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    Wednesday, July 3, 2019

    Personal Finance Mom keeps borrowing money from me

    Personal Finance Mom keeps borrowing money from me


    Mom keeps borrowing money from me

    Posted: 03 Jul 2019 01:02 PM PDT

    To start off, I'm 17 and I've been working since I was 14. A couple months ago I got a job working a fancy ice cream place, and I make an ok amount of money, my pay is near minimum wage but I make tips also. When I first started off this job everything was fine. But then my mom started asking for money, sometimes she doesn't even ask. Since I'm a minor I have to have a joint account with her so she can see everything about my account like my balance, and she can also transfer money in and out.

    This isn't anything new, this has been happening for a few years. I used to have another bank account that had about $1000 and now there isn't anything left. Whenever I was hesitant about putting my cash in the bank she would call me out and say I'm scared that she would take my money, which is true. At this point I don't even know how much money she has taken from me and I've decided to leave it in the past, but I don't want it to keep happening. Since I'm about to turn 18 I really want to start off with a strong foundation.

    I'm currently so frustrated and I feel demotivated. It feels like I work and work and work but I still end up with nothing. It's already July and I think about all those days and late nights I've worked that have amounted to nothing. She says she'll give me the money back but it's false promises, she always delays it. My parents make way more money than me, and I don't want to make assumptions but I know that in the past they were always going to casinos. I'm not sure how frequently they go now but they're always buying expensive scratch offs yet can't even pay me, say $50 back.

    I honestly want to quit my job and tell my boss the situation, and not start working again until I can get my own bank account. It feels like I'm working for absolutely nothing. I don't even buy anything, I always try to save but anytime I have a significant amount of money in the bank there comes my mom. What I make in two weeks takes about 2/3 days for her to earn. I don't have any problem with helping out my parents, but this has been going on for years. This has led me to trying to sell my clothes and other things online but I haven't had luck yet. I just feel so desperate and hopeless, and financially insecure right now and I honestly don't know what to do.

    submitted by /u/vonriy
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    Girlfriend [23] wants to give savings to her mother for safe-keeping. This feels like a bad idea.

    Posted: 03 Jul 2019 03:35 PM PDT

    Little bit of backstory: Late last year, my girlfriend and I were in a car accident. After a long process, the attorney is about ready to get our settlements. I'm 26, employed full-time and also in school getting my MA. She's 23, also employed full-time and is studying for her real estate license.

    Today, my girlfriend told her mother that she'd be giving her the remaining money from the settlement—whatever doesn't go toward debts, spending, etc.—for safe-keeping. An in-person savings account, I guess.

    I was annoyed, for two main reasons:

    1. When her grandparents died, she was left an inheritance of $25,000 or so, which she entrusted to her father (not legally—just put it in a savings account and gave him access to it). He blew through that pretty quickly, and she was left with pretty much nothing. While her mother and father aren't married anymore, and haven't been for some time, I can't help but draw similarities here.
    2. She's 23. She's an adult. She already has a savings account which, to her credit, she admits to not putting enough money into. To her, the savings account is an extension of her checking account. I told her she should look at other savings accounts, because stashing the money with her mother means it won't collect any interest.

    Her mom hasn't given me reason to be suspicious that she'd take the money, but her mom is pretty invasive and needy. She can't go three days without seeing her daughter and she's constantly calling her, which annoys the hell out of both of us. So why would she willingly hand her mother such a large amount of money, knowing that any time she wants/needs access to it, her mother will use that as leverage?

    Like I get that it'll be her money to do with as she pleases. That's fine. I just wish she would think this through, and I know there's a better way to save that money. Can someone help me put a cohesive argument together as to why she should opt for a bank and not her mom?

    submitted by /u/scribe_
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    26 years old. No savings, no formal education. Not much family besides mother who has an expected year left to live. I’m not sure what to do.

    Posted: 02 Jul 2019 10:08 PM PDT

    More information:

    For the past 6 years I've worked seasonal seafood jobs to supplement my income. I love the work, but it doesn't pay enough to live off of so I live with my mom during my time off (about 3 months). I usually pick up a serving job or something.

    She's not expected to live much longer. She owns a crappy car and a house that is valued around $200,000. If sold, the money would be split with my uncle who is our only other living relative. No life insurance policy and under $1000 in her bank account. Also has 5 cats that I don't think I'll be able to take care of.

    I currently don't pay rent. I pay for utilities and such, but have never had to budget for the real world. I don't own a car. I don't have insurance. I have maybe $700 to my name at the moment.

    Sorry if this post is all over or in the wrong place. I'm not sure what to do with the kind of money I would receive from selling the house and I don't know what to budget for when people die? Loose ends, etc. I think I'm just super overwhelmed right now.

    ***Edit/Update:

    Thank you all so much for genuinely good information and being so kind. I'm for sure going to look into trade schools. To answer some questions: I have my GED, and no debt at all (which is nice.) My mother has aggressive stomach cancer and she lives in Florida. Home is entirely under her name legally and she wants to do the right thing by giving my uncle what he was entitled to when my grandparents passed.

    As to how I have no savings: I've been doing work travel programs for years and it's never allowed me to save money or have my own shit. I'm actually currently in Alaska working at a fish processing plant. Health issues have kept me out of the military and also from hopping on a fishing boat unfortunately.

    Also am a v single lady with no significant other or siblings and few friends who also lead the same work/travel/repeat lifestyle. I've done mostly factory and fish work for a while, but I've worked all over the US at summer camps, farms, hostels and national parks. Some jobs pay well, but most pay trash and offer room and board instead.

    I want to be honest with you guys, I have no goals or dreams besides live and be not miserable? I fucked off for so long and kind of just stopped thinking about the long term because it hurt my small peanut brain. It's always just been my mom and I doing our own shit and then hanging out for a couple months before I leave again and it's been so awesome, but it's definitely catching up to me now.

    submitted by /u/shittypotatosalad
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    I had a small 401k account with roughly $5,000 in it that has grown to $20,000 after moving it all into 2 stock purchases

    Posted: 03 Jul 2019 07:45 AM PDT

    While at my first 'career' job I had started my first 401k and was able to save about $5,000. When I left I rolled it over to a traditional IRA account with my bank, but instead of keeping it in a growth type of account, I split the $5k into 2 different stock purchases (amazon and apple) as I was willing to take the risk at the time with that money as I set up a new 401k with my new job. Now it has grown to $20,000 and I'm wondering if it is a smart move to keep the stock where it is or if I should roll it over to a more traditional 401k account?

    submitted by /u/secondachiever
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    Has anyone worked two full time jobs?

    Posted: 03 Jul 2019 10:12 AM PDT

    Title Edit: full time corporate jobs*

    I currently work a healthcare job remotely as a BA. My VP is completely aloof and hard to find. I have very little work designated to me, and when I try to be ambitious and get more work, it takes months to develop it because my VP is probably boating or something. I am good at what I do (at least he and others tell me so) and don't feel at any risk of losing my job. But I spend 70% of my 8hrs a day doing house work, going to the gym or playing video games.

    I have been recently applying for other jobs (majority not remote) and thought to myself today, "what if I could do both?" Obviously the pay is the inspiration.. but I'm curious if anyone else has pulled this off and what was their experience?

    submitted by /u/PhonB80
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    Dad charged with Medicare fraud, Merrill Lynch closing his retirement account, need help/advice please

    Posted: 03 Jul 2019 11:17 AM PDT

    Hi, I'm not sure if this is the correct place to post this but please let me know if there is another sub that may be of help.

    So, to start off I'm not absolving my Dad of blame for any of this and neither is he. He takes full responsibility of his actions. We just need help given the circumstances.

    To explain further, my dad is a pediatrician in an underserved inner-city community for 35 years. He loves what he does and he loves his community. My mother works with him as manager of his private clinic for the last 10 years. She has no medical or manager background but mainly has been helping him as consistent work was hard to come by. Through some over sight of her and the billing company, several years back they erroneously used medicaid allotted vaccines for private insurance pts (which is a fraction of his patient population). This was uncovered during an audit this year and totaled in roughly 60k in fines which he is absolutely willing to pay. He has accepted the blame because ultimately this falls on him and is accepting the charge which amounts to a felony. He has now been stripped of his license and his clinic is now closed. He is devastated to say the least.

    On June 21st he received a letter from Merrill Lynch stating they no longer will be custodians of his retirement account and if he can't find someone to take it on, it will be liquidated to him with taxes taken out. We are assuming this is because he accepted the charges. We've contacted several other firms including Edward Jones who state the same thing that they are not willing to take on his account. What would be the best course of action for his retirement? Are there some specific smaller firms that have experience in this that are able to help? My family and I would greatly appreciate any advice or insight that you may offer and thank you for taking the time to read this.

    submitted by /u/hydrofriend
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    Purchasing a house at a young age

    Posted: 03 Jul 2019 06:11 PM PDT

    I'll provide a bit of background information. I'm 18, soon to be 19. Recently, my girlfriend and I both came to terms with the fact that we are adults, and naturally want to move out of our respective homes. We both live about 6 hours away from each other. After many long talks, we decided that we wanted to move in together. The decision was made that we would move to my town.

    Originally, I considered the fact that we are young, and wanted to look for a place to rent. However, my girlfriend is very attracted to the idea of owning a home, and I am too. Primarily that during renting the money goes "away" and if we were to buy a house our monthly payments would be towards the house, and therefore more meaningful.

    After a lot of research, I decided a home around the $100,000 price point would be a good fit for us, and at that price point we might be able to afford up to a 20% down payment. While searching for homes we would both stay with my mother, and secure jobs we would trust to pay the mortgage on the house.

    I suppose where my questions would start, is purchasing a home at this age wise? I'm aware it is a large undertaking and my main qualm with it is that we may want to move again in the near future, likely selling before the mortgage is complete. Is there a downside to this?

    We consider ourselves proficient at budgeting and wouldn't mind making a few sacrifices to live with the independence of our own house.

    I probably left details out, so if anyone would want me to fill those in I would be happy to. I would appreciate any and all advice related to buying a home in general, financing, or my situation. Thank you.

    submitted by /u/TheDaneH3
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    I took a well-paying job in a rural area and moved there for the shorter commute, but my quality of life is really suffering. Is it feasible to keep my job but move back to the city, despite a longer commute and higher cost of living?

    Posted: 03 Jul 2019 07:36 AM PDT

    Hi Reddit,

    I have the opposite problem to what many people seem to have, which is that I took a pretty well paying job in a rural area (about 40 minutes to an hour outside of my country's capital city), and moved with my husband into a tiny studio apartment in the local community (there weren't many housing options). My commute to work is only about 10-15 minutes by bus.

    However, after 1 year at this job, this new set up has really been taking a toll on my mental health and quality of life. I work in a specific area of healthcare, which is particularly draining both emotionally and physically, with long and sporadically planned working hours. Because I am living in a more rural community, there are also very few activities and things to do, and few people in my age group (I am 26F). Our friends and family all live in the city, and we don't have space in our studio apartment to host social gatherings. My husband and I feel very cramped and isolated, and I basically just spend all my time shuffling between my job and my tiny apartment. I take the train into the city about two to three times per month just to try and escape and do something fun. My husband is a masters student at the city's university (good career prospects but, no income for the next 10 months). He has a long commute but his schedule is a lot more relaxed, so overall he tolerates it well.

    So my question is, should we move back to the city? This would mean not only a longer commute to work for me (40 minutes to an hour) but also paying more than double what I currently pay in rent.

    If it helps, here is a more detailed description of our budget converted to USD:

    *side note: I am living in a Northern European country where my taxes pays for my healthcare and a quite decent pension plan

    Income after all taxes, per month: about $3700-4000

    Expenses for 2 people, per month:

    -rent: about $700 all inclusive (considering 1-2 bedroom apartments in the city for $1500-1800)

    -food: $215

    -transport: $60 (would be $120 after a move to the city)

    -phone: $40

    -subscriptions: $20 (Netflix, HBO Nordic)

    -misc. (fun days, dates, activities, birthday gifts, clothes): max $150

    Savings: $21,000. I currently add around $2000 to this every month.

    We live a bit "bare bones" and have been doing so for a while but we hope to buy a home and start having children in the next 3-5 years, so I'm a bit lost trying to see if this move is feasible while still trying to secure a good future for us.

    submitted by /u/steakandonions
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    Bank deposited $2000 into my account, reversed it when I called, but deposited it again...

    Posted: 03 Jul 2019 07:21 AM PDT

    My bank (U.S Bank) deposited $2000 into my account on Thursday of last week. They then reversed it when I called it in because I wasn't expecting a deposit of that amount. They said it was a banking error and it was a case of the wrong account being entered. Then Saturday morning the $2000 was deposited back into my account. I haven't spent it of course, but it's still in my account this morning. Should I call back? Or see how long it stays there.

    submitted by /u/Lululolahulahola
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    Simple credit card question

    Posted: 03 Jul 2019 06:01 PM PDT

    I've just turned 18, but I've been doing research about credit cards just to build my credit for the future. My question is probably really stupid but I just need to make sure of everything. If I get a secured credit card and pay a $200 refundable deposit that established my credit line, and then say I charge $25 to the the card in July. When I pay off my balance for July, I have to pay $25 right? Not $200 which is my credit line every month.

    Once again I feel like this is a super simple question, but just want to be clear if everything.

    submitted by /u/ItsTreDay
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    Relative needs money fast. What's the fastest way to transfer money to someone else's account?

    Posted: 03 Jul 2019 12:55 PM PDT

    Hey all,

    I'm trying to help a relative out with money and need to transfer slightly more than $10k from my personal Ally savings account to a business account at a local credit union about five hours away from me. They need this money to be available in their account by Friday.

    Using Zelle to send the money says it'll take 1-3 days, which might be too late, especially with the holiday tomorrow. I also think sending a physical check would take too long for the same reason.

    I'm not really familiar with any other means of transferring money such as wires or money orders.

    Anyone have any advice?

    submitted by /u/Rad10_Active
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    Old Pension: Lump Sum or Lifetime?

    Posted: 03 Jul 2019 05:34 PM PDT

    Hi PF! Can I pick your brains about something?

    I have an old pension from my gov't job back in Canada (I'm a citizen but living in NYC). I honestly forgot about it until recently, when I called to get some details about it.

    I only contributed for 3 years, but it is vested. I have the option of taking a lump sum payment of 19k CDN (I would obviously wait until the CDN dollar goes up) or getting the lifetime payment of $150/month CDN until I die.

    Obviously the pension is "worth" more than 19k if I take the lifetime payment option but I am wondering if it's a smarter decision to just cash it out and invest it in my IRA as I am currently 30 and have quite a few years before retirement.

    What's my move here PF?

    TIA

    PS for what it's worth I also have a pension here in NYC through the state retirement system. Not sure if that factors into my decision at all.

    submitted by /u/asix66
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    Changing banks, do I close the existing?

    Posted: 03 Jul 2019 05:14 PM PDT

    I've been with the same bank (bank A) for 26 years (my first and only savings and checking account). While they previously offered perks like free checks and low minimums, those who perks have steadily gone away, and they aren't competitive anymore.

    I found a bank (bank B) that I have a credit card with that I much prefer (free checking, no minimums, decent interest). If I open a money market and checking account with them, is there any credit-related or other reason to maintain my existing savings and checking account at bank A?

    If I stop using direct deposits at bank A, they start charging like 50/month to maintain my checking and savings account with them.

    Thanks, and happy independence to those of y'all celebrating that sorta thing tomorrow!

    submitted by /u/ResorbedTwin
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    Should I refinance, or wait?

    Posted: 03 Jul 2019 07:29 PM PDT

    I Just want some advice from some people who actually know more about this type of stuff than I do!

    So currently, i've been living at my property for about a year and a half. Bought the house for 80k last year in March, it appraised for 90k, so i'm already a litttle bit ahead of things. I bought it when the market was hit or miss, so my interest rate is 4.75%, and currently the rate in my area is 3.62%. I've already put a little bit of work in the house, but i'm still in the process of finishing the garage then the basement, which is more of a task.. Just need to drywall the ceiling, put a floor down, and some other stuff.

    Anyways, what are peoples opinions. Is it something I should consider, or should I wait another year or two. I *think* my pmi threshold is at 74k, and I owe 76k currently. So I want that to drop off eventually. I'm just not too savvy with the market and how things work, I always read these stories how some people do some crazy things with buying property when the market is right and coming up on top like crazy.

    submitted by /u/Vilex63
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    Where to park money if buying house in 2-3 years

    Posted: 03 Jul 2019 07:19 AM PDT

    I'm considering purchasing a home in 2-3 years in the Bay Area. My downpayment funds are currently split across my high yield savings, my RSUs, and ETFs/stocks that I invest part of my salary into.

    Where should I keep my down payment money for the next 2-3 years, and where should I be moving my savings from my paychecks during this time period? I've read some comments about pulling money out of the market but at the same time, 2-3 years is still some time down the road. Is there also some strategy as to when to/how to sell my stocks as time draws closer to my home purchase date?

    submitted by /u/atlashusky
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    Wealthfront - is it worth it? How does it work?

    Posted: 03 Jul 2019 06:49 PM PDT

    One of my friends just introduced me to wealthfront. I've been using American funds to invest, but from what I understand, the fees are lower with wealthfront and their ETFs. I do like the prospect of seeing all of my savings/expenses on one screen, but can someone explain the advantage of using an app such as this over traditional funds?

    submitted by /u/BrownBoiler
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    Taking a “I bought it, I’m damn well going to eat it” and a “I’ve got food at home” mentality will save you thousands over just a few months

    Posted: 03 Jul 2019 06:26 PM PDT

    The next time you think "I can buy my food on the go" just remember that an entire day of breakfast, lunch and dinner will cost about £20-£40. You can more than sustain on about £1.50-£5.00 a day. Times that saving by 30-31. That's almost £450-£1200 saved. That's 2-4 Playstations a month. That's half your credit card payed off. That's a very reasonable used car. It's enough to make you sick to be lazy

    submitted by /u/OverDoseTheComatosed
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    Housing crisis, don't know how I should handle it.

    Posted: 03 Jul 2019 06:22 PM PDT

    So, bought a house 5 years ago, I moved to another state 2.5 years ago and where the house is located the market wasn't doing well when I left and still is not doing good . (Town of 50k in the middle of nowhere Wyoming just lost 900 jobs) When I moved I tried to sell it but it didn't work out. I rented it out for 2 years just so it didnt get foreclosed on.

    Being a landlord from so many miles away is terrible for many reasons. I foresee this area declining further in the near future and do not want ties to it any longer.

    I currently have the house listed below market value, but paying the mortgage for more then 3 months plus my living expenses for were I am now is going to use all my savings. After which I will no longer to be able to pay for the house.

    I am not sure how to handle the situation. Do I try for a short sale, let it foreclose? Right now I owe 217k on it. I have it listed for 235k. I anticipate someone offering lower and asking for closing costs plus the realtor fees.

    I listed it in the beginning of May for 249k and had one deal fall through. So right now I can afford to pay for it for the next 90 days or so but will also wipe out my savings. I just dont know the best way to handle this and any input would be appreciated!!!

    submitted by /u/what_da_hell_mel
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    The end is in sight...but should I pay off my student debt now or wait?

    Posted: 03 Jul 2019 06:20 PM PDT

    Hi all - Posting from another account, but first time ever posting here on r/personalfinance.

    Here is my situation:

    1. I am mid/late-30s and live in California, USA.
    2. I do not have a house, nor car, but know how to make this work and keep my expenses low, about $1,000-$2,000mo.. Most of my net worth is tied up in crypto, currently ~$125,000. But we all know those winds can change. That is my retirement money. I have an additional $30,000 in a bank. I work irregularly as a freelancer and consequently try to stay very liquid in case of an emergency or dry spell with work. I fully subscribe to everyone having a suitable liquid emergency fund.
    3. I have no revolving debt...once in my 20s digging out from a mountain credit card debt was enough, and I promised myself to never carry a revolving balance again. If I can't afford something immediately, it is a luxury I have not yet earned.
    4. I see the debt-free finish line. My total remaining student debt is ~$850. (Down from a $30,000 principal fifteen years ago.) The interest rate is an absurdly favorable 2.8%. My loan payment is $114/mo. For anyone reading this, yes, I know that is low...there was an opportunity to consolidate in the mid-2000s and I took it. I have no idea how I'd afford school now at 6%+.

    My question is: What are the pros/cons of paying off this remaining student debt early?

    I could put the same $850 into crypto and in nine months, it will (likely) gain far more than the interest I will have paid. Or even an index fund would be solid.

    But there is also the psychology of just being done and debt free. How does one evaluate the opportunity cost of that feeling against "smart choice" to wait and continue to pay it off over nine more months? That is nine months of stress.

    All comments welcome. I'd really just like to hear second opinions and I'll reply as best I can. Thank you.

    EDIT: When I say, "crypto is my retirement plan", that is paraphrasing a larger strategy. I'm playing catch-up on not having been in a good financial place for about 5yrs. Stop-loss orders are set, and I'm up about 300-400% (depending on the day) since January. I'm starting to take profits and starting to explore more traditional plans -- the first part of that is being debt-free, clean slate. Thank you to everyone throwing up a red flag about crypto and I'm well aware of the risks and have been following the space since 2014...just never got into until much later.

    submitted by /u/alt_account_why_not
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    Upside down car loan trade-in

    Posted: 03 Jul 2019 06:17 PM PDT

    My wife's car is having lots of problems, and she has a bad loan. She owes ~$10k on her auto loan and per KBB her car is worth about $5k (and it has some mechanical issues so it is worth no more than this). If we end up needing to trade it in, which is probable, how does that work with the dealer/other creditor financing and what is your advice on anything related? Will they just roll her remaining balance into the new loan or will they not be willing to since that portion will be effectively unsecured (I assume they would consider this unsecured since this portion of the loan would exceed the value of the new vehicle)? Thanks!

    submitted by /u/zzxJackalxzz
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    I want to pay off part of my mortgage but...

    Posted: 03 Jul 2019 06:14 PM PDT

    I owe 125K on my house and I have 70K that I wanted to apply to the principal to lower the monthly payments. So I called my bank (WF) and said I need to apply said amount to the principal. They said great... but because it's a VA loan they couldn't lower my monthly payments. UGH! That really throws a wrench into my financial plan. What can I do?

    submitted by /u/urgent45
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    Injury settlement with disqualify for Medicaid?

    Posted: 03 Jul 2019 04:40 PM PDT

    My mother lives off of her social security and deals with multiple pretty intense medical issues (lupus, tn, and fibromyalgia) she in receiving a personal I jury settlement from a car accident a few years ago. Settlement is only for about 11 grand. The state (maryland) will refuse her Medicaid if she has that much in the account, but it would be run through in months for medical expenses...

    What should she do with this check?

    submitted by /u/wickedb84
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    Trading in my car, but trying to be responsible about it.

    Posted: 03 Jul 2019 06:08 PM PDT

    I'm looking to trade in my 2014 Honda Accord EX, at my local CarMax. The trade-in value they're offering me is $9,500, I'm saving up $1,000 to add to the downpayment, while financing the rest of the difference. My overall budget for the new car is $15-$16,000 max.

    After doing some research, my final picks from CarMax would be the:

    • 2010 Toyota Highlander ($14,899 / 102K miles)
    • 2010 Toyota Rav4 ($13,998 / 119K miles)
    • 2015 Toyota Prius c Two ($12,998 / 95K miles)
    • 2010 Subaru Forester ($15,998 / 98K miles)
    • 2014 Subaru XV Crosstrek Premium ($14,998 / 99K miles)

    I'm also considering a Mazda, but most of the ones I saw on Carmax are over my budget.

    In terms of needs, I'm mainly trying to find a car thats reliable, not too horrible on gas, and is able to get me to work okay. I do an hour commute one way, 3 days a week, so I need something I know I can count on that can take higher speeds on the highway (65-80 mph). I'd also love something a little bigger for my family, there's only two of us and our dog, but the Honda has really been an annoyance when we try to transport furniture or other bigger items as we start to upgrade our house.

    Wanted to get some advice on what sounds like a smart move, as I've never financed or really car shopped before. This will be my second car and the Honda was already paid-off when I got it.

    submitted by /u/mspanda_xo
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    So Credit is actually a good thing...

    Posted: 03 Jul 2019 08:13 PM PDT

    Huge disclaimer: I never have an overdue balance on my credit card, I pay the whole thing off every month. In fact, I've never paid interest on credit card debt that I can remember.

    I think I've learned an invaluable lesson from visiting this sub reddit which is overcoming my fears of the credit card. I've been listening a bit to Dave Ramsey (haven't read his books yet but I'm getting much out of his youtube videos and web content). From what I gather, he's very anti-credit card. Cut up your cards and budget yourself with cash. There's also a perception that debt is bad and that you shouldn't have any. I think there have been quite a few voices in my life that have echoed that same concern (fear) with credit cards and so I've always been cautious about that. In fact, it wasn't until about 6 years ago that I actually got a credit card for the first time (I'm 40).

    I started visiting this sub reddit and listening to other audiobooks like Rich Dad Poor Dad to gain more insight into personal finance/wealth accumulation and I'm coming to a different conclusion that is counter-intuitive to what's typically taught. Here are my lessons which break conventional wisdom:

    #1 - Increase your credit limit. Increasing your limit is a good thing because if you're financially responsible (you don't spend more as a result of the increase) and pay your card(s) off every month, you decrease your credit usage which will help your credit score. The key is to always stay under 30% usage so that your credit score can increase/stay high.

    #2 - Use your credit card for everything. This is fairly obvious - by using your credit card in place of a debit or check card, you're accruing points at a much faster rate which, if you're smart, can be redeemed for cash for further investing.

    #3 - Get your money out of a traditional bank. Banks are pretty horrible about paying you back for the privilege of using your money to make a profit for themselves. Assuming your risk tolerance is agreeable to this, you can take that money and buy into a money market mutual fund through a brokerage's cash management account and make quite a bit more than a traditional bank would dole out.

    Taking these lessons together, you can actually EARN MORE MONEY by using your credit card for everything, Not only are you generating points which can be converted to cash from all the credit card spending, but the money you would've used for day-day purchases can instead sit in a high yield investment for that month prior to being use to pay off the balance.

    Which brings me back to Dave Ramsey. His contention is that if you have a credit card, you're likely to spend way more because you're not limited by the cash you have on-hand. Yes, that's possible BUT if you realize you have to pay that money off in a month and keep an eye on what you're spending through that month, this shouldn't be a problem. I think Dave is doing a disservice to many people who are financially responsible because the money that can be generated using the lessons above can be pretty significant.

    Again, this is entirely based on the premise that you are a debt-free or at least debt-controlled human being. I wouldn't recommend this strategy if you struggle with debt or are loose with your spending and don't pay your bills on time.

    I'm sure I'm not thinking of everything so I'd be interested to hear your views, thoughts, experiences or other lessons that you've come across. If you disagree with my lessons, share that as well.

    submitted by /u/outskirtsofparadise
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