Official Personal Finance/Home Economics Thread
- Thread starter phcitywarrior
- Start date
I resolved to paying off this car by the end of the year. I already adjusted my autopay. The next step is to drop a one off payment on it after next week. Then it's just sit back and let time pass. I just need to see some numbers and then I can make the final decision. When that's done I'm buckling down for a house, anything that I don't share a ceiling or walls with people with kids.
I still own $6700 on my car. Payments are $162 a month. I pay $162 to them and I pay myself another $162 in my Discover online savings account. I plan on carrying my car loan for the life on the loan right now or at least until I get a mortgage because it's my only installment loan. Once I pay that off if I don't have another one my credit score is gonna drop.
It's time for me to get away from this loan. Opportunity cost of money and all. Payment is too high to lug around. Don't things stay on your report for 7 years though? Or is that just bankruptcy?
I used to have an 850 FICO score. I had a credit card consolidation installment loan. When I paid that off my score gradually fell down to the 780-805 range and it's been stuck there ever since. When my balances creep up it goes to the lower end and when they go back down it hits that 805 ceiling.
I've paid off about 20% of my auto loan so I still can't really see the positive effects of it. That stuff stays on your report for the average age but if you drop all installment loans then you have less a variety of credit and it dings you.
With the chunk I just dropped it's all downhill from here. I should enter next year debt free.
I have $2900 in credit card debt $1630 of it is on 0% cards. The rest gets paid off monthly. I do all my spending on credit cards so I'll always have a balance. I don't pay interest though. In the past 7 or so years I've paid no credit card interest.
I also have $6600 in car debt. 2.99% interest.
That's all my debt.
I also have $6600 in car debt. 2.99% interest.
That's all my debt.
Need to revive this thread lol.
Savings and investments have been good. Been spending a bit too much of late so I need to taper that down.
The one drawback about this ESPP is I’ll have to hold the shares for 1-yr before I can sell, so my free cash/savings will be tied up for a bit. I have some cash on hand but it’ll take a big hit to that once I complete this move.
Been thinking about reducing my contributions to the ESPP but the 15% discount on company stock is too hard to pass up.
If all goes well I’ll have north of $11K by EOY. First tranche of shares won’t be available to sell until Feb’21.
Was thinking of living alone for this move but its a new city and I think it’s be beneficial for me to room with someone to orient myself and to save up on rent costs to replenish my free cash on hand. One of the worst feelings is just barely covering your bills on a month over month basis.
Savings and investments have been good. Been spending a bit too much of late so I need to taper that down.
The one drawback about this ESPP is I’ll have to hold the shares for 1-yr before I can sell, so my free cash/savings will be tied up for a bit. I have some cash on hand but it’ll take a big hit to that once I complete this move.
Been thinking about reducing my contributions to the ESPP but the 15% discount on company stock is too hard to pass up.
If all goes well I’ll have north of $11K by EOY. First tranche of shares won’t be available to sell until Feb’21.
Was thinking of living alone for this move but its a new city and I think it’s be beneficial for me to room with someone to orient myself and to save up on rent costs to replenish my free cash on hand. One of the worst feelings is just barely covering your bills on a month over month basis.
Can't really tell the terms of your ESPP from your post. If the offering period is 1 year and you can sell as soon as you get the shares I wouldn't lower the ESPP if you don't have to. That's a free money if you sell immediately.
I get the 401k Match then max out ESPP to capitalize on those guaranteed ROIs. However, you have to look at ESPP a little differently if you plan/have to hold. Compare it to your other investments for risk/exposure. Also realize that 10% or whatever you contribute is tied up in the same company that's cut you a check.
How are you going about finding a room/roommate in a new city?
Yea the ESPP has 2 offering periods. Jan - Jun and Jul - December. You can enroll/unenroll during each offering period.
Regardless of when you enroll, you have to hold the shares for at lease 1 yr before you can sell
e.g. Buy shares at 10 shares for $850 on Feb 2021, a 15% discount of $100 per share. You aren’t eligible to sell until Feb 2022 and you sell at current market price.
Essentially I’m using it like a deferred savings fund of sorts, but you’re right. It’s a lot of exposure to the same company that pays me. 10% post tax income to one firm and I haven’t even started to talk of other investments I’m making as well.
I think I’ll still keep the 10% contribution for now. When I move and get a better sense of my new financial picture I’ll adjust accordingly.
Per moving/looking for a room, really just using Apartments and Zilllow. I do need to intensify the search now that time to move is running out.
I'll throw this in here: thinking of picking up another credit card, hopefully something with a relatively high limit if I can. Considering going for something from Chase but it's still early days. Got a credit limit increase on my Quicksilver but it was only a couple hundred bucks.
Looks like our company will still pay out bonuses this year. Those couple racks will come in very handy at this juncture.
I did the Dave Ramsey plan a while back and really got my finances on track at the start of the pandemic (paid of cc debt, paid off car note, increased savings, increased investments etc). But I kind of fell off the wagon with my financial discipline, especially once things started reopening up a bit.
Now I just got hit with an emergency that'll put a big dent in my finances. Add in relocation for work and things just got very interesting. I'll be getting a financial advisor as well. Within the next 2 years I want to buy a home so I need to tighten up the finances big time.
I did the Dave Ramsey plan a while back and really got my finances on track at the start of the pandemic (paid of cc debt, paid off car note, increased savings, increased investments etc). But I kind of fell off the wagon with my financial discipline, especially once things started reopening up a bit.
Now I just got hit with an emergency that'll put a big dent in my finances. Add in relocation for work and things just got very interesting. I'll be getting a financial advisor as well. Within the next 2 years I want to buy a home so I need to tighten up the finances big time.
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Ended up going for the PayPal 2% CB card. My score dropped to the 720s as a result but I don't plan on doing anything that require my credit score in the next few months anyways.
The new CC will be my daily card for all purchases that do not fall under Discover's rotating 5% categories.
Attacked this from a different angle. Applied for the Amazon Prime Rewards Card and got approved. Chase is the current issuer - I had seen talk about them moving to Synchrony. I take a hit for a year because of the inquiries, and a bit for 2 years for it being a recently opened account, but another line and $5000 more in available credit is worth it. Functionally nothing changes for me, I buy in spurts from Amazon and rarely are they impulse buys. I can make it the primary payment method and be able to show usage across multiple lines since charge cards don't factor into that.
If you have Prime that card is a must have. 5% back on Amazon purchases is great. It’s one of my most used cards next to the Amex Blue Cash Preferred and Citi Custom Cash.
To me the must have cards are
Amex Blue Cash Preferred 6% grocery and streaming services 3% back gas
Citi Custom Cash 1 selectable 5% back every month depending on spend
US Bank Cash+ 2 selectable 5% back every quarter.
Amazon Visa Rewards 5% back at Amazon if Prime member.
Any 2% cash back card like Capital One Quicksilver, PayPal, SoFi, Fidelity, or Citi Double Cash.
After those 5 cards I’d go Chase Freedom Flex and Discover It for rotating 5% cash back quarterly. Maybe add a Target store card for 5% off at Target. This setup gets you almost 5% back most places you spend.
If you hate annual fees the Amex can go down to the free version and the Flex and It will provide 6 months of 5% cash back at grocery stores. The Custom Cash could be used any other of the 6 months they don’t cover and the no AF Amex does do 3% instead of 6%.