NT: Official Personal Finances Thread

[capital sb]

My 6 month emergency fund is around 12K also. 1 year is way too much, I don't see why anyone plan to be out of work for a year. I want to also add a few grand to cover for unexpected car expenses.

Going to pay off my CCs then build the EF.

 

[water runs dry]

So one of my goals from this point forward is to pay off my credit card. And so it was suggested to me that I transfer my credit card balance. But I'm not entirely sure how it works. I have a credit limit of nearly 3k and and my available credit is only 300 something ( I know, I know...I suck at impulse control). But fortunately, I've found some employment and would like to just tackle this obstacle once and for all. I don't plan on using the new line to buy anything (just pay off the debt). They even suggested to destroy the new card once it arrived in the mail. And so I was wondering if this would be a good idea?

My question is what happens to the old line of credit after the transfer? Do I just close it?

And what will my monthly payment look like with the new line of credit?

And what are some other things that I would seriously need to consider?

 

[based mod]

So one of my goals from this point forward is to pay off my credit card. And so it was suggested to me that I transfer my credit card balance. But I'm not entirely sure how it works. I have a credit limit of nearly 3k and and my available credit is only 300 something ( I know, I know...I suck at impulse control). But fortunately, I've found some employment and would like to just tackle this obstacle once and for all. I don't plan on using the new line to buy anything (just pay off the debt). They even suggested to destroy the new card once it arrived in the mail. And so I was wondering if this would be a good idea?

My question is what happens to the old line of credit after the transfer? Do I just close it?

And what will my monthly payment look like with the new line of credit?

And what are some other things that I would seriously need to consider?

Do the math. If it saves you money to do the balance transfer, do it. If not, don't.

http://www.investopedia.com/articles/personal-finance/111214/pros-and-cons-balance-transfers.asp

 

[crcballer55]

 
So one of my goals from this point forward is to pay off my credit card. And so it was suggested to me that I transfer my credit card balance. But I'm not entirely sure how it works. I have a credit limit of nearly 3k and and my available credit is only 300 something ( I know, I know...I suck at impulse control). But fortunately, I've found some employment and would like to just tackle this obstacle once and for all. I don't plan on using the new line to buy anything (just pay off the debt). They even suggested to destroy the new card once it arrived in the mail. And so I was wondering if this would be a good idea?

My question is what happens to the old line of credit after the transfer? Do I just close it?

And what will my monthly payment look like with the new line of credit?

And what are some other things that I would seriously need to consider?

Just pay it off. Being successful with personal finance is about behavior modification, not just the numbers. Mathematically, it may be beneficial to transfer the balance, but emotionally it's best to be mad about the dumb decisions you made in the past and throw everything you can as soon as possible.

 

[water runs dry]

You know that's a very valid point. After all, I will be opening a NEW credit card just to pay off an old one. And I've been on an anti-credit card phase and while this option is doable, it may not be the best route to go for now.  Yeah, I've been reading some books and there's a common them of taking a hard look at the "man in the mirror" and that's where change begins. Thanks for the replies.

 

[captainsneakerhead23]

With an online savings account, the interest rate will be a lot higher than traditional banks but you're still earning close to nothing. Capital One 360 offers .75% & Ally offers 1%. Just found a bank called Northpointe in Michigan that is offering 5% up to $5000 as long as you swipe your card 15 times during the month and have direct deposit/direct debit. It's not the best interface, but the rate is unbeatable.

I have a credit union for those times when I need to walk into a branch, but have it connected to my online banks so I can easily transfer money back and forth.

"Qualifications include 15 or more debit card purchases in the aggregate amount of $500.00 or greater that post and settle per the statement period, enrollment in eStatements and direct deposit or automatic withdrawal of $100 or more per statement period. $100 minimum deposit required to open."

Can you elaborate a little more on this, would like to look into it.

- Basically you have to use your debit card at least 15 times per month, totaling a minimum of $500?

- Enroll in e-statements?

- If you choose not to open up a direct deposit with them, you have to have an automatic withdrawal of at least $100, would your monthly cable or phone count if it's over $100?

 

[Xennial]

My 6 month emergency fund is around 12K also. 1 year is way too much, I don't see why anyone plan to be out of work for a year. I want to also add a few grand to cover for unexpected car expenses.

Going to pay off my CCs then build the EF.

I guess everyone is comfortable with different amount with difference experiences in life.  I've been out of work for a year easily in the past.  They said the average time it takes for someone to get a job is 9 months so to me 6 months is not enough and at least a year to keep it on the safe side

 

[crcballer55]

 

With an online savings account, the interest rate will be a lot higher than traditional banks but you're still earning close to nothing. Capital One 360 offers .75% & Ally offers 1%. Just found a bank called Northpointe in Michigan that is offering 5% up to $5000 as long as you swipe your card 15 times during the month and have direct deposit/direct debit. It's not the best interface, but the rate is unbeatable.

I have a credit union for those times when I need to walk into a branch, but have it connected to my online banks so I can easily transfer money back and forth.

"Qualifications include 15 or more debit card purchases in the aggregate amount of $500.00 or greater that post and settle per the statement period, enrollment in eStatements and direct deposit or automatic withdrawal of $100 or more per statement period. $100 minimum deposit required to open."

Can you elaborate a little more on this, would like to look into it.

- Basically you have to use your debit card at least 15 times per month, totaling a minimum of $500?

- Enroll in e-statements?

- If you choose not to open up a direct deposit with them, you have to have an automatic withdrawal of at least $100, would your monthly cable or phone count if it's over $100?

 

[capital sb]

 
I guess everyone is comfortable with different amount with difference experiences in life.  I've been out of work for a year easily in the past.  They said the average time it takes for someone to get a job is 9 months so to me 6 months is not enough and at least a year to keep it on the safe side

Yeah everything depends on the person. It wouldn't take me a year to get another job within my field, 3 months max 1 month minimum.

Like others have said in here a 12 month EF would be almost 30K for me. That is too much money to be sitting in a high yield account only making 1%. I'd rather invest the additional 15K to make my money work for me.

 

[crcballer55]

 

My 6 month emergency fund is around 12K also. 1 year is way too much, I don't see why anyone plan to be out of work for a year. I want to also add a few grand to cover for unexpected car expenses.

Going to pay off my CCs then build the EF.

I guess everyone is comfortable with different amount with difference experiences in life.  I've been out of work for a year easily in the past.  They said the average time it takes for someone to get a job is 9 months so to me 6 months is not enough and at least a year to keep it on the safe side

No unemployment benefits? If you have 6 months of savings, then the unemployment supplement should make you more than fine.

 

[captainsneakerhead23]

 

With an online savings account, the interest rate will be a lot higher than traditional banks but you're still earning close to nothing. Capital One 360 offers .75%

"Qualifications include 15 or more debit card purchases in the aggregate amount of $500.00 or greater that post and settle per the statement period, enrollment in eStatements and direct deposit or automatic withdrawal of $100 or more per statement period. $100 minimum deposit required to open."


Can you elaborate a little more on this, would like to look into it.


- Basically you have to use your debit card at least 15 times per month, totaling a minimum of $500?


- Enroll in e-statements?


- If you choose not to open up a direct deposit with them, you have to have an automatic withdrawal of at least $100, would your monthly cable or phone count if it's over $100?

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[ghettofabolous337]

Anybody heard of Lending club? Is it legit? I'm thinking about doing some investing

 

[crcballer55]

Anybody heard of Lending club? Is it legit? I'm thinking about doing some investing

Yes, I use it and like it. Just like investing in bonds except with a higher yield. I have 23 outstanding loans and so far only one is significantly delinquent and 1 paid off 2.5 years early.

 

[Xennial]

 
Yes, I use it and like it. Just like investing in bonds except with a higher yield. I have 23 outstanding loans and so far only one is significantly delinquent and 1 paid off 2.5 years early.

how much homework are you doing before you give out these unsecured loans?

 

[アミーゴ]

Unemployment down to 5.1%

 

[pdino]

how much homework are you doing before you give out these unsecured loans?

There 25$ per loan note you put down on. You can choose how safe of loans you want. Riskier are higher yields while safe are lower. Iirc loan default rate was like 3-4% on average. They put all their statistics available online

 

[アミーゴ]

There 25$ per loan note you put down on. You can choose how safe of loans you want. Riskier are higher yields while safe are lower. Iirc loan default rate was like 3-4% on average. They put all their statistics available online

Yeah it's super interesting actually.

 

[crcballer55]

 

 
Yes, I use it and like it. Just like investing in bonds except with a higher yield. I have 23 outstanding loans and so far only one is significantly delinquent and 1 paid off 2.5 years early.

how much homework are you doing before you give out these unsecured loans?

Researched it for about 2 weeks. Most people who had invested pretty much gave the same summary. It's a great supplemental savings, but also with the risk that it could start being regulated more and people can just stop paying. But IMO, the yield and payback timelines were high enough to justify putting in a small amount to start off with. I was fairly conservative with 3 year notes and am getting about a 10% yield with mostly B, C, and some D with a small amount of A & F in there.

 

[HankHill]

Anyone changing investment strategies due to recent market drops. I took hits in all my portfolios (401k, Roth IRA, non-Ira). I'll still be contributing to my retirement accounts, but gonna stop the non-Ira until I see an upward trend. I feel ill just be contributing and losing money.

 

[sneaksoy]

Anyone changing investment strategies due to recent market drops. I took hits in all my portfolios (401k, Roth IRA, non-Ira). I'll still be contributing to my retirement accounts, but gonna stop the non-Ira until I see an upward trend. I feel ill just be contributing and losing money.

If anything you should contribute more while the market is lower. There's quite a few value buys out there, we already dipped into correction territory in August and I'm not sure I see a full nose dive coming anytime soon. I do think the market will remain down YTD until the Fed announces an interest rate increase, after which we'll see another small correction but after that I would foresee the market back up to where it was in July.

If you feel we're in for a deeper pullback I would say it'd be alright to not invest as much right now, but trying to time the market like that is difficult.

I tend to follow more of a dollar-cost averaging strategy (which is really what everyone with a 401k is doing by contributing each paycheck) which I think is very applicable here http://www.investopedia.com/terms/d/dollarcostaveraging.asp

 

[crcballer55]

Just saw this was available for retirement accounts.

https://myra.gov/

The returns are atrocious though

You only double your money after 30 years?!

 

[canifly34]

Was trying to save for an IRA but currently looking to go back to school
I currently have a take home of $2.6k/month between my jobs but my bills take up just under half of it. still can manage to put away an extra $375-$450/monthly.
It just all depends what I decide to do with school of course

 

[friscostylez]

Can we talk about life insurance for a second? Just had a friend of a friend die from brain cancer yesterday and they're having to set up a Go Fund Me for the burial and other costs. I'm seeing this SO much now and it's pretty sad. Not only do families have to deal with the grief of a loved one, but now there's expenses associated with putting them in the ground and a single parent that has to take care of the kids on one income too.

Life insurance is cheap and something that doesn't get enough press. For a couple hundred per year, you can get several hundred thousand in term coverage that can replace your income and take care of your family while you're gone.

what's a good company i should get life insurance from?

 

[capital sb]

 
Just saw this was available for retirement accounts.

https://myra.gov/

The returns are atrocious though

You only double your money after 30 years?!

Some people are very excited about this because it gives non govt employees access to the G-fund, but the cap at 15K account contribution limit makes this account pretty much useless.

 

[crcballer55]

 

Can we talk about life insurance for a second? Just had a friend of a friend die from brain cancer yesterday and they're having to set up a Go Fund Me for the burial and other costs. I'm seeing this SO much now and it's pretty sad. Not only do families have to deal with the grief of a loved one, but now there's expenses associated with putting them in the ground and a single parent that has to take care of the kids on one income too.

Life insurance is cheap and something that doesn't get enough press. For a couple hundred per year, you can get several hundred thousand in term coverage that can replace your income and take care of your family while you're gone.

what's a good company i should get life insurance from?

Got mine w/ Voya (formerly ING) a couple years ago, but I would suggest getting a couple quotes. Had another policy with another company before and they wouldn't even get me the policy terms when I asked, so I ended up dumping them since I didn't feel like I could trust them if I actually needed to redeem the policy.

EDIT: Just ran a quote for $400k for 20 years of Term and it's only $230/yr. That's $40 lower than I'm paying now for the same thing.