance/comments/5fzxwi/severance_package_and_no_plan/)\n>So the job that I've been utterly miserable at for a decade [that's circling the drain anyway] offered us money to voluntarily quit. The writing is on the wall; I either take the money now or potentially lose it all later. What they've offered us is honestly an insult, but it's enough keep me afloat for about a half year if I play things very conservatively. I have only my high-school education and some baby certifications. I fully contributed to my 401k. How best do I use this time and money?\n\nEdits have been suggested [on mobile] \n\nAlright, here's a better breakdown of my financial situation. \n\n$25k pre-tax severance \n\n$800 in savings\n\n$50~k in 401k\n\n$-16k auto loan\n\n$-10~k in misc credit card debt\n\n$-4~k IRS debt\n\nI put in my 60 day notice with my uber over priced apartment complex today. I have another option that I will finally be taking advantage of to save me a ton of money. \n\nThat's about all I cab think of. Sorry if I cannot stay conscious to be interactive with this new info. But I'll pick up in the morning. " Self: "Grab the money and run. Severance rarely gets better for later rounds." User (telecomgrunt): "Yeah, that's my mindset. But I want to know how best to use the money and time I have now. " Self: "Cut expenses NOW as if you might be unemployed for a long time. Start your job search immediately. File for unemployment as soon as you are officially out of work because there is often a waiting period so you want that clock to start as soon as possible." User (telecomgrunt): "I haven't been walked out just yet, but yes, I will definitely walk down to the unemployment office the following day. Thank you. " drxdrg08 (drxdrg08): "> offered us money to voluntarily quit\n\nAre you sure you will get unemployment if you voluntarily quit?"
User (evident_lee): "I already have a good corporate job that has 401K, medical and the other usual benefits. I am going to do some side work for a company in an unrelated field. The initial plan was $30 an hour as a W-2 employee. I was thinking that going 1099 may be better since I could write off buying a laptop for this job as well as a lot of other things. Anyone have any advice on which route is better and what I should ask for hourly if I go with the 1099?" Self: "Your tax rate as a 1099 worker is 15.3%. Take that info and make your decision." AlwaysABride (AlwaysABride): "It is 15.3% for FICA, plus your normal income tax rate."
User (evident_lee): "I already have a good corporate job that has 401K, medical and the other usual benefits. I am going to do some side work for a company in an unrelated field. The initial plan was $30 an hour as a W-2 employee. I was thinking that going 1099 may be better since I could write off buying a laptop for this job as well as a lot of other things. Anyone have any advice on which route is better and what I should ask for hourly if I go with the 1099?" Self: "You may not have a choice.. The employer needs to determine if you are employee or contractor. There are constraints on the business that control this. Will you be billing them for your time? Do they direct your activities? What are your reporting requirements? Lots of companies try to avoid W2 situations and then find they can't.. "
User (stormy_heart): "So I fell on my tail bone in 2015. Had it xrayed right away to make sure nothing was broken. Nothing was. I figured the pain would go away.\n\nFast forward one year I still have pain every time I sit and lay down. It sucks.\n\nSo I go back to my doctor and she sends me to a physical therapist A. (PTA)\n\nPTA does some stuff she concludes it is bent to the right, so she is going to bend it to the left. She works on me twice says all looks good and sends me on my way. Pain is even worse now.\n\nSo I go to physical therapist B. She listens to the above story. She starts her stuff, in 2 visits my pain is completely gone (she wants to do 6 more sessions to make sure everything goes okay, but right now I have no pain.)\n\nShe concluded that my tail bone was actually bent to the left. So PTA was bending everything even more to the left. Hence why there was more pain.\n\nI'm stuck with a $360x2 ($720) from PTA. She didn't fix things. She made things worse. Is there anything I can do about the bill? Or I'm just stuck paying it?\n\nI have a 2k deductible for my insurance. So it won't cover anything.\n" Self: "You may find the [Health Insurance wiki page](https://www.reddit.com/r/personalfinance/wiki/health_insurance) helpful.\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (stormy_heart): "So I fell on my tail bone in 2015. Had it xrayed right away to make sure nothing was broken. Nothing was. I figured the pain would go away.\n\nFast forward one year I still have pain every time I sit and lay down. It sucks.\n\nSo I go back to my doctor and she sends me to a physical therapist A. (PTA)\n\nPTA does some stuff she concludes it is bent to the right, so she is going to bend it to the left. She works on me twice says all looks good and sends me on my way. Pain is even worse now.\n\nSo I go to physical therapist B. She listens to the above story. She starts her stuff, in 2 visits my pain is completely gone (she wants to do 6 more sessions to make sure everything goes okay, but right now I have no pain.)\n\nShe concluded that my tail bone was actually bent to the left. So PTA was bending everything even more to the left. Hence why there was more pain.\n\nI'm stuck with a $360x2 ($720) from PTA. She didn't fix things. She made things worse. Is there anything I can do about the bill? Or I'm just stuck paying it?\n\nI have a 2k deductible for my insurance. So it won't cover anything.\n" Self: "> Is there anything I can do about the bill?\n\nYou can call them up, tell them what happened and ask what they are willing to do about the bill." ajsmitty (ajsmitty): "The only answer."
User (stormy_heart): "So I fell on my tail bone in 2015. Had it xrayed right away to make sure nothing was broken. Nothing was. I figured the pain would go away.\n\nFast forward one year I still have pain every time I sit and lay down. It sucks.\n\nSo I go back to my doctor and she sends me to a physical therapist A. (PTA)\n\nPTA does some stuff she concludes it is bent to the right, so she is going to bend it to the left. She works on me twice says all looks good and sends me on my way. Pain is even worse now.\n\nSo I go to physical therapist B. She listens to the above story. She starts her stuff, in 2 visits my pain is completely gone (she wants to do 6 more sessions to make sure everything goes okay, but right now I have no pain.)\n\nShe concluded that my tail bone was actually bent to the left. So PTA was bending everything even more to the left. Hence why there was more pain.\n\nI'm stuck with a $360x2 ($720) from PTA. She didn't fix things. She made things worse. Is there anything I can do about the bill? Or I'm just stuck paying it?\n\nI have a 2k deductible for my insurance. So it won't cover anything.\n" Self: "People, for some reason, frequently look at medical bills differently than other bills.\n\nIf you took your car to the shop because it wasn't starting and the mechanic said you needed a new alternator for $720, would you pay him the $720 if he put the alternator in your car and it still didn't start?\n\nBeyond that, if that scenario happened, would the mechanic even have the audacity to charge you, or would he tell you "man, guess I got it wrong, let's see what we can do to actually get it fixed before you pay me anything"? Every mechanic I know wouldn't expect payment if he didn't fix it and would keep working on it until he figured it out. Never had the same experience with doctors." demicrown (demicrown): "That's because medicine isn't a perfect science. It wouldn't make sense to hold doctors to that kind of standard. \n\nThat said, malpractice can happen. Proving it isn't always easy though. " Self: "You clearly have a lot more faith in the integrity of doctors than I do. You go in with a one-visit, $300, fixable problem and rather than fix it, the doctor milks it into a dozen visits and $6,000 in billings to your insurance company.\n\nAn auto mechanic try that and 20/20 is coming in with hidden cameras." demicrown (demicrown): "Human biology is vastly more complex than an automobile." Self: "Then be honest up front. "Hey, I can go in an do surgery for $22,000 and it might fix it, might make things a little better or might have no change at all; I don't really know. Or, I can prescribe this pill that will cost you $37/month, but I'll only get this one office visit out of the deal and not really make any money from you. Which would you prefer"?\n\nJust like a mechanic is going to say "It could just be your A/C switch and I can do that for $200. But once that is fixed, we could find out that your compressor needs to be replaced and that'll run you another $1,200 if that's the case. What do you want to do"?"
User (stormy_heart): "So I fell on my tail bone in 2015. Had it xrayed right away to make sure nothing was broken. Nothing was. I figured the pain would go away.\n\nFast forward one year I still have pain every time I sit and lay down. It sucks.\n\nSo I go back to my doctor and she sends me to a physical therapist A. (PTA)\n\nPTA does some stuff she concludes it is bent to the right, so she is going to bend it to the left. She works on me twice says all looks good and sends me on my way. Pain is even worse now.\n\nSo I go to physical therapist B. She listens to the above story. She starts her stuff, in 2 visits my pain is completely gone (she wants to do 6 more sessions to make sure everything goes okay, but right now I have no pain.)\n\nShe concluded that my tail bone was actually bent to the left. So PTA was bending everything even more to the left. Hence why there was more pain.\n\nI'm stuck with a $360x2 ($720) from PTA. She didn't fix things. She made things worse. Is there anything I can do about the bill? Or I'm just stuck paying it?\n\nI have a 2k deductible for my insurance. So it won't cover anything.\n" Self: "Unless you can prove PTA was incompetent to the point of negligence, not really. And if you think you can you should probably contact one of those personal injury lawyers and ask them what they think. Because if you don't want to pay you'll need a lawyer or you'll be fending off debt collectors for the next 7 years."
User (stormy_heart): "So I fell on my tail bone in 2015. Had it xrayed right away to make sure nothing was broken. Nothing was. I figured the pain would go away.\n\nFast forward one year I still have pain every time I sit and lay down. It sucks.\n\nSo I go back to my doctor and she sends me to a physical therapist A. (PTA)\n\nPTA does some stuff she concludes it is bent to the right, so she is going to bend it to the left. She works on me twice says all looks good and sends me on my way. Pain is even worse now.\n\nSo I go to physical therapist B. She listens to the above story. She starts her stuff, in 2 visits my pain is completely gone (she wants to do 6 more sessions to make sure everything goes okay, but right now I have no pain.)\n\nShe concluded that my tail bone was actually bent to the left. So PTA was bending everything even more to the left. Hence why there was more pain.\n\nI'm stuck with a $360x2 ($720) from PTA. She didn't fix things. She made things worse. Is there anything I can do about the bill? Or I'm just stuck paying it?\n\nI have a 2k deductible for my insurance. So it won't cover anything.\n" Self: "People, for some reason, frequently look at medical bills differently than other bills.\n\nIf you took your car to the shop because it wasn't starting and the mechanic said you needed a new alternator for $720, would you pay him the $720 if he put the alternator in your car and it still didn't start?\n\nBeyond that, if that scenario happened, would the mechanic even have the audacity to charge you, or would he tell you "man, guess I got it wrong, let's see what we can do to actually get it fixed before you pay me anything"? Every mechanic I know wouldn't expect payment if he didn't fix it and would keep working on it until he figured it out. Never had the same experience with doctors." demicrown (demicrown): "That's because medicine isn't a perfect science. It wouldn't make sense to hold doctors to that kind of standard. \n\nThat said, malpractice can happen. Proving it isn't always easy though. " Self: "You clearly have a lot more faith in the integrity of doctors than I do. You go in with a one-visit, $300, fixable problem and rather than fix it, the doctor milks it into a dozen visits and $6,000 in billings to your insurance company.\n\nAn auto mechanic try that and 20/20 is coming in with hidden cameras." demicrown (demicrown): "Also, mechanics screw people over all the time. " PoopyDoopie (PoopyDoopie): "AAB does have an above average view of mechanics, but I gave her a pass because this thread is about doctors and her comments on them are spot on."
User (stormy_heart): "So I fell on my tail bone in 2015. Had it xrayed right away to make sure nothing was broken. Nothing was. I figured the pain would go away.\n\nFast forward one year I still have pain every time I sit and lay down. It sucks.\n\nSo I go back to my doctor and she sends me to a physical therapist A. (PTA)\n\nPTA does some stuff she concludes it is bent to the right, so she is going to bend it to the left. She works on me twice says all looks good and sends me on my way. Pain is even worse now.\n\nSo I go to physical therapist B. She listens to the above story. She starts her stuff, in 2 visits my pain is completely gone (she wants to do 6 more sessions to make sure everything goes okay, but right now I have no pain.)\n\nShe concluded that my tail bone was actually bent to the left. So PTA was bending everything even more to the left. Hence why there was more pain.\n\nI'm stuck with a $360x2 ($720) from PTA. She didn't fix things. She made things worse. Is there anything I can do about the bill? Or I'm just stuck paying it?\n\nI have a 2k deductible for my insurance. So it won't cover anything.\n" Self: "Yes you can. Go to the PTA customer service office and explain your situation. This happened to me with my IUD when I had one doctor who didn't know what they were doing. Went to another and had no issues. The first doctors office refunded me in full. But you have to follow up and be diligent. In addition I called my insurance and let them know what happened. \n\nAlso take your medical notes from your second PTA to show that you were fixed by a different process. Most times places can't charge you if you had to go somewhere else to get the work fixed. Medicine is funny but that doesn't mean every doctor can charge you if they don't do the bare minimum correctly. "
User (throwaway0053252): "Obligatory throwaway account because stuff\n\nAbout a month or 2 ago I got really bored and tried to play poker online. Tried to wire $20, but my bank automatically declined, even though I had/have well over $20 in my account. \n\nNow I am recieving calls and letters from a debt collector that I owe $20 + 35 for a check bouncing fee. The payment method (E-Bank Transfer) was automatically declined by my bank (i assume for legality reasons) and not because of insufficent funds. Am I on the hook for this?\n\nThanks for any help :) " Self: "You may find these links helpful:\n\n- [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F)\n- [Dealing with collections](http://www.reddit.com/r/personalfinance/wiki/collections)\n- [Credit Repair](http://www.reddit.com/r/personalfinance/wiki/credit_building#wiki_i_have_bad_credit.2C_and_i_am_looking_to_repair_it.)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (throwaway0053252): "Obligatory throwaway account because stuff\n\nAbout a month or 2 ago I got really bored and tried to play poker online. Tried to wire $20, but my bank automatically declined, even though I had/have well over $20 in my account. \n\nNow I am recieving calls and letters from a debt collector that I owe $20 + 35 for a check bouncing fee. The payment method (E-Bank Transfer) was automatically declined by my bank (i assume for legality reasons) and not because of insufficent funds. Am I on the hook for this?\n\nThanks for any help :) " Self: "Did you poker with the $20?" User (throwaway0053252): "No, the program itself did not let me play as it recognized that I live in an area where it is illegal (they let me try to deposit the $20 first tho) \n\n"
User (throwaway0053252): "Obligatory throwaway account because stuff\n\nAbout a month or 2 ago I got really bored and tried to play poker online. Tried to wire $20, but my bank automatically declined, even though I had/have well over $20 in my account. \n\nNow I am recieving calls and letters from a debt collector that I owe $20 + 35 for a check bouncing fee. The payment method (E-Bank Transfer) was automatically declined by my bank (i assume for legality reasons) and not because of insufficent funds. Am I on the hook for this?\n\nThanks for any help :) " Self: "Honestly, ignore it. Nothing will come of it." User (throwaway0053252): "This was my original course of action, I wanted to make sure there are no repercussions."
User (throwaway0053252): "Obligatory throwaway account because stuff\n\nAbout a month or 2 ago I got really bored and tried to play poker online. Tried to wire $20, but my bank automatically declined, even though I had/have well over $20 in my account. \n\nNow I am recieving calls and letters from a debt collector that I owe $20 + 35 for a check bouncing fee. The payment method (E-Bank Transfer) was automatically declined by my bank (i assume for legality reasons) and not because of insufficent funds. Am I on the hook for this?\n\nThanks for any help :) " Self: "Honestly, ignore it. Nothing will come of it." kim501 (kim501): "Ignore it? That doesn't seem like great advice. If the money never came out, then show them your bank statements. Show them that there was never any credit applied to the poker website. "
User (SidlingWithScissors): "Hey guys, my title pretty much says it all. I'll use hypothetical numbers to explain a bit so you know where my head's at.\n\nMy statement was posted on 11/12, at $500. I paid $200 of it to decrease the balance a bit. Since then, my purchases have brought my current balance back up to $550. The due date is 12/7. To avoid any negatives to my credit score, etc do I need to pay that full $550 by 12/7? Or can I just pay $300 (what's left of the original statement balance after my $200 payment)\n\nI know this is probably really basic but I'm just starting out. Thanks in advance!\n\nEdit: Words" Self: "You have to pay at least the STATEMENT BALANCE by the DUE DATE to avoid interest charges."
User (SidlingWithScissors): "Hey guys, my title pretty much says it all. I'll use hypothetical numbers to explain a bit so you know where my head's at.\n\nMy statement was posted on 11/12, at $500. I paid $200 of it to decrease the balance a bit. Since then, my purchases have brought my current balance back up to $550. The due date is 12/7. To avoid any negatives to my credit score, etc do I need to pay that full $550 by 12/7? Or can I just pay $300 (what's left of the original statement balance after my $200 payment)\n\nI know this is probably really basic but I'm just starting out. Thanks in advance!\n\nEdit: Words" Self: "To avoid interest charges, all payments you make between the statement date and due date have to sum up to the statement balance. This is commonly done by paying the statement balance (once) near the due date. But you are free to split up the payments into many pieces as you want."
User (slothless_bear): "Currently my monthly spendings/budget is $80 on gas, $30 on a gym membership, $50 on whatever else (I live at home, everything else is paid for). That totals me to $160. \n\nMy plan is to move out in a little over a year for school, so I want to save so I'll have a cushion while I find a new job at my new location. \n\nMy problem is that my pay is never consistent. One week I will have 9 hours, and another week I'll have 30 hours. I get paid weekly, so my weekly ranges from $100-$300. I do have a credit card debt of $670, however it's a 0% APR for the next 12 months so I've been slowly digging myself out of the hole. I also have $600 in savings.\n\nI know most people would say to take the savings and pay off the credit card, but should I still even though it is 0% APR for 12 months?" Self: "My advice:\n\nIf you can, allot $60 a month so you can pay off that credit card. Keep your savings! You never know when you might need it. Particularly when you're the cusp of independence. And, plus, you live at home so you can cut corners.\n\nSpeaking of corners, I recommend canceling the gym membership. If you're on a tight budget, just learn some exercises using body weight. Dips, push-ups, leg-lifts, etc. It can be extremely effect and is free. \n\nAfter that, also try to allot maybe $25 from every paycheck into your savings. Do it as soon as you get paid. Don't give yourself a chance to second guess. It adds up quickly."
User (slothless_bear): "Currently my monthly spendings/budget is $80 on gas, $30 on a gym membership, $50 on whatever else (I live at home, everything else is paid for). That totals me to $160. \n\nMy plan is to move out in a little over a year for school, so I want to save so I'll have a cushion while I find a new job at my new location. \n\nMy problem is that my pay is never consistent. One week I will have 9 hours, and another week I'll have 30 hours. I get paid weekly, so my weekly ranges from $100-$300. I do have a credit card debt of $670, however it's a 0% APR for the next 12 months so I've been slowly digging myself out of the hole. I also have $600 in savings.\n\nI know most people would say to take the savings and pay off the credit card, but should I still even though it is 0% APR for 12 months?" Self: "Inconsistent pay is not an issue when you're saving over an entire year. Just save more when you earn more and less when you earn less. The credit card debt is not a problem as long as you pay it off before the 0% promo period is over. The real issue is making sure you're actually saving each time you get paid and not just carelessly spending it all away."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "Not without getting your mom in trouble." User (RousedWookie): "Seems to be the common sentiment."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "That's identity fraud. You could contest the account on the grounds that it was not your account. You would need to file a claim of identity theft with the police and provide that to the company that owns the debt.\n\n" User (RousedWookie): "Incidentally, the collections agency is sending me the paperwork. Just in case..."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "HOPEFULLY, your parents had good intentions and were trying to help you establish payment history so you'd be able to get a CC or whatever when you graduated. HOPEFULLY, this just fell through the cracks when your dad passed away and/or she moved. That's honestly how I read the situation. $800 in utilities is only a few months really. I'd try to handle this in-house as $800, while not pocket change, isn't a massive amount of money, not worth ruining family relations over IMO." User (RousedWookie): "We are completely on the same page, my friend. I would, frankly, dish out the $800 before charging my own mom with identity theft. I wouldn't be happy about it, but I'm not a heartless monster."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "HOPEFULLY, your parents had good intentions and were trying to help you establish payment history so you'd be able to get a CC or whatever when you graduated. HOPEFULLY, this just fell through the cracks when your dad passed away and/or she moved. That's honestly how I read the situation. $800 in utilities is only a few months really. I'd try to handle this in-house as $800, while not pocket change, isn't a massive amount of money, not worth ruining family relations over IMO." SunshineAllDayLong (SunshineAllDayLong): "Good intentions? How does someone commit identity theft and credit fraud due to good intentions?"
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "Your mom unilaterally signed you up to pay her debt. Unless she fixes it, she deserves to be in trouble for it. What other obligations has she signed you up for?" User (RousedWookie): "We were a poor family; food stamps, soup kitchens, you name it. I won't chalk it up purely to bad luck on her part, but her credit was less than satisfactory and I imagine she made a difficult decision to keep the lights on. \n\nLuckily, this is the only mysterious debt I know of." SunshineAllDayLong (SunshineAllDayLong): "If I was in that situation, I would tell my son or daughter and ask them if it was okay. I wouldn't do it without their knowledge."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "Is it possible that your father did this before he passed away? I mean, if he handled most of the bills, and your mother didn't know what was going on ..."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "###### Topic: Utility ######\n\nSimplify calculations \nAny probability \nMost utility functions \nA firm 's utility \n \nSome reasonable assumptions \nThe agent 's preferences \nWith many possible options \nUtility differences \n \nAs a linear combination \nIs equivalent to the function \nPeoples behavior in relation \nThe fulfillment or satisfaction \n \nOf microeconomics \nIn welfare economics\n \n \n****** \n^(I'm just a bot.) \n^(Yes, I'm only a bot.) \n^(And I'm sitting here on my digital butt.) \n\n^(Well, it's a long, long journey) \n^(To the top of Reddit fame.) \n^(It's a long, long wait) \n^(While I become oh so less lame.) \n\n^(Oh I know I haven't got much of a shot.) \n^(At least I hope and pray that I will,) \n^(But today I am still just a bot.) \n\nI was inspired by [/u/Poem_for_your_sprog](https://www.reddit.com/user/Poem_for_your_sprog "Poem_for_your_sprog"), of whom I am [not worthy](https://youtu.be/o5FT3IGXtAk?t=98). Carry on, carry on as if nothing really matters. \n \n "
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "HOPEFULLY, your parents had good intentions and were trying to help you establish payment history so you'd be able to get a CC or whatever when you graduated. HOPEFULLY, this just fell through the cracks when your dad passed away and/or she moved. That's honestly how I read the situation. $800 in utilities is only a few months really. I'd try to handle this in-house as $800, while not pocket change, isn't a massive amount of money, not worth ruining family relations over IMO." PoopyDoopie (PoopyDoopie): "There is no chance of this. Utility bills don't go on a credit report when you pay them, only when they are delinquent. They can never help you get a CC.\n\nOP's parents owed money to the electric company that they couldn't (or wouldn't) pay, so when it was shut off, they used their kid's identity to start a new bill. Maybe they had every intention at first to pay the bill so it wouldn't affect OP's credit. But when OP's Mom moved out she made the conscious decision to not pay it, despite her kid's name being on the bill she received every month."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "You're a good son, and you love your mother. I get that. Clearly you have decided to pay this debt so your Mom doesn't go to jail. However, your Mom still has your name and SSN, and I am concerned she will be using it to her advantage again, especially if she gets away with it this time.\n\nI recommend drawing a line in the sand. Tell your Mom you will pay for her mistake this time, but next time you will go to the police. Let her know that it is important to you that you live your life with good credit and good opportunities, and you won't allow her to screw that up indefinitely. Tell her that if she needs money she should come to you and ask instead of stealing it from you. You are such a good son she should already know that she can come to you for anything, she really needs to be ashamed for what she has done.\n\nAnd if she crosses the line, follow through. If she continues her behavior it means that the police and the courts and the prison have a better chance of rehabilitating her than you do. You can still love her and visit her while she is in prison."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "The problem with trying to not have your mom be liable for a felony, is that she committed a felony. If she didn't want to risk being charged with it she shouldn't have done it. This isn't your fault, and for such little money I'd make her pay it off or have it be an expensive lesson. Make it very clear that if it happens again you won't bail her out again though. That's a very real risk."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: ">I think she'll agree to pay it (or at least take the debt).\n\nLets be honest here... if she was happy to pay it then why is your name on it?\n\nYour name is very likely on it because she was worried she couldnt pay it, or didnt intend to pay it.\n\nYou basically have 2 solutions to get the debt fixed without you paying it.\n\n1. Get her to pay it 100% and remove your name and to agree never to do it again. And to ensure our name is on nothing else.\n\n2. ANYTHING LESS... and you will need to file a police report for identity theft in order to get it cleanly removed and handed back to her.\n\nOption 3 is you pay it all, or pay part of it, and that would be a dumb idea."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "If you can pay it off, maybe talk to the debt collectors about doing a pay for delete. If the choice is between getting some of the money or you filing a dispute and them getting no money they might be willing to work with you. "
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "File the police report and the FTC identity theft affidavit. Use them to get the account off your credit. I doubt anything will happen except for MAYBE they'll try to make her pay it back." Boblow_Jihobey (Boblow_Jihobey): "In the eyes of the law, they won't care that it was a family member that used his information to gain credit. ID theft is ID theft no matter who is doing it. "
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "Write a letter to the collections agency asking them to prove the debt. Send it certified. If you have a little bit of money to spare, have an attorney draft this on their letterhead. This will buy you some time to plan how you're going to pay. When they get back to you, try and negotiate an amount to settle on. You can then make payments- although they'll try and discourage you from doing this. They want it all at once. Try and handle this process in writing and don't offer up any personal information (cell number, place of employment) they'll just harass you. In the meantime, see if your city offers any financial help or rebates for utilities you might qualify for assistance based on your income. \n\nAlso, check and see if she has tried to draw unemployment in your name as well. I had someone steal my identity, and they collected unemployment for two years. I was employed that entire time. Apparently it's very easy to commit that type of fraud. "
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "Any chance it was your dad that set it up and not your mom?" User (RousedWookie): "Considered that! Don't know for sure until my mother provides some answers. If I recall, I think she primarily handled most of the bills. " Blunt1nstrument (Blunt1nstrument): "But would the government know that? ;)" User (RousedWookie): "Guv'ment probably wouldn't bother either way."
User (RousedWookie): "I've been having some difficulty finding much in the way of answers that don't end in felonies for my mother, so I'm stopping by Reddit to see if there's something I'm missing.\n\nAt some point, while I was away at college 6 years ago, my parents used my SSN/identity on an electric bill. I don't recall giving them permission. I was around 19 or 20 at the time, so I don't have the defense of having been a minor at the time. Around two years ago, my mother moved after my father passed and (apparently) didn't pay this electric bill. Now I am saddled with the $800+ debt that just went into collections (coincidentally, this is how I discovered it) and is currently marring my credit report.\n\nI asked my mother about this yesterday. Haven't heard back. She is always difficult to get a hold of.\n\nI think she'll agree to pay it (or at least take the debt). Is there a way to transfer a debt after it's in collections? If not, do I have much of a defense being that I was of legal age at the time and that the address was my mailing address? \n\nUpdate 12/7:\nFirst, I appreciate the wealth of advice and support! Didn't expect more than a few comments and I was pleasantly surprised.\n\nSecond, my mother has acknowledged that she, at some point, put the utility in my name while I was away at school. She denied it at first (until I showed her the actual bill the electric company sent me) which was disconcerting, but I suppose she was ashamed?\n\nIt gets strange from here: the bill is for a period of usage that occurred after my mother moved from the residence. About a year after, in fact. So, either the electric company goof'd or my mother never took transferred or canceled service or the new owners failed to put the electric in their name? Each scenario is equally unusual. So the journey continues.\n\n" Self: "Haven't seen anyone else mention this. If you have the ability to, stop by and talk to a manager at the utility company. Explain the situation with lots of empathy and see if they will help out. Not erase the bill, but if the bill is paid in full, you could ask them to remove the collection account from your credit. They just want their money. If it's Avista, good luck. If it's a smaller company there are usually really cool and understand that shit happens sometimes. " User (RousedWookie): "It's First Energy in Ohio; they're pretty notorious pricks, unfortunately. "
User (rymack10): "So, I've been reading more about personal finance and wanted to get some friendly opinions. I graduated college in 2014 at the age of 22. Started working a month after with a 54k salary. My vehicle at the time was an 05 Pontiac G6 that was paid off. No student loans.\n\nI worked for a year and had money to spend and wasn't really saving at the time (stupid I know). I had always wanted a full size truck. I went and got a 2015 GMC Sierra and traded my car in for $4500. Value of the car was probably around 5k or so. I was 23 at this point renting an apartment with a roommate and didn't have a lot of expenses.\n\nFast forward to now, I have a house and a gf that I'm living with. We split the bills as far as utilities and house payment. Now I have gotten interested in personal finance/financial independence. Due to doing some home renovations I don't have a emergency fund, but just set up a savings account and starting to get that set up.\n\nI live 3 miles from work and usually don't do much driving unless I go see family about 100 miles away on the weekend. That may happen once every 2 or 3 months except for holidays where it may be more.\n\nI'm debating selling the truck and driving a 98 Ford Ranger I had in college (Stays at my parents' house). It's paid off with about 130k miles. I definitely wouldn't be as happy in that vehicle, but I could save more and build up an e-fund and eventually start putting more in 401k and Roth IRAs.\n\nWhat are you guys' opinion about this? New vehicle with warranty and less maintenance cost vs the old truck that not as nice, but no payments and insurance would be cheaper.\n\nIncome: $3500/mo\n\nTotal Expenses (Bills, debts, gas, etc): Around $1800/mo\n\nTruck Payment: $500/mo\n\nHalf Mortgage: $520/mo\n\nInsurance: $150/mo (Truck and homeowners)\n\nOther expenses make up the remainder. (Through my budget I recently created this week, if I can limit unnecessary spending I expect my total spend each month to be around $2400. This includes entertainment, eating out, savings for repairs, gifts, etc)\n\nEdit: Also forgot to mention. I've had a raise since then and am at 64k yearly before taxes and everything. (That's where the income number above comes from) I expect I'll get another small raise around next year. I also contribute 8% to my 401k because my employer matches a percentage up to 4% and then a different percentage for the last 4%. ( I think 100% match on first 4% and 50% match on the second 4%)\n" Self: "What do you owe and what is your truck worth?" User (rymack10): "Payoff amount on the truck is right around $26k. When I looked up KBB value of the truck, it was around 32K. Luckily trucks do hold their value a little. I'm mainly torn deciding if the happiness of the truck is worth the payments or if I'm better of being a little less happy and saving more money." User (rymack10): "When I got the trucks I had looked online and researched for a couple months and figured out prices. I found one with dealer prices that was about 6k to 7k below sticker."
User (rymack10): "So, I've been reading more about personal finance and wanted to get some friendly opinions. I graduated college in 2014 at the age of 22. Started working a month after with a 54k salary. My vehicle at the time was an 05 Pontiac G6 that was paid off. No student loans.\n\nI worked for a year and had money to spend and wasn't really saving at the time (stupid I know). I had always wanted a full size truck. I went and got a 2015 GMC Sierra and traded my car in for $4500. Value of the car was probably around 5k or so. I was 23 at this point renting an apartment with a roommate and didn't have a lot of expenses.\n\nFast forward to now, I have a house and a gf that I'm living with. We split the bills as far as utilities and house payment. Now I have gotten interested in personal finance/financial independence. Due to doing some home renovations I don't have a emergency fund, but just set up a savings account and starting to get that set up.\n\nI live 3 miles from work and usually don't do much driving unless I go see family about 100 miles away on the weekend. That may happen once every 2 or 3 months except for holidays where it may be more.\n\nI'm debating selling the truck and driving a 98 Ford Ranger I had in college (Stays at my parents' house). It's paid off with about 130k miles. I definitely wouldn't be as happy in that vehicle, but I could save more and build up an e-fund and eventually start putting more in 401k and Roth IRAs.\n\nWhat are you guys' opinion about this? New vehicle with warranty and less maintenance cost vs the old truck that not as nice, but no payments and insurance would be cheaper.\n\nIncome: $3500/mo\n\nTotal Expenses (Bills, debts, gas, etc): Around $1800/mo\n\nTruck Payment: $500/mo\n\nHalf Mortgage: $520/mo\n\nInsurance: $150/mo (Truck and homeowners)\n\nOther expenses make up the remainder. (Through my budget I recently created this week, if I can limit unnecessary spending I expect my total spend each month to be around $2400. This includes entertainment, eating out, savings for repairs, gifts, etc)\n\nEdit: Also forgot to mention. I've had a raise since then and am at 64k yearly before taxes and everything. (That's where the income number above comes from) I expect I'll get another small raise around next year. I also contribute 8% to my 401k because my employer matches a percentage up to 4% and then a different percentage for the last 4%. ( I think 100% match on first 4% and 50% match on the second 4%)\n" Self: "great idea. The determining factor is probably whether you can sell your truck for an amount that you would be happy with. " User (rymack10): "True. I would think I could get about 30k realistically. I would like to get closer to 32k, but that probably wouldn't happen."
User (rymack10): "So, I've been reading more about personal finance and wanted to get some friendly opinions. I graduated college in 2014 at the age of 22. Started working a month after with a 54k salary. My vehicle at the time was an 05 Pontiac G6 that was paid off. No student loans.\n\nI worked for a year and had money to spend and wasn't really saving at the time (stupid I know). I had always wanted a full size truck. I went and got a 2015 GMC Sierra and traded my car in for $4500. Value of the car was probably around 5k or so. I was 23 at this point renting an apartment with a roommate and didn't have a lot of expenses.\n\nFast forward to now, I have a house and a gf that I'm living with. We split the bills as far as utilities and house payment. Now I have gotten interested in personal finance/financial independence. Due to doing some home renovations I don't have a emergency fund, but just set up a savings account and starting to get that set up.\n\nI live 3 miles from work and usually don't do much driving unless I go see family about 100 miles away on the weekend. That may happen once every 2 or 3 months except for holidays where it may be more.\n\nI'm debating selling the truck and driving a 98 Ford Ranger I had in college (Stays at my parents' house). It's paid off with about 130k miles. I definitely wouldn't be as happy in that vehicle, but I could save more and build up an e-fund and eventually start putting more in 401k and Roth IRAs.\n\nWhat are you guys' opinion about this? New vehicle with warranty and less maintenance cost vs the old truck that not as nice, but no payments and insurance would be cheaper.\n\nIncome: $3500/mo\n\nTotal Expenses (Bills, debts, gas, etc): Around $1800/mo\n\nTruck Payment: $500/mo\n\nHalf Mortgage: $520/mo\n\nInsurance: $150/mo (Truck and homeowners)\n\nOther expenses make up the remainder. (Through my budget I recently created this week, if I can limit unnecessary spending I expect my total spend each month to be around $2400. This includes entertainment, eating out, savings for repairs, gifts, etc)\n\nEdit: Also forgot to mention. I've had a raise since then and am at 64k yearly before taxes and everything. (That's where the income number above comes from) I expect I'll get another small raise around next year. I also contribute 8% to my 401k because my employer matches a percentage up to 4% and then a different percentage for the last 4%. ( I think 100% match on first 4% and 50% match on the second 4%)\n" Self: "This is a no brainer from a PF perspective unless you're severely underwater on the truck." User (rymack10): "Not underwater on the truck. It was a dream truck of mine, but I feel like delaying the happiness of the new truck may be worth it in the long run. Just didn't know if it's worth it to keep the truck and pay it off and ride it until it dies." Self: "PF aside, you are still free to decide that you want to keep the truck if it makes you happy! Happiness has a value which is difficult to quantify but there nonetheless. It's up to you to figure out whether you'd be happier driving the old Ranger with more dough in your pocket or the new truck.\n\nIf the new truck's payment fits into your budget along with the critical stuff like an building your emergency fund and saving for retirement then keep it!" User (rymack10): "That's what I'm trying to decide. Does someone have a calculator for dollar to happiness ratio? /s\n\nHonestly, before I wasn't tracking spending as much and made impulse buys. This made me live almost pay check to paycheck with about $1500 in my checking after bills and what not for safety. I think looking at my budget, if I stick to it I'll still be able to save up for a good emergency fund and pay off a few debts."
User (rymack10): "So, I've been reading more about personal finance and wanted to get some friendly opinions. I graduated college in 2014 at the age of 22. Started working a month after with a 54k salary. My vehicle at the time was an 05 Pontiac G6 that was paid off. No student loans.\n\nI worked for a year and had money to spend and wasn't really saving at the time (stupid I know). I had always wanted a full size truck. I went and got a 2015 GMC Sierra and traded my car in for $4500. Value of the car was probably around 5k or so. I was 23 at this point renting an apartment with a roommate and didn't have a lot of expenses.\n\nFast forward to now, I have a house and a gf that I'm living with. We split the bills as far as utilities and house payment. Now I have gotten interested in personal finance/financial independence. Due to doing some home renovations I don't have a emergency fund, but just set up a savings account and starting to get that set up.\n\nI live 3 miles from work and usually don't do much driving unless I go see family about 100 miles away on the weekend. That may happen once every 2 or 3 months except for holidays where it may be more.\n\nI'm debating selling the truck and driving a 98 Ford Ranger I had in college (Stays at my parents' house). It's paid off with about 130k miles. I definitely wouldn't be as happy in that vehicle, but I could save more and build up an e-fund and eventually start putting more in 401k and Roth IRAs.\n\nWhat are you guys' opinion about this? New vehicle with warranty and less maintenance cost vs the old truck that not as nice, but no payments and insurance would be cheaper.\n\nIncome: $3500/mo\n\nTotal Expenses (Bills, debts, gas, etc): Around $1800/mo\n\nTruck Payment: $500/mo\n\nHalf Mortgage: $520/mo\n\nInsurance: $150/mo (Truck and homeowners)\n\nOther expenses make up the remainder. (Through my budget I recently created this week, if I can limit unnecessary spending I expect my total spend each month to be around $2400. This includes entertainment, eating out, savings for repairs, gifts, etc)\n\nEdit: Also forgot to mention. I've had a raise since then and am at 64k yearly before taxes and everything. (That's where the income number above comes from) I expect I'll get another small raise around next year. I also contribute 8% to my 401k because my employer matches a percentage up to 4% and then a different percentage for the last 4%. ( I think 100% match on first 4% and 50% match on the second 4%)\n" Self: "This is a no brainer from a PF perspective unless you're severely underwater on the truck." User (rymack10): "Not underwater on the truck. It was a dream truck of mine, but I feel like delaying the happiness of the new truck may be worth it in the long run. Just didn't know if it's worth it to keep the truck and pay it off and ride it until it dies." userpart2 (userpart2): "move over truck, the new dream is financial independence\n\n" User (rymack10): "Haha, it's definitely nice to think about and create a plan to get there. I don't think it's necessarily a dream to not work before 40 because I don't mind working. I just want to have a retirement set up that I don't have to rely on social security and if I do feel like retiring in my 40s or 50s I can."
User (rymack10): "So, I've been reading more about personal finance and wanted to get some friendly opinions. I graduated college in 2014 at the age of 22. Started working a month after with a 54k salary. My vehicle at the time was an 05 Pontiac G6 that was paid off. No student loans.\n\nI worked for a year and had money to spend and wasn't really saving at the time (stupid I know). I had always wanted a full size truck. I went and got a 2015 GMC Sierra and traded my car in for $4500. Value of the car was probably around 5k or so. I was 23 at this point renting an apartment with a roommate and didn't have a lot of expenses.\n\nFast forward to now, I have a house and a gf that I'm living with. We split the bills as far as utilities and house payment. Now I have gotten interested in personal finance/financial independence. Due to doing some home renovations I don't have a emergency fund, but just set up a savings account and starting to get that set up.\n\nI live 3 miles from work and usually don't do much driving unless I go see family about 100 miles away on the weekend. That may happen once every 2 or 3 months except for holidays where it may be more.\n\nI'm debating selling the truck and driving a 98 Ford Ranger I had in college (Stays at my parents' house). It's paid off with about 130k miles. I definitely wouldn't be as happy in that vehicle, but I could save more and build up an e-fund and eventually start putting more in 401k and Roth IRAs.\n\nWhat are you guys' opinion about this? New vehicle with warranty and less maintenance cost vs the old truck that not as nice, but no payments and insurance would be cheaper.\n\nIncome: $3500/mo\n\nTotal Expenses (Bills, debts, gas, etc): Around $1800/mo\n\nTruck Payment: $500/mo\n\nHalf Mortgage: $520/mo\n\nInsurance: $150/mo (Truck and homeowners)\n\nOther expenses make up the remainder. (Through my budget I recently created this week, if I can limit unnecessary spending I expect my total spend each month to be around $2400. This includes entertainment, eating out, savings for repairs, gifts, etc)\n\nEdit: Also forgot to mention. I've had a raise since then and am at 64k yearly before taxes and everything. (That's where the income number above comes from) I expect I'll get another small raise around next year. I also contribute 8% to my 401k because my employer matches a percentage up to 4% and then a different percentage for the last 4%. ( I think 100% match on first 4% and 50% match on the second 4%)\n" Self: "Could you sell the truck for 30k, like you mentioned elsewhere, and buy a truck for 10-15k? You could get a very nice vehicle for that much, and still come out on top. Why do you want a truck? Do you do a lot of hauling? Maybe a cheap sports car could hit the spot instead. Haul stuff with the ranger and get a NC miata or mustang gt for 10-12k. There are a lot of cool cars in that range that could take your mind off the very expensive truck that you just sold." User (rymack10): "Possibly. I looked at the idea of that as well. I thought about getting a used Toyota Tacoma.\n\nThe truck helped a lot when I was renovating the house. I still have more renovation plans, but they doesn't really require a long open bed. I just really like the looks of trucks and how they ride. Maybe it's because I'm from the south, who knows! :) \n\nI also thought about the car options as well. Get a used car around the 10k to 13k value with good gas mileage, but I don't drive a lot. I got my truck in April 2015 and as of now it has 17k miles. That was with me driving home more often at first and a vacation trip. "
User (rymack10): "So, I've been reading more about personal finance and wanted to get some friendly opinions. I graduated college in 2014 at the age of 22. Started working a month after with a 54k salary. My vehicle at the time was an 05 Pontiac G6 that was paid off. No student loans.\n\nI worked for a year and had money to spend and wasn't really saving at the time (stupid I know). I had always wanted a full size truck. I went and got a 2015 GMC Sierra and traded my car in for $4500. Value of the car was probably around 5k or so. I was 23 at this point renting an apartment with a roommate and didn't have a lot of expenses.\n\nFast forward to now, I have a house and a gf that I'm living with. We split the bills as far as utilities and house payment. Now I have gotten interested in personal finance/financial independence. Due to doing some home renovations I don't have a emergency fund, but just set up a savings account and starting to get that set up.\n\nI live 3 miles from work and usually don't do much driving unless I go see family about 100 miles away on the weekend. That may happen once every 2 or 3 months except for holidays where it may be more.\n\nI'm debating selling the truck and driving a 98 Ford Ranger I had in college (Stays at my parents' house). It's paid off with about 130k miles. I definitely wouldn't be as happy in that vehicle, but I could save more and build up an e-fund and eventually start putting more in 401k and Roth IRAs.\n\nWhat are you guys' opinion about this? New vehicle with warranty and less maintenance cost vs the old truck that not as nice, but no payments and insurance would be cheaper.\n\nIncome: $3500/mo\n\nTotal Expenses (Bills, debts, gas, etc): Around $1800/mo\n\nTruck Payment: $500/mo\n\nHalf Mortgage: $520/mo\n\nInsurance: $150/mo (Truck and homeowners)\n\nOther expenses make up the remainder. (Through my budget I recently created this week, if I can limit unnecessary spending I expect my total spend each month to be around $2400. This includes entertainment, eating out, savings for repairs, gifts, etc)\n\nEdit: Also forgot to mention. I've had a raise since then and am at 64k yearly before taxes and everything. (That's where the income number above comes from) I expect I'll get another small raise around next year. I also contribute 8% to my 401k because my employer matches a percentage up to 4% and then a different percentage for the last 4%. ( I think 100% match on first 4% and 50% match on the second 4%)\n" Self: "This is a no brainer from a PF perspective unless you're severely underwater on the truck." User (rymack10): "Not underwater on the truck. It was a dream truck of mine, but I feel like delaying the happiness of the new truck may be worth it in the long run. Just didn't know if it's worth it to keep the truck and pay it off and ride it until it dies." Amairch (Amairch): "If the truck was a dream of yours, maybe you should look at reducing other spending. You make 3500/month and have $500 totally unaccounted for plus $1800 in expenses that seem only vaguely defined. It's ok to decide you really like the truck and want to keep it. Just realize that it means you can't also be casual about money in other areas. Are you cool with setting a strict entertainment budget and staying home when there's no money to go out? Are you cool with cutting cable? Are you cool with decreasing your saving's rate until the truck is paid off? Personal finance is the practice of using limited resources to fulfill unlimited wants. Which wants are most important to you?" User (rymack10): "Definitely. That'd what I'm trying to balance out. I just started getting serious about budgeting and saving. So I'm going to go a couple of months and see how much I can save with my current status. Then probably adjust from there. I just wanted opinions on the situation. I really liked your explanation. Thanks."
User (taekwonkevin): "Hey Folks,\n\nSo I've searched across this subreddit (and other subreddits) and the advice given is always NEVER COSIGN WITH YOUR PARENTS (which I completely agree with). That being said, have one question that I couldn't find an answer for. \n\nLet's say I do cosign on a house, then something terrible happens and my parents can no longer afford to make payments (burden now falls on me). If that happens, couldn't we just sell the house? What would happen to my credit + my ability to purchase a house in the future if we just decided to sell the house if my parents can no longer make payments on it. \n\nFor added context, my parents live in the bay area where the housing market has historically been decently strong. " Self: "If you can sell the house, and get your money back your credit would be fine. \n\nHowever, since we're talking Bay Area and really expensive real estate, you have virtually no chance of qualifying for a mortgage of your own if you do end up cosigning on this one (while you're on the mortgage). You debt to income ratio would be so huge, that it would almost automatically disqualify you from being able to purchase a house. "
User (taekwonkevin): "Hey Folks,\n\nSo I've searched across this subreddit (and other subreddits) and the advice given is always NEVER COSIGN WITH YOUR PARENTS (which I completely agree with). That being said, have one question that I couldn't find an answer for. \n\nLet's say I do cosign on a house, then something terrible happens and my parents can no longer afford to make payments (burden now falls on me). If that happens, couldn't we just sell the house? What would happen to my credit + my ability to purchase a house in the future if we just decided to sell the house if my parents can no longer make payments on it. \n\nFor added context, my parents live in the bay area where the housing market has historically been decently strong. " Self: ">advice given is always NEVER COSIGN WITH YOUR PARENTS (which I completely agree with).\n\nApparently you don't completely agree with it after all? \n\nYou could sell the house, potentially at a loss depending on the market, need to factor in fees as well. If the market is in a dip you could lose a significant amount of money. \n\nSo if your parents hit hard times and can't make house payments, just kick them out on the street because you have to sell..."this is fine...this will be fine.""
User (taekwonkevin): "Hey Folks,\n\nSo I've searched across this subreddit (and other subreddits) and the advice given is always NEVER COSIGN WITH YOUR PARENTS (which I completely agree with). That being said, have one question that I couldn't find an answer for. \n\nLet's say I do cosign on a house, then something terrible happens and my parents can no longer afford to make payments (burden now falls on me). If that happens, couldn't we just sell the house? What would happen to my credit + my ability to purchase a house in the future if we just decided to sell the house if my parents can no longer make payments on it. \n\nFor added context, my parents live in the bay area where the housing market has historically been decently strong. " Self: "What if 2010 calls and wants their housing prices back?"
User (doesitbumpinthewhip): "Bit (understatement) of a backstory, girlfriend purchased a new car last year and ended up walking out paying 6 grand in extra warranty (yeah, we fucked up). Unfortunately she was in a car accident recently and totalled her car. She had just taken off the replacement insurance a few months prior due to it being too expensive..so after all was said and done she ended up with no car and nice 6700 of negative equity to pay for. After almost 2 months of weighing pros and cons of buying new/used with the negative equity, she is about to walk away with a 2017 elantra..same car she had bought previously only a year newer. The interest is only 1% versus a used vehicle that would have been at least 5.9%, which along with her negative equity would be 3 to 5 grand just in interest and would make the payments quite high due to having to run a shorter term plan. We went to banks and talked about loans and shit there and although she wanted to go cheaper it just didnt seem to make sense with the interest rate. \n\nAnyways, because of the situation, she now has a "credit" on her warranty where she can roll the 8 years over onto the new car at a discount. 2700 for 8 years (160k i beleve...might be 180k) powertrain/engine but can get it for 1800. \n"Appearance" package is now 815 instead of 1700. And the guy suggests a negative equity coverage for 1600 so this doesnt happen again...even though that coverage still wont cover the full amount. \n\nIve done some research and the general consensus seems to be take the money that you would be paying monthly for the warranty and put it in an emergency type fund. That way if nothing happens that money wont go to waste. \n\nBut because of the discount, Im wondering if the 8 year powertrain might not be such a terrible idea. And as far as the negative equity coverage im not really sure what to do there. After what happened before for her I'm super cautious now. \n\nBasically this is the last day before the deal goes through and just want to make 100% sure we've exhausted all options and this is an ok way to go granted she can make the payments. \n\n" Self: "the best thing to do would be to buy a cheap car with cash and make payments on the negative equity. If you can't apply this "warranty credit" to her negative equity, I would let it go. This "warranty credit" sounds more like salesman smoke and mirrors than real money. " User (doesitbumpinthewhip): "Unfortunately she doesnt have the cash to buy a car outright or else we would probably be going that route. Yeah I thought the same, probably somethinh he could pull for anyone."
User (doesitbumpinthewhip): "Bit (understatement) of a backstory, girlfriend purchased a new car last year and ended up walking out paying 6 grand in extra warranty (yeah, we fucked up). Unfortunately she was in a car accident recently and totalled her car. She had just taken off the replacement insurance a few months prior due to it being too expensive..so after all was said and done she ended up with no car and nice 6700 of negative equity to pay for. After almost 2 months of weighing pros and cons of buying new/used with the negative equity, she is about to walk away with a 2017 elantra..same car she had bought previously only a year newer. The interest is only 1% versus a used vehicle that would have been at least 5.9%, which along with her negative equity would be 3 to 5 grand just in interest and would make the payments quite high due to having to run a shorter term plan. We went to banks and talked about loans and shit there and although she wanted to go cheaper it just didnt seem to make sense with the interest rate. \n\nAnyways, because of the situation, she now has a "credit" on her warranty where she can roll the 8 years over onto the new car at a discount. 2700 for 8 years (160k i beleve...might be 180k) powertrain/engine but can get it for 1800. \n"Appearance" package is now 815 instead of 1700. And the guy suggests a negative equity coverage for 1600 so this doesnt happen again...even though that coverage still wont cover the full amount. \n\nIve done some research and the general consensus seems to be take the money that you would be paying monthly for the warranty and put it in an emergency type fund. That way if nothing happens that money wont go to waste. \n\nBut because of the discount, Im wondering if the 8 year powertrain might not be such a terrible idea. And as far as the negative equity coverage im not really sure what to do there. After what happened before for her I'm super cautious now. \n\nBasically this is the last day before the deal goes through and just want to make 100% sure we've exhausted all options and this is an ok way to go granted she can make the payments. \n\n" Self: "She should also be able to cancel the previously purchased extended warranty and receive a prorated refund. She can put that towards resolving her negative equity."
User (doesitbumpinthewhip): "Bit (understatement) of a backstory, girlfriend purchased a new car last year and ended up walking out paying 6 grand in extra warranty (yeah, we fucked up). Unfortunately she was in a car accident recently and totalled her car. She had just taken off the replacement insurance a few months prior due to it being too expensive..so after all was said and done she ended up with no car and nice 6700 of negative equity to pay for. After almost 2 months of weighing pros and cons of buying new/used with the negative equity, she is about to walk away with a 2017 elantra..same car she had bought previously only a year newer. The interest is only 1% versus a used vehicle that would have been at least 5.9%, which along with her negative equity would be 3 to 5 grand just in interest and would make the payments quite high due to having to run a shorter term plan. We went to banks and talked about loans and shit there and although she wanted to go cheaper it just didnt seem to make sense with the interest rate. \n\nAnyways, because of the situation, she now has a "credit" on her warranty where she can roll the 8 years over onto the new car at a discount. 2700 for 8 years (160k i beleve...might be 180k) powertrain/engine but can get it for 1800. \n"Appearance" package is now 815 instead of 1700. And the guy suggests a negative equity coverage for 1600 so this doesnt happen again...even though that coverage still wont cover the full amount. \n\nIve done some research and the general consensus seems to be take the money that you would be paying monthly for the warranty and put it in an emergency type fund. That way if nothing happens that money wont go to waste. \n\nBut because of the discount, Im wondering if the 8 year powertrain might not be such a terrible idea. And as far as the negative equity coverage im not really sure what to do there. After what happened before for her I'm super cautious now. \n\nBasically this is the last day before the deal goes through and just want to make 100% sure we've exhausted all options and this is an ok way to go granted she can make the payments. \n\n" Self: "Buy the cheaper car with a higher insurance rate. I'd rather be paying 5% on a $12,000 car and end up paying $14,000 than paying 1% on a $21,000 car that's going to depreciate to $12,000 in 3 years and end up paying $21,500. She REALLY needs to just go to a Mazda dealership, buy a 3 year old Mazda3 that has a price of $12,000 - $13,000, and offer like $1,800 less than what they list the car for on their website.\n\nAlso, even with the used car, stop adding all of those crap add-ons. Don't finance a warranty. Don't get the appearance package. Why is she rewarding herself for trapping herself in a car loan that she still has hanging over her head? Doesn't the Hyundai ALREADY come with a 10 year, 100,000 mile warranty? Why would you get MORE warranties over the manufacturer's?\n\nhttps://www.hyundaiusa.com/assurance/america-best-warranty.aspx\n\nSo, the dealer wants you to buy a $20,000 Elantra, add $3,500 in extra fees for CRAP, and then on top of the fees, since you've added them, you'll be underwater so add ANOTHER $1,600 in extra fees? How does that make any sense to you? That's why go to Mazda, this dealer clearly isn't respecting her. Also, listen to /u/ubiquitous2, have her call the finance company, warranty company, and dealership, and see what she can get refunded pro-rated. Check her paperwork as well beforehand so that they don't lie to you."
User (vuongquang007): "Im using Bank of America and my credit card 900 its been a year and every months boa charge me 20 dollar for interest.so how everybody think about it\nP/s : sorry for my English \n" Self: "Pay off your credit card, brometheus!"
User (vuongquang007): "Im using Bank of America and my credit card 900 its been a year and every months boa charge me 20 dollar for interest.so how everybody think about it\nP/s : sorry for my English \n" Self: "Call the CC company, ask for a "pay off" amount and date, and pay that amount on the date. Wait one more statement cycle for the grace period to reactivate.\n\nAnd always pay your statement balance on time and every time.\n"
User (vuongquang007): "Im using Bank of America and my credit card 900 its been a year and every months boa charge me 20 dollar for interest.so how everybody think about it\nP/s : sorry for my English \n" Self: "Are you saying that your credit card balance has been 900 for the year? A monthly interest charge of ~$20 on a balance of $900 is quite high (well over 20%). This isn't entirely unusual.\n\nIn general the minimum payment will be just a little more than the monthly interest, so that it would take a very long time to pay off the balance. If you are only making the minimum payment, you will end up paying a very large amount of money in interest.\n\nMy suggestion would be to stop charging new things to this card (if you haven't already stopped), and to pay off the full balance as quickly as possible. Once you get it paid off, don't charge any more on it than you can afford to pay off that month (and always pay off the whole balance each month)."
User (vuongquang007): "Im using Bank of America and my credit card 900 its been a year and every months boa charge me 20 dollar for interest.so how everybody think about it\nP/s : sorry for my English \n" Self: "I remember seeing an email entailing some sort of fee for being below a certain balance with b of a, specifically one for people who aren't students or aren't below a certain age. Not sure if this is what's going on for you, but regardless I'd talk to b of about it. \n\n[Edit] \nThis is probably only for debt cards if you're talking about being ~$900 in cc debt. "
User (vuongquang007): "Im using Bank of America and my credit card 900 its been a year and every months boa charge me 20 dollar for interest.so how everybody think about it\nP/s : sorry for my English \n" User (vuongquang007): "Thanks for helping me.I'm going to payoff that amount on Monday then."
User (Money_Burner): "My old job's 401k plan cashed out my account and sent me a check with state and federal tax taken out. I called them and they said that they did this because it had under $1000 (wasn't there long), they said that they tried notifying me by mail (I moved, not sure I got any notifications), and that there was nothing they could do as the taxes had already been paid. \n\nIs there anything I can do here? I wanted to roll it over into my new job's plan but now i'm out a few hundred dollars and possibly more from penalties on cashing out the plan early.\n\nAny help or advice would be greatly appreciated.\n" Self: "You may find these links helpful:\n\n- [General Information on Rollovers](http://www.reddit.com/r/personalfinance/wiki/retirementaccounts/rollovers)\n- [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds)\n- [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more)\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."

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