Personal Finance 30-Day Challenge #11: Audit your insurance coverage! (November, 2018) |
- 30-Day Challenge #11: Audit your insurance coverage! (November, 2018)
- 401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000
- Should I accept stock options in exchange for salary?
- I am inheriting 126 acres of farmland. What can I do?
- Why are employers pushing HSA so strongly? Is it just to reduce their own costs, or are their actually benefits for the employee
- What are some second jobs you'd recommend to earn a couple extra hundred dollars per month?
- How to delay accepting a job offer when you're waiting to hear from another company?
- Bad time to buy a home?
- Citicards has a feature that auto-updates your Google Wallet with a newly issued card, which in my case resulted in more fraudulent charges.
- Does parent's health insurance follow me?
- Use Taxable Account to Max Tax-Advantaged Accounts?
- Should I get life insurance?
- Series I Bonds Fixed Rate to 0.50%, Composite Rate to 2.83%; The Role of Savings Bonds In Your Portfolio
- To PSLF or not to PSLF - that is the question...
- I found out my coworker with the same position makes over 10k more than me. What should I do?
- I rarely use my BofA card and I want to cancel it because I just got hit with an annual fee. How badly can this negatively impact my credit?
- Wife lost her job. Just need a little guidance.
- Payday loans
- Buying a new house before you sell the current one.
- Paying twice a month on a credit card good?
- 26 years old and no 401k. What is the best way to start saving?
- Lost Job, behind on car payment, gained employment, and still in a pickle; what should I do?
- Need help with Pay For Delete. No responses.
- Should I contribute to my 401k if planning on working here for less than a year before school
- Bridge Loans, do banks still offer them?
| 30-Day Challenge #11: Audit your insurance coverage! (November, 2018) Posted: 01 Nov 2018 06:07 AM PDT 30-day challengesWe are pleased to continue our 30-day challenge series. Past challenges can be found here. This month's 30-day challenge is to Audit your insurance coverage! How long has it been since you examined your coverage or gotten a quote from another company to look for cheaper insurance? As your life evolves, it's important to make sure you update your insurance coverage as well. This is also a good way to save some money if you can find a better deal for insurance elsewhere or if you find yourself overinsured in some specific area. Why insurance?Insurance is an approach to handle the problem of risk. Most likely, during your life, one or more of these things will happen: you will be in a vehicle accident, you or someone close to you will experience serious illness or injury, or you will lose your job. Positive events have associated risk as well: ask anyone who has had a child, puppy, house, or marriage. You can choose to retain each of those risks: decide that if the bad thing happens, you can afford to pay for it, to self-insure. For example, if you lose a laptop, you can buy another one. You can also reduce the risk, say, by not driving on icy streets or by having chains on your tires. The other ways to deal with risk are to avoid it (don't buy a puppy) or transfer it (insurance!). Most of us don't think about risk until the bad thing happens. We are in a vehicle crash with an expensive car, someone is injured, and only then it dawns on us that we might be underinsured. For many major risks, most people share the risk with an insurance company through various insurance products. If you own a vehicle, most likely you will be required by your state to have liability coverage (personal injuries and property damage caused by you). If you have a mortgage, your mortgage holder will require you to have homeowners insurance and some landlords will require renters insurance. Other types of insurance are optional, but may be desirable if available, for example, disability insurance. Audit your insurance coverageTake a minute to think about what insurance coverage you currently have, whether you may be paying too much, and whether your coverage limits are appropriate:
Although insurance is an important financial tool to protect you against emergencies, it can also be a major drain on your budget. Insurance agents often use the fact that some insurance is important to make you feel that the more insurance you have, the better off you are. It's wise to only insure what you need to insure. What do you need to insure? Anything that you could not easily afford to replace with your cash savings or where the loss would significantly set you back financially. In the next 30 days, review not only the types of insurance you have, but the level of coverage you have in each type. Here are some ideas for various types of insurance: Car InsuranceAssess all the types of coverage you have on your car. See the wiki article on car insurance for more details and ways to save money. For example, if you drive less than 10,000 miles per year, call your insurance company and see if they provide a low-mileage discount. Liability insurance is required by law if you drive and is very important: Would you be able to pay out a $300,000 lawsuit if you injure someone in a car accident? Liability insurance is not a great place to skimp. Coverages for "uninsured motorists" (an uninsured or underinsured driver injures you or your passengers) and "medical payments" (you or your passengers are injured in an auto accident) are also worth having. They are less expensive than liability coverage and the irresponsibility of others is a major risk. Also consider whether your "collision" and "comprehensive" deductibles coverage is appropriate or necessary, especially if you have an older car or significant savings. Eliminating or reducing these types of coverage can reduce your insurance bill, but you'll be left on the hook to replace or repair your own car if you (or mother nature) damage it. Finally, when you see car insurance advertisements selling you "better car replacement" or "one model year newer" insurance, realize that this is a great deal for the insurer and not as great for their customers. Buying these policies mean that you're paying for a piece of a newer car every single month even though the odds of taking advantage of these policies are relatively low. Health / Vision / Dental InsuranceIn the U.S., some form of catastrophic health insurance is vital for nearly everyone, as a week in an intensive care unit is enough to bankrupt all but the wealthiest. However, consider your expected use of healthcare services. If you are young and healthy, you may not need to fork over the extra dough for a Gold plan with lots of coverage. See the wiki article on health insurance for more details. Life InsuranceRemember the principle of insurance? "Only insure what you couldn't afford to lose." If you have children or a spouse that would be unable to maintain their standard of living without your income, then you may need to insure your earning ability. That means you take out a term life insurance policy that pays your spouse and/or dependents in the event that you die and can no longer earn money to provide for them. However, if you don't have dependents or if your spouse can earn enough money on their own to provide for themselves, you might not need life insurance at all. It's also important for you to understand that there are two basic kinds of life insurance: term life insurance and permanent life insurance (like whole life or universal life). With term life insurance, you pay to cover your loved ones from the risk of your death. With whole life insurance, a portion of your cost goes to coverage, but it also has a cash value component that grows over time similar to an investment account. While there may be some exceptions for the very wealthy, term life insurance tends to be the best choice for the vast majority of individuals. Read our wiki article on life insurance for a deeper discussion. Homeowners / Renters InsuranceInsurance on your residence is important for almost everyone who owns or rents a home. Owning a house without insurance could be disastrous if it burnt down, because you likely have a mortgage on it and probably don't have $250k cash to replace it. However, it may be worth checking how large your deductible is. If it's only $1,500, you might be able to afford more than that in an emergency. If appropriate, you can increase your deductible to reduce your costs. Note that homeowners deductibles are per incident, though. See the wiki article on homeowners insurance for more details. Renters insurance policies also tend to be very cheap (roughly $15 per month for $30,000 of property coverage and $100,000 of liability coverage). Finally, make sure you have an up-to-date inventory of your property so any claims will be easier to make. An easy way to do this is taking a video on your phone as you walk through your home, naming everything as you walk through. Note the make and models of anything expensive like electronics. (Make an offsite or cloud copy of the video too!) Jewelry InsuranceMost single-issue insurance policies tend to be poor deals for consumers. Opinions vary on jewelry insurance, but the default assumption of most people is to carry insurance on an engagement ring is more a product of the jewelry marketing machine than actual need. A few factors make jewelry insurance less necessary than other types of insurance:
Another way to save moneyOne thing to consider when reviewing your coverage is that sometimes companies offer discounts for having multiple accounts with them (e.g., a multi-policy discount or "bundling"). When you call your insurance company, ask them about these discounts. For some insurers like USAA, you can even get a discount for adding non-insurance accounts like a savings account. A note on emergency fundsFollowing "How to handle $", an emergency fund of cash equal to 3 to 6 months' worth of routine expenses is recommended. If you have no collision coverage on your car and rely on it to get to work, and/or a very high deductible on your home insurance ($10k), seriously consider the size of your emergency fund, and whether it is enough to get you through a "double-whammy" such as job loss and a car accident at the same time. Notes on other types of insuranceThe bare minimum for most people is car insurance (if they drive), health insurance, term life insurance (if others depend on their income), and homeowners/renters insurance. However, there are several additional types of insurance that some people may want to consider. In particular:
Challenge success criteriaYou've successfully completed this challenge once you've done two or more of the following things:
Disclaimer: This post is a prompt to review your insurance coverage. Similar to the reddit user agreement, we take no responsibility for any decisions you make based on something you read on reddit. [link] [comments]  | ||||||||||||||||||||||||||||||
| 401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000 Posted: 01 Nov 2018 08:04 AM PDT 401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000 WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. The IRS today issued technical guidance detailing these items in Notice 2018-83. Highlights of Changes for 2019 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $18,500 to $19,000. The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000. The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the saver's credit all increased for 2019. Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2019:
The income phase-out range for taxpayers making contributions to a Roth IRA is $122,000 to $137,000 for singles and heads of household, up from $120,000 to $135,000. For married couples filing jointly, the income phase-out range is $193,000 to $203,000, up from $189,000 to $199,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000. The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $64,000 for married couples filing jointly, up from $63,000; $48,000 for heads of household, up from $47,250; and $32,000 for singles and married individuals filing separately, up from $31,500. Highlights of Limitations that Remain Unchanged from 2018 The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan remains unchanged at $6,000. EDIT: The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2019 from $55,000 to $56,000. (ie Mega Backdoor Roth Contribution) The limitation under § 408(p)(2)(E) regarding SIMPLE retirement accounts is increased from $12,500 to $13,000. [link] [comments]  | ||||||||||||||||||||||||||||||
| Should I accept stock options in exchange for salary? Posted: 01 Nov 2018 05:24 AM PDT I received an offer letter with with the option to convert part of the salary to stock options as per the below table. Base salary is ₪33K/month (Israeli Shekel). Be aware of '₪' vs '$' in some columns. As of this writing the exchange rate is 1$ = 3.7₪.
Additionally the letter states: Based on current run-rate, price per share is $2,675. Exercise price will be at 90% discount of the last (at the time of signing) round price. If you are an American citizen, exercise price will be according to 409a valuation (~$800 per-share). End of Offer Details I would appreciate any help in understanding this information. What I'm mainly confused about is:
Thank you to anyone who can help me understand this. Edit - RIP inbox. Sitting down now to read and respond to as many comments as I can. [link] [comments]  | ||||||||||||||||||||||||||||||
| I am inheriting 126 acres of farmland. What can I do? Posted: 01 Nov 2018 12:08 PM PDT So a little background, I am African American. In the 30s my grandfather bought back the same farmland that his grandfather was enslaved on. It had a lot of sentimental value to him and when he died and left it to my uncle, he made him promise to never sell it. So I can't sell it nor do I want to. I also don't know the first thing about farming. What should I be thinking about? [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 01 Nov 2018 05:02 PM PDT My brother, dad, and myself all work for different employers and we each got memos pushing HSAs and high-deductible plans. I figure this is because it lowers their costs, without really considering how it impacts employees. Thoughts? I'm fairly young and healthy but still just can't see it being a good deal. [link] [comments]  | ||||||||||||||||||||||||||||||
| What are some second jobs you'd recommend to earn a couple extra hundred dollars per month? Posted: 01 Nov 2018 07:36 PM PDT Looking at working an extra 10-20 hours a week to earn about $300-500 extra per month. What jobs would you all recommend? I work morning shift 40 hours weekly and can work in the evenings after 4pm. No OT available at my main job unfortunately. [link] [comments]  | ||||||||||||||||||||||||||||||
| How to delay accepting a job offer when you're waiting to hear from another company? Posted: 01 Nov 2018 07:28 PM PDT I just finished a job interview and from what I'm hearing from my friend who currently works with the company, it looks like I might be hired. However, I'm currently waiting to be interviewed at another company where I would much rather work instead because of pay, location etc. If I do get a job offer from the first company, what would be a polite way to tell them I'm still waiting to hear from another job, but would still want to work there if the second company I prefer doesn't work out? [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 01 Nov 2018 08:13 AM PDT Back story, my wife has around $50,000 saved and no debt. She graduated a year ago and makes roughly 60k, although we just had a baby and she is off for a few months. I graduated last may and currently make $55k in a secure job as a software dev, roughly 15k in school loans that I am paying with around 5k emergency in the bank. We pay $950 a month in rent for an apartment, I own my car and she only pays 200 a month. We have been looking off an on but really with prices never found anything we like. Found a house for $190,000, hits all our check boxes. With 20k down this puts it at roughly 830-860 a month + insurance etc. We have never bought anything like this and are really worried seeing her parents and mine lose their house to foreclosure. The market is in Florida, are we taking a gamble? [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 01 Nov 2018 07:25 AM PDT My wife's purse was stolen this weekend and someone created a Google Play account in her name. They added her CC # to the account to make purchases. We were alerted to the fraud quickly and deactivated the card. Citicards expedited a new one to us the next day, but just hours after activating the new card I started seeing fraudulent purchases from Google Play. I thought, how the heck did someone get the new card number so quickly. They must've called the CC company pretending to be my wife and somehow got the customer service rep to give them the new CC #. When I called Citibank they said that if you had used Google Wallet in the past with your old card they have a setting on their side to auto update your Google Wallet with the new card. I had them turn this feature off of course. I understand that when your old card expires and you get a new card this auto-update feature is nice, but when you get a new card because of fraud they should automatically turn this feature off. I'm not sure if other credit card companies have the same feature, but you might want to call and find out. [link] [comments]  | ||||||||||||||||||||||||||||||
| Does parent's health insurance follow me? Posted: 01 Nov 2018 08:09 PM PDT My mom is starting work with the Department of Children and Families in our state soon, which means we'll both be insured for the first time in a long time. I'm very relieved, as I'm 20 and haven't seen any kind of physician in over 2 years. However, this time next year, I'll be living in a different state on the other side of the country. Will I still be eligible for her insurance? I'm transferring from my community college to a four year university out of state. [link] [comments]  | ||||||||||||||||||||||||||||||
| Use Taxable Account to Max Tax-Advantaged Accounts? Posted: 01 Nov 2018 06:30 PM PDT I (26M) just recently finished my PhD and am working as a post-doc in the Bay Area. As such, my salary is quite low ($48k/year) in relation to future expected income. My wife (26F) works for the university and makes 72k/year. One of the great perks of working in academia is access to both 403b and 457b plans which can both be maxed at a rate of 18.5k (2018) or 19k (2019). I am contemplating drawing out of my taxable account (~400k I inherited recently) to fund maxing both of our 403 and 457 plans (total of $76k/year) on top of maxing IRA (total of $12k/year). We would not strictly rely on this money but, from my calculations, maxing out these plans would result in us having a take-home pay of around $3k/month and we have been living on about $6k. Now the questions. Does it make sense to draw on taxable accounts to put them into tax-advantaged? Does that decision mostly come down to current vs. expected income? We are planning to retire early (possibly should cross-post to /r/financialindependence) and are able to draw from 457 plans without penalty. Once I finish my postdoc (likely 2 years), I expect a minimum salary of 120k and would be able to max these plans without relying on the taxable account. [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 01 Nov 2018 04:10 PM PDT I am 26 and in good health. I have life insurance though my job but I've heard something about getting life insurance when your young enough where it's cheap or something. Do you think it's a good idea to purchase life insurance at a younger age? [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 01 Nov 2018 07:02 AM PDT November 1, 2018 – Series I Bonds purchased in the next six months have a fixed rate of 0.50% and a composite rate of 2.83% As the Federal Reserve continues to raise federal lending rates, it is fairly safe to assume that the fixed rate on Series I bonds will continue to climb, too. While the fixed rate today is nowhere near historical highs (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm), we can see that fixed rates are trending up. The fixed rate is now the highest it has been since November 1, 2008. Background Series I bonds are U.S government-backed savings bonds that are considered to be one of the safest financial vehicles available for consumers. The reason behind this is two-fold: (1) the bonds cannot lose their value (i.e., their purchase price, plus any interest already gained), and (2) being backed by the federal government means you are guaranteed to the redemption price of the bond, unless the federal government fails (highly unlikely). The interest rate of these bonds is the combination of two components: a fixed rate, that is set for the 30-year life of the bond, and a variable component that is adjusted to inflation every six months (changes on May 1 and November 1). Although the variable and fixed components are announced in May/November, the current variable rate applies for six months following the purchase date of the bond (e.g., buying a bond in January means your rates change in July and January). See the above link for a table that goes a bit more in depth. The composite rate is the combination of the fixed rate and variable rate. A sample calculation can be found by following the link above, but the equation is this: Composite rate = [fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation rate)]. The composite rate is adjusted every six months as well (since the variable rate is adjusted) and is the interest rate that the bond is actually earning. The composite rate also can never go negative. If deflation occurs, and the composite rate equation spits out a negative number, the composite rate will be set at 0.0%. This is what I alluded to earlier (Series I bonds can never decrease in value). Buying/Selling There are two methods to buy these bonds. The primary method involves setting up an account on TreasuryDirect and purchasing them electronically with a bank account. Each person is limited to purchasing $10,000 of Series I bonds annually with this method. The second method is using your tax refund to buy paper bonds. Each person is limited to buying $5,000 of Series I bonds annually with this method. The limits on these two methods are separate, meaning you are able to purchase $15,000 of Series I bonds annually. You cannot buy these bonds in a regular brokerage account. This link has more details:(https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm). There are some restrictions on selling the bonds. A bond cannot be sold until it's been held for at least one year after purchase. Until five years after the purchase date has elapsed, you will lose three months of interest upon selling the bond. The current price displayed in TreasuryDirect should exclude the last three months of interest to reflect this. After 30 years, the bond has "matured" and will no longer earn interest; at this point, you should strongly consider selling the bond since it is no longer increasing in value. Interest on the bonds are taxable at the federal level, but not at the state or local level. The exemption to this rule is if the interest is going towards funding education (https://www.treasurydirect.gov/indiv/planning/plan_education.htm). You are free to pay taxes on interest annually (as the bonds are accumulating interest) or delay paying taxes until redemption of the bond occurs. Pros/Cons of Series I Bonds Pros:
Cons:
So where do these bonds fit into my portfolio? I don't have cookie cutter advice on purchasing Series I bonds. Many people feel they are worthless in a low-interest environment like today. However, as interest rates rise, I see these savings bonds becoming more useful and popular. One popular use is using Series I bonds as a vehicle for an emergency fund. There is a great post and subsequent discussion on this: https://www.reddit.com/r/personalfinance/comments/78uroy/okay_reddit_lets_talk_about_using_series_i_bonds/. One thing I'll note is that it is strongly recommended to have access to additional funds that can temporarily supplement your emergency fund if you go this route. It is a good idea to slowly buy Series I bonds due to the one-year hold. If you throw your entire emergency fund into Series I bonds and three months later you have a need to access those funds, you're out of luck. Another use is for savings goals that are at least one year away but have an otherwise unknown timeline (e.g., buying a house). I'm guessing many people who are saving for a house down payment within five years (or perhaps longer) are not willing to risk losing a portion of their savings in the stock market or some other relatively risky investment. Many people will instead just hold this money in a savings account. Series I bonds will likely come out ahead compared to a savings account with little to no added risk. Perhaps you are moderately or highly risk-averse and are trying to save for a longer-term goal. Series I bonds may be a good idea; however, this will depend on your risk tolerance. If you have children and would like to pay for their college tuition, this may be a suitable vehicle. A 529 plan will likely yield better long-term results, but if you have a low risk tolerance, that may not be your cup of tea. Plus, if funds from a 529 plan are withdrawn and used for something other than education expense (in the event your children do not go to college), there may be fees involved. Closing Thoughts
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| To PSLF or not to PSLF - that is the question... Posted: 01 Nov 2018 08:21 PM PDT I borrowed a grand total of $55k for my undergrad degree and my law degree. I graduated law school this May - near the top of my class, summa cum laude. My plan still is and always was to be a public interest lawyer. I accidentally landed a pretty bangin' one-year federal job, and I make about $61k -- roughly $15k more than I thought I would make at my first legal job. I'll be switching to a different state/county job (dream job!) in about a year, and I imagine it will be at least a $10k pay cut. I thought I played it smart with loans, as (again) I always planned to work in public service -- took a full ride to a T2 law school, borrowed mainly for cost of living. Y'all. Somehow I owe $75k right now. $20k more than I originally borrowed. The best PSLF options (at least based on my current salary) have me paying about $83k over ten years -- almost $30k more than I borrowed. I will only end up with about $24k forgiven. My monthly payments are about $500. I imagine things might look better once I take the pay cut that will (almost certainly) come with my dream job, but I don't know if PSLF is worth the gamble at this point. I think more people will be forgiven over time (I am very familiar with the *99% of applicants have been denied* mess), and I am hopeful that even if the program is cut or vanishes, it will still continue to exist for people who borrowed while it existed. I've deferred my loans for one month (I just moved across the state and paid first month's rent and a security deposit), but I need to decide whether or not to enroll in PSLF **now.** If I do, I can't make any payments over whatever IBR program I choose -- paid in advance status is deadly! I am not too worried about being "locked in" to public interest jobs--I worked for a nonprofit for three years between law school and undergrad, and I am very committed to public interest work. I'm just **so pissed** about paying $30k more than I owe over ten years and getting next to nothing forgiven. I'd appreciate any thoughts on the issue! PSLF worth it? Should I just try to pay 'em off? How? [link] [comments]  | ||||||||||||||||||||||||||||||
| I found out my coworker with the same position makes over 10k more than me. What should I do? Posted: 01 Nov 2018 08:17 PM PDT Ive been working at this job for four months now and recently found out a co-worker who started out with me and has the same exact position makes over 10k more. Im making $59,750 while he's getting $72,050. This just seems like a huge difference and now I feel I want to move on and find something else. One difference is he told me he negotiated hard for a higher salary while I on the other hand didn't fight as hard since I needed the job. This huge difference seems very unfair for the same exact work. Should I have a chat with my management about this? Or should I just start looking for something else... [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 01 Nov 2018 02:25 PM PDT Went to go take a look at my balance expecting it to be 0 and it was at $59 for the annual charge. Tbh, I got the card two years ago and never even noticed the fees before. I asked if they could waive it but said they can't but will do so if I cancel the card. I primarily bank with Chase and use my chase card for most purchases so I've got my primary credit card and debit. I don't need it but I liked having it. If I cancel how badly would it effect my credit score? [link] [comments]  | ||||||||||||||||||||||||||||||
| Wife lost her job. Just need a little guidance. Posted: 01 Nov 2018 08:07 AM PDT I'll preface this with I'm not completely clueless.. just a little in shock and borderline panic. My wife lost her job Tuesday so now we're relying on just my paycheck until she finds something. Things are already generally pretty tight and I know the time is now to skimp and pinch pennies.. but does anyone have any advice to give? I bring home ~$550 per week and we have $1400 in our rainy day savings. We have two children so 4 people total to provide for. Our essential monthly bills are (in case anyone is interested): $600 mortgage $150 gas & electric $700 student loans $200 medical/dental $65 phone $200 insurance $35 water We pay $50/mo for internet but I understand that's expendable and we pay $960/mo for daycare though that will probably not be necessary if my wife is home. Does anyone have any advice to give or even some calming words that can help in the coming weeks? [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 01 Nov 2018 07:51 PM PDT First, I know they are a bad idea. I'm in a bit of a financial emergency at the moment due to a house problem and this is all I can think to do. I remember when I tried taking out 2 payday loans with different places a few years ago I couldn't. Apparently you can only take one at a time. Are there any loans besides the classic payday loan shark 500$ loans I can get that dont require a credit check and are based off my income? [link] [comments]  | ||||||||||||||||||||||||||||||
| Buying a new house before you sell the current one. Posted: 01 Nov 2018 07:50 PM PDT Real estate agent Trivia Question: do you have to sell your current house before you buy a new one? What's the right procedure for using the money from the sale of one house to fund the purchase of another house, without being homeless in between? Edit: thank you all for for the insight. To answer questions: Last time we did this, we sold a condo for cash, then moved into an apartment for a year, then bought a new construction and put a lot down. And we were young and single. This time we're afraid it would cause too many disruptions. Would like to have the transition from one house to the other happen the same month, ideally mid summer. Can't rent out the current house profitably due to high taxes and HOA restrictions. Need equity from current home for down payment (approx $500k). Would a heloc work? Or is that too expensive. [link] [comments]  | ||||||||||||||||||||||||||||||
| Paying twice a month on a credit card good? Posted: 01 Nov 2018 07:40 PM PDT I was talking to my credit card company as I was paying my bill and I mentioned best way to keep interest low on my account. Currently my credit card is locked, I locked it not them, so I would not be tempted to use it and I have been good on that part. Anyway the person at Capital One told me if I paid twice a month it would not only help my credit score but also it would not charge me interest on my bill. Is this true? I try to pay as much as I can currently ($300) a month. If I split it in half would that help me more then paying it at one time? [link] [comments]  | ||||||||||||||||||||||||||||||
| 26 years old and no 401k. What is the best way to start saving? Posted: 01 Nov 2018 09:05 PM PDT I have a salaried position with benefits but no retirement or 401k contribution. I feel like I needed to start saving years ago. Whats the best way to start on my own? [link] [comments]  | ||||||||||||||||||||||||||||||
| Lost Job, behind on car payment, gained employment, and still in a pickle; what should I do? Posted: 01 Nov 2018 04:17 PM PDT Hey guys, So I've stumbled across hard times. I lost my job last September and recently got hired at a new one starting at $25 an hour. Through that time I was unemployed, I was living off of my 401k, unemployment benefits and the last of my savings. I stopped renting my room and thankfully my family welcomed me back to their home until I'm able to get back on my feet. I don't have very many bills, but the most expensive one was my car payment and I was more than halfway through paying for it and in March of this year was the last full car payment I made. I'm saving money to make the bill current and I'm currently being sued by my finance company for either the balance I owe or just give up my car and be left with the difference that will come of them selling the car at auction for far less than what it is worth. I have until December 5th to come up with $6,500 and I will end up being $3,500 short come that time. I know it sounds childish not giving up my car, but the last thing my Nana ever did for me before she passed was co-signed on the car and it has way too much sentimental value for me to get rid of it over money. If it wasn't due to being laid off, I would have no problem affording it and now I'm in the position to afford it again, but I won't have the amount I fully owe to catch up in time. I come from a low income family and was brought up with respect, integrity, & hard work from a very young age. I'm frustrated, but I'm not defeated. I learned of a r/borrow sub here, but you need 1,000 karma to request a loan & I'm about 500 karma short of that. Other than financial loans through establishments and family borrowing, does anyone have any suggestions on what I can do to come up with the $3,500? My plan was to borrow from r/borrow with 6 payments of $700 every 7th & 22nd of Dec, Jan, & February for a final return of $4,200 which would be 20% interest. Please help me out! Thank you in advance for the suggestions! [link] [comments]  | ||||||||||||||||||||||||||||||
| Need help with Pay For Delete. No responses. Posted: 01 Nov 2018 07:18 PM PDT I'm finally tidying up my credit. I have a mix of college bills I forgot about, a medical bill I never knew I had, and something else, but in total 4 collections. I've followed the pay for delete process with the template letter and certified mail. I only received 3/4 return service request slips and have yet to hear anything from a single agency now that it's 10 days later than the first letters being signed for. I understand time, but the first letters arrived in a day so I figure 2 day turn around and at most 5 days to mail back to me. Does anyone have a suggestion on time frame/what my next steps should be if I don't hear anything. I expected fast mail as two of the debts are located at the same agency which is 40 minutes away. Is waiting 5-10 more business days and going in person any sort of good idea? [link] [comments]  | ||||||||||||||||||||||||||||||
| Should I contribute to my 401k if planning on working here for less than a year before school Posted: 01 Nov 2018 07:16 PM PDT I am recently 24. I applied to law school this year (last admission cycle). Got in a few. They offered much less money than I was expecting, leading to me need to borrowing much more money than I feel comfortable. So at the end of august near the enrollment/payment deadline, I decided to gap another year. I went ahead and found a full time job paying $55k, and offering 75% match up to my 15% contribution on 401K (which I will not get due to me planning to quit before 12 month of employment), so I will just be investing my own money. So my question: is it a better investment to put money away for retirement in a roth, or should I forego the 401K and save all money for grad school as an "investment" for my future? Important facts:
EDIT Oh and a fun fact: The company is an ESOP company and last year they gave 47% of the salary's as bonus stock. BUT you have to stay 12 months to qualify, and 36 months to be fully vested in the program. [link] [comments]  | ||||||||||||||||||||||||||||||
| Bridge Loans, do banks still offer them? Posted: 01 Nov 2018 05:59 PM PDT We own a house outright that is appraised at $375,000. We just bought 10 acres appraised at $150,000 that is also fully paid off. Can we use those two assets as collateral/lien to get a Bridge/Construction loan? My credit is only so-so, 690 credit score and I only can work half the year due to military disability. So, it would rely on those assets. I was hoping that with over $500,000 appraised collateral it would be enough to get a Construction loan of $300,000 to build on the new property we bought. Do we have a shot? [link] [comments]  |
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