Personal Finance Weekend Discussion and Victory Thread for the week of January 05, 2018 |
- Weekend Discussion and Victory Thread for the week of January 05, 2018
- Tax season approaching and I've always done my own. But, I've had lots of changes over the past year. At what point should I consider professional taxes or even professional accounting?
- Cut the cord today - and it feels like a huge relief! Savings - $864/year!
- Its that time of year again!
- In response to AT&T upgrading speed without customers consent, Comcast/Xfinity has done the same.
- 2 parking tickets in DC. I paid both within the 30day period but sent to collections anyway.
- Am I in a position to spend 10k on a car?
- It’s Friday night and I’m going to stay in and finally make a budget. What’s the best budgeting software/app/whatever that I should use?
- As part of the US Tax Overhaul, effective 1/1/18, 529 Plan assets - aka college savings accounts - can now be used for private K-12 tuition. Not just post secondary schools.
- CIT Bank increases Savings Account to 1.55% APY
- Purchase a Modem Router combo or keep paying a $10 a month rental fee for one?
- US expats of /r/PF - Company relocating me to Brazil. What do I need to know?
- 20 y/o college dropout looking for advice on how to begin my personal finance journey
- What do you do after "Getting it in writing" doesn't work?
- Optimal welfare in California?
- I paid off all my credit cards and student loans 3 months ago, and my FICO score dropped 30 points. Nothing changed except I'm now out of debt. What's going on?
- Credit score tanked 30 points from using 2% of credit card balance?
- Which should I make a higher priority to pay off: my car loan or a student loan?
- Pay down student debt or save for house?
- Do I have to report scholarship money to my university?
- Couple of questions regarding the save at least "15%" in retirement.
- Less money than in 2017, yet now no longer eligible for Medicaid?
- Roommate needs $1,800 to pay for damaged door by 1/15. Doesn't have it all. Wondering the best route for him to come up with the money.
- How to get out of debt with little to no income
| Weekend Discussion and Victory Thread for the week of January 05, 2018 Posted: 05 Jan 2018 01:05 PM PST If you need help, please check the PF Wiki to see if your question might be answered there.This thread is for personal finance discussions, questions, and sharing your success stories:
A big thank you to the many PFers who take time to answer other people's questions! For past threads, please search the Weekly Archive. [link] [comments]  |
| Posted: 05 Jan 2018 06:10 AM PST Tl;dr. I work 2 jobs, purchased a house, and got married all within the last year. My side hobby is starting to become profitable and I might rent out one of my rooms starting in 2018. I normally like doing my own taxes and tracking my own $$. But with all these changes I am worried about missing out on benefits. Would it be worth finding an accountant? Or at least consider professional tax service? Income: I work 2 jobs. I'm a Federal employee salaried at $67,000 and a part time job that makes about $14,000 for a combined gross income of just over $81,000. I'm considering renting a spare room to a friend starting in April. I've looked at r/legaladvice's landlord & tenants guide and I feel confident that I'll be a functional landlord. I have a lease drawn up and I've read lots of cautionary tales. Additional income would be $5,000 per year from renting. My craftsman hobby just turned a profit this past year, I made $2000 profit selling my works. Normally my products are gifts or done at-cost, but last year i had some business commissions and I made more money than expected. If this trend continues, when do I need to declare this hobby as a source of income? Savings: $10,000 in employer's 401k program, and $4,000 in emergency fund (aprox 3 months expenses). I contribute the max amount to my 401k that my employer will match, which adds about $5,000 combined each year. I'll be vested in the company this Sept. Expenses: House was purchased with a VA loan $125,000 @ 3.5%. After all the other things, HOA dues, and property taxes, I pay $780/month for my home. Water&sewage are $60, electric is $100 in summer, $250 in winter. Car is paid off, insurance is $50/ month. Student loans total $18,000 and payments are $380/month. No credit card debt. Total debt: $143,000 Monthly expenses: $1,370 Monthly income: $3,600 (after taxes, insurance, and retirement contributions). I eat out WAY too much, and I spend most of my unallocated monthly income on home improvement, project supplies, MTG cards, and travel. My wife and I have elected not to combine income yet, as she is teaching internationally and I do not rely on her income to sustain our stateside lifestyle. I know her take-home pay is about $25,000 after taxes. This will likely go up after she decides she's done teaching in China. My wife's student loans will be paid off after 5 years, I do not know the total. So far we have always filed separately. So, I guess there's 3 questions in that wall of text:
EDIT So... It looks like there is little consensus on what I should do with a slight majority of the comments recommending I get a CPA that is NOT associated with a chain firm. I figure I'll have an initial consultation with a few of the locals here and decide from there. Thank you all! [link] [comments]  |
| Cut the cord today - and it feels like a huge relief! Savings - $864/year! Posted: 05 Jan 2018 08:13 AM PST We've been with Time Warner, now Spectrum for over 15 years. When Spectrum took over last year I did my annual review (to make sure I was on the best 'promotion') and they found we were best off staying on a Time Warner plan. Now, 12 months later and our bill got it's annual increase, $20 extra for no change in service. Multiple customer service agents were unable to do any better than that price (now $162 for 50/5 internet, cable with 1 DVR, and a home phone we never even took out of the box). Threatening to cut TV does nothing with this company. My wife has been hesitant to cut the cord because we live in an area where we can't receive local channels OTA, and none of the streaming providers offer them either. Still, doing the math, we were being offered internet only at $65/month, and the Sling Blue package gives us everything we want except local channels for $25/month. So yesterday we finally agreed to cut the cord, saving us $864/year, AND our internet got bumped to 100/10. So far Sling seems great to me. I hated using the archaic cable box and remote interface - Sling seems much more in line with what modern TV should look like. I was surprised at how hesitant I was to do this in the first place, but how FREEING it feels now. Heading down to turn in the phone and cable box shortly! [link] [comments]  |
| Posted: 05 Jan 2018 06:34 AM PST Just a PSA, tax scammers are back at work again. Remember that the IRS will never attempt to contact you via email or solicit private information such as passwords over the phone. [link] [comments]  |
| In response to AT&T upgrading speed without customers consent, Comcast/Xfinity has done the same. Posted: 05 Jan 2018 10:43 AM PST While checking my email, Comcast/Xfinity sent me an email notifying me that my speeds were upgraded from 100mbps to 150mbps. They said it was "at no extra cost" but somehow my bill went from $55 last month to $60 this month. [link] [comments]  |
| 2 parking tickets in DC. I paid both within the 30day period but sent to collections anyway. Posted: 05 Jan 2018 07:05 PM PST TL;DR I received 2 tickets in DC within minutes of each other, paid them BOTH the next day, DC cashed them about week later, but then sends bills with late fees saying I didn't pay ONE of them within the 30day window, I send an explanation and cancelled check 2 times, now it's 2.25 years later in 2018 and I have a collections letter to which I responded with all my proof and they still say I didn't send it within the time frame of 30 days. It was the Summer of 2015, August 5th to be exact. I took a road trip with my pre-teen munchkin and my then significant other to, what I used to think was, my nation's wonderful capital, Washington DC (for other reasons than just this, now). Because I parked on the main road, (Constitution Blvd, maybe? It was in front of the USDA building), all day long to visit the museums, and inadvertently didn't make it to the car until 4:20ish, because thete is no parking after 4pm on this road, I was issued 2 parking tickets; one at 4:08 and one at 4:15. I have a 30day window to pay this in. Being a good citizen, I drove home that night and the very next day, August 6th, I sent out payment for BOTH tickets, with 2 separate checks, one for each ticket, in the same envelope. I also was instructed to return the tickets with payment. These were each 25$ tickets for a total of 50$. I check my account at the end of the month to balance my checkbook and see that the checks were cashed on August 12. Great! No need to worry. Wrong. so very wrong. A month later, I get a bill for only ONE of the tickets that says I did not send it in time, therefore I owe a 75$ late fee. I march myself down to the bank where I am friends with the accounts manager lady and she prints off the cancelled check from her official screen and confirms that DCdid indeed withdraw funds from my checking account on the 12th of August. Send all that in with an explanation thinking that all is well. Then comes October and the same bill arrives for the same damn ticket except now the late fee is 100$! I repeat the same routine, send in a copy of cancelled check with a NEW explanation as well as my previous explanation and chock it up to some very lazy employees. All is quiet until Dec 2017. 2 and 1/4 years later. Now its a letter from a collections company stating the same shit, except now I owe 200some$ AND my license is suspended from driving in DC and I have to pay a 95$ reinstatement fee AFTER I pay this ticket. This is getting old but I go back to the bank and get a copy of not only the cancelled check, but also a copy of the bank's official record that show it was indeed withdrawn on August 12, well within the 30day window from August 6. I also included a new 2 1/2 page explanation telling them to kiss my ass and take me to court so I can show a judge who will be objective to this bullshit and see that I have desperately tried over and over again to prove my truth. Also sent copies of the 2 previous explanations I sent Sep. 2015 and Oct 2015. I would just like to see if anyone here can confirm my belief that we are so in the toilet with debt that the government is coming after me for more money when I already pay my God Damn taxes every year. Tax refund my ass, I'm a local business owner. [link] [comments]  |
| Am I in a position to spend 10k on a car? Posted: 05 Jan 2018 04:56 AM PST Hey PF, so here's the situation. I've been working for about 4 full months now and I'm really struggling with grasping how I can afford to get a reliable car. Salary: $55,000 Roth 401k: 6% Take-home: $2950/month Debt: none Liquid Savings: ~1,500 Breakdown of monthly expenses: image The only place I can see car+insurance funds coming from is my future savings, which isn't ideal but it's all I've got. I understand that rent is high but honestly in both the cities that I work and live (Jupiter and West Palm Beach), I'm paying below average plus the place came fully furnished so that saved me a bit. My current car is a '96 Civic (paid for long ago and insured by parents) with ~330,000 miles and while it still runs, it's really struggling. Windows don't open, engine misfires and low pressure in cylinders, burns through a quart of oil every two weeks, rusting, oxidizing, struggles HARD to accelerate. I'm a huge car enthusiast and a car is so much more to me than just something to get me from point A to point B but I feel like I'm not in a place to get something I'd actually enjoy driving just yet. I'm also completely alone in a new state so I need something reliable because it's a PITA to be alone and have something go wrong with your only means of transportation. Any advice/budget recommendations? Also as a 22 year old male living in South Florida, I expect to get murdered by insurance. [link] [comments]  |
| Posted: 05 Jan 2018 03:02 PM PST |
| Posted: 05 Jan 2018 07:34 AM PST As part of the US Tax Overhaul, effective 1/1/18, 529 Plan assets - aka college savings accounts - can now be used for private K-12 tuition. Not just post secondary schools. [link] [comments]  |
| CIT Bank increases Savings Account to 1.55% APY Posted: 05 Jan 2018 10:52 AM PST https://bankoncit.com/premier-high-yield-savings-direct Just saw this in a reddit ad, only $100 minimum deposit and is currently the highest rate savings account available according to bankrate.com. I'm not one to chase small differences in interest rates but this is .3% higher than my Ally rate so I'm definitely considering it. Anyone have any experience with CIT in general or this account specifically? EDIT: Now that I've actually done the math, we're only looking at a difference of $3 in interest annually on every $1000 between Ally and CIT. Not as big a deal as I originally thought, but it might be worth switching for some. [link] [comments]  |
| Purchase a Modem Router combo or keep paying a $10 a month rental fee for one? Posted: 05 Jan 2018 06:05 AM PST My friend and I are having a debate and hoping you guys can help. Im looking at cutting costs to help pay off debt faster. Ive been paying 10 bucks a month to comcast for almost 2 years to rent my modem and etc which in a way is a clever way to nickel and dime you. I want to buy my own which would be around 129 to 150 dollars if I buy retail. My friends argument is that Im better off continuing to pay the fee because realistically I wouldnt see a true savings until 15 months in. ($150 router and im paying 10 dollars now to rent a combo router modem) and by that time i may not even have the service. My arguement is that I have spent over $240 ($10 rental fee for over 2 years. Thats just my current home. Ive rented from comcast for 5 years in total) already and just continuing to toss money down the drain. Where do you guys stand? [link] [comments]  |
| US expats of /r/PF - Company relocating me to Brazil. What do I need to know? Posted: 05 Jan 2018 01:28 PM PST /r/PF -- I've been lurking around various forums and trying to prepare myself as much as possible ahead of my move, but figured that I should just make a personalized post and see if others have gone through a similar experience, or has any more generic advice as a former / current expatriate. I've been offered a position by my company in our Brazilian office, and will be relocating there on a preliminary, trial basis in the next week. For the time being, I will remain an employee of our US office, and continue to receive the same salary, benefits, etc., after which I will negotiate a new package with our Brazilian office. Their preliminary offer is generous (salary+fluctuating bonus), but of course I will try and negotiate and hopefully come away To anyone who's been relocated by their company in the past --
Thanks to the /r/PF community for reading, as well as the continued kindness and generosity of the sub. [link] [comments]  |
| 20 y/o college dropout looking for advice on how to begin my personal finance journey Posted: 05 Jan 2018 12:51 PM PST As the title says, I am a 20 y/o college dropout who wants to begin saving money/growing a personal portfolio. I have been supported by my parents for all my life, but due to recent developments, I now want to start branching out on my own. Starting January 20th I will have a job that pays 11$/hr, 12 hours a day with the opportunity to make 16.50 during overtime. Ideally, I would like to enroll in the local community college for the summer, and next fall to improve my GPA with plans to re-enrolling in a 4-year college for the spring if 2019. Personal Finance has never been my strong suit, and much of my life I have been a spendthrift, but now that reality has slapped me in the face I am motivated to be a more responsible adult. I would greatly appreciate any advice that Y'all might have on any of the following topics, or topics that you may believe are relevant to my situation: Budgeting, saving money, which credit cards/checking accounts would I be best suited for, planning for retirement, or any other personal finance advice. Thank You. [link] [comments]  |
| What do you do after "Getting it in writing" doesn't work? Posted: 05 Jan 2018 06:20 PM PST This isn't a personal question, but I always see people on this and other advise subs saying, "Get it in writing" or "You should have gotten it in writing". This is usually over things like promised promotions, promised raises, conditions for promotion, etc. Example: If you move two hours away to work at that branch, we'll double your salary in six months. I'm just wondering what happens after you already got it in writing and your boss just says, "Sorry it isn't in the budget anymore"? It doesn't really do anything and I don't think you can really sue or something over a broken promise like that. Your in the same position whether you have a piece of paper or not. You got screwed over and need a new job either way. Please explain this to me. I hope this isn't a stupid question. It's just always my first thought when I see it here. Thank you! [link] [comments]  |
| Optimal welfare in California? Posted: 05 Jan 2018 07:20 PM PST So I live with my brother who is an adult and my mom and I am the only one who works. We get food stamps but barely any compared to when I lived in WA. Right now my brother and my go to school while I work and he is unemployed and my mom works as a baby sitter 3 days a week. Does anyone know what the optimal setup is to get more money for food stamps for my family? As of right now both my mom and my brother and listed as dependents on me I believe. [link] [comments]  |
| Posted: 05 Jan 2018 07:07 PM PST I'm looking specifically at my FICO score, using my Discover credit card app and through another credit card's app, so I'm getting this information from 2 places. Both show my credit as 690s when I had a revolving usage of 15%-ish on all cards and $15k of student loans remaining. I'm in a better place financially now so all 3 of my cards have been paid down to 0% for the last 3 months. I checked my score a few days ago, and it dropped to 660s right after I paid off all my cards in full last October. I did absolutely nothing except pay off my credit cards, no inquiries, no big purchases, no loans, nothing at all. The credit cards are all still open and the credit is available. I looked for signs of identity theft but found no accounts or inquires that I didn't recognize. I'm not an authorized user on anyone else's credit card. I had a 3 medical bills that went to collections about 3 years ago before being paid. Other than that I have no missed payments or late payments. I've only had a credit card for the last 4 years, so my credit is still sort of new. Discover and my other card issuer both increased my line of credit last year. I don't have any loans, and I paid cash for my car. I don't have a mortgage -- only student loans that I paid off about 3 months ago, at the same time as the cards. Is not having a credit card balance any more hurting my credit? I thought carrying a balance was always bad? I'm so confused, any insight would be greatly appreciated. [link] [comments]  |
| Credit score tanked 30 points from using 2% of credit card balance? Posted: 05 Jan 2018 07:06 PM PST On November, I finally did it, I reached a credit score of 801. Was ecstatic to finally breach 800 for the first time in my life. All credit card debt down to 0% -- all I had left was student loans and my car loan. Well, Christmas came around and I decided to put all my purchases into my credit card because cash back rewards. Total spent came out to about 2% of my total available credit. Figure no problem, January paycheck can put it out easy. But, I noticed on Credit Karma and running a few free credit score checks from some of my banks that my credit score dropped at least 30 points depending who / where you look. Is this normal? Why should it hurt you so much to use a mere 2% of your total credit limit? I worked hard for those 30 points the last 6 months darn it! [link] [comments]  |
| Which should I make a higher priority to pay off: my car loan or a student loan? Posted: 05 Jan 2018 07:01 PM PST I am still a beginner at personal finance so I'd appreciate some advice on this. I received an extra paycheck last month due to the way the pay periods lined up and so have some extra money to put towards debt, but am unsure what should be my top priority. My highest interest loan is one of my student loans, which is at 4.66%, so I'm leaning towards that. However, I also have a car loan which is 4.09% APR and I can't help thinking that I should get that paid off more quickly, so I don't end up in a tough spot if I were to get in an accident or something happened to it before it's fully paid off. I do have car insurance but haven't really ever had to use it and have heard enough horror stories that I can't help but imagine worst case scenarios. Is this a reasonable concern or am I stressing unnecessarily? Should I not worry about that and just focus on the highest interest rate? Thanks for any and all guidance! [link] [comments]  |
| Pay down student debt or save for house? Posted: 05 Jan 2018 06:50 PM PST Last year, I was able to max out my 401(k), HSA and dependent care FSA, and this year I expect that I'll be able to do the same. Question is, once that's done, do I use extra money to pay down my student debt? Or do I start saving for a down payment on a house some day? My student debt has a relatively low interest rate (3.50% fixed), but none of my savings (in taxable accounts) earn income. How do I balance between paying debt down now versus saving for the future? Thanks! EDIT: forgot to mention that I already have a pretty solid emergency fund also. I'm really talking about assets that are in excess of the emergency fund. [link] [comments]  |
| Do I have to report scholarship money to my university? Posted: 05 Jan 2018 04:30 PM PST I received a scholarship a few weeks ago. Rather than putting it toward my tuition, I want to cash it and use it for gas money for going to-and-from school. My university asks you to report scholarships to them so that they can calculate your financial aid correctly. Since I'm not using the scholarship to pay for my tuition, and am using it as gas money instead, do I have to report it to them? And, if I do this, I should report the scholarship as income on my taxes, right? Thank you. I am wary of asking the financial aid office at my university because I'm sure they'll just want the money. [link] [comments]  |
| Couple of questions regarding the save at least "15%" in retirement. Posted: 05 Jan 2018 06:59 AM PST
[link] [comments]  |
| Less money than in 2017, yet now no longer eligible for Medicaid? Posted: 05 Jan 2018 05:41 PM PST Hello, Last year, I applied and got Medicaid. I lost my job and entered information indicating that I was getting unemployment. I got on it this summer My unemployment ran out. I updated my information. Nothing else was changed except to indicate that I am not working (still searching) and when I finished updating my form, it says that I am no longer eligible? I will be calling tomorrow but tonight I am freaking out. Doesn't this sound strange? [link] [comments]  |
| Posted: 05 Jan 2018 12:18 PM PST Long story short he broke our front door and we got the bill of $1,800 due 1/15. He could probably come up with $500 or so by then. He's a bartender who can pick up extra shifts and most likely come up with the rest within a month or two. Was thinking maybe his best option would be putting it on a credit card, working his butt off to come up with the $1,300 or so extra within a month before his credit card payment is due. Is there a better way? [link] [comments]  |
| How to get out of debt with little to no income Posted: 05 Jan 2018 05:18 PM PST Am in my mid twenties, living at home with my mother, and am buried in debt. Last year Capital One pre-approved me my first credit card, with a $300 spending limit,and like a monkey I took the deal. So withing the first two, maybe three months it became maxed out, just frivolous spending, you know clothes, food, paying other bills last minute, etc. I'd pay the balance low, but the plot twist was I ended up losing my job, unexpectedly, so I couldn't pay it off. My credit shot from 580+ down to 460 all around the end of summer, Thanksgiving holidays. So I became hopeless it would never get paid off, because i had other bills and things that had to be paid, so i gave Capital One no attention. My question is, what should, and/or can I do to get back on track? I have medical bills as well as a Fingerhut payment (why did I get that vacuum??). My credit before was at a 580 and rising as mentioned before, however now, it is shot. should i keep track of the medical bills, or continue on with Captial One? I am unemployed, actively seeking work so I put what I can towards the payments. Any feedback is appreciated. [link] [comments]  |
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