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    Home Unlabelled Personal Finance In order to get the lowest lease price possible, you must learn how to calculate a lease. Here's a long and in-depth guide to how leasing works, plus real world examples from my most recent lease.

    Personal Finance In order to get the lowest lease price possible, you must learn how to calculate a lease. Here's a long and in-depth guide to how leasing works, plus real world examples from my most recent lease.

    January 28, 2018

    Personal Finance In order to get the lowest lease price possible, you must learn how to calculate a lease. Here's a long and in-depth guide to how leasing works, plus real world examples from my most recent lease.

    In order to get the lowest lease price possible, you must learn how to calculate a lease. Here's a long and in-depth guide to how leasing works, plus real world examples from my most recent lease.

    Posted: 28 Jan 2018 07:56 AM PST

    I have seen a lot of posts recently about best practices with car buying, but I haven't seen anything on how to lease a car. So I figured I'd write this up!

    Ok, let's get this out of the way right away: Leasing isn't for everyone. In fact, it's probably a bad idea for most people. But if you are going to lease, you need to know how leases work and where they get the numbers in order to get the best deal. And knowing the numbers may actually make you realize it's a terrible deal and to stay away.

    But for this post, I'm not debating the merits of leasing, just explaining HOW the math works, what your costs actually are and how to realistically minimize those costs.

    This post will include the following info:

    • The math behind the calculation
    • What kind of car to look for
    • Where to find the info you need
    • How to negotiate the best lease

    The Math

    Let's start with how the lease monthly payment is calculated.

    The formula is: Payment = Depreciation + Finance charge.
    Your depreciation is: ((Capitalized Cost - Residual Value) / Number of Months)
    Your Finance charge is: ((Capitalized Cost + Residual Value) * Money Factor
    So your total formula is: Payment = ((Capitalized Cost - Residual Value) / Number of Months) + ((Capitalized Cost + Residual Value) * Money Factor)

    Pretty simple right? So what do those things mean?

    Capitalized cost: This is the amount financed. Did you know in a lease, you are actually financing the depreciation? This can be higher or lower than the price of the car, depending on whether or not you are putting money down, rolling over negative equity, or tacking on fees into your payment. The lower the better!

    Residual value: This is what the manufacturer (or the bank, if using a separate lease provider) thinks the car will be worth at the end. It's expressed as a percentage. 50% or 0.50 means they think it will be worth half as much in the end. The more miles you want, the lower the residual will be. Residual can also vary by trim package (i.e., the "Limited" has a higher residual than the "Sport"). The higher the better!

    Money factor: This is the interest rate. For some reason, it's always actual interest rate / 2400. So 4% = 0.0016 and 0.9% = 0.000375. The lower (more zeroes) the better!

    Number of months: How long you want to lease for. Sometimes manufacturers juice the leases depending on months. For example, VW wanted to move Jetta GLIs off their lots a few years ago, and had insanely inflated residuals and ridiculously low money factors on 2 year leases, making them about $100/mo less than a 3 year lease.

    Refundable security deposits: This is expert level leasing. Almost no one knows about it, even dealerships. But some banks allow you to put down a refundable security deposit in order to lower your money factor. This is usually for people with low credit to secure the rates of someone with higher credit, but some let people with top tier credit put down money to get an even lower rate. I was told by the finance manager and the sales manager at one Toyota dealership that I was wrong. I made them call Toyota, and they sheepishly came back and said "well, you learn something new everyday". If you are doing a refundable security deposit, simply calculate if the reduced payment on your lease will be higher than the guaranteed return on your money. In other words, if you put down $3000 and get $20/mo off, at the end of 3 years you'll have $3000+20x36 = $3,720. That's a 7.44% guaranteed return!

    Type of car to look for

    To get the cheapest lease possible, you want to find a car that the manufacturer is discounting (this will reduce your 'cap cost'), which has a naturally high resale value (think Honda or Toyota), and a low money factor (triple zero!).

    You can monitor for specials, search online for deals, or call around when you are looking for a car. If manufacturers are advertising cheap lease deals, it probably means they are either discounting the car or offering a really cheap money factor. Just realize that if it's being advertised, you can do better by negotiating.

    As with anything, google is your friend as well: I got my parents a great lease deal by googling "current lease deals" and finding out that Mazda was basically doing interest free leases - they're driving a $30k car for $315 a month, with zero money out of pocket.

    Where to get the info

    So now you know you want to lease a car. You need to start filling in the blanks. What are the sources of this information:

    • Dealerships. They won't tell you easily, but if you make it clear you are a serious buyer, they'll share the real info with you. I've found that sales managers and internet departments are the most likely ones to share the info.
    • Edmunds TMV. This a great source to find out how much cars are actually selling for in your area. You can option the car and price it out and see if it's realistic to get a car below invoice or at msrp or somewhere in between.
    • CarGurus. I've found this site/app super helpful for knowing what specific cars are available in an area, what the average price is, and how long the car has sat for.
    • Edmunds vehicle specific forums. This is the best source I've found for up to date residuals and money factors. The mods of the forums answer specific questions on current vehicle offers.
    • Google. If you google "money factor + residual + [make/model]" you might find another source that will break it down for you.

    I like to find all of the numbers, plug them in, figure out what the monthly payment would be, and then start calling dealerships to confirm my numbers are right. This makes negotiation easy - figure out what you want to pay, figure out a reasonable price, and then find someone who will sell it to you for that. Speaking of...

    The negotiation

    Here's where it can get tricky. Even if you know the numbers and know what you're trying to do, they'll still try and add stuff on. There are curveballs everywhere.

    Also, it's going to be rare that you'll find a sales person who will dive into calculating at this level. They will ask you about monthly payment, your trade-in, what you want to pay. You need to be firm and stick to your plan. The last time I leased this led to me walking out of one dealership after they wouldn't play ball. Their loss, I walked into one the next weekend and leased the same car for LESS than I was willing to pay at the first one.

    The key strategy is this: focus on the MSRP of the car. You already know the money factor and residual. Those are driven by the bank and the dealer can't budge (unless they find you another bank). You want to negotiate the lowest MSRP possible. This is where the Edmunds TMV and Cargurus info is so helpful.

    Do not talk about down payments. Do not talk about monthly payments. Do not talk about trade-ins. Do not talk about anything except the sale price of the car.

    Why is this so important? Because the residual is always calculated based on the MSRP of the car. But the closer the residual is to the sales price, the less depreciation you are financing. So the lower "sale price" you can base the lease on, the cheaper your payment!

    Some other tips to think about when negotiating:

    • Never put money down. All a downpayment does is reduce your cap cost. But if you drive off the lot that day and get slammed by an 18 wheeler and have the car totaled, you'll never see that money again. NEVER PUT MONEY DOWN.
    • If you can, sell your car privately. Don't trade it in on a lease. Why? See above. It's money, and it may disappear. There are obviously exceptions to everything, but in general, don't trade a car in.
    • Watch for additional fees. Dealers charge for document fees ($100-$500, may or may not be negotiable) and a host of other factors. Ask for these to be separated out, then decide if you want to lease them. When your money factor is near 0, you may be ok with "financing" these costs. But you may just also want to pay them up front (note: this isn't a down payment).
    • Taxes: these vary by state, but in my state they're based on a prorated lease rate. So it's a monthly payment of (6.5% x calculated monthly payment) is added on to your total payment.

    So what are some real world examples:

    I currently lease a 2017 Toyota 4Runner Off Road Premium. The MSRP of my car is $40,500. Toyota was running a lease special of $399/mo with $2,999 down, plus taxes and fees for a base SR5 that goes for about $37k. Seems like a great deal, right? And I should be paying more for a more expensive vehicle than their current special, right?

    Well, I looked up on edmunds and found out that the car was actually selling for closer to $38k. Cargurus confirmed this, and also showed that several were available near me and had been sitting on lots for a couple weeks. I did some research and found out the residual was high for a 3 year, 36k mile lease (I think 65%) but the money factor was kind of meh (0.00225). Let's see the differences, using the MSRP:

    Payment = ((Capitalized Cost - Residual Value) / Number of Months) + ((Capitalized Cost + Residual Value) * Money Factor)

    ((40,500 - (40,500*.65))/36 = ($40,500-$26,325)/36 =

    $393.75 + ((40,500+(40,500.65)).00225) = $150 = $544/mo

    Ok, now let's play around with this a little bit. Let's remove $3000 from the "capitalized cost" after we learn that the average Edmunds selling price is $2500 below MSRP (and we're going to negotiate a little better than average).

    ((37,500 - (40,500.65))/36 = $310 + ((40,500+(37,500.65))*.00225) = $143 = $454/mo

    We just dropped almost $90 off the price by knowing what we can actually get the car priced out. How do we lower the price a little more? Turns out, Toyota will drop the MF from 0.00225 to 0.00153 if you put down $3600 in fully refundable security deposits, returned in full at the end of lease completion. Let's run the math again.

    ((37,500 - (40,500.65))/36 = $310 + ((40,500+(37,500.65))*.00153) = $98 = $408/mo

    Another $50 off. We dropped our interest rate from 5.4 to 3.67 and the price came down accordingly.

    Now, let's plug the same numbers in and push for a dream price: $36,500. That gets my payment down to $379. With a tax of 6.25%, my final payment will be ($379*.0625)+$379 = $402. Since my goal is $400, it's now to time to call some dealerships and see if they'll play ball.

    I took out my CarGurus app, found what was on their lots, did the exact math based on exactly how they were optioned (typed the same exact cars into Edmunds), and then made specific offers and was transparent about the info I knew:

    "Hello dealer, I see you have a 2017 4runner on your lot with XYZ options. I believe the residual is 65%. My research tells me the money factor is 0.00153 with a $3600 refundable security deposit. If you'd be willing to base a lease off of a cap cost of $36,500 with no money down, then I will come in today to sign paperwork".

    Notice a few things: I share numbers that show I'm serious and have done research. I make an offer and tell them I'm ready to close the deal. I don't mention monthly payment. I confirm the numbers.

    The results of this effort: Two dealers were interested. One dealership told me to come in, then wouldn't move off MSRP. When I complained to head of biz dev at the dealer, he told me I obviously worked for Toyota - "why don't you just use your own discount to order it from the factory?". He was serious too, and said that no one who wasn't in the car industry would have the knowledge or info I had. I sent him links to CarGurus and Edmunds and never went back. The other dealer told me to come in.

    Now here's where it got interesting. The Sales Manager asked if I'd be open to working with another bank besides Toyota. He brought out a sheet from a local credit union and shared their numbers (this is something I've seen that happens when you make it clear you know what you're talking about and are serious about buying: they stop BS'ing you).

    The money factor on this bank's lease was .00165 (3.96%). Higher than Toyota's lowest, but no security deposit. And the residual was 0.68, also higher than Toyota's.

    ((37,500 - (40,500.68))/36 = $276 + ((40,500+(37,500.68))*.00153) = $107 = $384/mo

    Another $25! Now this is getting good. Now's when we started the real negotiation. I pushed for $36,500 and said I'd sign on the spot. We ended up settling on $36,900 after some back and forth.

    Final price: $366 for the car, $23 for the tax, $389/mo total, $1500 out of pocket, $40,500 car. What was Toyota's advertised deal at the time? $399/mo, $3000 down (includes fees), for a ~$37,000 car.

    So by knowing how the lease works, I got significantly more car for less money per month, no money down, and the same out of pocket costs!

    Now, we still had to finalize a couple other things:

    • Gap insurance: You need this on a lease. The bank I was leasing included it, but apparently Toyota does not. So Another $10/mo or so in savings.
    • Acquisition fee: Unfortunately, the bank makes you pay an initial fee to take possession of the car. In my instance, it was about $800, which was about $150 more than the Toyota lease. I could have added this to the cap cost and paid about $20/mo more, but I decided to pay this up front.
    • First month's payment: Varies by manufacturer, but I chose to pay this up front as well.
    • Plates, title, registration, etc: Varies by state. I paid them up front as well
    • Document fees: Dealerships often inflate these to make money, since they often don't make money on the car itself. You can push and negotiate on these, but sometimes they'll waive them and sometimes not. And if they do waive them, you'll probably pay for it in the sale price of the car. I'm ok with a business making some money, as long as I know exactly what it is. I paid this up front as well.

    If I had rolled all of those fees into the lease, I would have basically been financing $1500 at 4%. Now there's the argument that if I rolled it in and got into an accident, the gap insurance would basically pay for it. Overall, it would have added about $50/mo to the cost of the lease, so I paid it all up front.

    So in the end, I took possession of the car for $1500, didn't have a payment for 30 more days, and now owe $389/mo for the next 3 years on a $40k+ truck. If I want to buy it in the end, it's simply the residual cost ($27,540). If I choose to buy it out before then, it's simply a matter of getting a loan or writing a check for the current buyout price that month.

    So to summarize, if you are going to lease:

    • Know how a lease works
    • Use your internet resources to find out the current manufacturer rates for your car, but be open to different banks
    • Learn the points to negotiate the lease on
    • Don't negotiate monthly payment
    • Work with multiple dealerships - but be straightforward and up front.
    • Don't put "money down", but realize it may make more sense to pay some things up front.
    submitted by /u/tomatuvm
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    I have been renting a house from relatives for $400 a month for 2 1/2 years now I have the option to buy it as is. I have no savings and only make $8.75 per hour plus tips. What help can I get? What questions do I need to ask? I am a widow and I’m 55 years old.

    Posted: 28 Jan 2018 11:19 AM PST

    They are asking $125,000 for the house and two lots of land.

    submitted by /u/moneeo
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    My friend just lost $58,000 to scammers while trying to make a down payment on a house. What is the next step now?

    Posted: 28 Jan 2018 12:10 PM PST

    Throwaway account. I hope this is the right subreddit to be posting this question on.

    My friend just messaged me, we'll call him 'R'. He was supposed to put the down payment on his house yesterday, but a fake email account that looked like the real estate company's email address gave him false information, and he sent the money directly into a fraudulent account.

    "R" has a wife and two small kids and just lost everything. I don't know how to offer my support or even advise him on his next move. He lost all that money, and as far as I know, also lost the house. I haven't gotten much information out of him aside from that because he's so utterly distraught. I don't know what to do. He lives in Michigan.

    submitted by /u/batmanpajamapants
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    Suicidal wife admitted into a mental institution, baby (6months). Dad limited to 40 hours of work per fortnight.

    Posted: 28 Jan 2018 10:32 AM PST

    Hi Reddit community. Im a 25 year old man with a 6 month old baby boy and my wife has just been collected by the ambulance and police after trying to harm herself. She has had a history of attempting suicide 4 times before i met her 2 years ago. My situation is that i am on a student visa in Australia and i am limited to 40 hours a fortnight and that money just covers my living expenses. No savings, -$1500 in credit card. Family member may loan up to $2k.

    Baby receives some allowance under centerlink which is like welfare in America. Amount not yet known to dad. Thats mum's secret ( dad's gift to her) Probably $250-$350. Mom also receives some allowance for study, family tax benefit, all this lends her at about $700+ per fortnight. She used to help with groceries and baby food, care and even pay bills I can't meet. Mom says she can help by forwarding baby allowance to family account each week. Car is hers and she agreed to transfer it to my name but it has $420 per month repayments + maintenance. Sometimes i pay the car installments sometimes she does.

    Usually with moms help, After all bills and living expenses, i may be left with $200-300 per fortnight. But that's because i have two jobs and sometimes I pick a shift or two from the other job to help support.

    Visa still under valuation has to be 2 years after you get married that they start to process your papers. Being a tough life as it was i managed to break a few visa regulations including stopping study (college got closed after anyway) and move to a different city plus working over specified hours. No criminal record.

    I have family in a nearby suburb who can help look after baby but I would like to not bother them too often.

    Any knowledge concerning visas/child support/ being a carer for a suicidal person/ budgeting is greatly appreciated thank you reddit.

    It's 5:30 in the morning in Australia and i am off to sleep will be back sometime after sleeping. Have a good night/day everyone.

    Edit: update.

    Thank you very much to all those who commented with help. This morning my wife was discharged and she is resting in bed. Baby is with my brother's family at the moment. I am still worried about her safety and well-being. She will start medication tomorrow after seeing GP. All our parents are in Africa. About the car loan, this service is offered by NISSAN Financial service but will transfer to our usual bank to make everything manageable. The marriage/partner visa waiting period in Australia is a mandatory 2year wait before it is processed. This is to make sure that you are really together and not soon broken up. Thank you again for all your help, Have a nice day everyone.

    submitted by /u/guy-simba
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    Job applications requiring 'desired salary', how to fill out?

    Posted: 28 Jan 2018 06:51 AM PST

    In my field most online job applications have a place for 'desired salary'. You must type a number so something like 'negotiable' won't work.

    Any advice? Seems like I could either screw myself by under bidding or they see I am asking too much and just ignore it.

    Edit: thanks everyone for feedback. I know what I want and what the market range for this position is. I read a story recently about the guy saying he wanted 125k and the company would offer up to 150k and he got screwed.

    My point is that I don't want to underbid when maybe the company pays better Han I expect. Again, thanks for the input. I will target 125% of current salary when 110% would make me happy. Hey I'm jumping ship partially for a raise after all.

    submitted by /u/suredoes123
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    My credit report has my current name and former name backwards. But to file a dispute, I have to pick a credit account that I'm disputing, which I'm not.

    Posted: 28 Jan 2018 11:03 AM PST

    Today I went to annualcreditreport.com to request my Equifax report. Everything checks out, except it says my current name is Jane D. Maiden, former name Jane D. Married. These names are backwards, and I have no idea how that happened. I haven't gone by Jane D. Maiden in almost 5 years. My new name is on my new social security card, on my drivers license, on my taxes, on everything.

    At the bottom of the credit report page it says:

    1. Dispute File Information

    If you believe that any of the information found on this report is incorrect, there are 3 ways to launch an investigation about the information in this report.

    When you file a dispute, the credit bureau you contact is required to investigate your dispute within 30 days. They will not remove accurate data unless it is outdated or cannot be verified.

    To initiate a dispute online please visit https://www.ai.equifax.com

    To check the status or view the results of your dispute please visit https://www.ai.equifax.com

    So, problem #1 is visiting https://www.ai.equifax.com brings me to a blank page titled "Please Wait For Page To Load". It's doing absolutely nothing.

    So I google https://www.ai.equifax.com and am linked to https://www.ai.equifax.com/CreditInvestigation/home/getStarted.jsp which I use instead. Great, it works! I click "Get Started"

    I'm given a form that I fill out, absentmindedly, with my actual current last name. It tells me:

    We are currently unable to process your request! The information you have provided does not match our records; therefore we are unable to process your request online. Please try again later or submit your request via our secure Web Email dispute form.

    So I realize, oh, yeah, it probably wants me to type in Jane D. Maiden. I try it with my maiden name. Nope! It spits out the same message. So, I click the button that says Web Email.

    It generates a new form, so I fill out all of my information again, and skip all of the sections that say "Investigate Item #", I just skip to the bottom where I can make my "consumer statement" "explaining the nature of [my] disagreement."

    When I click Submit, it takes me back to the top where there is an asterisk next to the "Account Number or Case Number" field under the skipped Investigate Item # fields.

    I don't want to pick a random account, because I am absolutely not disputing them and don't know what kind of trouble that might get me in. I just want to correct my name on the report! What the hell else am I supposed to do to get this fixed?

    submitted by /u/helpcreditreport
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    Adopting a puppy may have been a huge mistake.

    Posted: 28 Jan 2018 05:46 PM PST

    This weekend I went to a local shelter to do what my girlfriend and I have been planning on for some time, adopting a dog. I think I did it for all the wrong reasons and I'm not nearly ready for it.

    There has been a lot of stress around us as of late due to the fact that my girlfriend's one and a half year old niece may be passing on due to shaken baby syndrome. Non stop everything has been about her family. Making sure every last person is okay, making driving to and from the hospital at all times of the day, and even just making sure everyone in the family is eating. Not to mention the family has plenty of other issues going on on top of that.

    The reason I mention the hardships we have been enduring as a couple is because it's what lead to my decision on Saturday morning to go and adopt a sweet little dog. We went to the shelter first thing after breakfast and instantly fell in love with this little 10 week old puppy. The adoption fee was just over $300 for this little girl. Obviously with new pet ownership, we had to purchase an awful low more. So far in the weekend we have spent another $200 or so and I think it was all a mistake.

    This dog is easily going to keep costing me a substantial amount of money month after month but that's not my only worry. Time is another valuable resource that I fear I may have squandered as well. I work anywhere between 40-55 hours a week based on what is going on at my job. I work retail management so it can be a calm week one week and then the next I'm down an employee so I'm back to working 50+ ours.

    I don't know how I'm going to balance all these things and I'm really at a loss. This puppy isn't even house trained so making it through the night is near impossible. I feel like I need to clear my head but I come here because I just don't know what to do. Oh, for reference of finances, I make around $50k plus a year and the girlfriend makes $45 but she doesn't live with me currently. I also own my house I live in.

    submitted by /u/XinZ212
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    Would anyone be able to explain to me the benefits/drawbacks to leasing a car?

    Posted: 28 Jan 2018 01:42 PM PST

    I've always thought it was a bad financial decision to lease a car. At the end of the leasing period you don't have anything to show for it other than having driven the car for that period of time.

    I currently own my car, but it's quite old and I'm not sure how much longer it will reasonably last. I want to look at my options for what to do whenever I do need to get a new car, and there are people who are trying to convince me to lease even though I don't want to.

    I don't have a lot of extra income, and would probably have about $1,000 for a down payment in addition to the trade in value of my current car ($700-$1200 would be reasonable). I can only afford a monthly payment of around $180, since I'm currently in graduate school. I was thinking I'd try to get a Toyota or Honda from around 2010 once my car becomes unable to be driven, and would hopefully get a good deal with financing since I have good credit.

    Do you guys think this is a good idea, or in this case would it be better to lease a car? I'm also open to getting a newer car than 2010 and financing for a longer period of time to keep payments low.

    submitted by /u/impressivepineapple
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    Traditional 401k vs Roth 401k vs Roth IRA

    Posted: 28 Jan 2018 07:04 AM PST

    Hello all.

    Important info:

    Salary - 80k

    Career: Engineer

    Age: 25

    Retirement goal: 50s? Really the work is fun so this is subject to change

    Goal Salary before retirement: 200k+

    Goal salary after retirement: 100k+

    Current Traditional 401k contrib: 6%

    Company match: 4.5%

    Roth 401k contrib: 5%

    ROTH Ira contrib: 0%

    Fund Breakup

    10% - s&p 500 large cap index fund

    30% - company stock (no fees, large corporation)

    60% - 2060 fidelity target date fund

    On this subreddit, I've read advice stating that it's a good strategy to contribute to my 401k up until company match, then max out a Roth IRA if you believe you'll be in a higher tax bracket when you retire, then max out 401k.

    I've recently finished paying off ~80k of private student loans over the last 3 years. I still have 24k left in federal, but that's another story. With the private loan gone, I've wanted to increase my retirement contribution by 5% (was only doing 6% company match beforehand) to get above Fidelity's recommended 15% (6+4.5+5==15.5%).

    I use fidelity NetBenefits provided by my company. We have an option for Roth 401k contributions. There's not too much info on Roth 401ks, but I'm curious what people might think I should do in regard to my current status and goals.

    Does anyone know if I could change my entire contribution to 11% Roth 401k? I understand the company match is pre tax.

    So the benefit of Roth is paying tax now in hopes that I will have higher tax rate at the time of withdrawal, correct? So I'd essentially be saving money on taxes in the future.

    Edit: Paragraph below is false.

    The benefits of pretax is reducing my taxable income which generally means the government will give me a slightly larger refund because I've paid more taxes than I am required based on new lower taxable income.

    Would anyone recommend me changing my current contribution status, perhaps changing to a more flexible Roth IRA with better investment options? Did I provide enough information?

    My goal is every 5 years to increase my contribution 2-5%. I typically receive an annual raise of 3-8%. Moving jobs would garner a much larger raise, but I am currently in a program where my company is paying for my masters degree. Not sure if this info matters.

    Thanks all. You've been great to me. I recently hit a huge student loan payoff milestone, so I'm back for some more good stuff.

    I apologize for any format issues. Posting on mobile.

    submitted by /u/fiziks_is_fun
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    I just graduated this summer and I am extremely depressed I cant land a single job?

    Posted: 28 Jan 2018 12:40 PM PST

    Let me start off by saying I live in NYC. I am 24 and have a decent resume and I graduated with a bachelors in psychology. I know a lot of places look for experience but I believe I have enough for an entry level job for someone who worked and went to school at the same time. I have been going to many interviews and I answer all their questions thoroughly, by now its second nature to me. I have applied everywhere online, from craigslist to indeed to other websites, but NOTHING. I don't get any emails or call backs. I feel extremely useless, hopeless and my depression is getting worse. Every time I see someone my age waltzing down the street wearing professional attire while gripping onto their cases, I cant help but wonder how on earth they got to where they are. What do they have that I don't? I am just so down and don't know what to do anymore. Any advice? I am rotting here. I have bills pilling up and just got a ticket too.

    submitted by /u/Lionsabode
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    23 yr old in grad school, managed to save up about 20k. Looking for advice on different kinds of stable investments to make (I really only know about CDs...).

    Posted: 28 Jan 2018 11:56 AM PST

    Hey all! Like the title says, I'm in grad school and I managed to save up about 20k, split between a checking and a saving account. My checking account has no interest and my savings account has an interest rate of 0.01%. I'm thinking about dropping ~10k into a higher interest, low risk investment account, but I really only know about CDs. Are there any other investment accounts that would give a better payout in the end? I'm not against doing some research and getting in on stock market trading, but grad school is keeping me pretty busy at the moment, which is why a CD is appealing for the "drop it in the bank and leave it" type approach. If anyone has any advice on what my best options are, that'd be awesome! I can provide more info too, if needed. Thanks!

    submitted by /u/Shreksual_healing
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    How do I save when I have no money after bills?

    Posted: 28 Jan 2018 07:32 PM PST

    So currently I am a college student. I am living at home with my parents and attending a community college to do my gen ed classes. I am doing this to save money, even though I know I will most likely have to take out some loans for my university.

    I also work two part time jobs. 7 hours at a tutoring center and around 15-20 hours at an electronics retail store. Since I live with my parents I do have a lot of expenses covered like food and shelter. However to help my parents out I pay for the families car insurance and also the family cellphone bill. In total it adds up to about $500.

    Now I make enough to barely cover that and leave me enough money for gas. I commute to school and its the only way for me since the university I plan on going to is about 45 minutes away from me but i only plan on going there twice a week.

    When I was working during the summer and holidays I was making enough to put about 20% of my paycheck towards my savings every check. However since retail season is done now i am not getting as many hours as i used too. Again i make enough just to cover my expenses and gas.

    My question is that how can I still save with limited funds. I would like to have an emergency fund ready in case something happens but with my current situation it doesnt look like I will be able to until I graduate or get a better job.

    submitted by /u/forestgather50
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    My employer payed me 1x pay/hr for OT but 1.5x pay/hr but for others in company

    Posted: 28 Jan 2018 06:52 AM PST

    Hi, my company subcontracts me to work for another company. I get paid hourly. I recently found out they payed me 1x pay/hr for OT but 1.5x pay/hr for others in my company who were subcontracted to the same other company.

    I feel cheated because of this. My job contract with my company does not state about 1.5x for OT although. Are they cheating me by underpaying me?

    What do I do?

    submitted by /u/surana_80
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    I want to move into another state soon. What are some things I should keep in mind, to make sure I'm financially stable before I move out?

    Posted: 28 Jan 2018 06:49 PM PST

    Hello r/personal finance. I'm a F20y/o, and currently living in MA. I have been planning to move out of here ever since I moved in (which was 7 years ago). I used to live in NY, and I'm planning to move back soon. My mom has a cousin who can find me a room for $700 a month w/utilities included. I know how expensive it is to live in NY, that's why I've been saving up and focused on finding a job there first. I only pay $50 a month for my cellphone, and that is all for the bills I pay.

    I'll be spending about $800 a month (for rent $700, $50 for cellphone bill, $50 for groceries), and this is just assuming that I'll find a full time job that will pay me $11 and hour. $700x12months=$8,400 annually for rent.

    So far, I have saved up $4,193.93, but I feel like that is not enough.

    I don't know what to expect when moving out, and when is the right time to apply for a job over there. All I know is, I do not want to live with my family anymore, or in this state. It has been rough for me these past seven years. I already found an application for a full time job, for a place that is right in front of the building that I'm moving into.

    Should I apply for the job first before I get a place, or find a place first and then apply for the job? I already have the address of the place I'll be moving into, on my resume, what else should I change up in my resume?

    All I'll be bringing with me from MA, is my writing desk, my parakeets that are in a cage, two lamp tables (for my books), and my dresser.

    I would appreciate any help. Thank you.

    submitted by /u/lcrazy162
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    Hate the idea of renting, but I feel like buying ties you down. Help?

    Posted: 28 Jan 2018 06:34 PM PST

    Some important context to begin: As a young professional, I am certainly not in my high-earning years, and my industry may require me to make a few long-distance moves within the first decade or so of my career.

    My problem is: I hate the idea of renting. Writing the monthly rent check feels like I'm burning my money. I understand you must pay to live somewhere, but renting seems to be the most financially inefficient way to house yourself.

    At the same time, buying a house is difficult when you know you may move from that location in only a few years. You risk the market failing and you getting stuck under the unsellable property (and mortgage that goes with it), thus tying up your capital and making it difficult to fund your move elsewhere.

    Is there a way to get the best of both worlds where you feel like you're investing with your monthly payment while at the same time being able to easily sell off and move if/when a job requires it? Is there something I'm missing? Or do I just need to chill out and accept the fact that renting is what young people must do?

    (Final note: I know many people on here talk about investment properties. My career path will not give me the necessary income to do this sort of thing anytime soon. So keeping a house as an investment property after I move unfortunately won't be an option. I'll probably need that money to survive elsewhere.)

    EDIT: Thanks for the advice, everyone! I'll calm down my rent opinions. It seems the best plan is to rent cheaply at first while making maximum savings investments that can be thought of as future house payments (which I may even put into a 'house savings' account of some sort).

    submitted by /u/ethanmay4
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    Suspicious $600 check went through and hasn't been claimed

    Posted: 28 Jan 2018 07:28 PM PST

    About 2 months ago, a check for about $598 was deposited via mobile deposit into a student checking account that I set up for my nephew and then $200 was sent out to someone from the mobile banking app. I asked my nephew about this and he says he doesn't know anything about it, although I can't be 100% sure he's telling the truth.

    It was flagged as faudulent because of the timing of the mobile deposit and the immediate withdrawl. I had to cover the $200 until the check cleared. I can't see the check from the mobile banking website, but the bank says it's from a company (I can't remember the name right now, I can call the bank and ask again.) But I told them that we don't recognize the transaction and to close the account and open another since that one has been comprimised. I have not set up my nephew to use the new one since I haven't cleared this up yet.

    The check was written to my nephew using the correct name and street address, but wrong city and state. The check actually went through. The bank closed out the old account and moved the $598 into the new account.

    It's been about 2 months now and I have not gotten flagged for that money. I can't account for where it came from and I am being forced to sit on it.

    Does anyone know if this sounds familiar? Is there a scam going on? How long do I have to hang onto this money before I can stop worrying about it. My nephew wants me to cash it out but I won't do it because that sounds like a very bad idea and it also makes me think he might know something about it but won't tell me. Any advice?

    submitted by /u/viral_architect
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    GF doesn't have medical insurance and may have appendicitis. What should she do?

    Posted: 28 Jan 2018 07:07 PM PST

    So my GF has a lot of pain to the right of her belly button. When she presses it there seems to be a lot of pain and discomfort. Even when with no pressure she is still in pain. She is in CA and does not have medical insurance. She doesn't want to go to a doctor or ER because she's afraid of the medical bills. Is there something she can do that can help out? we saw that medical bills would be expensive if it is appendicitis.

    submitted by /u/NateTheRobber100
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    Fidelity or Robo-Advisors for Roth IRA

    Posted: 28 Jan 2018 07:05 PM PST

    I am a non-resident alien, which means I can not invest in Vanguard or Prudential. My only options are Fidelity or Robo-Advisors like Betterment. I want to open a Roth IRA account. Any suggestions on which of these to go for?

    submitted by /u/SQL_serving
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    Move out notice

    Posted: 28 Jan 2018 01:44 PM PST

    I moved out on an apartment 2.5 years ago. I just got a notice that they reconciled my account and I owe them $600. Naturally, the letter said that if I don't pay it they'll send it to collections. Is there a statute of limitations on this or does any one know any recourse I have besides paying the bill. It's ridiculous it took them 2.5 years to reconcile an account.

    Any tips or guidance would be appreciated.

    submitted by /u/AnAngryMexicanGuy
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    Moving to Hawaii for 2 years and renting out our original home. Best to rent or buy in Hawaii

    Posted: 28 Jan 2018 09:35 AM PST

    My family - me, my wife (both mid-30s) and 2-year-old child - will be moving to Hawaii for about two years in the fall. Our combined income is currently about $150k (we'll retain these jobs when we move) and we own our home in Illinois outright (no mortgage, no loans). Since we currently plan to move back to Illinois in about 2 years, we want to retain the Illinois home and rent it while we're gone.

    The question is, should we simply rent while in Hawaii or look into getting a home equity loan and buy a property in Hawaii (with the idea of either selling it in about 2 years when we return to Illinois, or using it as rental income)? We're already considering a home equity loan or refinance to get some cash to make improvements on the home prior to our departure.

    I know in general people in this sub advise buying over renting, but I wonder if you'll feel the same way when it's a temporary move and another home is already owned.

    submitted by /u/hawaiimover
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    [US] I did not know I could use my tuition and related expenses for a tax credit in 2016, can I claim for 2016 and 2017?

    Posted: 28 Jan 2018 09:00 AM PST

    I've always used TurboTax for my taxes as they've always been fairly simple. This year I came across the American Opportunity Credit and Life long Learning credit. I attended school in 2016 and 2017 full-time, paying my own tuition. Am I able to claim both years on my taxes, as I didn't claim either for 2016? Would i have to file an amended 2016 to receive credit for 2016?

    I admit I'm an idiot and mostly disregarded my 1098-T form, and have done so much of my adult life. I'm afraid this has potential cost me thousands of dollars, and that's the cost of being an idiot.

    submitted by /u/EduCredits
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    Will be getting into 30k debt for not the most employable degree. What should I be doing now to ensure the brightest financial future?

    Posted: 28 Jan 2018 06:23 PM PST

    I was accepted into one of the top film schools in the United States (top ten ranking), and I have every intention of following through with my dream. However, this comes at the price of having to take out 30k of student loans total ($10,000 per year, I have three years of college left since I am a transfer student). I understand that the first bit of advice you would probably give would be to ditch film for a much more employable major and also go elsewhere. However, I truly do want to try this whole film thing and I am aware that it may not be the smartest move, but after bouts of depression and taking time off from school, I've truly learned that I would much rather be in a career I am happy with and not making that much, compared to being in a career I despise but make more money. Again, I know this isn't the smartest thing to do, but I'd like to. I do intend on double majoring in accounting so I have something a bit more employable to fall back on.

    With the large amount of loans I will be taking out, I'm looking for advice on how I can best set myself up so that I don't get overwhelmed. I will be attending school in LA, so once I graduate I'll be living in a highly expensive place. I do plan on trying to get a workstudy and summer internships, but I know that that salary isn't much and I could easily loose all of my internship money on rent. Any advice on things I should be doing now and throughout school to help myself out would be appreciated.

    submitted by /u/stupidpinay1234
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    Blast Fitness Gym Membership Cancellation HELP

    Posted: 28 Jan 2018 06:14 PM PST

    Dear Redditors, So I've signed up for a Blast Fitness membership a year ago. Today is my one year, I decided to cancel. blah blah , I get my waiver, and try to send email, but doesn't work. Okay, so I look up information and ABC Financial that deals with the billing seems shady.. yikes. How will I go around to sending my cancellation in a way that I don't receive any more charges / won't deal with disputes. However, as I did read the contract it seems I do have to pay a annual contract fee since it falls during those cancellation days, which isn't an issue, but I don't want it to like re-new. Would I have to go to a post office to get a certified mail and keep the records? Has anyone else dealt with such manners? Thanks, any help will be appreciated!

    submitted by /u/gotwmoonyoung
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    Federal Student Loans in Default...any forgiveness possible?

    Posted: 28 Jan 2018 08:16 PM PST

    My fiancee is 25, lives in Wyoming, and owes approx $7k in federal student loans (she says this is the total of her subsidised and unsubsidised loans). She has a total of around $29k in debt between these and several credit cards, divorce, ect. She would like to file bankruptcy based on her current credit score and lack of income (our son was born 3 months premature so she's had to stay home with him vs working). Will a bankruptcy forgive her student loans? Or will she still be on the hook even if she files?

    submitted by /u/CJ4700
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