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User (grumdaddy1): "Hey guys so here is my exact situation:\n\nI am employed 30+ hours a week at a pitiful pay, but enough for my bachelor needs. I have no savings.\n\nI am currently in the neighborhood of 80K in debt, 100% medical, relating to an 8 year drug & alcohol addiction. Never owned a credit card.\n\nLast December, I was struck in a hit & run incident. A few months back a friend of a friend who's a laywer contacted me, blah blah can I represent you? I said fine, no risk to me. Didn't think much of it. So just the other day, he calls. Things are wrapping up soon, I should expect to personally pocket between 40-50. Thousand.\n\nI'm fast approaching my mid-thirties, and this is about 20 times more than the most money I've ever had. I want to be really smart with it.\n\nSo... How? " Self: "First problem is that 40-50k is not rich.\n\nThe advice you probably don't want to hear, but need to do, is put it all in savings, or under the mattress, keep it all for an emergency, and keep living off your normal job." User (grumdaddy1): "I have no problem with that. I'm not into gadgets or gambling or shoes or anything. I gave up my only expensive vise. But for a guy like me, this is the most money I can reasonably expect to see at one time in my lifetime. I want to protect it from the creditors, if at all possible, and then make a very wise financial choice with it and then keep on with my life. I want to be, like, so adult. But I don't know how to, especially with money." Self: "Put some of it into a retirement plan, which is protected against bankruptcy. Set the rest aside, if it's not in a bank account no creditor will know about it. \n\nHave you been sued? Is there a judgement against you / directly on your bank account?\n\n" User (grumdaddy1): "Nobody has sued me. Just letters and the occasional call. I have been safe because I literally own nothing. My car is in my father's name and I rent a room for cash. I've lived like this for a long time." Self: "In that case, you should be aware of the statue of limitations for debt in your state. In California it's 7 years, and then you can't be sued after that, as long as you don't acknowledge that you owe or pay anything.\n\nBut even if you're sued there's a long process, and it costs the debtor money in court costs, so they don't usually do it for smaller debts. Generally under 2k is not worth it, 3-8k may be, anything over 10k likely.\n\nPut that money in savings man, if you say you'll never have it again, you will most definitely need it for retirement when you're older and can't work."
User (grumdaddy1): "Hey guys so here is my exact situation:\n\nI am employed 30+ hours a week at a pitiful pay, but enough for my bachelor needs. I have no savings.\n\nI am currently in the neighborhood of 80K in debt, 100% medical, relating to an 8 year drug & alcohol addiction. Never owned a credit card.\n\nLast December, I was struck in a hit & run incident. A few months back a friend of a friend who's a laywer contacted me, blah blah can I represent you? I said fine, no risk to me. Didn't think much of it. So just the other day, he calls. Things are wrapping up soon, I should expect to personally pocket between 40-50. Thousand.\n\nI'm fast approaching my mid-thirties, and this is about 20 times more than the most money I've ever had. I want to be really smart with it.\n\nSo... How? " Self: "Just one last bender. Just one. "
User (grumdaddy1): "Hey guys so here is my exact situation:\n\nI am employed 30+ hours a week at a pitiful pay, but enough for my bachelor needs. I have no savings.\n\nI am currently in the neighborhood of 80K in debt, 100% medical, relating to an 8 year drug & alcohol addiction. Never owned a credit card.\n\nLast December, I was struck in a hit & run incident. A few months back a friend of a friend who's a laywer contacted me, blah blah can I represent you? I said fine, no risk to me. Didn't think much of it. So just the other day, he calls. Things are wrapping up soon, I should expect to personally pocket between 40-50. Thousand.\n\nI'm fast approaching my mid-thirties, and this is about 20 times more than the most money I've ever had. I want to be really smart with it.\n\nSo... How? " Self: ">and I'm about to pay off a bit of my debt\n\nFixed the title for you OP"
User (grumdaddy1): "Hey guys so here is my exact situation:\n\nI am employed 30+ hours a week at a pitiful pay, but enough for my bachelor needs. I have no savings.\n\nI am currently in the neighborhood of 80K in debt, 100% medical, relating to an 8 year drug & alcohol addiction. Never owned a credit card.\n\nLast December, I was struck in a hit & run incident. A few months back a friend of a friend who's a laywer contacted me, blah blah can I represent you? I said fine, no risk to me. Didn't think much of it. So just the other day, he calls. Things are wrapping up soon, I should expect to personally pocket between 40-50. Thousand.\n\nI'm fast approaching my mid-thirties, and this is about 20 times more than the most money I've ever had. I want to be really smart with it.\n\nSo... How? " Self: "Personally, I would put it down on a house. It adds a lot of stability to a person's life, and as you don't make much money, you're unlikely to get a chance like this again. It sounds like your credit is shot, so any real estate you get will need a big down payment.\n\nI know you have a lot of debt and may have to declare bankruptcy, but you really need to know what you're doing before you start paying things off.\n\n1. Statute of limitations may have run on part of your debt. If you make a payment, the SOL starts up again. You can reactivate debt that wasn't collectible before.\n\n2. You can negotiate medical debt down. Way way down.\n\n3. In some states, if you take bankruptcy, you still keep your house, car etc. They do a look back for expenditures 6 months or so prior to the bankruptcy though, so really research this and make sure you time things right." FIREmebaby (FIREmebaby): "You want someone 80K in debt to put down 50K to buy a house?...\n\nWhat?"
User (21-5138-31): "I have a $1,000 limit credit card through my credit union. \n\nI plan to use it to pay for bills and stuff, and then pay the full balance each month I get my statement. \n\nI was wondering, would my credit score build faster if I spent $1,000 vs $100 on it a month? How much should I be spending on it? Should I pay the balance off before I get my statement (every paycheck) so it's always $0 balance by the statement?" 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 Reports](http://www.reddit.com/r/personalfinance/wiki/credit_reports) \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 (21-5138-31): "I have a $1,000 limit credit card through my credit union. \n\nI plan to use it to pay for bills and stuff, and then pay the full balance each month I get my statement. \n\nI was wondering, would my credit score build faster if I spent $1,000 vs $100 on it a month? How much should I be spending on it? Should I pay the balance off before I get my statement (every paycheck) so it's always $0 balance by the statement?" Self: "It's less fuss and bother to spend just a small amount, like put your Netflix subscription on it, and that's all. Then just pay by the due date."
User (21-5138-31): "I have a $1,000 limit credit card through my credit union. \n\nI plan to use it to pay for bills and stuff, and then pay the full balance each month I get my statement. \n\nI was wondering, would my credit score build faster if I spent $1,000 vs $100 on it a month? How much should I be spending on it? Should I pay the balance off before I get my statement (every paycheck) so it's always $0 balance by the statement?" Self: "The way credit cards help you build credit is by giving you payment history and lower credit utilization ratios. It doesn't matter if you put a few dollars a month or $999 a month on it, if you pay it off just before the balance is reported, it will have the same affect on your credit.\n\n" User (21-5138-31): "So if I were to pay the balance every paycheck, it doesn't matter. But if I were to wait until I got my statement in the mail, I should use as little as possible like the other guy said by just using it for Netflix or something? "
User (21-5138-31): "I have a $1,000 limit credit card through my credit union. \n\nI plan to use it to pay for bills and stuff, and then pay the full balance each month I get my statement. \n\nI was wondering, would my credit score build faster if I spent $1,000 vs $100 on it a month? How much should I be spending on it? Should I pay the balance off before I get my statement (every paycheck) so it's always $0 balance by the statement?" Self: "It think the general rule is never exceed 75%. And by paying it off every paycheck should prevent you from paying interest, so that's a big win. I try to pay my balance off every week to make sure it doesn't get out of hand. "
User (21-5138-31): "I have a $1,000 limit credit card through my credit union. \n\nI plan to use it to pay for bills and stuff, and then pay the full balance each month I get my statement. \n\nI was wondering, would my credit score build faster if I spent $1,000 vs $100 on it a month? How much should I be spending on it? Should I pay the balance off before I get my statement (every paycheck) so it's always $0 balance by the statement?" Self: "You don't get bonus points for spending $100 vs $1,000. Since utilization has no history, just focus on the things that do: history of on time payments and age of the account. If you pay on time and keep the card open, your credit will get better."
User (Veronica_Is_A_Nerd): "So I had some outstanding bill from a hospital that must have been passed to this collection agency Optimum Outcomes. They call me a few times a month until I cave when they begin to threaten me with filing a poor credit report. I'm young and was really worried about starting out with bad credit so I got scared and agreed. They verified my identity with the last 4 digits of ssn and birthday and because I thought this was a legitimate company and having no other experience with these agencies, I gave them the info. I know it was idiotic. I allowed them to have my card number to begin a monthly payment plan on the bill. Now that I found out what a big mistake I made, I cancelled my card and am filing a claim for the money they took. However, I'm going out of my mind with worry about what they can do now that they have my ssn and dob. possibly address, I hear they can get that as well. I was absurdly stupid, I know, but I'm trying to fix my mistake. Does anyone have any advice or solutions they can give me? Thank you so much." 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 (Veronica_Is_A_Nerd): "So I had some outstanding bill from a hospital that must have been passed to this collection agency Optimum Outcomes. They call me a few times a month until I cave when they begin to threaten me with filing a poor credit report. I'm young and was really worried about starting out with bad credit so I got scared and agreed. They verified my identity with the last 4 digits of ssn and birthday and because I thought this was a legitimate company and having no other experience with these agencies, I gave them the info. I know it was idiotic. I allowed them to have my card number to begin a monthly payment plan on the bill. Now that I found out what a big mistake I made, I cancelled my card and am filing a claim for the money they took. However, I'm going out of my mind with worry about what they can do now that they have my ssn and dob. possibly address, I hear they can get that as well. I was absurdly stupid, I know, but I'm trying to fix my mistake. Does anyone have any advice or solutions they can give me? Thank you so much." Self: "they already had your DoB and your SSN, they are a debt collection agency, they get that information when they get the debt, its how they put it on your credit report. they cant do much else if you already canceled your card other than harass you over the phone some more. "
User (Veronica_Is_A_Nerd): "So I had some outstanding bill from a hospital that must have been passed to this collection agency Optimum Outcomes. They call me a few times a month until I cave when they begin to threaten me with filing a poor credit report. I'm young and was really worried about starting out with bad credit so I got scared and agreed. They verified my identity with the last 4 digits of ssn and birthday and because I thought this was a legitimate company and having no other experience with these agencies, I gave them the info. I know it was idiotic. I allowed them to have my card number to begin a monthly payment plan on the bill. Now that I found out what a big mistake I made, I cancelled my card and am filing a claim for the money they took. However, I'm going out of my mind with worry about what they can do now that they have my ssn and dob. possibly address, I hear they can get that as well. I was absurdly stupid, I know, but I'm trying to fix my mistake. Does anyone have any advice or solutions they can give me? Thank you so much." Self: "You may have been able to get rid of them by just disputing the tradeline on your credit report."
User (Veronica_Is_A_Nerd): "So I had some outstanding bill from a hospital that must have been passed to this collection agency Optimum Outcomes. They call me a few times a month until I cave when they begin to threaten me with filing a poor credit report. I'm young and was really worried about starting out with bad credit so I got scared and agreed. They verified my identity with the last 4 digits of ssn and birthday and because I thought this was a legitimate company and having no other experience with these agencies, I gave them the info. I know it was idiotic. I allowed them to have my card number to begin a monthly payment plan on the bill. Now that I found out what a big mistake I made, I cancelled my card and am filing a claim for the money they took. However, I'm going out of my mind with worry about what they can do now that they have my ssn and dob. possibly address, I hear they can get that as well. I was absurdly stupid, I know, but I'm trying to fix my mistake. Does anyone have any advice or solutions they can give me? Thank you so much." Self: "From everything I could find Optimum Outcomes is a legit collection company specializing in hospital debt. Why do you think making a payment plan for a debt you owe was a "big mistake?" " User (Veronica_Is_A_Nerd): "Tbh mostly because after I told my parents they both yelled at me and called me retarded/immature. Figured they think it's scam. I was thinking it's scam too from the way the company acts. " PoopyDoopie (PoopyDoopie): "Most of them act like that. It doesn't mean it's a scam, at least not the Nigerian Prince type.\n\nNever talk to debt collectors on the phone. Only communicate with them through the mail. They tend to be on their best behavior in writing, total scumbags over the phone. Any agreements with debt collectors are only good if they are in writing."
User (Cappadona): "In a family of four, I am the youngest. My brother pays for my parent's internet (Comcast) and TV (DirectTV) and I pay for the family's cell-phone service (AT&T and T-Mobile). I was utilizing two carriers as I had a great corporate discount.\n\nI am looking to consolidate wireless carriers and look for a new carrier but wish to seek the biggest discount (ex. phone credits, gift card, free tech, etc). With all these services between my brother and I, I am looking for maximum savings by consolidating / switching ownership. Has anyone tried this recently with holiday promotions?\n\nIt appears T-Mobile has a great promotion of receiving a $800 Mastercard Gift-Card if you switch your family of four. \n" Self: "That sounds great, and after the credit you still get a good deal. I host a tmobile family plan of five and we all pay $49/mo for unlimited everything. You have to buy your phones separately though, so that may or may not be an issue. They offer a payment plan on them if you want to do that " User (Cappadona): "have you ever had issues with T-Mobile throttling data?" Self: "No, but I don't really test it a lot. "
User (TravelWithKids): "Hello,\nI need to make a $1K purchase on Amazon over the next 2 days. I currently have a BofA Cash Rewards (1% back on most), Citi AA Personal, Ink Plus, Barclays AAviator and Chase United Mileage. Any thoughts on which card I should use considering I don't have time to wait for a new card (such as the Amazon 5% card) to come through? Thanks!" Self: "If you apply for the Amazon prime store card you can use it immediately. Plus, as you mentioned, you'll receive 5% back. YMMV but I instantly received a $40 credit added to my gift card balance. I just applied 2 weeks ago."
User (franclyblunt): "So i have about 6k worth of debt, mainly from medical bills because i didn't have insurance at the time. There are some other things on my credit report. I'm looking for advice/tips/suggestions on the best way to get rid of debt and raise my credit score. I should add that i just recently got a car on a lien from a high risk lender and my payments are outrageous. Will paying the car offset some of the derogatory remarks on my credit report?" Self: "How old are the debts? Will the lender report on time payments to your credit report?\n\nYou should look into opening a secured credit card."
User (franclyblunt): "So i have about 6k worth of debt, mainly from medical bills because i didn't have insurance at the time. There are some other things on my credit report. I'm looking for advice/tips/suggestions on the best way to get rid of debt and raise my credit score. I should add that i just recently got a car on a lien from a high risk lender and my payments are outrageous. Will paying the car offset some of the derogatory remarks on my credit report?" Self: "get rid of debt by paying it off...get a 2nd and 3rd job...reduce all spending to basic levels and before you know, its all done with.....derogatory remarks are another thing and most likely you will have to wait it out.."
User (bangeneticalgorithms): "I've had a Discover chrome for student card for a while now. I get 2% cashback on gas and dining which is a good deal. I just found out that I am pre-qualified to get the Discover it cashback card. So I asked Discover if I can switch my Discover chrome card to Discover it cashback and they said I can.\n\nSo before I decide if I want to, I realized the chrome card gives back a bit more cashback than Discover it if you use it for gas and dining (but only slightly). But I might not use Discover for gas at all since I get (will get) gas at Costco.\n\nI don't want to get a new card because I'm about to get a car. So my options are:\n\n1. Switch to Discover it\n2. Wait until I get the car and the get Discover it as a new card\n3. Don't change anything\n\nI can't get a Chase Freedom or Freedom unlimited because of the 5/24 rule until April." 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 (bangeneticalgorithms): "I've had a Discover chrome for student card for a while now. I get 2% cashback on gas and dining which is a good deal. I just found out that I am pre-qualified to get the Discover it cashback card. So I asked Discover if I can switch my Discover chrome card to Discover it cashback and they said I can.\n\nSo before I decide if I want to, I realized the chrome card gives back a bit more cashback than Discover it if you use it for gas and dining (but only slightly). But I might not use Discover for gas at all since I get (will get) gas at Costco.\n\nI don't want to get a new card because I'm about to get a car. So my options are:\n\n1. Switch to Discover it\n2. Wait until I get the car and the get Discover it as a new card\n3. Don't change anything\n\nI can't get a Chase Freedom or Freedom unlimited because of the 5/24 rule until April." Self: "I don't have any real advice but I do have the Discover IT card and I love it. You get cashback on all purchases and even more cashback in revolving categories. I also like that they periodically offer 0% balance transfer options."
User (talal99): "Hello guys,\nI can't decide between going to Normandale community college and use the transfer option to go the university of Minnesota, or going to the university of Minnesota twin cities straight.\nNormandale Community College. i think i will receive a lot of govt income because i come from a low-income family of 7 relying on govt support. \n25 Minutes away from me \n$5990 cost of attendance(not counting federal aid/scholarships)\nUniversity of Minnesota\n40 minutes away from me (in downtown area with all the traffic)\n$18,000 cost of attendance (not counting federal aid/scholarships)\nwhat are other benefits other than the cost and distance. which is better for me. thank you very much." Self: "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> Hello guys,\n\n> I can't decide between going to Normandale community college and use the transfer option to go the university of Minnesota, or going to the university of Minnesota twin cities straight.\n\n> Normandale Community College. i think i will receive a lot of govt income because i come from a low-income family of 7 relying on govt support. \n\n> 25 Minutes away from me \n\n> $5990 cost of attendance(not counting federal aid/scholarships)\n\n> University of Minnesota\n\n> 40 minutes away from me (in downtown area with all the traffic)\n\n> $18,000 cost of attendance (not counting federal aid/scholarships)\n\n> what are other benefits other than the cost and distance. which is better for me. thank you very much.\n>\n\n----\n\n^(I am a bot. Contact) ^[pentium4borg](https://www.reddit.com/user/pentium4borg) ^(with any feedback.)"
User (talal99): "Hello guys,\nI can't decide between going to Normandale community college and use the transfer option to go the university of Minnesota, or going to the university of Minnesota twin cities straight.\nNormandale Community College. i think i will receive a lot of govt income because i come from a low-income family of 7 relying on govt support. \n25 Minutes away from me \n$5990 cost of attendance(not counting federal aid/scholarships)\nUniversity of Minnesota\n40 minutes away from me (in downtown area with all the traffic)\n$18,000 cost of attendance (not counting federal aid/scholarships)\nwhat are other benefits other than the cost and distance. which is better for me. thank you very much." Self: "Coming from a low income family, the costs may actually work out the same. You should speak with a financial aid advisor for specifics but you will more than likely be fully covered through federal and state grants. A quick Google search showed this which might help you identify what kind of grants you could expect:\n\nhttps://www.ohe.state.mn.us/Estimator/firstQuestions.cfm\n\nThere are also scholarships which would be in addition to the grants. "
User (talal99): "Hello guys,\nI can't decide between going to Normandale community college and use the transfer option to go the university of Minnesota, or going to the university of Minnesota twin cities straight.\nNormandale Community College. i think i will receive a lot of govt income because i come from a low-income family of 7 relying on govt support. \n25 Minutes away from me \n$5990 cost of attendance(not counting federal aid/scholarships)\nUniversity of Minnesota\n40 minutes away from me (in downtown area with all the traffic)\n$18,000 cost of attendance (not counting federal aid/scholarships)\nwhat are other benefits other than the cost and distance. which is better for me. thank you very much." Self: "Go to university as therevsre less distractions and u will be more likly to graduate "
User (talal99): "Hello guys,\nI can't decide between going to Normandale community college and use the transfer option to go the university of Minnesota, or going to the university of Minnesota twin cities straight.\nNormandale Community College. i think i will receive a lot of govt income because i come from a low-income family of 7 relying on govt support. \n25 Minutes away from me \n$5990 cost of attendance(not counting federal aid/scholarships)\nUniversity of Minnesota\n40 minutes away from me (in downtown area with all the traffic)\n$18,000 cost of attendance (not counting federal aid/scholarships)\nwhat are other benefits other than the cost and distance. which is better for me. thank you very much." Self: "That price doesn't make sense for community college. \n\nI think it cost me around $80/credit hour or $~3000 per year when I went. \n\nAre there any other community colleges in the area you could go to? I'd also be hesitant to pay $18,000 for a State University. Depending on how you do in community college you could transfer into a far better school with a generous aid policy."
User (talal99): "Hello guys,\nI can't decide between going to Normandale community college and use the transfer option to go the university of Minnesota, or going to the university of Minnesota twin cities straight.\nNormandale Community College. i think i will receive a lot of govt income because i come from a low-income family of 7 relying on govt support. \n25 Minutes away from me \n$5990 cost of attendance(not counting federal aid/scholarships)\nUniversity of Minnesota\n40 minutes away from me (in downtown area with all the traffic)\n$18,000 cost of attendance (not counting federal aid/scholarships)\nwhat are other benefits other than the cost and distance. which is better for me. thank you very much." Self: "If you go to Normandale, you want to make sure the credits transfer for your degree. I took some online courses through them and none of them transferred fully to UMN." User (talal99): "when i go to Normandale and then transfer to umn. if a apply job/internship do i say i am a student at normandale or umn" Self: "After you transfer you say UMN"
User (tossitaway114): "When I started college my mom was added to my bank account to add funds/take money out conveniently and at the time I was ok with this. I graduated 3 years ago and now have a decent job, no debt, solid savings, etc and I am comfortable where I'm at financially. I have brought up the issue of removing my mom from my account in the past but it was a tense topic because my dad is very stubborn about having someone else on my account in case something were to happen to me. I was annoyed and complained but eventually caved and just left it as is.\n\nNot too long ago an argument about this topic presented itself, and I want to put this topic to bed for good. Basically my side is that I feel a bank account is something personal and only the primary owner should have control over. I trust both my parents 110% that they would never do anything deceiving with my money, but it's just a comfort issue with me I guess.\n\nMy dad's argument is that if anything were to happen to me, they want to make sure ALL of the money goes to whoever is the joint owner. I brought up a beneficiary form and while he understands that is one way to do it, he says it would count as an inheritance for whoever went to collect and some money would be taxed from it. Also it wouldn't be instant access like if someone were a joint owner (funeral costs,med bills, w/e). He also brings up that if I were not necessarily dead but say in a coma my accounts would be unreachable and medical assistance wouldn't be able to come from my account. \n\nI made my case with my dad and though he doesn't agree with me he respects my decision and will do as I please. So my questions to you fine folk, am I being unreasonable? Is my dad making valid arguments? Is there a way this can be approached where both parties can be 100% satisfied? Thanks for your time. " Self: "Open second account that's yours alone. Stop putting money into the shared account. Once the shared account goes to zero, the point should be made. \n\nYou're and adult now, and not living under their roof anymore, and probably never will be again."
User (tossitaway114): "When I started college my mom was added to my bank account to add funds/take money out conveniently and at the time I was ok with this. I graduated 3 years ago and now have a decent job, no debt, solid savings, etc and I am comfortable where I'm at financially. I have brought up the issue of removing my mom from my account in the past but it was a tense topic because my dad is very stubborn about having someone else on my account in case something were to happen to me. I was annoyed and complained but eventually caved and just left it as is.\n\nNot too long ago an argument about this topic presented itself, and I want to put this topic to bed for good. Basically my side is that I feel a bank account is something personal and only the primary owner should have control over. I trust both my parents 110% that they would never do anything deceiving with my money, but it's just a comfort issue with me I guess.\n\nMy dad's argument is that if anything were to happen to me, they want to make sure ALL of the money goes to whoever is the joint owner. I brought up a beneficiary form and while he understands that is one way to do it, he says it would count as an inheritance for whoever went to collect and some money would be taxed from it. Also it wouldn't be instant access like if someone were a joint owner (funeral costs,med bills, w/e). He also brings up that if I were not necessarily dead but say in a coma my accounts would be unreachable and medical assistance wouldn't be able to come from my account. \n\nI made my case with my dad and though he doesn't agree with me he respects my decision and will do as I please. So my questions to you fine folk, am I being unreasonable? Is my dad making valid arguments? Is there a way this can be approached where both parties can be 100% satisfied? Thanks for your time. " Self: "Start a new account and you can designate a 'pay on death' beneficiary."
User (tossitaway114): "When I started college my mom was added to my bank account to add funds/take money out conveniently and at the time I was ok with this. I graduated 3 years ago and now have a decent job, no debt, solid savings, etc and I am comfortable where I'm at financially. I have brought up the issue of removing my mom from my account in the past but it was a tense topic because my dad is very stubborn about having someone else on my account in case something were to happen to me. I was annoyed and complained but eventually caved and just left it as is.\n\nNot too long ago an argument about this topic presented itself, and I want to put this topic to bed for good. Basically my side is that I feel a bank account is something personal and only the primary owner should have control over. I trust both my parents 110% that they would never do anything deceiving with my money, but it's just a comfort issue with me I guess.\n\nMy dad's argument is that if anything were to happen to me, they want to make sure ALL of the money goes to whoever is the joint owner. I brought up a beneficiary form and while he understands that is one way to do it, he says it would count as an inheritance for whoever went to collect and some money would be taxed from it. Also it wouldn't be instant access like if someone were a joint owner (funeral costs,med bills, w/e). He also brings up that if I were not necessarily dead but say in a coma my accounts would be unreachable and medical assistance wouldn't be able to come from my account. \n\nI made my case with my dad and though he doesn't agree with me he respects my decision and will do as I please. So my questions to you fine folk, am I being unreasonable? Is my dad making valid arguments? Is there a way this can be approached where both parties can be 100% satisfied? Thanks for your time. " Self: "I was in this exact situation when I left college. My mom didn't make the argument your parents did, more like I was sick of the shaming I would get for spending every little penny I earned. If you like the bank you're at, just close out the account and open a new one at the same place, redeposit the money into the new account. I do indeed think you're being reasonable. Just let them know your new account number so they can transfer into your account as needed, like my parents do at my FCU when I need money."
User (tossitaway114): "When I started college my mom was added to my bank account to add funds/take money out conveniently and at the time I was ok with this. I graduated 3 years ago and now have a decent job, no debt, solid savings, etc and I am comfortable where I'm at financially. I have brought up the issue of removing my mom from my account in the past but it was a tense topic because my dad is very stubborn about having someone else on my account in case something were to happen to me. I was annoyed and complained but eventually caved and just left it as is.\n\nNot too long ago an argument about this topic presented itself, and I want to put this topic to bed for good. Basically my side is that I feel a bank account is something personal and only the primary owner should have control over. I trust both my parents 110% that they would never do anything deceiving with my money, but it's just a comfort issue with me I guess.\n\nMy dad's argument is that if anything were to happen to me, they want to make sure ALL of the money goes to whoever is the joint owner. I brought up a beneficiary form and while he understands that is one way to do it, he says it would count as an inheritance for whoever went to collect and some money would be taxed from it. Also it wouldn't be instant access like if someone were a joint owner (funeral costs,med bills, w/e). He also brings up that if I were not necessarily dead but say in a coma my accounts would be unreachable and medical assistance wouldn't be able to come from my account. \n\nI made my case with my dad and though he doesn't agree with me he respects my decision and will do as I please. So my questions to you fine folk, am I being unreasonable? Is my dad making valid arguments? Is there a way this can be approached where both parties can be 100% satisfied? Thanks for your time. " Self: "You should probably ask to be added to all their accounts, in case something happens to them. What if they were in a car accident together? Oh no, you might have to pay taxes when you get all their money!\n\nBut seriously, just open your own account separately and send all your paycheques there. When you're eventually questioned, tell them you're sorry but if something happens to you they will have to go about getting your money the normal way. You're an adult now and you need to start taking care of your own money, and you also have a right to your privacy (right now they can see all your transactions)."
User (tossitaway114): "When I started college my mom was added to my bank account to add funds/take money out conveniently and at the time I was ok with this. I graduated 3 years ago and now have a decent job, no debt, solid savings, etc and I am comfortable where I'm at financially. I have brought up the issue of removing my mom from my account in the past but it was a tense topic because my dad is very stubborn about having someone else on my account in case something were to happen to me. I was annoyed and complained but eventually caved and just left it as is.\n\nNot too long ago an argument about this topic presented itself, and I want to put this topic to bed for good. Basically my side is that I feel a bank account is something personal and only the primary owner should have control over. I trust both my parents 110% that they would never do anything deceiving with my money, but it's just a comfort issue with me I guess.\n\nMy dad's argument is that if anything were to happen to me, they want to make sure ALL of the money goes to whoever is the joint owner. I brought up a beneficiary form and while he understands that is one way to do it, he says it would count as an inheritance for whoever went to collect and some money would be taxed from it. Also it wouldn't be instant access like if someone were a joint owner (funeral costs,med bills, w/e). He also brings up that if I were not necessarily dead but say in a coma my accounts would be unreachable and medical assistance wouldn't be able to come from my account. \n\nI made my case with my dad and though he doesn't agree with me he respects my decision and will do as I please. So my questions to you fine folk, am I being unreasonable? Is my dad making valid arguments? Is there a way this can be approached where both parties can be 100% satisfied? Thanks for your time. " Self: "Open a new account without your parents. Put your money into that account."
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "It depends on the school, but I pay like 31k for my state's university so 35k isn't out of the realm of possible"
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "Convert to Mormonism and send them to BYU, but do it right before they go off to school - it's about $6k per year in tuition."
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "http://sfs.virginia.edu/cost/14-15"
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "Your kids can borrow money for school.\n\nYou can't borrow money to retire."
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "VA sounds like IL: state colleges cost so much that it is pretty common for people to go out of state to pay less. BTW, $20k/yr wouldn't be enough in IL either - my husband pays a little more than $16k/yr for tuition. \n\nAlso - if they are interested in engineering, presently UIUC's out of state costs for engineering ate just a little more (within 2k) of VA, so, you know... better school for the price :p"
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "UVA is one of the more expensive public schools if I'm correct, but costs at most public schools seem to be rising. The main public university in my state is about $25,000/year (tuition, room & board, and other expenses) at the moment, so 20k (by the time your children are in college), won't be enough on its own. \n\nI think one of the best things my parents did for me and my sisters is make it clear that although they will save some money for us to attend college (~50k once I graduated high school), that we would have to rely on scholarships if we wanted to pursue higher education. They told us this probably late elementary school/early middle school, so it provided all of us with certain expectations about going to college. So my advice to you is to start having discussions about how your kids can contribute to their own future by making good grades, getting involved in hobbies, volunteering, or sports, etc. I don't recommend excessive pushing (I've seen this backfire so many times in my own life and with others), but just having conversations about finances in a kid-appropriate manner while answering their questions could be really beneficial. \n\nMy sisters and I all received multiple scholarships to both public and private universities (we're all at private universities now). It's actually cheaper for one of my sister to attend the Ivy League she's in then our local state school (parents are in the middle to upper middle class range). When it comes time to search for universities, look for the colleges with good merit-based scholarships or a general track record of giving good financial aid packages to different types of families. Also, community college is something that should also be discussed as a legitimate option when the time comes (esp. if one of your kids is still figuring out what they want to do at that point)."
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "Your kids can find ways to pay for school. They can get scholarships, jobs and/or loans to cover the difference. Resident assistants usually get free on campus housing, possibly a meal plan, as part of their job. Your kids may find cheaper housing off campus.\n\nPoint is, they have options. Don't feel bad about your early retirement. You can't get a scholarship or loan for your retirement."
User (PF_throwaway23): "I've been saving to send both of my kids to college their whole lives. I'd budgeted for full tuition/room/board at an in-state school, and estimated about $20k/year. This was way more than school costed when I went (graduated highschool in 1998), but I figured I might as well play it safe.\n\nJust seeing how I was doing, I looked up the cost of in-state tuition at one of my state's schools (University of Virginia) and was shocked that it was 35k/year for the Engineering program (https://sfs.virginia.edu/cost/16-17).\n\nIs this normal? I was budgeting for 80k total for each kid, and now it looks like I should have been looking at 140k each. This puts me substantially behind, and is making me question my early retirement goals.\n\nCurrently I have:\n\n* $28K saved up for my daughter, with 8 years until she starts college.\n\n* $21K saved up for my son, with 11 years until he starts college.\n\nI'm putting $300/month into each of their college funds." Self: "College is a scam. \n\nYou're going to spend $140K to learn what can be learned online or in a library for free?\n\nIt's pay for play. Buying your way into the job market, because the position can't be had without a degree. It's a scam. Even after adjusted for inflation, a degree costs double what it did in the 60's. \n\nAnd society wants you crapping out more kids so you buy into the scam of feeling obligated to pay for their college, and the exorbitant tuition costs. \n" faiora (faiora): "For some fields, I agree with you. But I'm glad that none of the doctors who'll be performing open heart surgery on me next week are self-taught, and that they're all on the same page with each other because of standard practices learned in medical school. And actually, I'd say I'm even more glad the nurses who will be caring for me afterwards went to school. \n\nOrganized education has its place. " skeever2 (skeever2): ""Don't worry. I may not technically be an actual doctor but I totally viewed all the best Web pages concerning your condition, which is the exact same as university but so much cheaper! I got this.""
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " 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 (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Yes. I have a quicksilver card from capital one with a 10k limit. Credit score is around 750. "
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Sure. I have a couple cards with limits above that. A chase sapphire and a BOA visa. "
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Yes, I have a very low score but multiple cards with 20K+ limits."
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Have you tried asking for a higher limit on your existing card? Sometimes that's all it takes."
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " User (E46M54): "My FICO is 772. Equifax and Transunion over 800. " yybb (yybb): "Maybe your income is too low?"
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "It's probably income-related. I had great credit as a student, but never got credit lines over $7,000. Since getting a real job, I don't think I've had a credit line under $10,000, and twice got cards (from the same bank oddly) for $25,000. The change was immediate and obvious."
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Credit card companies typically start you out at "lower" limits. Given your scores you mentioned in other comments, $5,500 starting credit limit is actually pretty good.\n\nHaving more available credit is not necessarily a good thing, and if you're thinking about living off your credit cards, that's just a recipe for disaster."
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Pretty much any card that's non entry level from a bank. \n\nThey take both your existing debt, income and credit score. If you're not getting high enough limits, look into those variables. \n"
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Credit limits are assigned somewhat arbitrarily. If your credit score is good, you could always call one of your existing credit cards and ask to increase your credit limit"
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Yup. I have a $15,000 limit on my credit card. "
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "I just got the Ally card and got more than that (was expecting less, only wanted the sign up bonus since I have a big expense coming up). Maybe they are being generous to get more people to sign up.\n\nAny reason why you need that much credit on one card?"
User (E46M54): "Are there still card companies that offer 10K limits on personal, non commercial cards?\n\nI have excellent credit yet my highest limit card is only $6500 and I recently applied, qualified for their lowest interest rate, yet only issued $5500. " Self: "Some cards like Visa Infinite have 10k as a minimum credit limit, so if you're approved you'll get at least 10k.\n\nAs far as I know there's only around 5 Visa Infinite cards offered in the US and only 2 of them are easy for anyone to apply for (Chase Ritz-Carlton and Sapphire Reserve)."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "You're not in a tough situation. Just don't buy the house. Your father should sell it to an interested party, and move to a smaller and cheaper place.\n\nYou should just continue with your own life, also financially.\n"
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "Your father could easily live another 10 or 20 or more years.\n\nHe needs to sell the house and move into an affordable apartment suitable for a retired senior person. Then he will be able to live comfortably and safely, with expenses that are stable and easy to plan for.\n\nIt's your responsibility to help your father do what is best for his security and health, and that's move out of the completely unaffordable old house and into a safe small apartment.\n\nWhen my father was 70 years old, the biggest mistake he made was staying in the gigantic old house himself. His health gradually declined and it became steadily more difficult to maintain the place. And the repair costs (roof, heat, etc) kept piling up. It was horrible. Everything would have been so much happier if he had simply sold all his old junk (that he never looked at anyway) and moved to a small place."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "Your dad wants you to buy the house for the payoff or for full market value? If the latter, I would stay away. You don't have the mean's to buy a $900k house and shouldn't get in over your head. If your Dad needs to free up cash, cant he sell the house on the open market and buy something cheaper or rent?" User (DMoogle): "For the payoff, or ideally a little extra (maybe $530K total or something). I wouldn't bother if he would only sell me the house at full price.\n\nHe can sell the house and move, but he doesn't want to do that because he's lived in the house nearly 40 years, the moving and selling expenses would be substantial, and I'd rather him not do that because it's less likely he'll be able to leave me with something." hashtag_lives_matter (hashtag_lives_matter): "You seem to be concerned with what he's going to leave you. Why do you care?\n\nAlso, if he sold the house for $800k, paid everything off, he'd have quite the nest egg to live comfortably on for a while."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "There's an expression "aging includes downsizing gracefully". Don't focus on the loss of the house but the new place he will live and enjoy. Start looking for his new home and neighborhood. Perhaps a community where residents don't need a car? This could be a great time of his life."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "He should sell the house and use the $500k to pay rent in something smaller for the next 500 months." User (DMoogle): "He can sell the house and move, but he doesn't want to do that because he's lived in the house nearly 40 years, the moving and selling expenses would be substantial, and I'd rather him not do that because it's less likely he'll be able to leave me with something." dont_care- (dont_care-): "> be able to leave me with something.\n\nheh" emt139 (emt139): "Wow. "
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "Im not following. So his income is $2200/mo and he has a net asset worth close to half a mill? \n\nWhats the problem? You just want to make sure you inherit a $1m house with no mortgage attached to it? " betterdays89 (betterdays89): "I think that's exactly the advice OP is looking for."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "He should sell the house and use the $500k to pay rent in something smaller for the next 500 months." User (DMoogle): "He can sell the house and move, but he doesn't want to do that because he's lived in the house nearly 40 years, the moving and selling expenses would be substantial, and I'd rather him not do that because it's less likely he'll be able to leave me with something." pcbzelephant (pcbzelephant): "Well he should have thought about that before making horrible choices with his money. Also he is not a bank he doesn't have to leave you a dime. I have told my parents that they should spend their money and only leave me enough for the funeral cost. They took care of me for 18 years and that's all that was required."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "He should sell the house and use the $500k to pay rent in something smaller for the next 500 months." User (DMoogle): "He can sell the house and move, but he doesn't want to do that because he's lived in the house nearly 40 years, the moving and selling expenses would be substantial, and I'd rather him not do that because it's less likely he'll be able to leave me with something." JoeTony6 (JoeTony6): "He can't afford to live there. He isn't close to rock bottom yet - a foreclosure would be. Only then may he finally realize it and short sell. Or he could save the time, hassle, and earn more by selling now. It's not easy realizing you can no longer afford what you call home. My parents did it, it hurt them for a bit. Except they got over it and love being in a smaller place now and don't have to do landscaping or shovel snow.\n\nHe'll have to substantially downsize, so selling off crap will remove a large portion of the moving costs - probably even pay for most/all of them. Maybe even profit from the move, maybe not if he has to re-furnish a smaller place. \n\nYou can also help with physical labor and cover his moving costs, if you were really concerned for his long term financial stability. \n\nExcept you're not. Not really. You just want the million dollar home for free. Good luck."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "He needs to talk to a lawyer who specializes in "elder law" and medicare issues. There are laws that need to be followed regarding transfer of assets (for people who end up on taxpayer assistance). If these laws are broken (on purpose or accidentally), the government can (and will) swoop in and take back money and any other assets. Plus hefty fines. Consult with a lawyer, pronto." lava_lice (lava_lice): "Medicare lookback is 5 years."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "I would give dad the options: if he wants to live in a million dollar home, he needs to get a decent job and not retire. And maybe get a roommate. Otherwise sell and move to an affordable elderly living community. And forget about your inheritance until he's dead."
User (DMoogle): "I'm in a tough situation and not entirely sure where to start. My dad is 69 years old, and basically living off of social security. He's technically self-employed, but his business has been hardly profitable for years. His wife (my stepmom) died a few years ago, and before she died they spent all the money they had and then some. Some quick figures:\n\n* House is worth ~$800K in northern Virginia (rough estimate, I wouldn't be surprised if it's over $900K).\n\n* He owes $280K in mortgage, and $150K in home equity.\n\n* He purchased it in 1978 for $120K, and has spent $50K in landscaping and $300K in improvements (most of those improvements were a few years ago, hence the large balance on mortgage).\n\n* He gets around $2200 a month in social security. I think his monthly expenses are around $1100 not including his mortgage/home equity payments ($3K or so?)\n\nMy figures:\n\n* I had a $60K job as a business analyst last year that I quit because I was miserable. I'm currently working as a professional poker player right now (self-employed), and have made about $140K in the past year from that.\n\n* I got married two months ago. My wife has a $65K job working for the federal government. Her next raise isn't for another 1.5 years (she'll be making a little less than $80K then, I think).\n\n* I have $160K in stocks/mutual funds (maybe a 1/3 - 1/2 is unrealized capital gains), $60K in my retirement account, $15K in bank, and $80K or so in cash.\n\n* My wife and I combined have maybe $20K total in debt, that I've decided not to pay off in full because it's all low-interest (I'd rather keep the money in investments).\n\nWhile my wife's stable job helps, my unstable source of income has been an obstacle to getting a loan from my bank (a local credit union). They seem to want to do everything they can to help, but it's just regulations the regulations that they have to follow that are posing the barrier. It seems self-employed people really don't get much credit until they have >2 years of results.\n\nWhen it comes down to it my dad and I don't have a super strong relationship. I'm mostly in this for me - it would kind of suck if he leaves me with nothing when he passes. That said, I also don't want him to have to leave the house he's lived in for the past 40 years. So, my main question is: if I can't get a bank loan, do we have any other options?" Self: "Look into a reverse mortgage for him, if he really wants to stay in the home."
User (mamagee): "I currently receive $1931 USD each month from the SSA, which ends June of 2017. My mother has been taking this since he died in August of 2009 and spending it accordingly, until this past year when she bought a new truck and multiple $1000+ sewing machines with it. I think now that I turned 18 it is time for me to take my benefits and leave. I have an arrangement with my brother for $300/month and I make around $350/week either way during the slow season (work on base pay+commission). Where do I go from here? I know a car is a #1 priority, but other than that I am lost when it comes to planning. I graduate in June, so I have until then to save and budget. Thanks for all the advice, and I can give extra information if needed." Self: "You may find these links helpful:\n\n- [Budgeting wiki page](http://www.reddit.com/r/personalfinance/wiki/budgeting)\n- [Spreadsheets section of the Tools wiki page](http://www.reddit.com/r/personalfinance/wiki/tools#wiki_redditor_created.3A)\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 (mamagee): "I currently receive $1931 USD each month from the SSA, which ends June of 2017. My mother has been taking this since he died in August of 2009 and spending it accordingly, until this past year when she bought a new truck and multiple $1000+ sewing machines with it. I think now that I turned 18 it is time for me to take my benefits and leave. I have an arrangement with my brother for $300/month and I make around $350/week either way during the slow season (work on base pay+commission). Where do I go from here? I know a car is a #1 priority, but other than that I am lost when it comes to planning. I graduate in June, so I have until then to save and budget. Thanks for all the advice, and I can give extra information if needed." Self: "What are you studying?\n\nDo you know how much it would cost you to rent a room in a student house or in an apartment? Probably some of your fellow students are renting a room, ask them how much it costs them. Also ask them to tell you of any options for rooms that they hear about. \n\nI assume your brother is a bit older than you are. Can you ask him to help you with the process of buying a cheap car? You should hope for a car for say $2000-$5000, perhaps with a small car loan (if you can get it). Maybe your brother has some experience and can help you get a decent deal. \n\nYou're 18, and I would start carefully. Don't take on too many financial obligations all at once. Therefore, only rent a room and not a complete apartment or condo. Don't buy an expensive car with expensive car payments. Over the next years, you will be able to build up your life; in particular if you can keep building your career, too. But start small. Ideally every month you should have substantial money left to sock away into a savings account. If you can build up $5k to $10k of savings over the next year, that would be wonderful." User (mamagee): "I am still a high school student, which should answer some of your questions or advice. I was planning on getting a car for around 5k, because I could definitely handle that and it shouldn't have any issues that would be detrimental. I am also working with my manager at my job for when he leaves, I would become the assistant manager which is a pay increase, but that wouldn't be until March at the earliest. Also, my bank gives first time auto loans, which can be refinanced after a year, but they are starting at 28% APR. " Self: "Ouch, that's an extremely high auto loan rate. I would explore other options, because that's a terrible rate. Only if you were to actually pay off the loan within four months or so, would I take this option as a last resort. \n\nCan you also check your credit report? Through www.annualcreditreport.com ... " User (mamagee): "No credit since i just turned 18" Self: "I'm not sure whether that is true. We have had people here on this subreddit where their parents have abused their blank credit slate and then they start out with negative items on their report when they're 18. That's why I thought that you should try to check it. "
User (burtzcr): "My wife and I are early 30s and expecting our first child in May 2017. We are unsure of our long term city choice, so we will be renting until at least May 2019. We are considering investing but my wife is very conservative so want to consider all options.\n\nCurrent situation combined: yearly income $170K (+22K bonus possible); Savings $45K ; 401k $110K ; Roth IRA $40K ; Student Loan Debt $50K \n\nWe live in a pricey market, so expect rent and bills to run 3k/mo. After fixed expenses and pending new born costs, we are expecting to continue our retirement savings and continue to save at least $1500/mo.\n\nShould we be setting aside an emergency fund and investing our savings? If we want to be conservative should it go into a high-yield savings account or a mutual fund? \n\nThanks!" Self: "You may find these links helpful:\n\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n- [Investing wiki page](http://www.reddit.com/r/personalfinance/wiki/investing)\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 (burtzcr): "My wife and I are early 30s and expecting our first child in May 2017. We are unsure of our long term city choice, so we will be renting until at least May 2019. We are considering investing but my wife is very conservative so want to consider all options.\n\nCurrent situation combined: yearly income $170K (+22K bonus possible); Savings $45K ; 401k $110K ; Roth IRA $40K ; Student Loan Debt $50K \n\nWe live in a pricey market, so expect rent and bills to run 3k/mo. After fixed expenses and pending new born costs, we are expecting to continue our retirement savings and continue to save at least $1500/mo.\n\nShould we be setting aside an emergency fund and investing our savings? If we want to be conservative should it go into a high-yield savings account or a mutual fund? \n\nThanks!" Self: "Emergency fund should hold at least six months of expenses when you have a baby. So should be $18k at least. You seem to already have that. Maybe you want to have more than $18k in your emergency fund, that's okay too. (I guess there's a maximum to that; I wouldn't hold more than 2 years or regular expenses in an emergency fund...).\n\nI assume you are also continuing to put money in your 401ks (up to the maximum match at least), and in the IRAs?\n\nAfter that, there are three things I see for you to do:\n\n1. Pay off all debts, including the $50k student loan debt.\n2. Save up for a mortgage downpayment so that you can get a mortgage if you want after May 2019. Use a high-yield savings account for this.\n3. Invest in taxable accounts.\n\nNow personally I would actually do that in this order. First the student loans, because they're never going away if you don't pay them off, and they will be a monthly bill until you pay them off. Also, they will influence the mortgage amount you can get and maybe the mortgage interest rate (depending on how much they reduce your credit score). Second the downpayment, especially if it is likely that within the next five years or so the two of you will want to buy a house. And then third taxable investing, because while it has the potential of being profitable, it is also risky; and the two other things are more important in your life right now." ef_you_see_potassium (ef_you_see_potassium): "I agree with this advise. Particularly in the short term to appease OP's wife's concern/conservative approach paying off debt is about as conservative an "investment" as one can make."
User (burtzcr): "My wife and I are early 30s and expecting our first child in May 2017. We are unsure of our long term city choice, so we will be renting until at least May 2019. We are considering investing but my wife is very conservative so want to consider all options.\n\nCurrent situation combined: yearly income $170K (+22K bonus possible); Savings $45K ; 401k $110K ; Roth IRA $40K ; Student Loan Debt $50K \n\nWe live in a pricey market, so expect rent and bills to run 3k/mo. After fixed expenses and pending new born costs, we are expecting to continue our retirement savings and continue to save at least $1500/mo.\n\nShould we be setting aside an emergency fund and investing our savings? If we want to be conservative should it go into a high-yield savings account or a mutual fund? \n\nThanks!" Self: "Emergency fund should hold at least six months of expenses when you have a baby. So should be $18k at least. You seem to already have that. Maybe you want to have more than $18k in your emergency fund, that's okay too. (I guess there's a maximum to that; I wouldn't hold more than 2 years or regular expenses in an emergency fund...).\n\nI assume you are also continuing to put money in your 401ks (up to the maximum match at least), and in the IRAs?\n\nAfter that, there are three things I see for you to do:\n\n1. Pay off all debts, including the $50k student loan debt.\n2. Save up for a mortgage downpayment so that you can get a mortgage if you want after May 2019. Use a high-yield savings account for this.\n3. Invest in taxable accounts.\n\nNow personally I would actually do that in this order. First the student loans, because they're never going away if you don't pay them off, and they will be a monthly bill until you pay them off. Also, they will influence the mortgage amount you can get and maybe the mortgage interest rate (depending on how much they reduce your credit score). Second the downpayment, especially if it is likely that within the next five years or so the two of you will want to buy a house. And then third taxable investing, because while it has the potential of being profitable, it is also risky; and the two other things are more important in your life right now." User (burtzcr): "Thanks! We are definitely working the debt down quickly as possible as the top priority and then saving for the down payment. I like the high yield as a way to do that. We are continuing to max our IRA and put 8% in 401k. Appreciate the input "
User (burtzcr): "My wife and I are early 30s and expecting our first child in May 2017. We are unsure of our long term city choice, so we will be renting until at least May 2019. We are considering investing but my wife is very conservative so want to consider all options.\n\nCurrent situation combined: yearly income $170K (+22K bonus possible); Savings $45K ; 401k $110K ; Roth IRA $40K ; Student Loan Debt $50K \n\nWe live in a pricey market, so expect rent and bills to run 3k/mo. After fixed expenses and pending new born costs, we are expecting to continue our retirement savings and continue to save at least $1500/mo.\n\nShould we be setting aside an emergency fund and investing our savings? If we want to be conservative should it go into a high-yield savings account or a mutual fund? \n\nThanks!" Self: "So she has the last word on investing? You can't be 100% very conservative at your age. Yet you use the word 'but my wife' to describe your situation. " User (burtzcr): "She doesn't have the last and final word. She does have equal input though and I don't fully trust the market with the uncertainties in the next few years of the new administration. While I think we should invest, we both believe it should be conservative at this time. "
User (creditquestion1314): "Hi everyone,\n\nI'm currently planning on cancelling my Barclaycard account (that I opened ~5 months ago for bonus points on groceries/gas), and applying for the Ally credit card with the same bonuses but an extra +10% when you redeem cash back rewards.\n\nI'm pretty young (25) and before the Barclaycard I only had one other card, one from Wells Fargo that I've kept up well on. My FICO score is around 760 right now.\n\nThe Barclaycard limit is $1,500, and my WF card has a limit of $4,000. I'm also technically on one of my parents' credit cards, but I don't know what their limit is on it. I do know they have exceptional credit, though, and it's a card they've had for 30+ years.\n\nIf I close my $1,500 account and open a new one (probably starting somewhere around $500 and working up eventually), will my credit recover by the time I want to look for a new place to live in ~6 months?\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 (creditquestion1314): "Hi everyone,\n\nI'm currently planning on cancelling my Barclaycard account (that I opened ~5 months ago for bonus points on groceries/gas), and applying for the Ally credit card with the same bonuses but an extra +10% when you redeem cash back rewards.\n\nI'm pretty young (25) and before the Barclaycard I only had one other card, one from Wells Fargo that I've kept up well on. My FICO score is around 760 right now.\n\nThe Barclaycard limit is $1,500, and my WF card has a limit of $4,000. I'm also technically on one of my parents' credit cards, but I don't know what their limit is on it. I do know they have exceptional credit, though, and it's a card they've had for 30+ years.\n\nIf I close my $1,500 account and open a new one (probably starting somewhere around $500 and working up eventually), will my credit recover by the time I want to look for a new place to live in ~6 months?\n\nThanks!" Self: "Are you looking at renting? At 760 as long as you have no issues on your report, the impact on you getting the apartment is of no concern. They are concerned that you pay your debts and your renting history. It might impact your score, but your score will change, don't worry about the numbers." User (creditquestion1314): "I'll probably be renting, but there's a small chance that I'll look at buying a house if I can get a good job offer." Self: "It is generally advisable to hold off on any credit stuff if you are planning to buy a house." User (creditquestion1314): "Hmm. Do you have any idea how much my credit would drop initially/recover after 5 or so months from this?" Self: "Tough to say. Credit isn't an exact science." User (creditquestion1314): "Okay, well thanks for your input!" Self: "Np, good luck!"
User (creditquestion1314): "Hi everyone,\n\nI'm currently planning on cancelling my Barclaycard account (that I opened ~5 months ago for bonus points on groceries/gas), and applying for the Ally credit card with the same bonuses but an extra +10% when you redeem cash back rewards.\n\nI'm pretty young (25) and before the Barclaycard I only had one other card, one from Wells Fargo that I've kept up well on. My FICO score is around 760 right now.\n\nThe Barclaycard limit is $1,500, and my WF card has a limit of $4,000. I'm also technically on one of my parents' credit cards, but I don't know what their limit is on it. I do know they have exceptional credit, though, and it's a card they've had for 30+ years.\n\nIf I close my $1,500 account and open a new one (probably starting somewhere around $500 and working up eventually), will my credit recover by the time I want to look for a new place to live in ~6 months?\n\nThanks!" Self: "If the card is fully paid off, closing the credit account should have little or no effect on your credit score. " User (creditquestion1314): "It definitely will be before I pay it off. There's a small chance I'd be looking at buying a house after 6 months, would waiting until I'm more certain of the situation then be better for me?" mail323 (mail323): "Closing a card won't improve your score but keeping it open with a $0 balance can. It it doesn't have a fee just keep it open." User (creditquestion1314): "If I keep it open with a $0 balance, won't they just close it eventually and that will have the same effect as me closing it, but later?" mail323 (mail323): "They might close it eventually if you never use it again. You could always use it once or twice a year." User (creditquestion1314): "I'm also concerned with when a good time to close it would be then. I don't want the card anymore, but will it ever be a good thing (or at least not negative) to close it?" mail323 (mail323): "If you have several accounts open several years and your balances are low the impact should be minimal. Keep in mind one big factor in FICO scoring besides actual balances is number of accounts with balances, the less you have (but not 0) the better.\n\nYou could always call Barclaycard and see if they're willing to change it to another type of card." User (creditquestion1314): "Okay, thanks for your input!"
User (creditquestion1314): "Hi everyone,\n\nI'm currently planning on cancelling my Barclaycard account (that I opened ~5 months ago for bonus points on groceries/gas), and applying for the Ally credit card with the same bonuses but an extra +10% when you redeem cash back rewards.\n\nI'm pretty young (25) and before the Barclaycard I only had one other card, one from Wells Fargo that I've kept up well on. My FICO score is around 760 right now.\n\nThe Barclaycard limit is $1,500, and my WF card has a limit of $4,000. I'm also technically on one of my parents' credit cards, but I don't know what their limit is on it. I do know they have exceptional credit, though, and it's a card they've had for 30+ years.\n\nIf I close my $1,500 account and open a new one (probably starting somewhere around $500 and working up eventually), will my credit recover by the time I want to look for a new place to live in ~6 months?\n\nThanks!" Self: "If you're not going to use the card, just cut it but keep the account open. Never hurts to have available credit mapped to your SSN." User (creditquestion1314): "So you mean just stop spending on it? Is it possible that I'd ever incur a fee or something from maintaining an open account with no balance?" jmlinden7 (jmlinden7): "Not unless your card has an annual fee. Most likely they'll just cancel it after a year or so"
User (creditquestion1314): "Hi everyone,\n\nI'm currently planning on cancelling my Barclaycard account (that I opened ~5 months ago for bonus points on groceries/gas), and applying for the Ally credit card with the same bonuses but an extra +10% when you redeem cash back rewards.\n\nI'm pretty young (25) and before the Barclaycard I only had one other card, one from Wells Fargo that I've kept up well on. My FICO score is around 760 right now.\n\nThe Barclaycard limit is $1,500, and my WF card has a limit of $4,000. I'm also technically on one of my parents' credit cards, but I don't know what their limit is on it. I do know they have exceptional credit, though, and it's a card they've had for 30+ years.\n\nIf I close my $1,500 account and open a new one (probably starting somewhere around $500 and working up eventually), will my credit recover by the time I want to look for a new place to live in ~6 months?\n\nThanks!" Self: "Is there a specific reason you want to close this card, or is it just that, you want a new card with other terms, and don't want to have three opened at a time?" User (creditquestion1314): "Mostly that I want to get a better card with better benefits, and I don't see myself using the other card (or if I do use it, I'm worried about forgetting to pay it) if I can get higher cashback by using the Ally card." MisterMoosers (MisterMoosers): "in that case, just put a small recurring bill on it(gym membership or gas bill or something) and set it up to automatically pay the credit card bill from your bank. \n\n\nno reason at all to close it"
User (creditquestion1314): "Hi everyone,\n\nI'm currently planning on cancelling my Barclaycard account (that I opened ~5 months ago for bonus points on groceries/gas), and applying for the Ally credit card with the same bonuses but an extra +10% when you redeem cash back rewards.\n\nI'm pretty young (25) and before the Barclaycard I only had one other card, one from Wells Fargo that I've kept up well on. My FICO score is around 760 right now.\n\nThe Barclaycard limit is $1,500, and my WF card has a limit of $4,000. I'm also technically on one of my parents' credit cards, but I don't know what their limit is on it. I do know they have exceptional credit, though, and it's a card they've had for 30+ years.\n\nIf I close my $1,500 account and open a new one (probably starting somewhere around $500 and working up eventually), will my credit recover by the time I want to look for a new place to live in ~6 months?\n\nThanks!" Self: "I think the best thing you could do would be to\n\n1. keep the card open\n2. pay off any remaining balance\n3. schedule the smallest monthly recurring bill you have on the account\n4. budget to pay it off shortly after the charge posts to your account\n\nIf you don't want to schedule a payment, then simply use the card once every 3-4 months for a small balance (e.g. a soda, snack machine, etc), then pay it off immediately.\n\nThe open account itself, good pay history, and available credit are all factors in your credit score. It helps your overall credit utilization and average age of credit. It will help you see lower interest rates for future loan requests when someone reviews your credit history. Closing this card, pulling credit, and opening a new card with lower credit limit will actually negatively impact your score (albeit in the short term), and not by much.\n\n"
User (creditquestion1314): "Hi everyone,\n\nI'm currently planning on cancelling my Barclaycard account (that I opened ~5 months ago for bonus points on groceries/gas), and applying for the Ally credit card with the same bonuses but an extra +10% when you redeem cash back rewards.\n\nI'm pretty young (25) and before the Barclaycard I only had one other card, one from Wells Fargo that I've kept up well on. My FICO score is around 760 right now.\n\nThe Barclaycard limit is $1,500, and my WF card has a limit of $4,000. I'm also technically on one of my parents' credit cards, but I don't know what their limit is on it. I do know they have exceptional credit, though, and it's a card they've had for 30+ years.\n\nIf I close my $1,500 account and open a new one (probably starting somewhere around $500 and working up eventually), will my credit recover by the time I want to look for a new place to live in ~6 months?\n\nThanks!" Self: "If there is no annual fee, just leave it open. It will help slightly with the age of your accounts. Closing probably won't hurt too much. Not will opening a new card (though your average credit age will drop slightly, it could be offset by a lower utilization). " User (creditquestion1314): "I guess I'm mostly just worried about losing track of my credit cards and getting burned on a late payment." Self: "Pay the balance down to zero and stick it in a drawer. I've got a card from 5 or so years ago that I never use or carry (I don't even think I have a current, unexpired version if it). I set up account alerts to text me and email me anytime it's used, just in case someone steals the number. "
User (loldogex): "I accidentally made too much money this year and I think I need to find an accountant to help me, but how do I know who is a good accountant and the typical prices I need to pay for someone to help me with taxes?" Self: "You may find these links helpful:\n\n- [Tax Software Megathread](http://redd.it/41dew6)\n- [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes)\n- [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates)\n- [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator)\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 (loldogex): "I accidentally made too much money this year and I think I need to find an accountant to help me, but how do I know who is a good accountant and the typical prices I need to pay for someone to help me with taxes?" Self: "You can call the state board of accountancy for the state in which you live in. They can give you a good idea of small / medium firms that can help. Some cities have business journals that also list the best large and small firms. I'd start there. \n\nHow do you accidentally make more money? I'd like to have that problem. " User (loldogex): "I have been working on an algorithm in my equity trading portfolio and it went from 82% win rate last year to 100% win rate this year. Plus, I went I went super aggressive this after backtesting my data from last year and farther back. I am now up 3x more than my salary. So... I think I need some advice on this. Possibly Tax and Legal is what I will seek. I go to an accountant, but they are from a different state and I am pretty sure they are not CPA certified. I also have a friend who is a CPA, but I question myself and ask, "Do I want a friend to look through my income?"\n\n" Self: "Wow. That's amazing! \n\nThe firm I work has clients in various states. Generally speaking most public firms have client is various states. \n\nAs far as your cpa friend, I stay away from preparing tax returns for friends and family. I do however answer questions when questions arise. \n\nFind a tax firm and they'll be able to give you a projection based on your portfolio gains. " User (loldogex): "I appreciate the help, thank you. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "I don't think you're going to find anyone here who thinks it's a good idea to buy or lease this jeep. Obviously, it's your money and you're free to do what you wish, but this forum is dedicated to smart financial decisions and this is not such a decision. \n\nThat said, I love Wranglers! " User (codestar4): "Thanks!"
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "Couple of points:\n\n1. You have the option of buying the car for the residual value at lease end. If you turn in the lease, the national financial leasing company owns the car not the dealer. While the dealer could buy it and sell it to you, it is not guaranteed by any means. Depending on taxes, your monthly lease will likely be $500-600 a month.(with 0 down) With gas, maintenance, and insurance you are looking at 30% of your annual income. This is way too high. \n2. Jeeps are not comfortable vehicles even in high level trims. \n3. When you move out of your parents houses, you will find new expenses you never thought existed.\n4. If you need awd, consider a used CRV or RAV4. " User (codestar4): "Thank you for your feedback! "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "I own a 4 doors Sahara 2015 and I wish I've gotten the two doors sport which is the cheapest. First let me tell jeeps are a pain in the ass on the road they are uncomfortable so if you gonna use it as a daily driver do yourself a favor and get another car jeeps are only worth it if you will be off-roading every weekend and if you are into that then expect to break the thing more often. Let me say this again it's not a daily driver it's an off road car that will require a lot of very expensive maintenance and if you enjoy off roading and actually fell in love with your jeep then you will definitely want start upgrading like all the other jeepers you will meet and eventually you car will turn into a big money sucking machine. " User (codestar4): "Thanks for the feedback!"
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "Even without a full budget breakdown and assets/debts, this is mind boggling...\n\nI'm going to guess you are fairly young, 22-23?" User (codestar4): "I'm 20, she's 22. Would a better budget breakdown be beneficial? " MercurysMight (MercurysMight): "Budgets are good to see what you have and where it is going. I'd highly recommend creating one. I know you said not to talk you out of it and I respect that. But this would most likely be a bad idea. If you gave us a budget of all current income and expenses would could tell if you are able to afford the vehicle." User (codestar4): "I'll see what I can do. \n"
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "You are insane for proposing this. \n\nFirst of all, an entry-level Jeep Wrangler is like $25,000. You must be looking at the Jeep Wrangler Rubicon Unlimited at $37,000. High end option packages are generally really bad for resale value -- remember the Ford Explorer Eddie Bauer? -- and so you're already making a bad decision.\n\nJeep and Chrysler are among the worst brands for reliability in Consumer Reports' annual rankings. Five Chrysler group brands (Jeep, Dodge, Ram, etc) sit in the bottom seven spots on this year's list, and Jeep is 23/29 (an improvement from 2015!).\n\nhttp://www.consumerreports.org/car-reliability/car-brands-reliability-how-they-stack-up/\n\nLook at the depreciation in the first two years, in this calculator: about $14,000. You might as well take the cash and burn it.\n\nhttps://www.edmunds.com/jeep/wrangler/2016/st-200747776/cost-to-own/\n\nIf I were in your shoes, I would be looking for something much more sensible. Here are some ads to give you an idea of what's available in the private sale market:\n\n[1998 Toyota Corolla ONLY 88,842 MILES 1 owner](https://cleveland.craigslist.org/cto/5889933572.html)\n\nIf you need an SUV you could go with the more reliable Geo brand:\n\n[geo tracker - $700 (mount vernon)](https://mansfield.craigslist.org/cto/5892226248.html)" User (codestar4): "I started with the Sport, but it has no A/C.\n\nI then started with the Sport S, w/ hard top, automatic transmission, better sound, leather, heated seats, power locks, and a better differential. \n\nThese additions are why we want a jeep. Without half of these, we would not be happy with the vehicle. \n\nIt doesn't seem that jeep Wranglers depreciate this much so quickly in our area. \n\nShe is going to need something much more reliable than a 20 year old vehicle. \n\nThank you so much for your feedback!" rshook27 (rshook27): "I'm curious why you don't consider buying a certified used Jeep?\n" User (codestar4): "Definitely considered. $20k just seems high for a 10-15 year old car. Can't seem to find a used jeep for a decent price. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "I know you said try not to convince you but holy shit dude you can't afford a $37k+ car on a $35k of income.\n\nIt would be horrible financial advice for anyone here to help you with this decision." User (codestar4): "Can you provide more to back up this claim? Let's say for 5 years we only net $15k potentially making $60k minus $40k for a car that leaves us with $20k in savings. Not to mention, within two years, we will be making $60k more a year. " emt139 (emt139): "I'll break it down for you: you yourself live below the poverty live. Your gf is a little better but she's far from well off. You plan to add additional expenses by moving out next year too. You haven't provided a full budget because it seems like you don't know it. You'll be very car poor. \n\nAlso, I assume you haven't had any car loans before have you? You won't get the best rates. (And probably they won't even finance the car with that income but I'm not certain on that). \n\nYou say you have $15k extra a year. Why haven't you saved them up? Putting $15k down for this car won't make it a better decision but at least shows you know how to manage money. But going back to my previous paragraph -you say you want to move next year. So you have an extra $15k a year and you expect to use it for both afford living expenses for two people and a car that's like a year of your combined salary? That's crazy. \n\nYou may think that it's OK because you'll make $60k soon. The issue is you want te car now and you don't make $60k now. You're counting your eggs before hey hatch. Heck, even at a $60k combined income a $40k car is an overstretched. \n\nFinally, there is the fact that to getting this car will take you to combine two very low incomes to barely afford it (at the expense of other things). One of you loses your job, and your car will become a heavy burden (how heavy? Just check the posts we get all the time here about people buying an expensive car because it was a want they hadn't saved for). You break up and the car ruins you and your fiancées credit. \n\n" User (codestar4): "I appreciate the feedback, but I believe you have heavily mistaken my budget. \n\nShe has had a car loan, I've had a credit card. \n\nThe 'extra' $15k was after ALL expenses, including rent, utilities, food, etc. This is an estimate, it may be off, but it's close. \n\nThanks for the feedback, even though your numbers don't quite make sense because you misunderstood my budget, I get the "save up for the wants" thing. " Self: "I've read some of your posts in this thread. You don't have a budget. You have an assumption that your housing costs will be "about $750", and that all of your other costs will be "about $450". You haven't even included insurance on the car that you want to buy. This is not a budget." User (codestar4): "To be fair, housing and all utilities will easily be under $750. The other expenses I'm not sure about. I'll have to do some more math on the $450. \n"
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "You're a student, and you're planning on leasing with the HOPE/expectation that you're going to get your job out of college? What happens when ONE thing doesn't go according to plan? If you lease, you're just going to eat all of that depreciation for NOTHING. You also need to check your insurance on a brand new Wrangler. \n\nYou're living in a dream-world, wanting things like heated seats. You're a student. People making almost double what you are, are STILL considered below the poverty line! I was in your position, worked a decade past where you are now, ACTUALLY got the job I wanted, and I barely stepped up this year from a 1999 Civic to a 2012 Mazda3. You are about to trap yourself and your girlfriend, and you're about to DESTROY your financial future on a horrible purchase, if you can even get qualified to get one.\n\nYou need to be looking at cars that you can pay for in cash. If you have $4,000 then you can consider up to $3,500 for a used Rav4." User (codestar4): "I don't know how a lease would destroy our financial future, when we can afford payments on it. We could walk away debt free from this in 2-3 years, now I know we would not have any car equity to show for it, but with both of us still under 25, with little student debt, I would hardly say it would financially ruin us. \n" mike_hawks (mike_hawks): "A general financing guide is that your car payment including insurance should not exceed 10% of your gross monthly income. For you, that would mean something under $300. It's entirely possible that you wouldn't even be approved for this crazy purchase you're thinking of making." User (codestar4): "Thanks for this. \n\nThis may be a guide, but a lot of people in this area don't seem to follow that rule. Including those doing the loaning. Perhaps this is because housing in our area is much cheaper, so people spend more on vehicles? "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "You're a student, and you're planning on leasing with the HOPE/expectation that you're going to get your job out of college? What happens when ONE thing doesn't go according to plan? If you lease, you're just going to eat all of that depreciation for NOTHING. You also need to check your insurance on a brand new Wrangler. \n\nYou're living in a dream-world, wanting things like heated seats. You're a student. People making almost double what you are, are STILL considered below the poverty line! I was in your position, worked a decade past where you are now, ACTUALLY got the job I wanted, and I barely stepped up this year from a 1999 Civic to a 2012 Mazda3. You are about to trap yourself and your girlfriend, and you're about to DESTROY your financial future on a horrible purchase, if you can even get qualified to get one.\n\nYou need to be looking at cars that you can pay for in cash. If you have $4,000 then you can consider up to $3,500 for a used Rav4." User (codestar4): "I don't know how a lease would destroy our financial future, when we can afford payments on it. We could walk away debt free from this in 2-3 years, now I know we would not have any car equity to show for it, but with both of us still under 25, with little student debt, I would hardly say it would financially ruin us. \n" naijaboiler (naijaboiler): "you can't afford it period." User (codestar4): "I appreciate the feedback, but I'm looking for more reasons than opinions. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "First, your terminology is wrong. Net income is your pay minus deductions off your chque, as in total up your take home pay and that is your net income. Your expenses would generally be listed separately as you have more control about those vs deductions off yout cheque. \n\nSecond, if I understand you right, you say you have an 'extra' 15k per year not assigned to anything? If so, where are the past few years' 15k? You should have quite a savings built up. What do you have?\n\nThird, do you have any debt?\n\nAlso, you don't buy out a lease at fair market value, you buy it out at whatever the lease agreement says you do which may be close to or, higher or lower than FMV. \n\nNo personal finance forum will talk you into buying a car for more than your gross income. Ever. " User (codestar4): "I know that gross pay is check before deductions, and net pay is after taxes, etc. However, I didn't think it was incorrect to call the remaining income after all expenditures a net income. Sorry. \n\nYou understand me correctly when I say I would have an 'extra' $15k/year. However, this is an estimate. My fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.) \n\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience. \n\nShe does have some student loans. Maybe $15k worth. \n\nAs to buying out of the lease, I've read its pretty easy to negotiate the buy out price at fair market value at the end of the lease. I've read this in multiple places. \n\nThank you so much for your feedback!" emt139 (emt139): "You cannot negotiate the buyout price at the end of the lease. Whatever it is, it is. At that point, the car does not belong to the dealer but to the manufacturer and either you pay the agreed price or you return it at the end your lease. " User (codestar4): "I've read a bit more, and it seems that this is dependent on the leasing company. \n\nI would love more info. \n" emt139 (emt139): "That's very old info,check out r/askcarsales \n\nWhy would they negotiate to pay them X-% when you already signed something saying you'd put them X (particularly in a vehicle with high reselle value like a wrangler). You forget that when you're leasing the dealership is just an intermediary but your actual lease is with the manufacturer's financial services arm. " User (codestar4): "The idea is that the company wouldn't be able to sell the car for more than the fair market value without a lot of hassle. This could be incorrect, but that's just what I've read from older posts on r/personalfinance I do appreciate the additional sources. I'll continue to look into it. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "So you want to spend more then your combined yearly income on a car just cuz you want it? That's incredibly stupid no matter how you do it." User (codestar4): "This doesn't seem like a fair judgement, since cars are not bought on a yearly basis. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "I know you said try not to convince you but holy shit dude you can't afford a $37k+ car on a $35k of income.\n\nIt would be horrible financial advice for anyone here to help you with this decision." User (codestar4): "Can you provide more to back up this claim? Let's say for 5 years we only net $15k potentially making $60k minus $40k for a car that leaves us with $20k in savings. Not to mention, within two years, we will be making $60k more a year. " EliteShrimp (EliteShrimp): "Have you quoted insurance for the car? " User (codestar4): "No, shame on me. I assumed it would be close to the current car. \n\nThanks!" skeever2 (skeever2): "Unless your current car is worth about 40k it most certainly is not " User (codestar4): "Right. Thanks, I'll look into this some more. This has been very helpful. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "I know you said try not to convince you but holy shit dude you can't afford a $37k+ car on a $35k of income.\n\nIt would be horrible financial advice for anyone here to help you with this decision." User (codestar4): "Can you provide more to back up this claim? Let's say for 5 years we only net $15k potentially making $60k minus $40k for a car that leaves us with $20k in savings. Not to mention, within two years, we will be making $60k more a year. " emt139 (emt139): "I'll break it down for you: you yourself live below the poverty live. Your gf is a little better but she's far from well off. You plan to add additional expenses by moving out next year too. You haven't provided a full budget because it seems like you don't know it. You'll be very car poor. \n\nAlso, I assume you haven't had any car loans before have you? You won't get the best rates. (And probably they won't even finance the car with that income but I'm not certain on that). \n\nYou say you have $15k extra a year. Why haven't you saved them up? Putting $15k down for this car won't make it a better decision but at least shows you know how to manage money. But going back to my previous paragraph -you say you want to move next year. So you have an extra $15k a year and you expect to use it for both afford living expenses for two people and a car that's like a year of your combined salary? That's crazy. \n\nYou may think that it's OK because you'll make $60k soon. The issue is you want te car now and you don't make $60k now. You're counting your eggs before hey hatch. Heck, even at a $60k combined income a $40k car is an overstretched. \n\nFinally, there is the fact that to getting this car will take you to combine two very low incomes to barely afford it (at the expense of other things). One of you loses your job, and your car will become a heavy burden (how heavy? Just check the posts we get all the time here about people buying an expensive car because it was a want they hadn't saved for). You break up and the car ruins you and your fiancées credit. \n\n" User (codestar4): "I appreciate the feedback, but I believe you have heavily mistaken my budget. \n\nShe has had a car loan, I've had a credit card. \n\nThe 'extra' $15k was after ALL expenses, including rent, utilities, food, etc. This is an estimate, it may be off, but it's close. \n\nThanks for the feedback, even though your numbers don't quite make sense because you misunderstood my budget, I get the "save up for the wants" thing. " emt139 (emt139): "If she's had a car loan, that helps. Auto lenders pull a different version of FICO that penalizes no auto loans, so the fact that you have good credit helps but it doesn't make you the top tier automatically. \n\nFinally, if you have $15k after rent, then this year that you're both still living at home you should think about putting a lot down. My recommendation completely changes if you can indeed put some money down (more than $15k). Otherwise, at your income it's still financial suicide. \n\nEDIT: words " User (codestar4): "She'll be saving nearly all of her check until the summer, maybe even after the summer (I can afford the rent myself, but probably not many expenses on top of that) \n\nI was kind've hoping to get the car in early January, so that we would have the 4x4 in the winter. Probably not going to happen though. \n\nIt would also be financial suicide to deplete our savings to put as a down payment, correct? \n" emt139 (emt139): "If that's all you have, yes. The recommendation is to usually keep three to six months worth of living expenses and don't touch them. \n\nEveryone is trying to tell you why this is a very bad idea and you keep rationalizing that it's not. It's fine. Many people do that and buy an expensive car. It's a great way to start your adult lives in a debt hole and then they're 35 still in debt and $0 in retirement savings and that's when it hits them. " User (codestar4): "I'm just trying to fully comprehend. A lot of these comments about "why it's a bad idea" don't quite make sense to me. Using age as a factor doesn't make any sense. \n\nI understand the low budget thing. However, if the monthly payment on the lease is afforded (it may not be, I'll give you that) then how is it that this is worse than any other lease? I know leasing is often not encouraged, because you will be spending almost $10k for the privilege to drive someone else's car. However, if I want to drive a brand new car all the time, this is the best way to go. Sure, the want to have a new car all the time isn't financially sensible, but it is not an uncommon lifestyle for some. \n\nA lot of the points have been made that I may not get a job, and I can't count that as a definite income. I agree, that's why we would lease now, then purchase or walk away in the end. \n\nLease isn't debt, we wouldn't be starting ourselves in a debt hole. It may be throwing away money, but this wouldn't be much different than people who go out to eat 3-4 times a week, instead of eating at home. " emt139 (emt139): "A lease is debt. You can stop eating out any moment you want to save money. You're locked in a lease until the term is over. Then, you better be ready to pay your lease termination fees. If you were telling me you made $120k a year I wouldn't think this is a bad idea. You make $10k. To get this car, you need to combine your income with someone else and, even then, your yearly income is less than the cost of the car. On top of everything, you'll add extra bills to your lifestyle by moving out next year and you're only saying that'll cost you "$750 max all bills paid". You're not even itemizing it which makes it seem like you have no idea what you're getting into and you're just guesstimating. If you've never lived alone, you're in for a shock. If you have and truly know your budget and are choosing not to disclose it here, that's fair. \n\nAgain, if all this unsolicited advice everyone has given you is not strong enough to talk you out of this, nothing short of being denied by the dealership will (and they're trying to sell cars, so you might end up paying a lot but they will try their best approve you). \n\nHave fun off-roading!\n\nEDIT to add: go back to my initial response. Never did I once mentioned your age. The issue is your income. You're too poor for this car. That's as simple as it gets. " User (codestar4): "I really do appreciate and am taking your advice seriously. I have been apartment hunting for quite some time as I've thought about living off campus, so I have a good idea of what they cost with utilities. \n\nOther expenses, such as gasoline, phone, food, etc. I'm already paying for myself. The only things my parents pay for right now are my health insurance and car insurance. They will continue to pay for my health insurance (it doesn't save them money if I'm taken off the plan). They might not mind to pay the insurance on my car still, but I plan to start paying for it. \n\nI may only have a general estimate on my budget, but I do think it's accurate, or at least close. I'll work on a better detailed budget. \n\nAlso, I know that you yourself have not mentioned my age, and I really appreciate that. However, you were talking about how I was trying to rationalize everyone's arguments. That's true, because some arguments are dumb, and I want to narrow these things down. \n\nDo you have any recommendations on tools and plans to use for budgeting? Including percentages of categories as guidelines would be very helpful. That being said, this jeep may cost more than the 10-15% guideline for transportation, but obviously that extra cost would come out of recreation. \n\nThanks so much for your help. " emt139 (emt139): "I use EveryDollar. It has some predetermined categories and you enter your expenses. \n\nNow, let me tell you how I would go around buying a car if I was in your situation: if you want to move out, prioritize moving. Stick to your $750 limit as close as possible but track every single thing for three months. No car. This will give you a chance to save for a down payment without using your general savings (which are vey important to keep in case one of you loses your job because in the future you'll need to pay rent and the car regardless of how much money you're bringing in). \n\nIf after three months of living in your own you're still comfortable having a car payment, check your options and don't focus only on a Wrangler unless you plan to take it off-road constantly. \n\nFinally, check out posts here about people who got an expensive car (for their income) when they started working and it bit them in the end even though they could make payments. Then they couldn't save money for a house or they broke up and couldn't afford the car on a single income, etc.\n\nIm not saying you shouldn't get a Wrangler (heck in another thread I just told someone I hope he'd get a BMW M3), but now it's not the time yet. " User (codestar4): "Thank you so much for your help. I know I've been a bit ignorant and argumentative. " emt139 (emt139): "It's fine. You've been at least listening to people even though we're giving you unsolicited advice. Read up and don't rush into any big purchases. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "Why not just wait until you secure this 90k income to get this Jeep? " Wutwutwubsy (Wutwutwubsy): "This100. Let's forget about the fact that you are still in school, and she's barely scraping by with her income and loans. Or the fact that you are talking about a BRAND NEW CAR, on top of rent, insurance, debt, grocery...etc that you will be responsible when you two move in together. OR the fact that it seems like you have little to no emergency funds. \n\n1. You are talking about taking on a car that costs more then your combined income. That's just playing with fire.....while doused in gasoline. Actually, I honestly doubt anyone would finance you under your current circumstance(which is a GOOD thing, trust me).\n\n1. Your monthly payment on lease MIGHT be lower than buying , but most leases have a annual mileage limit and a hefty overage charge. Seeing how you insisted on getting a 4x4 Jeep, I'm assuming you guys would be taking that thing all over the place instead of just using it to commute(in which case why the hell would you get a Jeep?).\n\n1. "Almost guaranteed" means absolutely jack until you actually graduated and accepted an offer. I'm not saying bad shits would happen to you guys between now and when you start making $60k, but life happens.\n\nPlease do the smart thing and just take your parent's hand-me-downs and drive them until you get your job(and/or she gets a MASSIVE RAISE and signed a legal contract stating that she would take care of you for the rest of your life)" User (codestar4): "Barely scraping by? In my area $30k is really good, especially for just one person. Granted, I will not have a full time job yet, but I'm taking care of my expenses so far. I would be surprised if no one financed us. To put it in more perspective, our housing and all utilities would easily be under $750/month. \n\n2. We live in the mountains, we would not travel far if we decided to go through some light trails. We would easily stay under 12k miles/year.\n\n3. Which is why we would be leasing, and not financing. If for some reason I did not get a job, we walk away from the lease. " Wutwutwubsy (Wutwutwubsy): "Let's do some rudimentary math here, but first, I will make some basic assumptions for 2017:\n\n You live in a state with no income tax, like WY\n* Neither of your parents would claim you as dependent\n* You will combine income and file jointly\n* Your projected expenses are spot on\n* Your place would be fully furnished\n* More to follow as each item requires\n\nAccording to [SmartAsset](https://smartasset.com/taxes/income-taxes), your post tax income would be $30892. I will go ahead and round it up to $31k for you(Almost never a good idea, you wanna round down the income and up the expense). This will net you a combined paycheck of $2583.33/month. Now let's talk about the expenses:\n\n1. Student Loans: $151.87/mo. [Assuming 10 Year, Direct Subsidized Loan @ 4%](https://navient.wealthmsi.com/loanrepay.php)\n1. Rent+ALL utilities: $750.\n1. Groceries, clothes(they do break, you know?), entertainment (going out, movies...etc), GAS(it's a Jeep, not a tiny Prius C):$450.\n1. Payment for a [16 Wrangler Rubicon Hard Rock 4x4](http://www.jeep.com/payment-calculator/)(the trim that gets us closest to the MSRP you listed): $470, assuming you put down $2500, drive less than 12k miles, and go for the 48-mo lease.\n1. Insurance: Minimum Legal Coverage according to [NerdWallet](https://www.nerdwallet.com/insurance/compare-car-insurance-rates): $30/mo. Assuming Jackson, WY 83001, 20YO Male and 22YO Femal, married, currently insured, driving since 16, PERFECT driving record, driving 10-15K miles a year for WORK on a leased Vehicle listed above.\n\nThat brings your paycheck down to : $731.46. Well how'bout that, you managed to pay for everything AND still have money left over. Things can only go up with your $5K liquid asset($4k in saving and invested, whatever that means, and 1k in checking) and mear $1.5k CC debt@ 0%. Cat my dog, you have me beat. I should go back to watching porn instead of giving lectures to a bright young lad who obviously has his life figured out. Or has he......?\n\nFirst, Let's talk about how much liquid asset you would REALLY have. $5000-$2500 down payment of the car-$1500 CC debt= a whopping $1000.\n\nNow let's step out of this perfect little bubble we have created for the sake of argument and into the real world. \n\n* Remember that cheaper than dirt car insurance you got? Guess how much deductible it has? One tiny fender bender at the parking lot can throw you in a hole so deep that you can see China. \n\n* One of you broke your arm/leg and had to take a month off? Make sure you have this phrase printed on cardboards "我很会吹喇叭". Actually, make sure you know how to say it: "Wǒ hěn huì chuī lǎbā". BOTH of you would need it when you found yourself on the street of Beijing after you fell through that hole.\n\nTL:DR Just don't do it.\n" User (codestar4): ""obviously has his life figured out" .. If I thought this, I wouldn't be here. I appreciate the info. I also really appreciate all the numbers. Thanks. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "You are insane for proposing this. \n\nFirst of all, an entry-level Jeep Wrangler is like $25,000. You must be looking at the Jeep Wrangler Rubicon Unlimited at $37,000. High end option packages are generally really bad for resale value -- remember the Ford Explorer Eddie Bauer? -- and so you're already making a bad decision.\n\nJeep and Chrysler are among the worst brands for reliability in Consumer Reports' annual rankings. Five Chrysler group brands (Jeep, Dodge, Ram, etc) sit in the bottom seven spots on this year's list, and Jeep is 23/29 (an improvement from 2015!).\n\nhttp://www.consumerreports.org/car-reliability/car-brands-reliability-how-they-stack-up/\n\nLook at the depreciation in the first two years, in this calculator: about $14,000. You might as well take the cash and burn it.\n\nhttps://www.edmunds.com/jeep/wrangler/2016/st-200747776/cost-to-own/\n\nIf I were in your shoes, I would be looking for something much more sensible. Here are some ads to give you an idea of what's available in the private sale market:\n\n[1998 Toyota Corolla ONLY 88,842 MILES 1 owner](https://cleveland.craigslist.org/cto/5889933572.html)\n\nIf you need an SUV you could go with the more reliable Geo brand:\n\n[geo tracker - $700 (mount vernon)](https://mansfield.craigslist.org/cto/5892226248.html)" skidallas418 (skidallas418): "+1. Chryslers are pieces of shit. Only silver lining is that my wife got it so cheap and it has actually given us a decent amount of miles. \n\nWe had engine problems that techs that corporate couldn't fix. Burns oil. Leaky convertible top. I would never buy one again. \n\nJeep's are total cult cars. They are materialistic people who want to look cool when they go offroading. I see them in Dallas all the time, sand blasted, jacked up, doors removed, no top...Embarrassing waste of money on a vehicle that gets you from A to B with the occasional joy ride. "
User (codestar4): "My fiance and I have decided we need a new car, something 4-wheel drive. We have decided on getting a Jeep Wrangler. (please do not suggest that we do not need this car, even if it can (definitely) be proved that this is more of a want than a need).\n\nNaturally, we were looking at used cars, but Wranglers seem to hold their value very well. I can't get past paying ~$20k for a 10 year old car. The MSRP for the new one we want is $37,940. The "no haggle price" for a used (2014 12k miles) one that we would like is $36,998 on carmax.\n\nAssuming we have good credit (700-750) what are our options? Our gross income will be about $35k /year. I'm estimating our net income (counting all expenses except for this car) to be $15k /year. \n\nWe don't really want a car payment that costs as much as our rent. I'm thinking leasing will be the way to go, because by the end of a three year lease, I'll have graduated and have a higher paying job. (I'll graduate by May or Dec of 2018). This will bring our gross income to approximately $90k. By the end of the lease on the jeep, I'll be able to buy the jeep for fair market value in cash. \n\nHere's my thoughts: Lease now, so that payments are low now, while we have low income. Once lease ends, pay for jeep in cash to avoid paying any more in interest. Financing a used car may cost as much as leasing this brand new car, which has the warranty. I think our budget may be tight if we finance the new jeep, but the plan would be to save the difference from leasing. (i.e. finance=$550/month lease =$350/month so we will take the $200/month and put it in some sort of savings)\n\nWhat's your thoughts/opinions? If we do go with a lease, should we make a down payment? I've heard examples for either. \n\nEDIT: Better budget breakdown\n\nMy fiance just graduated and accepted a job with $30k salary. We both currently live at our parents' house. (Her with hers, me with mine). We will be looking for an apartment around summertime, we are estimating rent + all utilities to be less than $750/month (fair estimate in my area for a small apartment) I was estimating all other expenses to average about $450/month. I may be low-balling this, though. (It doesn't include car insurance on the new car, the price of new car, and our health insurance is paid for.)\nI currently have $4k in savings, I've invested. I have about $1.5k left in debt on a CC bill from Zales. (Rings are expensive) It isn't collecting interest yet, and I'm well on track to pay it off before it begins to collect interest. I have about $1k cash on hand. I make roughly $10k/year. I will graduate with no student loans, but maybe $5k in subsidized loans at worst. Jobs in my field in my area with at least $60k/year are almost guaranteed, especially with my GPA and experience.\nShe does have some student loans. Maybe $15k worth.\n\nDOUBLE EDIT:\n\nI greatly appreciate all the feedback. Sorry if I sound ignorant and argumentative. (I am a little bit.) However, if you tell me why something is a bad idea, and I reply with reasons that I thought it was good, I'm not just trying to argue with you, I'm trying to understand. Of course I'm trying to rationalize this, it's an important decision and I want both sides of the argument. I'll lay out a more detailed budget and come back. " Self: "Why can't you buy a cheaper car?\n\nWhy don't you like any of the reasonably priced vehicles" User (codestar4): "We may have to do this. She'd love to have a Wrangler, though. \n\nDo you have any suggestions?" panoramic_goatse (panoramic_goatse): "With a little cash, you could buy a ballin' used 4x4 off of Craigslist. \n\nIdeally I'd like to have a brand new Jeep Wrangler, too, but realistically that's not gonna happen. Save your money and buy a much older car that's been maintained decently, expect to look for a few months on Craigslist and possibly a few hundred miles out of your area for the right one (don't be hasty!) and you will save so much. "
User (tw1080): "Because our closing pushed past the end of November (we will close Tuesday), we will be paying in advance some of the funds (I have this all written down, but not in front of me, I understand this is normal). Lender told me our first payment will now be February 1. Now being that I had already planned on needing to make a payment January 1st, and budgeted for such, would it be smart just to go ahead and do that, so that we're always at least 1 payment ahead? (Yes, our loan allows for extra payments, partial payments, early payments, and all that). " Self: "Or just add it to your down payment. \n\nIf you make it as a payment make sure it goes to principal. " User (tw1080): "I wasn't sure if I could just arbitrarily add money to my down payment - I need for absolutely nothing else to hold up this process as we will be out of our rate lock and out of our contract if it does. So I will consider those options - there are some other expenses we were planning on that we will not need to pay now, so I was actually considering making 2 extra payments in January - this is the biggest purchase we've ever made and the largest debt we've ever taken on, which scares me. I want to pay it down as soon as possible. "
User (tw1080): "Because our closing pushed past the end of November (we will close Tuesday), we will be paying in advance some of the funds (I have this all written down, but not in front of me, I understand this is normal). Lender told me our first payment will now be February 1. Now being that I had already planned on needing to make a payment January 1st, and budgeted for such, would it be smart just to go ahead and do that, so that we're always at least 1 payment ahead? (Yes, our loan allows for extra payments, partial payments, early payments, and all that). " Self: "You can make 2 pmts on feb 1st if you want to. It won't change your payment in the future. It automatically goes to principal. \n\nnearly all lenders will not "hold" a payment for you for the next month so you mentioned you can make early pmts...Anything "early" goes to principal reduction. You will need to talk to the lender about how early is too early."
User (tw1080): "Because our closing pushed past the end of November (we will close Tuesday), we will be paying in advance some of the funds (I have this all written down, but not in front of me, I understand this is normal). Lender told me our first payment will now be February 1. Now being that I had already planned on needing to make a payment January 1st, and budgeted for such, would it be smart just to go ahead and do that, so that we're always at least 1 payment ahead? (Yes, our loan allows for extra payments, partial payments, early payments, and all that). " Self: "Just make a double payment on feb 1, it should go to your principal, it will not be considered an early payment for the next month though."
User (tw1080): "Because our closing pushed past the end of November (we will close Tuesday), we will be paying in advance some of the funds (I have this all written down, but not in front of me, I understand this is normal). Lender told me our first payment will now be February 1. Now being that I had already planned on needing to make a payment January 1st, and budgeted for such, would it be smart just to go ahead and do that, so that we're always at least 1 payment ahead? (Yes, our loan allows for extra payments, partial payments, early payments, and all that). " Self: "Your servicer might be different before February 1st. Don't assume it will be the same, and just send money ahead of time. Wait until you get the payment information in January and make a larger first payment."
User (BlueLensFlares): "Hi all,\n\nI just have a quick question - about a year ago, I recently got into an accident because a motorcyclist hit the side of my car. I got out of my car, and spoke to him to see if he was all right, but then he said "he had to go" and took off, and I didn't get a license plate number. I wasn't at fault, but my insurance company had to pay for the claim.\n\nI'm applying for car insurance with Progressive right now. Is this considered a "hit and run", or a "collision with another vehicle"?\n\nThanks!" Self: "Call Progressive and ask. " User (BlueLensFlares): "Thanks, I didn't think of that. I will do that."
User (BlueLensFlares): "Hi all,\n\nI just have a quick question - about a year ago, I recently got into an accident because a motorcyclist hit the side of my car. I got out of my car, and spoke to him to see if he was all right, but then he said "he had to go" and took off, and I didn't get a license plate number. I wasn't at fault, but my insurance company had to pay for the claim.\n\nI'm applying for car insurance with Progressive right now. Is this considered a "hit and run", or a "collision with another vehicle"?\n\nThanks!" Self: "> a year ago, I recently\n\nA year ago isn't that recent.\n\nKidding aside, just call Progressive, as stated in a previous comment. This should be common sense."
User (SteakWay): "My parents are in the midst of a divorce. My mother is asking for a lot from my dad and my dad wants to take out a loan to buy her out. The problem is that he doesn't want to cosign for my loan because he is less likely to get the loan to buy her out and then he loses everything.\n\nI could talk to my mom to try to get her to not do the lawsuit, but otherwise, I don't know what to do from there. " Self: "What loan are you talking about here? For school?" User (SteakWay): "Correct, from the FAFSA" downvotes_puffins (downvotes_puffins): "I think you need to provide more information about your situation.\n\nHow much are school costs, and what amount do you have covered so far (from your part time work, from your individual loans, etc)?\n\nThe advice you get will be different if you need $1,000 for the spring semester (harden up and get a part time job) versus if you need to finance $45,000 per year (consider transferring).\n" User (SteakWay): "I'll probably need about 18,000 a year."
User (SteakWay): "My parents are in the midst of a divorce. My mother is asking for a lot from my dad and my dad wants to take out a loan to buy her out. The problem is that he doesn't want to cosign for my loan because he is less likely to get the loan to buy her out and then he loses everything.\n\nI could talk to my mom to try to get her to not do the lawsuit, but otherwise, I don't know what to do from there. " Self: "The government will NOT accept a Fafsa under any conditions without the signature of both of them (unless there was a rare situation of you being emancipated while you were a minor and have no contact with them)\n\n\nThe only thing you can try to do is convince your mother to not be so greedy so that way your dad signs on it and you get your education. " JCDexter (JCDexter): "The post is about co-signing a loan (i.e., downstream from the FAFSA), not signing the FAFSA itself."
User (SteakWay): "My parents are in the midst of a divorce. My mother is asking for a lot from my dad and my dad wants to take out a loan to buy her out. The problem is that he doesn't want to cosign for my loan because he is less likely to get the loan to buy her out and then he loses everything.\n\nI could talk to my mom to try to get her to not do the lawsuit, but otherwise, I don't know what to do from there. " Self: "Your dad's situation is understandable. Splitting an entire life you've built with someone is painful, and expensive.\n\nMy recommendation would be to stay out of the divorce mess, and don't ask your dad to risk his future to finance yours. \n\nHit up a community college for your 1st 2 years, work as much as possible to save money and help finance your last 2 years of education."

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