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User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "OK. There's a lot going on here.\n\nIf you are working in public service/nonprofit/going for PSLF and have already been making qualified payments for years, keep doing that, pay as little as possible on your federal loans, crank all extra money into the private loans, put as much as you can into 401k (should be 403(b) in a nonprofit) and similar vehicles.\n\nIf not, you should be refinancing your loans ASAP (all of them), that is an abysmal rate to carry forward, and then put as much money as you can into them starting with the highest interest first. \n Only put enough into the 401k to make the match, probably, and just destroy your high-interest debt.\n\nGet on whitecoatinvestor as described. You're not in a 'good situation' unless you start doing things 100% right."
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "Granted, this was a long time ago (pre-Internet), but we had a difficult time getting Sallie Mae to apply our additional payment to the principal. They would just send the next bill with an amount due of $0, even when we included a letter. "
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "I was in a similar boat and decided to refinance. I ended up going with Sofi and got a rate around 4. With our debt levels it made sense for me to sacrifice the federal loan benefits for the decreased rate, but that will be something you will have to decide on your own. Congratulations btw, it’s a long road and this side of residency is so, so, so much better. " User (noodleisfat): "Oh man I hope so! Thanks for the advice! "
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "Do you have kids? If you don't, can you ask your husband to bring in more income? Take a part time job? Uber? Pizza delivery? $1k/month can make a difference. \n\nSorry about the loan. Yours is an income problem and not a cost problem. Your goal is to increase your income. Living frugal is a must but that alone will not solve your problem.\n\nBtw, do you have other expenses beside the loans? Housing? Cars? Utility?" User (noodleisfat): "We don't have kids so I guess he could pick up another job although he does already work full time. My expenses are listed below. \n\nRent $2440 \nCar lease 1 $165\nCar lease 2 $400\nElectric $150\nPrivate loan $1757\nInternet $106\nFed loan $333.74\nPhone $122" AceVasodilation (AceVasodilation): "Your rent is through the roof. Where do you live? Also the $400 car lease has got to go." spartan5312 (spartan5312): "Op grosses 18k a month. The $400 lease is the least of their worries lol." AceVasodilation (AceVasodilation): "My solution is to live like you are making $50-60k and put all excess money toward the $550k loans. Since someone making $50k wouldn’t have a 400/mo lease (hopefully), this among other things needs to go."
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "You need to pretend you make a lot less money than you actually do. It's the only thing that actually works other than increasing your income big time.\n\nPretend you make 70-80k for the next several years. If you find yourself getting fatigued, pretend you make $90-100k from that point on. Just keep pretending you don't make a lot of money.\n\nIn the end, you'll likely be happier. People generally speaking are happier living a less complicated life with no debt. Living in a $800k house rarely makes someone happier than living in a $500k house. Driving a $85k luxury SUV rarely makes someone happier than driving a nice $35k SUV. For a while there, the Ford Explorer was the most commonly driven vehicle by millionaires." User (noodleisfat): "I can definitely live frugal. That's all I've ever known really! I'm not sure I'd even know how to spend that much money. I'm not looking to buy a house or car right now either so that helps. " PetraLoseIt (PetraLoseIt): "> My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. \n\nOut of that, roughly $2000 goes to debt repayment, you tell us. So you're spending $3400/month PLUS more money on food and fun. Reality check: that's NOT "frugal". You may already have inflated your lifestyle a notch or two.\n\nI'd say: start tracking your expenses and see where you can easily cut them down. " User (noodleisfat): "I listed my expenses elsewhere. I guess when I say frugal I mean that I don't spend much outside of bills. Most of the 3400 goes to rent which is 2400. The rest is between two car leases , electric, internet, and phone. " Self: "You're not quite getting it.\n\n$2400/mo is more than you should be paying for rent. Also two car leases sounds outside of your budget.\n\nYour husband should be driving a 7-8 year old car. You should be driving a sub $30k hybrid vehicle. I suggest a hybrid primarily because it's one of the cheaper "doctor acceptable" vehicles." User (noodleisfat): "I understand. I live in a city so rent is on the higher side but my lease is up in April so I'll be moving then. Also we both needed vehicles and these were the cheaper options. I drive a Nissan rogue so it's not like I'm buying fancy cars. " millennialpfguy (millennialpfguy): "$2400 is a very high number for rent outside of a very select few cities (SF, LA, NYC, DC, Boston). "
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "You don't want to be paying income based repayment, you want to pay off as much as you can. You have over five times the average debt of a doctor in the US, and the only way to do this is stay focused.\n\nYour first step needs to be emergency savings, and then you need to max out the 401k/similar options you have. At your tax bracket, you can afford the 18K, and the tax hit is so heavy it's worth it, even with this much debt.\n\nAnd seems like your husband should be working too. It doesn't make sense for him to be working part time when you have this much debt.\n\nYou should feel overwhelmed, this is a lot of debt. When I was paying off six figures in loans, I literally colored in squares on a piece of graph paper on my fridge. If you're focused on your goal, you can get there." User (noodleisfat): "What is the 18k? \nAlso my husband is working full time. Thats all he make :/" NSX000 (NSX000): "I agree with you. Payoff your loan ASAP because of the relatively high interest rate. If your company matches certain percentage of your 401k, you may consider to contribute up that percentage but I would definitely not do $18K. Bad idea." User (noodleisfat): "Could you explain the 401k contribution and how this helps my situation? Sorry. I feel like I missed all the opportunity to learn about these things in my 20s since I was so focused on school. " klsklsklsklsklskls (klsklsklsklsklskls): "Basically there is a yearly limit to what you can contribute to 401ks, currently 18,500. There are lots of tax advantages to using 401ks and IRAs and employers often match a percentage. The reason some people would suggest contributing to them before paying off your loans is you can never "get back" the years to contribute for tax advantages once they pass and same goes for the employer match. "
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "You need to pretend you make a lot less money than you actually do. It's the only thing that actually works other than increasing your income big time.\n\nPretend you make 70-80k for the next several years. If you find yourself getting fatigued, pretend you make $90-100k from that point on. Just keep pretending you don't make a lot of money.\n\nIn the end, you'll likely be happier. People generally speaking are happier living a less complicated life with no debt. Living in a $800k house rarely makes someone happier than living in a $500k house. Driving a $85k luxury SUV rarely makes someone happier than driving a nice $35k SUV. For a while there, the Ford Explorer was the most commonly driven vehicle by millionaires." User (noodleisfat): "I can definitely live frugal. That's all I've ever known really! I'm not sure I'd even know how to spend that much money. I'm not looking to buy a house or car right now either so that helps. " PetraLoseIt (PetraLoseIt): "> My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. \n\nOut of that, roughly $2000 goes to debt repayment, you tell us. So you're spending $3400/month PLUS more money on food and fun. Reality check: that's NOT "frugal". You may already have inflated your lifestyle a notch or two.\n\nI'd say: start tracking your expenses and see where you can easily cut them down. " User (noodleisfat): "I listed my expenses elsewhere. I guess when I say frugal I mean that I don't spend much outside of bills. Most of the 3400 goes to rent which is 2400. The rest is between two car leases , electric, internet, and phone. " Self: "You're not quite getting it.\n\n$2400/mo is more than you should be paying for rent. Also two car leases sounds outside of your budget.\n\nYour husband should be driving a 7-8 year old car. You should be driving a sub $30k hybrid vehicle. I suggest a hybrid primarily because it's one of the cheaper "doctor acceptable" vehicles." User (noodleisfat): "I understand. I live in a city so rent is on the higher side but my lease is up in April so I'll be moving then. Also we both needed vehicles and these were the cheaper options. I drive a Nissan rogue so it's not like I'm buying fancy cars. " Kelvinn1996 (Kelvinn1996): "I pay 2400 a month for rent in MA. It's not a big deal. You make enough to pay that. Don't let everyone scare you into being a huge frugal mess where you live in some shady neighborhood for like 5 years. With 220k salary, you can probably bring home ~10k a month and pay off your debt relatively quickly. Of course, you don't want to lavishly spend, but with you and your husband bringing in income you shouldn't have to live like you have no money."
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "Check out First Republic Bank.\n\nJust refi'd my wife's veterinary student loans with them. Ranges from 1.95% for 5 years up to 3.95% for 15 years.\n\nThey focus on high income, high credit folks with high student debt (doctors, dentists, etc). You have to open an account with them and keep a balance. You also lose the things like federal deferment. But you'd save a ton of money each month and over the life of the loan." User (noodleisfat): "They only go up to 300,000 unfortunately. But thanks for the suggestion! " Self: "Moving $300k of your debt from 6.88% to 2.95% would save you about $600/mo and about $70k in interest payments over the next 10 years." User (noodleisfat): "I didn't know you could move part of it. I just assumed it would all have to go! " Self: "Yup, they are just buying your debt from your lender, so they're probably happy to take a chunk of it.\n\nYou may not even get approved for all of it, but even moving $100k over would save money and free up some monthly cash flow that you could put towards the other loans.\n\nI would call them and SoFi and Citizens and Credible and anyone else offering loan refis and see what you can do. Fed loan rates are going up though, so the sooner the better! We checked them all out and ended up with First Republic.\n\nJust know you lose all of the federal loan flexibility (deferments, IBR, etc) but to us the significantly lower payment was well worth it." User (noodleisfat): "Well I'm outside of their area but I will look into other places too and see what my best options are. Thanks! " Self: "You're welcome, and good luck!\n\nAlso, I'm outside of their area as well but then i spoke with someone who said it was 'close enough' as long as we were willing to set up direct deposits from my wife's employer. They were really pushing the idea of building longer term banking relationships and offering the student loan refinancing as a way to do that. Can't hurt to give them a ring. \n\n\n(and sorry if I sound like I work for them or something lol. Just someone in a similar situation who just knocked a grand off my monthly payments and want to spread the word!)"
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "That debt is scary, but your income is high and should get higher. Where do you live? Unless it's in a really high COL area, you should be able to live on 100K and throw the rest at that debt. Get a good budget going, stick to it, and remember not to neglect other super important things like retirement savings and starting a family, if this is part of your plan."
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "Do you have kids? If you don't, can you ask your husband to bring in more income? Take a part time job? Uber? Pizza delivery? $1k/month can make a difference. \n\nSorry about the loan. Yours is an income problem and not a cost problem. Your goal is to increase your income. Living frugal is a must but that alone will not solve your problem.\n\nBtw, do you have other expenses beside the loans? Housing? Cars? Utility?" User (noodleisfat): "We don't have kids so I guess he could pick up another job although he does already work full time. My expenses are listed below. \n\nRent $2440 \nCar lease 1 $165\nCar lease 2 $400\nElectric $150\nPrivate loan $1757\nInternet $106\nFed loan $333.74\nPhone $122" AceVasodilation (AceVasodilation): "Your rent is through the roof. Where do you live? Also the $400 car lease has got to go." TheOrangeFuhrer (TheOrangeFuhrer): "I'm sorry... Did you see how much they make? \n\nMy household income is 200 and our car payments are 710 combined. \n\nShes fine. " AceVasodilation (AceVasodilation): "She is $550k in debt. My solution is to live like you are making $50k. Not to continue the current lifestyle.\n\nI also make about $200k/ year and I can tell you a lot of people in this income range dismiss expensive lifestyle choices as acceptable because of lifestyle creep. Look at my numbers for comparison:\n\nMortgage: $735/mo.\nCar payments: $470/mo (two leases)\nStudent loans: $58k (down from $118k within 15 months)\n\nI have been able to do this because we live a frugal lifestyle. Even with $58k student debt, I feel it’s a constant thorn in my side. I can’t imagine what $550k feels like with a similar income.\n\nIMO, especially as someone who is just starting their career, the best thing you can do is live like you make much less. Pay off the debt, save for retirement, and avoid lifestyle creep for as long as possible." TheOrangeFuhrer (TheOrangeFuhrer): "That's 4800 a year on the car. That's around one loan payment collectively. It's not gonna kill them. \n\nLet them have a nice car, she's worked for 8+ years to get to this point. "
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "At a minimum, you should pay as if you were on a standard (10 year) payment plan instead of income-based. I'm guessing that's about $990 per month on the private loan and $5,300 on the federal loan. That's $6,290 per month / $75,480 per year.\n\nIf you stick to that pace, you'll be done paying off loans in 10 years.\n\nIf you put $10k per month toward student loans instead (minimum payment on the private loan, everything extra on federal until it is paid off) you'll be done paying loans in five and half years and you'll save about $100k in interest.\n\nIt's entirely up to you and your husband what pace you prefer to pay down the loans at."
User (noodleisfat): "A little about my financial situation. Im starting a new job and my contract is for $220,000/ yr before taxes. My husband bring home about $2000/month after taxes. My bills per month (rent, utilities, loan minimum payments, everything except food and fun) is about 5400. I have two loans which were both for my education; private and federal. My private loan is $91,000 @ 5.55% interest and my federal which are consolidated is $459,000 @6.88%. Im paying the minimum monthly payments on my private loan which is $1757. My federal loans are on income based repayment and are currently at $333 but once I get to my tax return for my new job salary this will increase substantially to around $4000. I have no credit card debt. I have no assets. I am overwhelmed and not sure how I will ever get rid of this. Thanks for any advice you can give!" Self: "Long story short, this is easily doable on your income.\n\ntake your monthly expenses\n\nI see below your currents are $2440+$165+$400+$150+$106+$122 + 2k (food and going out) is 5383$/month . I didnt include your loans yet.. This pays your basic needs and still gives you and your husband 2000$/month to go out to eat/have some fun.\n\n220000, if you were living in NY (not NYC) would be roughly 12k$/month in take home pay.\n\nsubtract out your expenses means your monthly net is roughly 6.66k$ or yearly net of 80k (i'm rounding up for easy numbers)\n\nThis is the full amount you can apply to your loans. That means in 6.875 years if you stick to the budget above, you can fully pay off your loans. I would not recommend going the full 10 years on the loan even if you can because at your income there's 0 benefit since you can't deduct the interest on it due to your income level, and it'll hinder you when you need to take out more money to buy a home. If you're super frugal and you and your husband only spend 1k$/month on food and going out, you can pay off the loan in 6 years.\n\nThe key consideration i believe is whether or not you'd want a child. (in my opinion one reason to take the loan out to 10 years)\n\n&#x200B;" millennialpfguy (millennialpfguy): "While this is a great post, it’ll take longer than 6.875 years because interest continues to accrue. " Self: "Yes and no, because you're overpaying the required interest amount, you're taking down the principal along with the interest payment since student loans are amortized. Basically you're covering chunks of the principal up front while the earlier phases are paying the interest, and then on the back end where it's mostly principal payments, you're reupping it.\n\nYou are right in the sense that over the 10 year term period, that the interest + principal repaid might be closer to 7 years based on the OPs income, but my analysis is not terribly wrong.\n\nBtw, Accrue is not the right word in this instance. your interest payments shouldn't be increasing anymore."
User (juggling-monkey): "When I was 20 I made the mistake of purchasing a home with my girlfriend (at the time). We split about 10 years ago. Since then I have paid off all my debts and have been debt free for the last 5 years or so. But my score is still below 700. I've looked into improving my credit and have learned that the reason is that my ex is making late payments (30 days, sometimes even 60 days late).\n\nI understand that my name is on the mortgage and that I took on the responsibility. I'm not trying to whine about unfairness or how this is BS lol, rather, I want to know if I have any options to improve my credit.\n\nShe doesn't qualify to take over the mortgage on her own. I would gladly hand over the entire house to her just to cut all ties between us. Any other options?" Self: "You may find these links helpful:\n\n- [Credit-related wiki pages](/r/personalfinance/wiki/index#wiki_credit)\n- [Credit Reports](/r/personalfinance/wiki/credit_reports)\n- [FICO / Credit Scores](/r/personalfinance/wiki/fico)\n- [Improving Credit Scores and Building Credit](/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 (juggling-monkey): "When I was 20 I made the mistake of purchasing a home with my girlfriend (at the time). We split about 10 years ago. Since then I have paid off all my debts and have been debt free for the last 5 years or so. But my score is still below 700. I've looked into improving my credit and have learned that the reason is that my ex is making late payments (30 days, sometimes even 60 days late).\n\nI understand that my name is on the mortgage and that I took on the responsibility. I'm not trying to whine about unfairness or how this is BS lol, rather, I want to know if I have any options to improve my credit.\n\nShe doesn't qualify to take over the mortgage on her own. I would gladly hand over the entire house to her just to cut all ties between us. Any other options?" Self: "Increase total credit/lower utilization, but it really just comes in time with establishing age of accounts and on time payments. Also get your name off the mortgage or make sure it's paid on time"
User (juggling-monkey): "When I was 20 I made the mistake of purchasing a home with my girlfriend (at the time). We split about 10 years ago. Since then I have paid off all my debts and have been debt free for the last 5 years or so. But my score is still below 700. I've looked into improving my credit and have learned that the reason is that my ex is making late payments (30 days, sometimes even 60 days late).\n\nI understand that my name is on the mortgage and that I took on the responsibility. I'm not trying to whine about unfairness or how this is BS lol, rather, I want to know if I have any options to improve my credit.\n\nShe doesn't qualify to take over the mortgage on her own. I would gladly hand over the entire house to her just to cut all ties between us. Any other options?" Self: "I think it’s time that you get off this mortgage and since she doesn’t qualify because of her awful credit, force a sale of the house. If you want to be nice, only take the funds you put in plus whatever appreciation you’ll have and she keeps the rest since she’s been paying for it. "
User (juggling-monkey): "When I was 20 I made the mistake of purchasing a home with my girlfriend (at the time). We split about 10 years ago. Since then I have paid off all my debts and have been debt free for the last 5 years or so. But my score is still below 700. I've looked into improving my credit and have learned that the reason is that my ex is making late payments (30 days, sometimes even 60 days late).\n\nI understand that my name is on the mortgage and that I took on the responsibility. I'm not trying to whine about unfairness or how this is BS lol, rather, I want to know if I have any options to improve my credit.\n\nShe doesn't qualify to take over the mortgage on her own. I would gladly hand over the entire house to her just to cut all ties between us. Any other options?" Self: "Get your name off the house and mortgage. If she cannot afford the house it will need to be sold. Don't drag this on any longer. She's had 10 years to be able to get her own financing."
User (juggling-monkey): "When I was 20 I made the mistake of purchasing a home with my girlfriend (at the time). We split about 10 years ago. Since then I have paid off all my debts and have been debt free for the last 5 years or so. But my score is still below 700. I've looked into improving my credit and have learned that the reason is that my ex is making late payments (30 days, sometimes even 60 days late).\n\nI understand that my name is on the mortgage and that I took on the responsibility. I'm not trying to whine about unfairness or how this is BS lol, rather, I want to know if I have any options to improve my credit.\n\nShe doesn't qualify to take over the mortgage on her own. I would gladly hand over the entire house to her just to cut all ties between us. Any other options?" Self: "I agree with the others. Force the sale of the home. You’re debt free. You only need to be concerned about your credit score if you plan on adding debt. Stop worrying about your credit score and continue living debt free."
User (thugluvdoc333): "I'll make this brief . I am a doctor, had a negligence lawsuit win, and I am coming upon $120k after taxes. Curreny Cash - $175k. $260k in retirement 401k/403b. $140k in student loans @ 1.6% consolidated. 35, single, no wife or kids. No credit card debt\nWhat would you do with this? I don't want to pay my student loans off at that interest rate obviously, but I also feel like the markets are frothy.\nI was thinking of a CD or high interest rate savings account and wait until the markets correct?\nAny creative input is appreciated" Self: "Look into whether that money is taxed. It will depend on what damages are recompensed. I think* if money pays for lost wages- that is taxed. If personal injuries that isn’t taxed. If general settlement that doesn’t state x amount for lost wages or y amount for personal injuries the money isn’t taxed. \n\nSpend a couple of thousand on a tax attorney. Might save you a lot more. " User (thugluvdoc333): "So it is not taxed, which I confirmed. "
User (thugluvdoc333): "I'll make this brief . I am a doctor, had a negligence lawsuit win, and I am coming upon $120k after taxes. Curreny Cash - $175k. $260k in retirement 401k/403b. $140k in student loans @ 1.6% consolidated. 35, single, no wife or kids. No credit card debt\nWhat would you do with this? I don't want to pay my student loans off at that interest rate obviously, but I also feel like the markets are frothy.\nI was thinking of a CD or high interest rate savings account and wait until the markets correct?\nAny creative input is appreciated" Self: "How did you get student loans at 1.6%?" User (thugluvdoc333): "Consolidated in 2004. Pure luck"
User (thugluvdoc333): "I'll make this brief . I am a doctor, had a negligence lawsuit win, and I am coming upon $120k after taxes. Curreny Cash - $175k. $260k in retirement 401k/403b. $140k in student loans @ 1.6% consolidated. 35, single, no wife or kids. No credit card debt\nWhat would you do with this? I don't want to pay my student loans off at that interest rate obviously, but I also feel like the markets are frothy.\nI was thinking of a CD or high interest rate savings account and wait until the markets correct?\nAny creative input is appreciated" Self: "You have 175k in cash already so you must have thought the markets were "frothy" for a while now and you were wrong. Don't try and time the market." User (thugluvdoc333): "No I like to have a cushion in case. Of my invested portion, I only scaled back 15% to cash.\n\nAre you suggesting I buy some index funds and sit on it? " Self: "Yes. Unless you are saving it for a house. Your only 35, a long way from needing to worry about market ups and downs if it is for retirement / long term savings."
User (rachel8135): "I have been using a budget app on my phone to track my expenses vis-a-vis my income. Something is going wrong. I set aside virtual money for my taxes (I’m self-employed), and I record all my other expenses including daily purchases. However, the money for my taxes was not reflected in my bank account. Now my taxes had to paid out of my line of credit, and I’m in debt when I shouldn’t be. I’ve never had this happen before. Any idea how this happened?" Self: "Check your bank statements and see where your money is. "
User (rachel8135): "I have been using a budget app on my phone to track my expenses vis-a-vis my income. Something is going wrong. I set aside virtual money for my taxes (I’m self-employed), and I record all my other expenses including daily purchases. However, the money for my taxes was not reflected in my bank account. Now my taxes had to paid out of my line of credit, and I’m in debt when I shouldn’t be. I’ve never had this happen before. Any idea how this happened?" User (rachel8135): "I’ve looked. Nada. I’m trying to figure out why my virtual budget is not being reflected in my real bank account." iconoclast63 (iconoclast63): "So your bank balance isn't what it was supposed to be based on what you've been spending? Have you been reconciling your app with your actual account? "
User (rachel8135): "I have been using a budget app on my phone to track my expenses vis-a-vis my income. Something is going wrong. I set aside virtual money for my taxes (I’m self-employed), and I record all my other expenses including daily purchases. However, the money for my taxes was not reflected in my bank account. Now my taxes had to paid out of my line of credit, and I’m in debt when I shouldn’t be. I’ve never had this happen before. Any idea how this happened?" User (rachel8135): "I’ve looked. Nada. I’m trying to figure out why my virtual budget is not being reflected in my real bank account." kelleyjpickles (kelleyjpickles): "what do you mean by "virtual budget"? What account was this money in? Do you have the details of this account?" User (rachel8135): "I used a budget app on my phone, instead of pen and paper. "
User (rachel8135): "I have been using a budget app on my phone to track my expenses vis-a-vis my income. Something is going wrong. I set aside virtual money for my taxes (I’m self-employed), and I record all my other expenses including daily purchases. However, the money for my taxes was not reflected in my bank account. Now my taxes had to paid out of my line of credit, and I’m in debt when I shouldn’t be. I’ve never had this happen before. Any idea how this happened?" Self: "Look at your "actual" banking app. Alternatively, even better just log into your bank's actual website and look at it. For future reference, your best bet is going to be the bank itself for this type of issue followed by perhaps the software developers, but really it just sounds like you didn't think to just log into your actual account."
User (rachel8135): "I have been using a budget app on my phone to track my expenses vis-a-vis my income. Something is going wrong. I set aside virtual money for my taxes (I’m self-employed), and I record all my other expenses including daily purchases. However, the money for my taxes was not reflected in my bank account. Now my taxes had to paid out of my line of credit, and I’m in debt when I shouldn’t be. I’ve never had this happen before. Any idea how this happened?" User (rachel8135): "I’ve never reconciled the two before. It’s always just worked. " kelleyjpickles (kelleyjpickles): "Look at your actual account not your budget app.\n\nEdit: It hasn't always "just worked" since you posted this same issue 9 months ago." User (rachel8135): "You monitor this?\n\nI get looking at my bank account, although it won’t tell me much about why my budgeting isn’t being reflected in my bank account. I compare to my bank account. That’s how I know the money isn’t there. How come this doesn’t work? What can I do electronically or on paper to make sure my spending is okay? Looking at my bank account is not going to fix my attempt to track. " Default87 (Default87): "you literally have only made 3 topics, and two of them are complaining about this same issue.\n\nbut seeing as how you havent explained what the discrepancy is, or even what budgeting app you use, noone here can answer your question. It seems like this budgeting app isnt working for you, so you need to try something else." User (rachel8135): "I will consider that. The discrepancy is $1500. The app is XpenseTracker. \n"
User (rachel8135): "I have been using a budget app on my phone to track my expenses vis-a-vis my income. Something is going wrong. I set aside virtual money for my taxes (I’m self-employed), and I record all my other expenses including daily purchases. However, the money for my taxes was not reflected in my bank account. Now my taxes had to paid out of my line of credit, and I’m in debt when I shouldn’t be. I’ve never had this happen before. Any idea how this happened?" User (rachel8135): "I’ve never reconciled the two before. It’s always just worked. " kelleyjpickles (kelleyjpickles): "Look at your actual account not your budget app.\n\nEdit: It hasn't always "just worked" since you posted this same issue 9 months ago." User (rachel8135): "You monitor this?\n\nI get looking at my bank account, although it won’t tell me much about why my budgeting isn’t being reflected in my bank account. I compare to my bank account. That’s how I know the money isn’t there. How come this doesn’t work? What can I do electronically or on paper to make sure my spending is okay? Looking at my bank account is not going to fix my attempt to track. " kelleyjpickles (kelleyjpickles): "Then you need to determine what is being reflected in the app that isnt being reflected in the account. The only way to resolve this is to reconcile the two. There is no other answer." User (rachel8135): "How do I reconcile? Also, I think I need to bring in my credit card statement. " kelleyjpickles (kelleyjpickles): "Your budget app should include all of the deposits and withdrawals going in and out of the account. The actual bank account statements will show the same. Figure out what is different. Previously you said you couldn't understand why your "virtual budget isnt showing in your bank account". This is the exact opposite of how you should be managing these accounts. Your bank is the actual account of record while the app should be nothing more than a different way of viewing this account. The issue is why isnt the app reflecting what's actually happening in your bank account." User (rachel8135): "That’s a very helpful and respectful answer. Thank you. "
User (rachel8135): "I have been using a budget app on my phone to track my expenses vis-a-vis my income. Something is going wrong. I set aside virtual money for my taxes (I’m self-employed), and I record all my other expenses including daily purchases. However, the money for my taxes was not reflected in my bank account. Now my taxes had to paid out of my line of credit, and I’m in debt when I shouldn’t be. I’ve never had this happen before. Any idea how this happened?" User (rachel8135): "I’ve never reconciled the two before. It’s always just worked. " kelleyjpickles (kelleyjpickles): "Look at your actual account not your budget app.\n\nEdit: It hasn't always "just worked" since you posted this same issue 9 months ago." User (rachel8135): "You monitor this?\n\nI get looking at my bank account, although it won’t tell me much about why my budgeting isn’t being reflected in my bank account. I compare to my bank account. That’s how I know the money isn’t there. How come this doesn’t work? What can I do electronically or on paper to make sure my spending is okay? Looking at my bank account is not going to fix my attempt to track. " Car54WhereAreU (Car54WhereAreU): "Anyone can see what you’ve posted in the past is how we know you posted this before. Maybe you need to start learning how to balance a bank account first and then start looking at how you are entering the amounts in the app. Junk in junk out."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "checking, money market (savings), credit card, mortgage, car loan ALL with my local credit union. i used to use several different institutions but realized that my credit union treated me like a real person AND gave me the best deals."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "Two chequing and four savings."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "I just have one personal and one credit card account with the same bank."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "I had too many about two years ago and slowly I've been consolidating them, starting with the easiest ones (online savings accounts). I'm a personal finance blogger so I'd open accounts to do reviews and with no account minimums there was really no downside (well, maybe all the 1099-INTs). After having like 12-15 of them, I started getting sick of staying on top of them and consolidated to my current roster of six accounts (1 checking, 5 savings, four of which are online savings accounts)"
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "1 Check, 2 Savings with my CU. The second savings account was originally to help me budget since I was paid once per month... now it's my toy fund. I have a very small checking account at the bank I work for that I don't really use, I have a checking and savings at the bank my gf works for to help us move money around. I also have a CC with that bank.\n\nSo 3 Savings accounts, and 3 checking accounts... but my CU is what gets 98% of my biz.\nI have other stuff too, but with brokerages and other credit companies."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "Two checking (one for monthly bills, the other for everything else) and two savings (one with the same bank as checking, the other is a MMA with another bank). No credit cards"
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "I have three checking accounts, a brokerage account, a Vanguard retirement account, two online savings accounts, and probably something like ten credit cards (all of them are paid off monthly and I only regularly use two)."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "stuffed most of the online checking/savings into my schwab checking account. considering moving some mini liquid cash back to some of the 1 to 1.25% high yield savings though.\n\nits rather strange, years ago managing all these accounts were never really an issue, but as i got older, it became more and more of a chore. i can definitely see how the ROI on juggling multiple accounts (including credit card rewards) can quickly diminish as you get older and/or are more pressed for free time.\n\nlike cmunerd, i use to open these many accounts to write reviews on them for my blog, but all those applications and my personal info floating all over was probably not a good move in hindsight...\n\n"
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "2 checking accounts, one of which is with a small local bank and the other is with ING Direct and is used to process reimbursements from my employer that are used to pay the corporate credit card.\n\nI have 4 savings accounts: one small one with the same bank as my primary checking which allows for rapid transfers in a pinch; one that holds my roommate's deposit (HSBC Online); my Emergency Fund (HSBC Online); and a small old savings with ING Direct that I never closed in case their interest rate ever becomes significantly better than HSBC."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "> It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card.\n\nFinance newbie here. Why is this bad?" User (Dynamite_Noir): "It's not bad, it just makes it difficult to have defined savings goals. What it means to me is that the person has a checking account which is where most of their money is at any one time which pays no interest and a savings account probably with the same bank which pays almost no interest. When I see that, I don't see the person as having a strong grasp of investing in their future. Whether that is with multiple savings accounts for different goals (saving for downpayment on a house, vacation trip, new car) or an investment account of some kind."
User (Dynamite_Noir): "I realized today that I have 7 different accounts with 7 different companies. Never minding the sub accounts within those It got me wondering if anyone else has multiple accounts.\n\nEdit: Looks like this is a fairly common thing now. It never fails to amaze me when I meet friends who are in their 20's who still just have two accounts and a credit card." Self: "I've got a smattering of accounts all over but each one generally has a purpose:\n\n* Online checking, pays all my non-rent purchases. Gets enough of a direct deposit to cover my regular/budgeted expenses and has some cash if I need it. I use it for everything since the service is good and they'll refund all the fees from any ATM.\n* Online checking, auto-pays my rent which gets there via direct deposit.\n* Checking at a "real" bank, only use to get cash/check deposits into my online accounts. I keep a balance of $10 with a $1 direct deposit to avoid fees.\n* Online savings for my emergency fund.\n* Online savings for my other cash, gets a direct deposit from my paycheck.\n* Online savings for an "overflow" account. At the end of the month if I have >$1000 in my checking account after budgeted expenses and savings, the excess goes here to spend freely. I find this works well because it makes me wait and think about whether I really want to buy things (I usually don't).\n* Credit card\n* Brokerage account for my employer's stock plan\n* Brokerage account with my own taxable investments\n* Real checking in my home country for sending/receiving money, vacations, etc.\n* Credit card in my home country\n\nPlus a few retirement accounts in the US and at home. Writing it all out it seems like a lot but it's only 3 banks in the US. Everything is automated so I don't spend much time managing anything."
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "A money market is about the best you can do. An emergency fund is just that. It's not there to make you tons of money, it's just there for hard times." User (haveanicedave): "Thanks! I'll check into that. I'm not expecting to make a lot of money, but I'm currently around 0.05% interest, which is laughable. At 2% I could at least add a couple hundred dollars of "free" money to my account!" hobbit6 (hobbit6): "I'd look into a credit union for the following reasons:\n\na) Better rates - Since you "own" the institution and it's a non-profit, the bank pays its dividends to you and they'd love your 10k.\n\nb) Service Centers - a nation-wide network of CU Service Centers that will allow you free, immediate access to your money. "
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "$10,000 seems to be a hefty safety net, albeit maybe it's needed. However, could you get away with putting a portion in a 3,6, or 12 month Month CD, say 75% of it?" User (haveanicedave): "I have a family to support so I feel like I need a pretty large emergency fund. I could probably get away with putting most in a CD if that is more advantageous than a money market account. I'd lose earned interest for early withdrawal, but in an emergency I suppose that would be the least of my concern." Self: "You're probably going to get a better rate of return with CDs than MMA. The other option is look at the favorable rates provided in [opening new checking accounts](http://www.bankrate.com/funnel/checking-account/checking-account-results.aspx?local=false&prods=31&ic_id=CR_searchCheckingAccts_checking_Interestchecking). Not to mention, if you spread your money around, you could probably get a number of signup bonuses, it maybe more work and you probably will have to meet a few requirements, but with some creative maneuvering you could probably get 5-10% on your money the first year. " User (haveanicedave): "That seems like a good idea too.\n\nA co-worker suggested bond funds, but I don't really know much about them. I'm not really sure how that would work out for an emergency fund. "
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "American Express has a 1.3% online savings account. That would earn you a bit more interest than a regular savings."
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "Your emergency fund is not designed to "make" you money. I would recommend an online savings account. Something just out of reach from a spontaneous trip to the mall, or last minute travel deal - but just close enough to get at in a day or two."
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "$10,000 seems to be a hefty safety net, albeit maybe it's needed. However, could you get away with putting a portion in a 3,6, or 12 month Month CD, say 75% of it?" User (haveanicedave): "I have a family to support so I feel like I need a pretty large emergency fund. I could probably get away with putting most in a CD if that is more advantageous than a money market account. I'd lose earned interest for early withdrawal, but in an emergency I suppose that would be the least of my concern." DickTrickle (DickTrickle): "I would not recommend putting it in a CD. You are more tempted to use credit instead of cash as a way of not "breaking" the CD. \n\nEmergency money should be used for just that, emergencies. Other money should be used for investing.\n"
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "A money market is about the best you can do. An emergency fund is just that. It's not there to make you tons of money, it's just there for hard times." User (haveanicedave): "Thanks! I'll check into that. I'm not expecting to make a lot of money, but I'm currently around 0.05% interest, which is laughable. At 2% I could at least add a couple hundred dollars of "free" money to my account!" justkevin (justkevin): "Money markets aren't doing that well right now. With E*TRADE right now they're worse than savings accounts-- complete savings is 0.3%, money market is 0.25%."
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "I would say just move it to a different bank; there's really no need to change the investment vehicle. The rates for [MMAs](http://www.bankrate.com/funnel/savings/savings-results.aspx?local=false&IRA=false&prods=34&ic_id=CR_searchCDMMA_default_MMA$10K_V1) and [CDs](http://www.bankrate.com/funnel/cd-investments/cd-investment-results.aspx?local=false&tab=CD&prods=15&ic_id=CR_searchCDNational_cd_1yrCD_V1) are actually pretty close right now (at least the yearly rates are, I didn't look into multi-year CDs), so I don't think that switching to CDs would be that advantageous to you.\n\nRegardless, you're not going to be able to get much more than 1%, so just keep that in mind."
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "Here's a somewhat atypical answer, but a good one from a tax standpoint. [Hold a tax-efficient index fund or ETF in a taxable account, and hold your e-fund in an IRA or 401k](http://www.bogleheads.org/wiki/Placing_Cash_Needs_in_a_Tax-Advantaged_Account). The tax-advantaged e-fund can hold CDs, a money market fund, short-term bonds, etc. When you need cash, sell your stocks in taxable and buy them in the tax-advantaged account. This allows you to take advantage of 1) lower cap gains tax for long-term gains on stocks and 2) [tax-loss harvesting](http://www.bogleheads.org/wiki/Tax_Loss_Harvesting) if you happen to be selling at a loss.\n"
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "I'd say don't worry about your interest on emergency money too much; like DickTrickle said, your emergency fun is there for emergencies, not investment. Definitely wouldn't get a CD in this economy. With interest rates around 1% there's simply no reason not to use an online bank instead. \n \nI want to cast another vote for [INGDirect](http://home.ingdirect.com/index.html) for their ease of use, solid interest rate, and discount cafes if you happen to live near of the the 7 major US cities they serve. \n \nSince your emergency fund if really high you might think about how much you would actually need to keep your family fed and sheltered, with or without unemployment, depending on whether you're eligible. You could put the rest into a conservative bond ETF (watch out for mutual fund fees) and earn your 3 or 4 % interest, knowing that there will be times when withdrawing that money would result in a loss. \n \nIf you're interested I could look up symbols for ones I've been happy with, but please don't take financial advice from the internet."
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "$10,000 seems to be a hefty safety net, albeit maybe it's needed. However, could you get away with putting a portion in a 3,6, or 12 month Month CD, say 75% of it?" User (haveanicedave): "I have a family to support so I feel like I need a pretty large emergency fund. I could probably get away with putting most in a CD if that is more advantageous than a money market account. I'd lose earned interest for early withdrawal, but in an emergency I suppose that would be the least of my concern." tomyownrhythm (tomyownrhythm): "If you do opt for the CD route, I would suggest keeping some of the money liquid and "ladder" the remainder. That means you open multiple CDs that mature every 3 months, so you're never more than 3 months away from the next CD maturity date. It makes an inherently non-liquid asset more liquid."
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "Check this thread on FatWallet Finance. Look for the best rate for Reward Checking Accounts. These accounts are as safe as they come (bank accounts), and earn up to 4% if you meet certain criteria (usually 10-15 debit card transactions per month, direct deposit, and online statements).\n\nhttp://www.fatwallet.com/forums/finance/783099/"
User (haveanicedave): "I have an emergency fund worth about $10,000 in a savings account. This account yielded an entire $5.00 in interest last year. Is there a better place to keep my money that balances availability, low risk, and at least a moderate return? Thanks!" Self: "Have a look at ING direct. They pay very good interest and your funds are easily accessible within one or two business days. It is an online only bank so they can afford to pay higher interest as they are not tied up with overhead such as rent and salaries for tellers. Right now I think their interest rate is at about 1.5% but when things are good it can be as high as 3.5% I keep my backup funds in there." xixor (xixor): "ING is pretty good. The best part about them is the no fees. Right now their tax-free-savings-accounts in Canada are at 2%, not bad all things considered. In another thread I heard someone say that they had a 4% interest chequing account"
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "My amateur opinion: I'd probably use some of it to buy a house and put the rest in indexes. Forget about it, work a couple decades, and retire once I could live off the interest.\n\nCongrats! (And condolences. . .)" User (FinanceQuestions): "Thank you"
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "Well you already know that you should consult with a financial planner (and probably a lawyer) before you do anything. That is the best answer as there are so many factors going into it; your age, job situation, income, assets, debts etc. \n\nGenerally speaking, I would pay off any debt incurring interest straight off the bat. After that, sit tight on the money - don't start spending it or telling your friends you have it or your relationship with them could change. \n\nIf you are young and do not yet own a home, a good thing would be to put it into a low risk (and therefore low interest) investment for the time being. If you eventually want to buy a house this will go a good distance as your down payment. It isn't enough to live on (at least in a typical middle American life, I don't know where you are from) but it will help you out significantly on your major purchases.\n\nAnyway, best of luck!"
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "It depends on your life plan. You need to know when you're retiring. How much do you expect to live on once retired? Do you plan to leave any money for your kids? How much? How much do you expect to make until you retire? What is inflation going to be? What return on investment do you assume for your investments?\nI have one piece of advice. Don't buy a house unless you plan on starting a family."
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "Buy pumpkin futures Sept 30. Sell Oct. 31. \n\nCash money.... "
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "Legal things aside: My "responsible" side suggests that you should pay off any debts you may have, stash away a good amount of cash into an emergency fund, minimize your tax hit, splurge a little (for yourself... maybe a small $2,000 weekend getaway all costs included?!), and invest the rest depending on your risk aversion. $500K is a big sum of money but it is no way going to sustain your life forever... unless you're 80 years old or something."
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "My amateur opinion: I'd probably use some of it to buy a house and put the rest in indexes. Forget about it, work a couple decades, and retire once I could live off the interest.\n\nCongrats! (And condolences. . .)" Atreyu1000 (Atreyu1000): "Buying a house cash could get you a solid 6% return in places that I've looked (this includes taxes, HOA, blah). It looks near the bottom of the market, so if you don't intend to sell the property, you could have a nice bit of appreciation down the road. I'd buy a multiunit place and hire a manager, you'd likely get higher returns, from rent, tho less from appreciation."
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "Also depends on how much money you want to make.. I recommend dividend stocks that are stable companys, AT&T (T) is a good one.. Put an agressive amount into several dividend paying companies, and it will pay you the quarterly dividends, which you can then either use to put back towards buying more shares, or to do your every day living.. \n \nas an example: if you were to put 100k into AT&T or similar stocks (just going to use AT&T cuz i know it off the top of my head) You could obtain about 3300 shares, which pays out $1400/quarter, it doesnt sound like much, but if you diversify, put some into cash funds and keep working until you're just ready to retire, it builds up.. \n \nand just for fun: if you were to put 500k into AT&T: 7k/quater, or 28k per year... $2,333 per month... depending on your habits, many people in the US live on less than that already:) \n \nbut as already said: \n#1 pay off any debt including consumer credit cards, home loans, car loans, etc \n#2 invest it with your advisor, tell him what you want and he'll work with you to get you where you want to be, by when you want to be there, with what you have. The faster you want it, the more risk there is of not getting it btw:)"
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "I recommend this for anyone, with or without a half million dollar inheritance. First, make a list of all the funding needs you'll have for the rest of your life and put it on a timeline. Then, calculate how much money you'll need today in order to fully fund those needs (adjusting for expected rate of return and adjusting for inflation). It's a present value type of calculation. Then, start allocating the $500k towards each of those goals using whatever mechanism will get you there based on expected returns.\n\nFor example, if you need $60,000 for a house in five years, had an investment option yielding 8% a year, inflation is 3% annual, then you'd need around $47,000 today to get there. Put $47,000 into something that will yield you around 8%. (this assumes you won't save any more in the future) Do this for everything.\n\nIf you can put $1,000 per year towards that goal, then you only need $42,682 today.\n\nYour investment options need to be tailored to meet your goals and your goals can't be to "increase funds."\n\nDid that make sense?"
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "Invest in the Human Fund!\n\nPersonally I would find a professional in the financial field and gather up as much information you can on all your options. Then decide which path suites you best. I would also set aside some money right away as "spending money" so you can have some fun. :P" ParanoidTurtle (ParanoidTurtle): "Money for people."
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "My $0.02:\n\nGo here:\nhttp://www.bogleheads.org/forum/\nRegister, and ask your question in the forum "Help with personal investments"\n\nReddit is great for a lot of things, but the demographics skew young. Those forums are filled with older investors who've learned quite a bit about investing." bghanoush (bghanoush): "I could not agree more about getting good financial advice on the Bogleheads forum.\n"
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "I can't tell you what you should do, because that depends entirely on your goals. But I can tell you what I would do. Put it all in broad index funds with low expense ratios, a mix of stocks and bonds. I might think about the Vanguard Target Retirement 2025 fund. Never worry about money again (provided I don't accumulate any debt) and retire comfortably in 15 years or so."
User (FinanceQuestions): "Any advice those with experience in this field may offer would be greatly appreciated! I will end up hiring a financial planner to assist me but I have always found through the years a treasure trove of experience here on reddit, and would like to hear the opinions of the reddit elite!\n\nI'm about to inherit around $500k USD. I know the old saying "It takes money to make money" and I'd like some advice on how to do this in a pretty reliable manner. \n\nYour advice is welcome if you can find the time to respond. Thank you!\nIf more information is needed please feel free to ask." Self: "There are a multitude of factors to giving you sound advice, namely your age, risk tolerance, and current financial situation among other things. What is your purpose for investing? Wealth accumulation or asset preservation? Are you using this money as your investment vehicle for retirement? The questions are too numerous, you must provide more specific information to your situation. Anyone that gives you advice without knowing the above is giving you worthless advice." User (FinanceQuestions): "Currently I don't really have a savings and make about 70k a year. Would prefer to switch career paths and go back to school. Work in IT in the US without a degree, but want to change career paths and work towards law school. For Law School I'd need to start from scratch with college. I'd like to plan for several things but realize the amount I've inherited won't be enough for all of this. I'm in my late twenties.\n\nI want to plan for retirement and wealth accumulation. Are these options mutually exclusive?\n\nThanks for the response!" inspec (inspec): ">work towards law school\n\n[be very very cautious](http://thirdtierreality.blogspot.com/)"
User (iWannaInvest): "I'm currently a student at a US university. I'm not a US citizen so I obviously don't have a Social Security #.\n\nWhat are my options for investing?\n\nI'm currently interested in putting my money in a mutual fund. I don't really know about particular stocks, have the time to follow the market and don't really want to take the risk of investing in something I don't really know about.\n\nStill, all advice is welcomed.\n\n(I'm looking to invest less than $10k)\n\nThank you in advance redditors." Self: "What country are you a citizen of?"
User (iWannaInvest): "I'm currently a student at a US university. I'm not a US citizen so I obviously don't have a Social Security #.\n\nWhat are my options for investing?\n\nI'm currently interested in putting my money in a mutual fund. I don't really know about particular stocks, have the time to follow the market and don't really want to take the risk of investing in something I don't really know about.\n\nStill, all advice is welcomed.\n\n(I'm looking to invest less than $10k)\n\nThank you in advance redditors." Self: "Do you intend to stay invested for more than a few years? If you don't, you may not want to invest in the stock market."
User (iWannaInvest): "I'm currently a student at a US university. I'm not a US citizen so I obviously don't have a Social Security #.\n\nWhat are my options for investing?\n\nI'm currently interested in putting my money in a mutual fund. I don't really know about particular stocks, have the time to follow the market and don't really want to take the risk of investing in something I don't really know about.\n\nStill, all advice is welcomed.\n\n(I'm looking to invest less than $10k)\n\nThank you in advance redditors." Self: "Contact a brokerage firm and fund your account. You will have to complete a w9, and make certain you understand your country of origin and any tax issues you may need to consider. Here's one place with a [list of brokers](http://financedad.com/broker-reviews/) you can contact to get started. "
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "I have used Mint for a year now it is by far the simplest, but it does come with errors. Keep close tabs and use at your own risk."
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "Mint.com is probably everyone's favorite, i assume." xaengo (xaengo): "It would be nice to see something like mint for some european countries"
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "Microsoft excell if you are feeling ambitious and want the level of customization that is allowed. Mint is probably the simplest as it monitors everything for you instead of you entering it manually... but then again if you just have your budget under only your control then it is more secure."
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "Go to Staples and get their home budget 12 month ledger. Use pencil. Costs 12 bucks."
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "I made my own spreadsheet, and it is available on Google Docs if you want to give it a try:\n[https://spreadsheets.google.com/ccc?key=0Ani8jsEJkv70dDFYVjgtenpSQWx4V2FDVktkVjN0QWc&hl=en](https://spreadsheets.google.com/ccc?key=0Ani8jsEJkv70dDFYVjgtenpSQWx4V2FDVktkVjN0QWc&hl=en)\n\n[This Reddit post (by me)](http://www.reddit.com/r/IWantToLearn/comments/ewwr8/iwtl_how_to_balance_my_finances_on_a_spreadsheet/c1bl04u) explains the gist of how to use it.\n\n\n"
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "I recommend GnuCash.\n\nCross platform. And their help documents are really good.\n\nhttp://en.wikipedia.org/wiki/GnuCash\n\nhttp://www.gnucash.org/" JMac453 (JMac453): "Man, this software looks awesome!"
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "I used Quicken for many years, then somehow I started using Quicken Online, which merged with Mint. \n \nThere are a lot of things I like about Mint, one being that I can access all my financial information from anywhere. The one thing that concerns me most is that I (or someone else with nefarious intention) can access all my financial information from anywhere. Also, I figure if the website has the ability to log into my various accounts and check balances and activity on demand, then it must be storing unencrypted credentials for those sites, leaving the possibility of one really disasterous database hack. \n \nSo, Mint.com is very good for basic needs and forensics. For more complicated personal financial situations or for detailed planning, look to something like Quicken. \n \nPersonally, I plan to move back to a local management solution such as Quicken or GnuCash in the near future. \n"
User (ThonTaddeo): "Simple question, hoping this is the right forum.\n\nWhat is a good tool/freeware to use for one's own personal budgeting, and tracking of purchases, etc.? I would be terribly grateful. " Self: "Mint.com is probably everyone's favorite, i assume." User (ThonTaddeo): "This is great! Exactly what I was looking for. Thanks be unto you, kind sir."
User (whosdamike): "I've had my savings on automatic for years. I'm self-employed and my income's been steadily increasing.\n\n2010 was good to me and when I started working on my taxes, I realized that my income last year puts my AGI over the income limit for Traditional IRA contributions. Stupid of me, but like I said, I have my savings on automatic and usually don't think about it.\n\nWhat are my options here?" Self: "For 2010, not much related to the IRA, but if you are only just over, consider reducing your salary and offsetting it with company perks, healthcare, company car etc.\n\nI'm sure your accountant can help you much more" User (whosdamike): "I'm not "just" over. I don't have nearly enough deductions to kick me back under the limit.\n\nA good problem to have, definitely, but still something I need to handle somehow. Could I roll it over into a Roth?"
User (whosdamike): "I've had my savings on automatic for years. I'm self-employed and my income's been steadily increasing.\n\n2010 was good to me and when I started working on my taxes, I realized that my income last year puts my AGI over the income limit for Traditional IRA contributions. Stupid of me, but like I said, I have my savings on automatic and usually don't think about it.\n\nWhat are my options here?" Self: "Can you re-characterize the deposits as SEP-IRA? Call your bank/brokerage or a CPA and see about using a SEP. Depending on your income and your business structure (LLC/Corp/Individual), you could possibly have a much higher ceiling for the amount you can save to the IRA."
User (whosdamike): "I've had my savings on automatic for years. I'm self-employed and my income's been steadily increasing.\n\n2010 was good to me and when I started working on my taxes, I realized that my income last year puts my AGI over the income limit for Traditional IRA contributions. Stupid of me, but like I said, I have my savings on automatic and usually don't think about it.\n\nWhat are my options here?" Self: "Too bad you didn't notice this before this week. You could have big a big donation at the end of 2010 and given the world a nice Xmas present. \n \nHave you thought about withdrawing it for a qualified expense? Probably the best on is to take some classes at your local university. You can also use it for a home if you don't already own one or health care >7.5% of your income. \n \nI hope you pull through this, I know it must be rough. =)"
User (whosdamike): "I've had my savings on automatic for years. I'm self-employed and my income's been steadily increasing.\n\n2010 was good to me and when I started working on my taxes, I realized that my income last year puts my AGI over the income limit for Traditional IRA contributions. Stupid of me, but like I said, I have my savings on automatic and usually don't think about it.\n\nWhat are my options here?" Self: "You can recharacterize it as a Roth IRA contribution as long as your income was over those limits too. Otherwise, I believe you'll just have to withdraw it and take a penalty." User (whosdamike): "My income was between the Traditional IRA limits (which are lower) and the Roth IRA limits (which are higher). Does this mean I qualify?" Self: "Yeah you should qualify, talk to your broker about it and they should be able to help you."
User (whosdamike): "I've had my savings on automatic for years. I'm self-employed and my income's been steadily increasing.\n\n2010 was good to me and when I started working on my taxes, I realized that my income last year puts my AGI over the income limit for Traditional IRA contributions. Stupid of me, but like I said, I have my savings on automatic and usually don't think about it.\n\nWhat are my options here?" Self: "If you are contributing to a traditional IRA, according to the IRS, there is no AGI limit for what you can contribute - there is only an AGI limit for what you can deduct.\n\nSee this:\n\nhttp://www.irs.gov/retirement/participant/article/0,,id=188232,00.html\n\nAnd this:\n\nhttp://www.irs.gov/retirement/participant/article/0,,id=188235,00.html\n\nSo you cannot claim the contributions as deductible, but it doesn't seem as though you have to unwind/recharacterize them." User (whosdamike): "Thanks for the well-researched response!" Self: "No problem. Also, if you're going to continue to be above the deduction limit, you should consider contributing to a Roth IRA - regular IRAs are tax deferred (you will pay taxes when you withdraw) whereas Roth IRAs are tax-free (but they have mandatory withdrawals, IIRC)."
User (throwaway011011): "In November, I started working part-time for a small business owner after a 9ish month stretch of unemployment. My boss said that she would start paying my only coworker and I through a payroll system in January after the girl I was replacing left, and until then she would just write us personal checks. My boss just told me that now she can't put us on the payroll. Apparently my coworker was incentivized to retire early from her previous job, and if she is paid through the proper channels, her income will be too high to continue to receive this bonus. \n\nIs there a way to file my taxes to make this legit? I'm not exactly freelancing, but can I do my taxes like a freelancer would? It is graphic design basically, so can I pretend I'm freelancing? I rather like this job, and it gives me time to work on my 3D portfolio, but in the long run I can not afford a(n even larger) hole in my employment history. What should I do?" Self: "I've worked under the table for a few jobs. I would recommend this to your boss:\n\n1- you file for an LLC\n2- you invoice him for your time\n3- he 1099's you and you complete a W-9\n4- you file quarterly estimates"
User (throwaway011011): "In November, I started working part-time for a small business owner after a 9ish month stretch of unemployment. My boss said that she would start paying my only coworker and I through a payroll system in January after the girl I was replacing left, and until then she would just write us personal checks. My boss just told me that now she can't put us on the payroll. Apparently my coworker was incentivized to retire early from her previous job, and if she is paid through the proper channels, her income will be too high to continue to receive this bonus. \n\nIs there a way to file my taxes to make this legit? I'm not exactly freelancing, but can I do my taxes like a freelancer would? It is graphic design basically, so can I pretend I'm freelancing? I rather like this job, and it gives me time to work on my 3D portfolio, but in the long run I can not afford a(n even larger) hole in my employment history. What should I do?" Self: "If you go the LLC/1099 route, you'll be paying both sides of the payroll taxes. Assuming your boss legitimately wanted to make you W2, perhaps you can negotiate an uplift in your comp to cover the taxes you're going to have to pay."
User (wirrx): "I've found some stock for the company "Integrated Electronics Corporation"\n\nUpon googling it the results are that its Intel, however....Intel was founded in 1968, the stock was bought in 1970...but the corporate seal dates it to 1966, 2 years before Intel was founded.\n\nSo I guess my question is...what company had this corporation name circa 1966, and if their still around? Unless it is Intel...which I would be very pleased with.\n\n\nWhile were at it, I've found some for "Scientific Resources Corporation" -certificate seal @ 1953, previously called "Sunasco Incorporated"\nSame question, thanks" Self: "Do you have a broker? I had found an old certificate in my grandfathers safe deposit box and I was able to figure out how much it was worth by giving scottrade the CUSIP number. " User (wirrx): "Thanks, this will work for some, but not all since some date to 1953 and CUSIP came about in 1964"
User (wirrx): "I've found some stock for the company "Integrated Electronics Corporation"\n\nUpon googling it the results are that its Intel, however....Intel was founded in 1968, the stock was bought in 1970...but the corporate seal dates it to 1966, 2 years before Intel was founded.\n\nSo I guess my question is...what company had this corporation name circa 1966, and if their still around? Unless it is Intel...which I would be very pleased with.\n\n\nWhile were at it, I've found some for "Scientific Resources Corporation" -certificate seal @ 1953, previously called "Sunasco Incorporated"\nSame question, thanks" Self: "I'd just ask your broker, they'll probably be able to help you get to the bottom of this."
User (trivialretort): "I have been dissatisfied with my personal bank for awhile now. Their website sucks and is very difficult to navigate--and they seem to be pretty slow with keeping my finances up to date. Therefore I have been looking to switch to a new bank.\n\nOver Christmas I was talking to my brother about his bank--which is military only, unfortunately. And on top of a lot of other features--his bank has an iPhone app that essentially allows him to scan/picture checks with his phone and have it immediately deposit into his checking account. Which in my opinion is pretty sweet.\n\nDo any other Banks (I'm not military) offer a service like this? Apps aside, what banks would you recommend?\n\nThank You" Self: "Chase has an iphone and Android app that will let you photograph the front and back of checks to deposit them." User (trivialretort): "Yea, I was able to find out a little about this online using google. What do you think of Chase as a bank?" Self: "I really like it, have been using them for about 6+ years. 1 checking account, 3 CCs. Note they have no totally free checking anymore, you need to maintain a balance of at least $1,500 a month, or complete other things.\n\nWhat I really like about them is the push for convenience. In my time with them they have added check deposits w/ ATMs, smartphone check deposits, and QuickPay, letting you transfer money to other Chase account holders in a Paypal like fashion (sending them an email), w/ no fees." User (trivialretort): "While they sound like a great bank...I don't think I could handle the balance atm with my bills. I'm in the process of building back up, but between college loans and rent I usually only have a buffer of 1000, plus what I have in savings (which I like to keep separate)\n\nAlso, although I'd like to work mostly remote...there are no branches anywhere near me."
User (trivialretort): "I have been dissatisfied with my personal bank for awhile now. Their website sucks and is very difficult to navigate--and they seem to be pretty slow with keeping my finances up to date. Therefore I have been looking to switch to a new bank.\n\nOver Christmas I was talking to my brother about his bank--which is military only, unfortunately. And on top of a lot of other features--his bank has an iPhone app that essentially allows him to scan/picture checks with his phone and have it immediately deposit into his checking account. Which in my opinion is pretty sweet.\n\nDo any other Banks (I'm not military) offer a service like this? Apps aside, what banks would you recommend?\n\nThank You" Self: ">I was talking to my brother about his bank--which is military only, unfortunatel\n\nAre you sure about that? USAA is not military only. " User (trivialretort): "I need to double check with him...but I believe it is...\n\nNeed to find out if it applies to siblings...\n\nEDIT: It is USAA...what is your opinion of them?" Self: "Non military qualify for some products. Check their website."
User (ssrrjj): "1098-T? Hope Credit? Opportunity Credit? I would appreciate info from anyone who has a decent understanding of these things. " Self: "uh... from my lackluster recollection... I believe they are non refundable credits. These credits will reduce your overall tax burden, but not result in any refund money.\n\nThe specifics are on form 8863. A 1098-T is a form from your school that shows how much scholarship/grant/loan/how much you paid for your education, while one of the other two only applies for graduate studies. "
User (ssrrjj): "1098-T? Hope Credit? Opportunity Credit? I would appreciate info from anyone who has a decent understanding of these things. " Self: "Actually, if you are in your first 4 years of college, the American Opportunity (formerly Hope) credit is 40% refundable.\n\nYou get a 100% credit of your first $2,000 in expenses, and 25% of the next $2,000, for a total max credit of $2,500. Of that, $1,000 is refundable.\n\nAlso, more than just tuition and fees are eligible for this credit - it also includes supplies and equipment (Buy a new laptop for college? Add it. Have to have home internet to take online courses? Add it.)"
User (nikki_sixx): "So I'm currently 18k upside down in my mortgage. I've been looking to refinance because advertised rates I see are over 2% lower than my current rate. I've sent out requests for quotes, but I'm not getting any responses from lenders. Logic is telling me its because I'm upside down, i.e. why would they want to fork over an amount on a property that isn't worth what I'm asking to borrow. Thoughts? " Self: "I'm afraid it sounds like you've got this figured out already. Most lenders don't want to put up no more than 80% of the value of the house." User (nikki_sixx): "Yeah, makes sense. So I'm stuck till things take an upswing. Though by that time rates likely won't be as good as they are now. Thanks."
User (nikki_sixx): "So I'm currently 18k upside down in my mortgage. I've been looking to refinance because advertised rates I see are over 2% lower than my current rate. I've sent out requests for quotes, but I'm not getting any responses from lenders. Logic is telling me its because I'm upside down, i.e. why would they want to fork over an amount on a property that isn't worth what I'm asking to borrow. Thoughts? " Self: "Ever consider a strategic default?" User (nikki_sixx): "Please explain? I'm not behind and have no problem making payments and even significant prepayments. Thanks." Self: "Most people who strategically default have no problems making payments. It comes back to what percent are you underwater and how long will it take your home to recover. As I see it, if the answer is it will take longer than 7 years to gain back it's value, you're better off walking away (you could argue more than 2 years, because that's about how long it would take to repair your credit from the default). Or living free for 3-12 months, then walking away. There are implications depending on which state you live in, such as you could be held responsible for the deficiency. Honestly, I look at it like a business decision and nothing more. Then again, I'm an accountant. Here's a [good article on this](http://www.dailyfinance.com/story/investing/should-you-consider-a-strategic-default-on-your-mortgage/19346468/)." jbhelms (jbhelms): "Don't you also have to pay taxes on the difference in what the bank can get for the place and what you owe? In the OPs case, pay taxes on $18k."
User (nikki_sixx): "So I'm currently 18k upside down in my mortgage. I've been looking to refinance because advertised rates I see are over 2% lower than my current rate. I've sent out requests for quotes, but I'm not getting any responses from lenders. Logic is telling me its because I'm upside down, i.e. why would they want to fork over an amount on a property that isn't worth what I'm asking to borrow. Thoughts? " Self: "Ever consider a strategic default?" User (nikki_sixx): "Please explain? I'm not behind and have no problem making payments and even significant prepayments. Thanks." Self: "Most people who strategically default have no problems making payments. It comes back to what percent are you underwater and how long will it take your home to recover. As I see it, if the answer is it will take longer than 7 years to gain back it's value, you're better off walking away (you could argue more than 2 years, because that's about how long it would take to repair your credit from the default). Or living free for 3-12 months, then walking away. There are implications depending on which state you live in, such as you could be held responsible for the deficiency. Honestly, I look at it like a business decision and nothing more. Then again, I'm an accountant. Here's a [good article on this](http://www.dailyfinance.com/story/investing/should-you-consider-a-strategic-default-on-your-mortgage/19346468/)." DickTrickle (DickTrickle): "I personally do not think you "owe" anything in the way of honestly or anything to your bank, since they are pretty scummy. However, some people still feel signing a contract as a promise to do something. \n\nMake sure it doesn't bother you morally to just walk away from an agreement."
User (nikki_sixx): "So I'm currently 18k upside down in my mortgage. I've been looking to refinance because advertised rates I see are over 2% lower than my current rate. I've sent out requests for quotes, but I'm not getting any responses from lenders. Logic is telling me its because I'm upside down, i.e. why would they want to fork over an amount on a property that isn't worth what I'm asking to borrow. Thoughts? " Self: "> I'm not behind and have no problem making payments and even significant prepayments. \n \nPerhaps it's possible to get a signature loan for the $18K then use your ability to make significasnt prepays to kill that early." User (nikki_sixx): "Paying it down to where I'm not upside down was my exact thought. Never thought of taking a loan to do so, will look into. Thanks!"
User (Broke_but_Trying): "Ok so first a lot about me:\n\nI grew up poor, but OK. The neighborhood wasn't great and I mostly raised myself through the crucial years to the point where extended family is so proud that I just didn't end up in Jail. I was raised to appreciate a dollar and equate most things to currency (You better eath that! Theres 32 cent worth of chicken on that BONE). What this did for me is create a paranoia when it comes to debt that is unfortunate considering the situation I'm in.\n\nI graduated from highschool in 2002 and went to community college to get a certificate in local area network administration while getting the Collegiate basics out of the way. Once I completed my coursework there I went to University in 2005 and thats where the trouble started. \n\nFirst off I didn't have a car, extensive family or any money. Second the school I got accepted to was 80 miles away and in a relatively remote location (important when it comes to working on the side). At the behest of friends I bit the bullet and borrowed. It worked out OK but I was never able to really work because I didn't have a car and I was studying Engineering which took up a massive amount of time. As the debt grew I just cringed and told myself "You'll be pulling in 4-6 grand a month starting so do what you have to and get it done".\n\nFast Forward to graduation in December of 2008, I think only 40 of us crossed the stage with that piece of paper that says Electrical Engineering on it. This picked up my spirits considering that after I left that stage I was going to have only two things in my life, that piece of paper and the bill for it, and I would need a job to pay for it. Less competition means more opportunity but since I didn't do any internships and I didn't have a job lined up, I moved back to my home town which is known for having a good economy and a LOT of tech companies with a plan to apply and get hired somewhere. At this point I had virtually no support from family and very little friends, the only things I owned were my clothes and a computer.\n\nObviously things got rough, some of my fellow grads got jobs others didn't, I was one of the ones who didn't and I applied and looked for the first 8 months. By this time my benefactor/friend who was letting me stay on her couch started to get a little tired of me so I switched gears and started looking for ANY professional Job I could find.\n\nNow, almost 2 years since I graduated with a degree in electrical engineering and 6 since I obtained a certificate in network administration, I'm sitting at my desk as a HelpDesk technician making 20 an hour to interpret user's technical issues and either assign them to the correct department or change their password. Lame I know. \n\n\nWith all of that written here's the situation:\n\nI'm drowning, slowly sinking deeper into debt whenever an extenuating circumstance comes along. \n\nI've tried to tell myself its not so bad and that I can make it but the Idea of owing so much prevents me from feeling good about anything I buy. I don't feel like I'm accomplishing any goals as numbers continue to rise and things I need continue to pop up. My long term plan is to \npass the Fundamentals of Engineering exam and start reapplying but at this stage in life the emotions surrounding this debt might kill me first.\n\nSo what I've decided to do is bear it all to anyone willing to look so I can get a read on whats happening. The first time I thought of making this post I stopped because I felt like if I just watched my money better I would see the answer so I started up mint.com (they FINALLY interface with my credit union) and tracked my spending from July of this year to today. What I've learned is that I still can't SEE an answer in it outside from make more money. So here I am, asking for input on how to maintain some semblence of a life while paying back what I owe. I want to be rich and I want to do it the long slow way, but at this pace I'll be 60 before I break even.\n\nLets start with income: I take home aprox 2400 a month from my 8-5, its very stable, the benefits are good, and its pretty brainless for me (I'm trying hard not to mess up do to lack of motivation). On the side and from 5-9 I work teaching computer classes for a non-profit, sometimes I get a ton of classes sometimes I get none. Over the past few months I've been able to get at least 2 a month and each one week class pays about 300.\n\nso in review the Income is 2400 a month plus a supplemented 300-800 depending.\n\nNext is how I spend which can be discerned from the information I've been collecting from mint.com: \n\nDebts:\n\n * College Bank Loan (10%) - 3400.45 - 168 a month\n * College Private Loan (5-8%) - 35828.54 - 270 a month\n * College Public Loan (5-8%) - 42000 - 200 a month\n * College Citi Credit Card - 8150.45 - 162 a month\n (Closed and locked in at 11%)\n * Visa Credit Card - 2196 -60 a month or the min\n (18-26% Var)\n * Discover Credit Card - 1472.77 - 50 a month or the min\n (19-24% Var) \n * Old College Apt Complex - 2000 - In Collections\n * Very old Dr. Bil - 80 - In Collections\n * Recent Gall Bladder Surgery - 500+ - Havent Started Paying\n\nTOTAL DEBT = $95628.21+ - 1000+ Monthly\n\n\nBills:\n\n * Phone and Internet - 140\n * Rent & Utils - 550\n * Electricity - 80 Aprox\n * Car Payment - 390\n * Car Insurance Payment - 155\n\nTOTAL BILLS = $1315 Monthly\n\nVariable monthly Expenses (Based on 6 month Avg presented as min/avg/max)\n\n * Food - 255/378/380\n * Gas - 75/137/205\n * Entertainment - 159/325.20/479\n\nTOTAL EVERYTHING = 489/840.2/1064 Monthly\n\nSo all in all I NEED somewhere between 2800 and 3400 a month to maintain my current lifestyle. Unfortuneately I'm a little short.\n\nMint.com says that over the 5 month period I've spent an average of 3312 a month. The least i've spent is 2725, and the max 3875. Right now I'm thinking this is my best option, to devote my attention to more money making schemes BUT I believe that if I can incorporate some money saving schemes as well I'll be in a good position. \n\nFrankly I'm tired of not being able to buy new clothes or furniture (still have my college clothes some donated by frat brothers thank goodness, which some were my highschool clothes, and my furniture is a futon and bookcase both donated), go out the way I would like, or build any savings. I feel like 40K should be enough for anyone to get by enjoyably but not with this soul crushing debt, I honestly feel and live like some of my friends who never went to school and work minimum wage. The only difference is I don't have a roommate and my car (its only a sentra and I doubt that purchase more and more) is new, outside of that I can sit around and commiserate with my friends about money all day.\n\nConstructive Criticism, Advice, directions to a good loan consolidator, anything would be greatly appreciated.\n\n\nEdits: for formatting. " Self: "Venezuela?"
User (Broke_but_Trying): "Ok so first a lot about me:\n\nI grew up poor, but OK. The neighborhood wasn't great and I mostly raised myself through the crucial years to the point where extended family is so proud that I just didn't end up in Jail. I was raised to appreciate a dollar and equate most things to currency (You better eath that! Theres 32 cent worth of chicken on that BONE). What this did for me is create a paranoia when it comes to debt that is unfortunate considering the situation I'm in.\n\nI graduated from highschool in 2002 and went to community college to get a certificate in local area network administration while getting the Collegiate basics out of the way. Once I completed my coursework there I went to University in 2005 and thats where the trouble started. \n\nFirst off I didn't have a car, extensive family or any money. Second the school I got accepted to was 80 miles away and in a relatively remote location (important when it comes to working on the side). At the behest of friends I bit the bullet and borrowed. It worked out OK but I was never able to really work because I didn't have a car and I was studying Engineering which took up a massive amount of time. As the debt grew I just cringed and told myself "You'll be pulling in 4-6 grand a month starting so do what you have to and get it done".\n\nFast Forward to graduation in December of 2008, I think only 40 of us crossed the stage with that piece of paper that says Electrical Engineering on it. This picked up my spirits considering that after I left that stage I was going to have only two things in my life, that piece of paper and the bill for it, and I would need a job to pay for it. Less competition means more opportunity but since I didn't do any internships and I didn't have a job lined up, I moved back to my home town which is known for having a good economy and a LOT of tech companies with a plan to apply and get hired somewhere. At this point I had virtually no support from family and very little friends, the only things I owned were my clothes and a computer.\n\nObviously things got rough, some of my fellow grads got jobs others didn't, I was one of the ones who didn't and I applied and looked for the first 8 months. By this time my benefactor/friend who was letting me stay on her couch started to get a little tired of me so I switched gears and started looking for ANY professional Job I could find.\n\nNow, almost 2 years since I graduated with a degree in electrical engineering and 6 since I obtained a certificate in network administration, I'm sitting at my desk as a HelpDesk technician making 20 an hour to interpret user's technical issues and either assign them to the correct department or change their password. Lame I know. \n\n\nWith all of that written here's the situation:\n\nI'm drowning, slowly sinking deeper into debt whenever an extenuating circumstance comes along. \n\nI've tried to tell myself its not so bad and that I can make it but the Idea of owing so much prevents me from feeling good about anything I buy. I don't feel like I'm accomplishing any goals as numbers continue to rise and things I need continue to pop up. My long term plan is to \npass the Fundamentals of Engineering exam and start reapplying but at this stage in life the emotions surrounding this debt might kill me first.\n\nSo what I've decided to do is bear it all to anyone willing to look so I can get a read on whats happening. The first time I thought of making this post I stopped because I felt like if I just watched my money better I would see the answer so I started up mint.com (they FINALLY interface with my credit union) and tracked my spending from July of this year to today. What I've learned is that I still can't SEE an answer in it outside from make more money. So here I am, asking for input on how to maintain some semblence of a life while paying back what I owe. I want to be rich and I want to do it the long slow way, but at this pace I'll be 60 before I break even.\n\nLets start with income: I take home aprox 2400 a month from my 8-5, its very stable, the benefits are good, and its pretty brainless for me (I'm trying hard not to mess up do to lack of motivation). On the side and from 5-9 I work teaching computer classes for a non-profit, sometimes I get a ton of classes sometimes I get none. Over the past few months I've been able to get at least 2 a month and each one week class pays about 300.\n\nso in review the Income is 2400 a month plus a supplemented 300-800 depending.\n\nNext is how I spend which can be discerned from the information I've been collecting from mint.com: \n\nDebts:\n\n * College Bank Loan (10%) - 3400.45 - 168 a month\n * College Private Loan (5-8%) - 35828.54 - 270 a month\n * College Public Loan (5-8%) - 42000 - 200 a month\n * College Citi Credit Card - 8150.45 - 162 a month\n (Closed and locked in at 11%)\n * Visa Credit Card - 2196 -60 a month or the min\n (18-26% Var)\n * Discover Credit Card - 1472.77 - 50 a month or the min\n (19-24% Var) \n * Old College Apt Complex - 2000 - In Collections\n * Very old Dr. Bil - 80 - In Collections\n * Recent Gall Bladder Surgery - 500+ - Havent Started Paying\n\nTOTAL DEBT = $95628.21+ - 1000+ Monthly\n\n\nBills:\n\n * Phone and Internet - 140\n * Rent & Utils - 550\n * Electricity - 80 Aprox\n * Car Payment - 390\n * Car Insurance Payment - 155\n\nTOTAL BILLS = $1315 Monthly\n\nVariable monthly Expenses (Based on 6 month Avg presented as min/avg/max)\n\n * Food - 255/378/380\n * Gas - 75/137/205\n * Entertainment - 159/325.20/479\n\nTOTAL EVERYTHING = 489/840.2/1064 Monthly\n\nSo all in all I NEED somewhere between 2800 and 3400 a month to maintain my current lifestyle. Unfortuneately I'm a little short.\n\nMint.com says that over the 5 month period I've spent an average of 3312 a month. The least i've spent is 2725, and the max 3875. Right now I'm thinking this is my best option, to devote my attention to more money making schemes BUT I believe that if I can incorporate some money saving schemes as well I'll be in a good position. \n\nFrankly I'm tired of not being able to buy new clothes or furniture (still have my college clothes some donated by frat brothers thank goodness, which some were my highschool clothes, and my furniture is a futon and bookcase both donated), go out the way I would like, or build any savings. I feel like 40K should be enough for anyone to get by enjoyably but not with this soul crushing debt, I honestly feel and live like some of my friends who never went to school and work minimum wage. The only difference is I don't have a roommate and my car (its only a sentra and I doubt that purchase more and more) is new, outside of that I can sit around and commiserate with my friends about money all day.\n\nConstructive Criticism, Advice, directions to a good loan consolidator, anything would be greatly appreciated.\n\n\nEdits: for formatting. " Self: "Cut entertainment and food to bare minimums and pay off those high interest rate loans. Highest to lowest. When you pay off one, take the 'saved' money and apply to the next highest interest rate.\n\nJMac 453 applies this to balances, but interest rates get you in the long run. Also your highest rates seem to be some of your lowest balances, so it approximately equals out. \n\nPay debt off with the goal of financial freedom to get that new furniture/clothes when you can afford it again." User (Broke_but_Trying): "Exactly, and agreed 100% any "extra" money aka money that doesn't go to pay of minimums will go to the highest interest first. So Cash advances first, then credit, then loans.\n\nI guess the scary part is living more frugal than I do now."
User (Broke_but_Trying): "Ok so first a lot about me:\n\nI grew up poor, but OK. The neighborhood wasn't great and I mostly raised myself through the crucial years to the point where extended family is so proud that I just didn't end up in Jail. I was raised to appreciate a dollar and equate most things to currency (You better eath that! Theres 32 cent worth of chicken on that BONE). What this did for me is create a paranoia when it comes to debt that is unfortunate considering the situation I'm in.\n\nI graduated from highschool in 2002 and went to community college to get a certificate in local area network administration while getting the Collegiate basics out of the way. Once I completed my coursework there I went to University in 2005 and thats where the trouble started. \n\nFirst off I didn't have a car, extensive family or any money. Second the school I got accepted to was 80 miles away and in a relatively remote location (important when it comes to working on the side). At the behest of friends I bit the bullet and borrowed. It worked out OK but I was never able to really work because I didn't have a car and I was studying Engineering which took up a massive amount of time. As the debt grew I just cringed and told myself "You'll be pulling in 4-6 grand a month starting so do what you have to and get it done".\n\nFast Forward to graduation in December of 2008, I think only 40 of us crossed the stage with that piece of paper that says Electrical Engineering on it. This picked up my spirits considering that after I left that stage I was going to have only two things in my life, that piece of paper and the bill for it, and I would need a job to pay for it. Less competition means more opportunity but since I didn't do any internships and I didn't have a job lined up, I moved back to my home town which is known for having a good economy and a LOT of tech companies with a plan to apply and get hired somewhere. At this point I had virtually no support from family and very little friends, the only things I owned were my clothes and a computer.\n\nObviously things got rough, some of my fellow grads got jobs others didn't, I was one of the ones who didn't and I applied and looked for the first 8 months. By this time my benefactor/friend who was letting me stay on her couch started to get a little tired of me so I switched gears and started looking for ANY professional Job I could find.\n\nNow, almost 2 years since I graduated with a degree in electrical engineering and 6 since I obtained a certificate in network administration, I'm sitting at my desk as a HelpDesk technician making 20 an hour to interpret user's technical issues and either assign them to the correct department or change their password. Lame I know. \n\n\nWith all of that written here's the situation:\n\nI'm drowning, slowly sinking deeper into debt whenever an extenuating circumstance comes along. \n\nI've tried to tell myself its not so bad and that I can make it but the Idea of owing so much prevents me from feeling good about anything I buy. I don't feel like I'm accomplishing any goals as numbers continue to rise and things I need continue to pop up. My long term plan is to \npass the Fundamentals of Engineering exam and start reapplying but at this stage in life the emotions surrounding this debt might kill me first.\n\nSo what I've decided to do is bear it all to anyone willing to look so I can get a read on whats happening. The first time I thought of making this post I stopped because I felt like if I just watched my money better I would see the answer so I started up mint.com (they FINALLY interface with my credit union) and tracked my spending from July of this year to today. What I've learned is that I still can't SEE an answer in it outside from make more money. So here I am, asking for input on how to maintain some semblence of a life while paying back what I owe. I want to be rich and I want to do it the long slow way, but at this pace I'll be 60 before I break even.\n\nLets start with income: I take home aprox 2400 a month from my 8-5, its very stable, the benefits are good, and its pretty brainless for me (I'm trying hard not to mess up do to lack of motivation). On the side and from 5-9 I work teaching computer classes for a non-profit, sometimes I get a ton of classes sometimes I get none. Over the past few months I've been able to get at least 2 a month and each one week class pays about 300.\n\nso in review the Income is 2400 a month plus a supplemented 300-800 depending.\n\nNext is how I spend which can be discerned from the information I've been collecting from mint.com: \n\nDebts:\n\n * College Bank Loan (10%) - 3400.45 - 168 a month\n * College Private Loan (5-8%) - 35828.54 - 270 a month\n * College Public Loan (5-8%) - 42000 - 200 a month\n * College Citi Credit Card - 8150.45 - 162 a month\n (Closed and locked in at 11%)\n * Visa Credit Card - 2196 -60 a month or the min\n (18-26% Var)\n * Discover Credit Card - 1472.77 - 50 a month or the min\n (19-24% Var) \n * Old College Apt Complex - 2000 - In Collections\n * Very old Dr. Bil - 80 - In Collections\n * Recent Gall Bladder Surgery - 500+ - Havent Started Paying\n\nTOTAL DEBT = $95628.21+ - 1000+ Monthly\n\n\nBills:\n\n * Phone and Internet - 140\n * Rent & Utils - 550\n * Electricity - 80 Aprox\n * Car Payment - 390\n * Car Insurance Payment - 155\n\nTOTAL BILLS = $1315 Monthly\n\nVariable monthly Expenses (Based on 6 month Avg presented as min/avg/max)\n\n * Food - 255/378/380\n * Gas - 75/137/205\n * Entertainment - 159/325.20/479\n\nTOTAL EVERYTHING = 489/840.2/1064 Monthly\n\nSo all in all I NEED somewhere between 2800 and 3400 a month to maintain my current lifestyle. Unfortuneately I'm a little short.\n\nMint.com says that over the 5 month period I've spent an average of 3312 a month. The least i've spent is 2725, and the max 3875. Right now I'm thinking this is my best option, to devote my attention to more money making schemes BUT I believe that if I can incorporate some money saving schemes as well I'll be in a good position. \n\nFrankly I'm tired of not being able to buy new clothes or furniture (still have my college clothes some donated by frat brothers thank goodness, which some were my highschool clothes, and my furniture is a futon and bookcase both donated), go out the way I would like, or build any savings. I feel like 40K should be enough for anyone to get by enjoyably but not with this soul crushing debt, I honestly feel and live like some of my friends who never went to school and work minimum wage. The only difference is I don't have a roommate and my car (its only a sentra and I doubt that purchase more and more) is new, outside of that I can sit around and commiserate with my friends about money all day.\n\nConstructive Criticism, Advice, directions to a good loan consolidator, anything would be greatly appreciated.\n\n\nEdits: for formatting. " Self: "If you really want to get out of debt, I would suggest reading Dave Ramsey's [The Total Money Makeover](http://www.amazon.com/Total-Money-Makeover-Financial-Fitness/dp/159555078X). You've dug yourself quite a hole here, but if you devote yourself to what this book tells you to do you will get out of debt eventually (it will probably take you at least a couple of years). The book teaches the "debt snowball" method of reducing debt, which tells you to pay minimum payments on all debts except the one with the lowest balance (old Dr. bill and gall bladder surgery bill for you), which you will pay as much as you possibly can towards. Once you pay that off, you move on to the next lowest balance, repeating the process until you are out of debt.\n\nYou need to take a very serious look at where you are spending your money. I'm not sure where you live (or if you have family to provide for), but to me spending $378/month on food and $325 on entertainment seem ridiculous. You could also consider selling your car (I know, it sucks) and getting a beater for the time being. This will probably lower your insurance as well.\n\nBasically, you either need to increase your income, or reduce your expenses (ideally both). You can increase your income by getting a part-time job doing something like delivering pizzas. You can reduce your expenses by making cuts in some of the areas I mentioned above.\n\nI know you don't want to hear it, and it's going to take hard work and dedication, but the only way you are going to make any progress is to severely limit your lifestyle. Live like you make 20K/year.\n\nEdit: Grammar, and I also wanted to provide you with a spreadsheet that I use to keep track of my spending (in case it might be of use to you). The link is in [this Reddit post.](http://www.reddit.com/r/IWantToLearn/comments/ewwr8/iwtl_how_to_balance_my_finances_on_a_spreadsheet/c1bl04u)\n\nEdit2: For some reason I didn't see the part where you said you are already supplementing your income, and what you are making from that seems pretty good, so you can ignore what I said about getting a part-time job." Self: "Another tip that I've heard people give when it comes to dealing with collection agencies (I haven't dealt with any personally, so I don't know how true it is). I know it would be a little down the line for you, but just keep it in mind:\n\nBefore you talk to them, have money saved up in advance that you could pay them TODAY. Ask to settle the debt for that amount (e.g. for your $2000 apartment bill you could save up $1200 or so, then call them and say you could write a check today for that amount if they will consider the debt settled). They might just do it. If they do, ask them for a written letter that confirms the debt is settled, and that should be another monkey off of your back." User (Broke_but_Trying): "Ive heard of this too, and your right all of my bills are paid so I've only had to deal with the student loan people.\n\nThe 2000 debt popped up on my credit score report about a month ago before then it was just between me and the complex, so I expect that the calls will start soon here in the next few weeks."
User (Broke_but_Trying): "Ok so first a lot about me:\n\nI grew up poor, but OK. The neighborhood wasn't great and I mostly raised myself through the crucial years to the point where extended family is so proud that I just didn't end up in Jail. I was raised to appreciate a dollar and equate most things to currency (You better eath that! Theres 32 cent worth of chicken on that BONE). What this did for me is create a paranoia when it comes to debt that is unfortunate considering the situation I'm in.\n\nI graduated from highschool in 2002 and went to community college to get a certificate in local area network administration while getting the Collegiate basics out of the way. Once I completed my coursework there I went to University in 2005 and thats where the trouble started. \n\nFirst off I didn't have a car, extensive family or any money. Second the school I got accepted to was 80 miles away and in a relatively remote location (important when it comes to working on the side). At the behest of friends I bit the bullet and borrowed. It worked out OK but I was never able to really work because I didn't have a car and I was studying Engineering which took up a massive amount of time. As the debt grew I just cringed and told myself "You'll be pulling in 4-6 grand a month starting so do what you have to and get it done".\n\nFast Forward to graduation in December of 2008, I think only 40 of us crossed the stage with that piece of paper that says Electrical Engineering on it. This picked up my spirits considering that after I left that stage I was going to have only two things in my life, that piece of paper and the bill for it, and I would need a job to pay for it. Less competition means more opportunity but since I didn't do any internships and I didn't have a job lined up, I moved back to my home town which is known for having a good economy and a LOT of tech companies with a plan to apply and get hired somewhere. At this point I had virtually no support from family and very little friends, the only things I owned were my clothes and a computer.\n\nObviously things got rough, some of my fellow grads got jobs others didn't, I was one of the ones who didn't and I applied and looked for the first 8 months. By this time my benefactor/friend who was letting me stay on her couch started to get a little tired of me so I switched gears and started looking for ANY professional Job I could find.\n\nNow, almost 2 years since I graduated with a degree in electrical engineering and 6 since I obtained a certificate in network administration, I'm sitting at my desk as a HelpDesk technician making 20 an hour to interpret user's technical issues and either assign them to the correct department or change their password. Lame I know. \n\n\nWith all of that written here's the situation:\n\nI'm drowning, slowly sinking deeper into debt whenever an extenuating circumstance comes along. \n\nI've tried to tell myself its not so bad and that I can make it but the Idea of owing so much prevents me from feeling good about anything I buy. I don't feel like I'm accomplishing any goals as numbers continue to rise and things I need continue to pop up. My long term plan is to \npass the Fundamentals of Engineering exam and start reapplying but at this stage in life the emotions surrounding this debt might kill me first.\n\nSo what I've decided to do is bear it all to anyone willing to look so I can get a read on whats happening. The first time I thought of making this post I stopped because I felt like if I just watched my money better I would see the answer so I started up mint.com (they FINALLY interface with my credit union) and tracked my spending from July of this year to today. What I've learned is that I still can't SEE an answer in it outside from make more money. So here I am, asking for input on how to maintain some semblence of a life while paying back what I owe. I want to be rich and I want to do it the long slow way, but at this pace I'll be 60 before I break even.\n\nLets start with income: I take home aprox 2400 a month from my 8-5, its very stable, the benefits are good, and its pretty brainless for me (I'm trying hard not to mess up do to lack of motivation). On the side and from 5-9 I work teaching computer classes for a non-profit, sometimes I get a ton of classes sometimes I get none. Over the past few months I've been able to get at least 2 a month and each one week class pays about 300.\n\nso in review the Income is 2400 a month plus a supplemented 300-800 depending.\n\nNext is how I spend which can be discerned from the information I've been collecting from mint.com: \n\nDebts:\n\n * College Bank Loan (10%) - 3400.45 - 168 a month\n * College Private Loan (5-8%) - 35828.54 - 270 a month\n * College Public Loan (5-8%) - 42000 - 200 a month\n * College Citi Credit Card - 8150.45 - 162 a month\n (Closed and locked in at 11%)\n * Visa Credit Card - 2196 -60 a month or the min\n (18-26% Var)\n * Discover Credit Card - 1472.77 - 50 a month or the min\n (19-24% Var) \n * Old College Apt Complex - 2000 - In Collections\n * Very old Dr. Bil - 80 - In Collections\n * Recent Gall Bladder Surgery - 500+ - Havent Started Paying\n\nTOTAL DEBT = $95628.21+ - 1000+ Monthly\n\n\nBills:\n\n * Phone and Internet - 140\n * Rent & Utils - 550\n * Electricity - 80 Aprox\n * Car Payment - 390\n * Car Insurance Payment - 155\n\nTOTAL BILLS = $1315 Monthly\n\nVariable monthly Expenses (Based on 6 month Avg presented as min/avg/max)\n\n * Food - 255/378/380\n * Gas - 75/137/205\n * Entertainment - 159/325.20/479\n\nTOTAL EVERYTHING = 489/840.2/1064 Monthly\n\nSo all in all I NEED somewhere between 2800 and 3400 a month to maintain my current lifestyle. Unfortuneately I'm a little short.\n\nMint.com says that over the 5 month period I've spent an average of 3312 a month. The least i've spent is 2725, and the max 3875. Right now I'm thinking this is my best option, to devote my attention to more money making schemes BUT I believe that if I can incorporate some money saving schemes as well I'll be in a good position. \n\nFrankly I'm tired of not being able to buy new clothes or furniture (still have my college clothes some donated by frat brothers thank goodness, which some were my highschool clothes, and my furniture is a futon and bookcase both donated), go out the way I would like, or build any savings. I feel like 40K should be enough for anyone to get by enjoyably but not with this soul crushing debt, I honestly feel and live like some of my friends who never went to school and work minimum wage. The only difference is I don't have a roommate and my car (its only a sentra and I doubt that purchase more and more) is new, outside of that I can sit around and commiserate with my friends about money all day.\n\nConstructive Criticism, Advice, directions to a good loan consolidator, anything would be greatly appreciated.\n\n\nEdits: for formatting. " Self: ">to maintain my current lifestyle\n\nThis is where your thinking will need a readjustment. If you are drowning in bills and debt that is one of the worst feelings imaginable. Trust me I have been there. Let me tell you a secret to getting back on your feet financially - it is going to take some time and patience. Here is the good news, you can do it. But first you must realize that you cannot maintain your current lifestyle. Yes it may suck at first but once you get used to living on less than you make, then you will realize that the acquisition of things is not important. I totally agree with JMac453 in that you should employ the 'debt snowball' method of reducing debt. When you pay off that first bill it is such a great feeling of relief and most importantly, it gives you that early win to provide motivation to continue. And when it comes to your food budget - try brown bagging it to work everyday. And cut out eating out, learn to cook simple meals and grocery shop. Entertainment seems high so that is an area that I would cut as well. Honestly just listen to JMac453, I am merely repeating his points. But best of luck and keep us updated as you make progress. If I can do it, I am sure anyone can. " User (Broke_but_Trying): "To be fair my current lifestyle is pretty sparse, for example, what I spend on entertainment includes any purchase thats not related to food or gas.\n\nI've considered selling the car but I've started selling stuff (2-3 months ago) in addition to working 8-5 and 6-9 so losing the car would mess up the side business and kill my freedom but if selling isn't going to be a big enough supplement, there is no reason to continue having it." Self: "After thinking about your situation, you aren't far off from what you should be doing. Don't sell your car because you need reliable transportation to get around. But do seriously look into the 'debt snowball' method because that will be a great first step in getting your debt under control. Also on the bill that went to collections, call them up and work out a suitable payment plan. Don't let them pressure you into doing something you can't afford, be open and honest about what and when you can pay them. And before you sign up for a payment plan ask them to remove it from your credit report upon successfully finishing it within the time frame mutually agreed upon. I have done this before with a medical bill and I can't advocate it enough. You not only get rid of debt but if you can remove the negative mark from your credit file simultaneously, you are sitting pretty. \n \nPay the minimums on the credit cards and itemize your debt by dollar amount and pay off the smallest balances first and as you eliminate a debt, apply that money towards the next bill the following month. "
User (Broke_but_Trying): "Ok so first a lot about me:\n\nI grew up poor, but OK. The neighborhood wasn't great and I mostly raised myself through the crucial years to the point where extended family is so proud that I just didn't end up in Jail. I was raised to appreciate a dollar and equate most things to currency (You better eath that! Theres 32 cent worth of chicken on that BONE). What this did for me is create a paranoia when it comes to debt that is unfortunate considering the situation I'm in.\n\nI graduated from highschool in 2002 and went to community college to get a certificate in local area network administration while getting the Collegiate basics out of the way. Once I completed my coursework there I went to University in 2005 and thats where the trouble started. \n\nFirst off I didn't have a car, extensive family or any money. Second the school I got accepted to was 80 miles away and in a relatively remote location (important when it comes to working on the side). At the behest of friends I bit the bullet and borrowed. It worked out OK but I was never able to really work because I didn't have a car and I was studying Engineering which took up a massive amount of time. As the debt grew I just cringed and told myself "You'll be pulling in 4-6 grand a month starting so do what you have to and get it done".\n\nFast Forward to graduation in December of 2008, I think only 40 of us crossed the stage with that piece of paper that says Electrical Engineering on it. This picked up my spirits considering that after I left that stage I was going to have only two things in my life, that piece of paper and the bill for it, and I would need a job to pay for it. Less competition means more opportunity but since I didn't do any internships and I didn't have a job lined up, I moved back to my home town which is known for having a good economy and a LOT of tech companies with a plan to apply and get hired somewhere. At this point I had virtually no support from family and very little friends, the only things I owned were my clothes and a computer.\n\nObviously things got rough, some of my fellow grads got jobs others didn't, I was one of the ones who didn't and I applied and looked for the first 8 months. By this time my benefactor/friend who was letting me stay on her couch started to get a little tired of me so I switched gears and started looking for ANY professional Job I could find.\n\nNow, almost 2 years since I graduated with a degree in electrical engineering and 6 since I obtained a certificate in network administration, I'm sitting at my desk as a HelpDesk technician making 20 an hour to interpret user's technical issues and either assign them to the correct department or change their password. Lame I know. \n\n\nWith all of that written here's the situation:\n\nI'm drowning, slowly sinking deeper into debt whenever an extenuating circumstance comes along. \n\nI've tried to tell myself its not so bad and that I can make it but the Idea of owing so much prevents me from feeling good about anything I buy. I don't feel like I'm accomplishing any goals as numbers continue to rise and things I need continue to pop up. My long term plan is to \npass the Fundamentals of Engineering exam and start reapplying but at this stage in life the emotions surrounding this debt might kill me first.\n\nSo what I've decided to do is bear it all to anyone willing to look so I can get a read on whats happening. The first time I thought of making this post I stopped because I felt like if I just watched my money better I would see the answer so I started up mint.com (they FINALLY interface with my credit union) and tracked my spending from July of this year to today. What I've learned is that I still can't SEE an answer in it outside from make more money. So here I am, asking for input on how to maintain some semblence of a life while paying back what I owe. I want to be rich and I want to do it the long slow way, but at this pace I'll be 60 before I break even.\n\nLets start with income: I take home aprox 2400 a month from my 8-5, its very stable, the benefits are good, and its pretty brainless for me (I'm trying hard not to mess up do to lack of motivation). On the side and from 5-9 I work teaching computer classes for a non-profit, sometimes I get a ton of classes sometimes I get none. Over the past few months I've been able to get at least 2 a month and each one week class pays about 300.\n\nso in review the Income is 2400 a month plus a supplemented 300-800 depending.\n\nNext is how I spend which can be discerned from the information I've been collecting from mint.com: \n\nDebts:\n\n * College Bank Loan (10%) - 3400.45 - 168 a month\n * College Private Loan (5-8%) - 35828.54 - 270 a month\n * College Public Loan (5-8%) - 42000 - 200 a month\n * College Citi Credit Card - 8150.45 - 162 a month\n (Closed and locked in at 11%)\n * Visa Credit Card - 2196 -60 a month or the min\n (18-26% Var)\n * Discover Credit Card - 1472.77 - 50 a month or the min\n (19-24% Var) \n * Old College Apt Complex - 2000 - In Collections\n * Very old Dr. Bil - 80 - In Collections\n * Recent Gall Bladder Surgery - 500+ - Havent Started Paying\n\nTOTAL DEBT = $95628.21+ - 1000+ Monthly\n\n\nBills:\n\n * Phone and Internet - 140\n * Rent & Utils - 550\n * Electricity - 80 Aprox\n * Car Payment - 390\n * Car Insurance Payment - 155\n\nTOTAL BILLS = $1315 Monthly\n\nVariable monthly Expenses (Based on 6 month Avg presented as min/avg/max)\n\n * Food - 255/378/380\n * Gas - 75/137/205\n * Entertainment - 159/325.20/479\n\nTOTAL EVERYTHING = 489/840.2/1064 Monthly\n\nSo all in all I NEED somewhere between 2800 and 3400 a month to maintain my current lifestyle. Unfortuneately I'm a little short.\n\nMint.com says that over the 5 month period I've spent an average of 3312 a month. The least i've spent is 2725, and the max 3875. Right now I'm thinking this is my best option, to devote my attention to more money making schemes BUT I believe that if I can incorporate some money saving schemes as well I'll be in a good position. \n\nFrankly I'm tired of not being able to buy new clothes or furniture (still have my college clothes some donated by frat brothers thank goodness, which some were my highschool clothes, and my furniture is a futon and bookcase both donated), go out the way I would like, or build any savings. I feel like 40K should be enough for anyone to get by enjoyably but not with this soul crushing debt, I honestly feel and live like some of my friends who never went to school and work minimum wage. The only difference is I don't have a roommate and my car (its only a sentra and I doubt that purchase more and more) is new, outside of that I can sit around and commiserate with my friends about money all day.\n\nConstructive Criticism, Advice, directions to a good loan consolidator, anything would be greatly appreciated.\n\n\nEdits: for formatting. " Self: "If you really want to get out of debt, I would suggest reading Dave Ramsey's [The Total Money Makeover](http://www.amazon.com/Total-Money-Makeover-Financial-Fitness/dp/159555078X). You've dug yourself quite a hole here, but if you devote yourself to what this book tells you to do you will get out of debt eventually (it will probably take you at least a couple of years). The book teaches the "debt snowball" method of reducing debt, which tells you to pay minimum payments on all debts except the one with the lowest balance (old Dr. bill and gall bladder surgery bill for you), which you will pay as much as you possibly can towards. Once you pay that off, you move on to the next lowest balance, repeating the process until you are out of debt.\n\nYou need to take a very serious look at where you are spending your money. I'm not sure where you live (or if you have family to provide for), but to me spending $378/month on food and $325 on entertainment seem ridiculous. You could also consider selling your car (I know, it sucks) and getting a beater for the time being. This will probably lower your insurance as well.\n\nBasically, you either need to increase your income, or reduce your expenses (ideally both). You can increase your income by getting a part-time job doing something like delivering pizzas. You can reduce your expenses by making cuts in some of the areas I mentioned above.\n\nI know you don't want to hear it, and it's going to take hard work and dedication, but the only way you are going to make any progress is to severely limit your lifestyle. Live like you make 20K/year.\n\nEdit: Grammar, and I also wanted to provide you with a spreadsheet that I use to keep track of my spending (in case it might be of use to you). The link is in [this Reddit post.](http://www.reddit.com/r/IWantToLearn/comments/ewwr8/iwtl_how_to_balance_my_finances_on_a_spreadsheet/c1bl04u)\n\nEdit2: For some reason I didn't see the part where you said you are already supplementing your income, and what you are making from that seems pretty good, so you can ignore what I said about getting a part-time job." User (Broke_but_Trying): "Yep, and working the classes makes getting some other part time job more difficult but I have picked up a third job selling stuff recently which makes me question getting rid of the car. Although I was considering driving a cab, problem is the payments on one of those is pretty high as well although you can do daily rentals for like 50 bucks after you get your license.\n\nNow the reason I bought a new car was because I figured that it would be easier to deal with than a used one, I don't even think it looks cool. I thought this because all I've ever had is used cars and in addition to paying the monthly my car would eventually break and then continue to break causing unexpected expenses, and serious doubt whenever I had to use them. However the piece of mind I've gained from buying new hasn't been worth the price tag, maybe I'll start looking for someone who can help me buy a used car.\n\nSpeaking on food, I do agree with you in regards to the food. I need to start buying groceries, start learning how to cook, and STOP buying anything else. I should mention that the amount I spend on food has decreased since I started watching it. The min amount I included in the post is actually November's amount but I havent started cooking yet, too bad I don't own all the stuff I need to start but I guess i can borrow or just put it on a CC.\n\nWith entertainment its mostly my vice and not clubs or movies or shopping or fun, and I do need to cut back but I share it so much. In addition it includes all purchases not related to food or gas. For example It also includes the stuff i buy to sell, since I started doing it as something for "amusement" just in case I didn't make money and it includes any ATM withdrawal that I can't remember why I took the money out. Its only been two months of selling but in the last 2 weeks I've found a better price, better product and a couple more customers so I'm optimistic on that front. \n\nAnother thing thats coming, and I'm excited to see how it helps, is my income tax return. This is the first year I've worked full time every weekday so the the amount I get back should be high and will go exclusively to bills and debt.\n\nIts scary to limit my lifestyle, at this point in time I don't feel like I have a lifestyle, I'm not doing things that I want to. I wake up and am at work by 8am I don't get done until 9:30pm if i'm working both jobs, then I start filling orders. I don't have cable, I don't buy movies or music, I don't own a game system (though I use my computer extensively for this and other things), and I'm not lonely (girls stop by to keep me company) but I live alone.\n\nRight now its looking like the plan is as follows:\n\n * Get income tax return and commit it to debt\n * Learn to Cook (and start getting groceries from my mom that gets food stamps, she's offered so I need to make sure I get them, and other friends)\n * Cut back on entertainment\n * Work harder on side business\n * Look into selling my now used car and getting a different used car\n * Seriously consider getting back in to the home computer repair business\n * Take and pass the FE\n * Start looking for another job in the right field\n\nOH also as a side note, my dad passed away and left a house full of junk to me. The plan has been for months now to sort through it and start selling stuff, its been an issue of motivation, time, and know-how when it comes to actually getting it done. Its looking like the time is right for getting started on that project." beansandcornbread (beansandcornbread): "I can't upvote the suggestion to listen to Dave Ramsey enough. If you really, really want to do better, find location that is teaching his course 'Financial Peace University' and go. It's $99 and worth every penny. I've taught the course 5 times now and everyone loved it. The information and envelope system will change your life.\n\nOh and sell the car, buy a beater. (you'll be able to save $500/month alone right here. If your $1000 car you buy breaks in only 3 months, you've come out ahead.)\nCook. My wife and I eat on $330/month. \nCut your entertainment WAY down.\nYou car insurance seems high. My wife and I only pay about $60/month on two cars with Auto Owners Insurance.\n\nFeel free to PM me for more info. I'm a huge Dave Ramsey fan and have seen his principles work."
User (Broke_but_Trying): "Ok so first a lot about me:\n\nI grew up poor, but OK. The neighborhood wasn't great and I mostly raised myself through the crucial years to the point where extended family is so proud that I just didn't end up in Jail. I was raised to appreciate a dollar and equate most things to currency (You better eath that! Theres 32 cent worth of chicken on that BONE). What this did for me is create a paranoia when it comes to debt that is unfortunate considering the situation I'm in.\n\nI graduated from highschool in 2002 and went to community college to get a certificate in local area network administration while getting the Collegiate basics out of the way. Once I completed my coursework there I went to University in 2005 and thats where the trouble started. \n\nFirst off I didn't have a car, extensive family or any money. Second the school I got accepted to was 80 miles away and in a relatively remote location (important when it comes to working on the side). At the behest of friends I bit the bullet and borrowed. It worked out OK but I was never able to really work because I didn't have a car and I was studying Engineering which took up a massive amount of time. As the debt grew I just cringed and told myself "You'll be pulling in 4-6 grand a month starting so do what you have to and get it done".\n\nFast Forward to graduation in December of 2008, I think only 40 of us crossed the stage with that piece of paper that says Electrical Engineering on it. This picked up my spirits considering that after I left that stage I was going to have only two things in my life, that piece of paper and the bill for it, and I would need a job to pay for it. Less competition means more opportunity but since I didn't do any internships and I didn't have a job lined up, I moved back to my home town which is known for having a good economy and a LOT of tech companies with a plan to apply and get hired somewhere. At this point I had virtually no support from family and very little friends, the only things I owned were my clothes and a computer.\n\nObviously things got rough, some of my fellow grads got jobs others didn't, I was one of the ones who didn't and I applied and looked for the first 8 months. By this time my benefactor/friend who was letting me stay on her couch started to get a little tired of me so I switched gears and started looking for ANY professional Job I could find.\n\nNow, almost 2 years since I graduated with a degree in electrical engineering and 6 since I obtained a certificate in network administration, I'm sitting at my desk as a HelpDesk technician making 20 an hour to interpret user's technical issues and either assign them to the correct department or change their password. Lame I know. \n\n\nWith all of that written here's the situation:\n\nI'm drowning, slowly sinking deeper into debt whenever an extenuating circumstance comes along. \n\nI've tried to tell myself its not so bad and that I can make it but the Idea of owing so much prevents me from feeling good about anything I buy. I don't feel like I'm accomplishing any goals as numbers continue to rise and things I need continue to pop up. My long term plan is to \npass the Fundamentals of Engineering exam and start reapplying but at this stage in life the emotions surrounding this debt might kill me first.\n\nSo what I've decided to do is bear it all to anyone willing to look so I can get a read on whats happening. The first time I thought of making this post I stopped because I felt like if I just watched my money better I would see the answer so I started up mint.com (they FINALLY interface with my credit union) and tracked my spending from July of this year to today. What I've learned is that I still can't SEE an answer in it outside from make more money. So here I am, asking for input on how to maintain some semblence of a life while paying back what I owe. I want to be rich and I want to do it the long slow way, but at this pace I'll be 60 before I break even.\n\nLets start with income: I take home aprox 2400 a month from my 8-5, its very stable, the benefits are good, and its pretty brainless for me (I'm trying hard not to mess up do to lack of motivation). On the side and from 5-9 I work teaching computer classes for a non-profit, sometimes I get a ton of classes sometimes I get none. Over the past few months I've been able to get at least 2 a month and each one week class pays about 300.\n\nso in review the Income is 2400 a month plus a supplemented 300-800 depending.\n\nNext is how I spend which can be discerned from the information I've been collecting from mint.com: \n\nDebts:\n\n * College Bank Loan (10%) - 3400.45 - 168 a month\n * College Private Loan (5-8%) - 35828.54 - 270 a month\n * College Public Loan (5-8%) - 42000 - 200 a month\n * College Citi Credit Card - 8150.45 - 162 a month\n (Closed and locked in at 11%)\n * Visa Credit Card - 2196 -60 a month or the min\n (18-26% Var)\n * Discover Credit Card - 1472.77 - 50 a month or the min\n (19-24% Var) \n * Old College Apt Complex - 2000 - In Collections\n * Very old Dr. Bil - 80 - In Collections\n * Recent Gall Bladder Surgery - 500+ - Havent Started Paying\n\nTOTAL DEBT = $95628.21+ - 1000+ Monthly\n\n\nBills:\n\n * Phone and Internet - 140\n * Rent & Utils - 550\n * Electricity - 80 Aprox\n * Car Payment - 390\n * Car Insurance Payment - 155\n\nTOTAL BILLS = $1315 Monthly\n\nVariable monthly Expenses (Based on 6 month Avg presented as min/avg/max)\n\n * Food - 255/378/380\n * Gas - 75/137/205\n * Entertainment - 159/325.20/479\n\nTOTAL EVERYTHING = 489/840.2/1064 Monthly\n\nSo all in all I NEED somewhere between 2800 and 3400 a month to maintain my current lifestyle. Unfortuneately I'm a little short.\n\nMint.com says that over the 5 month period I've spent an average of 3312 a month. The least i've spent is 2725, and the max 3875. Right now I'm thinking this is my best option, to devote my attention to more money making schemes BUT I believe that if I can incorporate some money saving schemes as well I'll be in a good position. \n\nFrankly I'm tired of not being able to buy new clothes or furniture (still have my college clothes some donated by frat brothers thank goodness, which some were my highschool clothes, and my furniture is a futon and bookcase both donated), go out the way I would like, or build any savings. I feel like 40K should be enough for anyone to get by enjoyably but not with this soul crushing debt, I honestly feel and live like some of my friends who never went to school and work minimum wage. The only difference is I don't have a roommate and my car (its only a sentra and I doubt that purchase more and more) is new, outside of that I can sit around and commiserate with my friends about money all day.\n\nConstructive Criticism, Advice, directions to a good loan consolidator, anything would be greatly appreciated.\n\n\nEdits: for formatting. " Self: "If you really want to get out of debt, I would suggest reading Dave Ramsey's [The Total Money Makeover](http://www.amazon.com/Total-Money-Makeover-Financial-Fitness/dp/159555078X). You've dug yourself quite a hole here, but if you devote yourself to what this book tells you to do you will get out of debt eventually (it will probably take you at least a couple of years). The book teaches the "debt snowball" method of reducing debt, which tells you to pay minimum payments on all debts except the one with the lowest balance (old Dr. bill and gall bladder surgery bill for you), which you will pay as much as you possibly can towards. Once you pay that off, you move on to the next lowest balance, repeating the process until you are out of debt.\n\nYou need to take a very serious look at where you are spending your money. I'm not sure where you live (or if you have family to provide for), but to me spending $378/month on food and $325 on entertainment seem ridiculous. You could also consider selling your car (I know, it sucks) and getting a beater for the time being. This will probably lower your insurance as well.\n\nBasically, you either need to increase your income, or reduce your expenses (ideally both). You can increase your income by getting a part-time job doing something like delivering pizzas. You can reduce your expenses by making cuts in some of the areas I mentioned above.\n\nI know you don't want to hear it, and it's going to take hard work and dedication, but the only way you are going to make any progress is to severely limit your lifestyle. Live like you make 20K/year.\n\nEdit: Grammar, and I also wanted to provide you with a spreadsheet that I use to keep track of my spending (in case it might be of use to you). The link is in [this Reddit post.](http://www.reddit.com/r/IWantToLearn/comments/ewwr8/iwtl_how_to_balance_my_finances_on_a_spreadsheet/c1bl04u)\n\nEdit2: For some reason I didn't see the part where you said you are already supplementing your income, and what you are making from that seems pretty good, so you can ignore what I said about getting a part-time job." User (Broke_but_Trying): "Yep, and working the classes makes getting some other part time job more difficult but I have picked up a third job selling stuff recently which makes me question getting rid of the car. Although I was considering driving a cab, problem is the payments on one of those is pretty high as well although you can do daily rentals for like 50 bucks after you get your license.\n\nNow the reason I bought a new car was because I figured that it would be easier to deal with than a used one, I don't even think it looks cool. I thought this because all I've ever had is used cars and in addition to paying the monthly my car would eventually break and then continue to break causing unexpected expenses, and serious doubt whenever I had to use them. However the piece of mind I've gained from buying new hasn't been worth the price tag, maybe I'll start looking for someone who can help me buy a used car.\n\nSpeaking on food, I do agree with you in regards to the food. I need to start buying groceries, start learning how to cook, and STOP buying anything else. I should mention that the amount I spend on food has decreased since I started watching it. The min amount I included in the post is actually November's amount but I havent started cooking yet, too bad I don't own all the stuff I need to start but I guess i can borrow or just put it on a CC.\n\nWith entertainment its mostly my vice and not clubs or movies or shopping or fun, and I do need to cut back but I share it so much. In addition it includes all purchases not related to food or gas. For example It also includes the stuff i buy to sell, since I started doing it as something for "amusement" just in case I didn't make money and it includes any ATM withdrawal that I can't remember why I took the money out. Its only been two months of selling but in the last 2 weeks I've found a better price, better product and a couple more customers so I'm optimistic on that front. \n\nAnother thing thats coming, and I'm excited to see how it helps, is my income tax return. This is the first year I've worked full time every weekday so the the amount I get back should be high and will go exclusively to bills and debt.\n\nIts scary to limit my lifestyle, at this point in time I don't feel like I have a lifestyle, I'm not doing things that I want to. I wake up and am at work by 8am I don't get done until 9:30pm if i'm working both jobs, then I start filling orders. I don't have cable, I don't buy movies or music, I don't own a game system (though I use my computer extensively for this and other things), and I'm not lonely (girls stop by to keep me company) but I live alone.\n\nRight now its looking like the plan is as follows:\n\n * Get income tax return and commit it to debt\n * Learn to Cook (and start getting groceries from my mom that gets food stamps, she's offered so I need to make sure I get them, and other friends)\n * Cut back on entertainment\n * Work harder on side business\n * Look into selling my now used car and getting a different used car\n * Seriously consider getting back in to the home computer repair business\n * Take and pass the FE\n * Start looking for another job in the right field\n\nOH also as a side note, my dad passed away and left a house full of junk to me. The plan has been for months now to sort through it and start selling stuff, its been an issue of motivation, time, and know-how when it comes to actually getting it done. Its looking like the time is right for getting started on that project." Self: "You have a pretty good idea of a plan, but don't just say you're going to do those things. Start making actual progress on them. You sound a lot like me - you know what you need to do, but you just lack in your execution. If you can get real intense and work at these ideas for a few months, I think you'll see a substantial change in your net income, and will be on your way to eradicating your debt.\n\nI would also say to stop smoking altogether (if you don't think you can, that's actually an even better reason to do it -- to prove to yourself that you can) until you can begin to get this stuff straightened out. You need the extra money."
User (Broke_but_Trying): "Ok so first a lot about me:\n\nI grew up poor, but OK. The neighborhood wasn't great and I mostly raised myself through the crucial years to the point where extended family is so proud that I just didn't end up in Jail. I was raised to appreciate a dollar and equate most things to currency (You better eath that! Theres 32 cent worth of chicken on that BONE). What this did for me is create a paranoia when it comes to debt that is unfortunate considering the situation I'm in.\n\nI graduated from highschool in 2002 and went to community college to get a certificate in local area network administration while getting the Collegiate basics out of the way. Once I completed my coursework there I went to University in 2005 and thats where the trouble started. \n\nFirst off I didn't have a car, extensive family or any money. Second the school I got accepted to was 80 miles away and in a relatively remote location (important when it comes to working on the side). At the behest of friends I bit the bullet and borrowed. It worked out OK but I was never able to really work because I didn't have a car and I was studying Engineering which took up a massive amount of time. As the debt grew I just cringed and told myself "You'll be pulling in 4-6 grand a month starting so do what you have to and get it done".\n\nFast Forward to graduation in December of 2008, I think only 40 of us crossed the stage with that piece of paper that says Electrical Engineering on it. This picked up my spirits considering that after I left that stage I was going to have only two things in my life, that piece of paper and the bill for it, and I would need a job to pay for it. Less competition means more opportunity but since I didn't do any internships and I didn't have a job lined up, I moved back to my home town which is known for having a good economy and a LOT of tech companies with a plan to apply and get hired somewhere. At this point I had virtually no support from family and very little friends, the only things I owned were my clothes and a computer.\n\nObviously things got rough, some of my fellow grads got jobs others didn't, I was one of the ones who didn't and I applied and looked for the first 8 months. By this time my benefactor/friend who was letting me stay on her couch started to get a little tired of me so I switched gears and started looking for ANY professional Job I could find.\n\nNow, almost 2 years since I graduated with a degree in electrical engineering and 6 since I obtained a certificate in network administration, I'm sitting at my desk as a HelpDesk technician making 20 an hour to interpret user's technical issues and either assign them to the correct department or change their password. Lame I know. \n\n\nWith all of that written here's the situation:\n\nI'm drowning, slowly sinking deeper into debt whenever an extenuating circumstance comes along. \n\nI've tried to tell myself its not so bad and that I can make it but the Idea of owing so much prevents me from feeling good about anything I buy. I don't feel like I'm accomplishing any goals as numbers continue to rise and things I need continue to pop up. My long term plan is to \npass the Fundamentals of Engineering exam and start reapplying but at this stage in life the emotions surrounding this debt might kill me first.\n\nSo what I've decided to do is bear it all to anyone willing to look so I can get a read on whats happening. The first time I thought of making this post I stopped because I felt like if I just watched my money better I would see the answer so I started up mint.com (they FINALLY interface with my credit union) and tracked my spending from July of this year to today. What I've learned is that I still can't SEE an answer in it outside from make more money. So here I am, asking for input on how to maintain some semblence of a life while paying back what I owe. I want to be rich and I want to do it the long slow way, but at this pace I'll be 60 before I break even.\n\nLets start with income: I take home aprox 2400 a month from my 8-5, its very stable, the benefits are good, and its pretty brainless for me (I'm trying hard not to mess up do to lack of motivation). On the side and from 5-9 I work teaching computer classes for a non-profit, sometimes I get a ton of classes sometimes I get none. Over the past few months I've been able to get at least 2 a month and each one week class pays about 300.\n\nso in review the Income is 2400 a month plus a supplemented 300-800 depending.\n\nNext is how I spend which can be discerned from the information I've been collecting from mint.com: \n\nDebts:\n\n * College Bank Loan (10%) - 3400.45 - 168 a month\n * College Private Loan (5-8%) - 35828.54 - 270 a month\n * College Public Loan (5-8%) - 42000 - 200 a month\n * College Citi Credit Card - 8150.45 - 162 a month\n (Closed and locked in at 11%)\n * Visa Credit Card - 2196 -60 a month or the min\n (18-26% Var)\n * Discover Credit Card - 1472.77 - 50 a month or the min\n (19-24% Var) \n * Old College Apt Complex - 2000 - In Collections\n * Very old Dr. Bil - 80 - In Collections\n * Recent Gall Bladder Surgery - 500+ - Havent Started Paying\n\nTOTAL DEBT = $95628.21+ - 1000+ Monthly\n\n\nBills:\n\n * Phone and Internet - 140\n * Rent & Utils - 550\n * Electricity - 80 Aprox\n * Car Payment - 390\n * Car Insurance Payment - 155\n\nTOTAL BILLS = $1315 Monthly\n\nVariable monthly Expenses (Based on 6 month Avg presented as min/avg/max)\n\n * Food - 255/378/380\n * Gas - 75/137/205\n * Entertainment - 159/325.20/479\n\nTOTAL EVERYTHING = 489/840.2/1064 Monthly\n\nSo all in all I NEED somewhere between 2800 and 3400 a month to maintain my current lifestyle. Unfortuneately I'm a little short.\n\nMint.com says that over the 5 month period I've spent an average of 3312 a month. The least i've spent is 2725, and the max 3875. Right now I'm thinking this is my best option, to devote my attention to more money making schemes BUT I believe that if I can incorporate some money saving schemes as well I'll be in a good position. \n\nFrankly I'm tired of not being able to buy new clothes or furniture (still have my college clothes some donated by frat brothers thank goodness, which some were my highschool clothes, and my furniture is a futon and bookcase both donated), go out the way I would like, or build any savings. I feel like 40K should be enough for anyone to get by enjoyably but not with this soul crushing debt, I honestly feel and live like some of my friends who never went to school and work minimum wage. The only difference is I don't have a roommate and my car (its only a sentra and I doubt that purchase more and more) is new, outside of that I can sit around and commiserate with my friends about money all day.\n\nConstructive Criticism, Advice, directions to a good loan consolidator, anything would be greatly appreciated.\n\n\nEdits: for formatting. " Self: "Everyone else has hit all detail points, so I'm just going to make a broad statement: (Sorry if its mean, but seriously...)\n\nYou spent too much on your fucking car. $390 a month? For a fucking car? Let me guess: $20000 car +/- 6-7% interest rate for five years. Dude, you spend $545 on your car + insurance, that's almost as much as you pay for rent.\n\nYou have a serious spending problem. Pay down the debt, never buy a new car again, and get serious about making big adjustments. You said "It's only a Sentra and I doubt that purchase more and more."\n\nEven if you don't make any progress on your bills for a very long time, please realize that cars are the WORST INVESTMENT and the biggest financial drain known to man." User (Broke_but_Trying): "You nailed it on the cost.\n\nThe problem for me is that every car Ive ever owned before this one was used and every single one cost me a job, lost me money, or failed me during an important social function. Its left a bad taste in my mouth with not only the failures but the work necessary to fix them.\n\nHOWEVER I do realize that it is too big a part of my check when I owe so much monthly in debt. I'll go to a used car place this weekend... any suggestions? and see what they can do for me.\n\nMy big thing with a vehicle is convenience and reliability, I know what it takes to deal with shadetree mechanics and junk yards and I don't have a second vehicle anymore or the free time. I'll let you know what happens." Self: "There's no reason to go buy a new car now...you've already eaten most of the depreciation. \n\nFor future reference, plan on losing 20% the second it leaves the lot, and a total of 30-40% of the value in the next 1-2 years. " User (Broke_but_Trying): "I understood that when buying it, I didn't realize that the reddit community saw it as such a luxury. I guess in my mind a reliable car has always been as important as a sturdy roof.\n\nAnd now that I've seen a friend or two drive a reliable used car, combined with the suggestions here to get one I thought I'd head to a dealer and give it a shot.\n\nI'm talking to my co-workers about it and they say that private party is the best way to go for used cars... grrr I'm gonna need help if I go used." jippy7585 (jippy7585): "I completely agree on having a reliable car that doesn't break at critical times or become a money pit in repairs. Best way to avoid that scenario: 1. Check Consumer Reports so you know which used cars are reliable 2. Check carfax before buying to make sure nothing fishy has happened 3. Have a mechanic you trust check it out before hand to make sure it is ok or allow you to negotiate the price down 4. Maintain the car\n\nAlso, do get a better price, edmunds.com gives estimated prices to give you better negotiating values."
User (inspec): "I have a few thousand dollars that I've been using to speculate on tech stocks for the past few years (I wouldn't call what I do "investing"), and my current picks have been doing really well in recent months. \n\nThis might be a stupid question, and please tell me if it is - but is there any chance that leaked info on Bank of America could lead to a stock market crash? If so I'd like to cash in now and wait for whatever happens to blow over. " Self: "Some people are predicting Part 2 of the GFC but I guess we have to just wait and see. "
User (inspec): "I have a few thousand dollars that I've been using to speculate on tech stocks for the past few years (I wouldn't call what I do "investing"), and my current picks have been doing really well in recent months. \n\nThis might be a stupid question, and please tell me if it is - but is there any chance that leaked info on Bank of America could lead to a stock market crash? If so I'd like to cash in now and wait for whatever happens to blow over. " Self: "Who knows what wikileaks has on BoA. It could be that they are misrepresenting Country Wide's bad dept or they fired a handicap janitor. Who knows. Who knows if they have anything at all.\n\nI am eager. I thought it was supposed to be released last year though."
User (inspec): "I have a few thousand dollars that I've been using to speculate on tech stocks for the past few years (I wouldn't call what I do "investing"), and my current picks have been doing really well in recent months. \n\nThis might be a stupid question, and please tell me if it is - but is there any chance that leaked info on Bank of America could lead to a stock market crash? If so I'd like to cash in now and wait for whatever happens to blow over. " Self: "It's impossible to properly time the market and it's a folly to even try. Any risk from the documents is already priced into the value of the stock. Remember, regardless of what Wikileaks has, some people at BoA already know all the dirty secrets and very few people keep good secrets."

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