Can I afford it?

[kork13]

Originally Posted by MiikeB

To the person who mentioned my 401k being very low, I have only been at the company a year and there matching is very low (1/4th of what I give up to 1.25% total) and the market has obviously hit it hard (not worried about that much though).

That was me causing problems about your 401k

Just because it's a "low" match, it's still a match! For every dollar up to 5% of your pay that you put into it, you make an AUTOMATIC 25%. Guaranteed! (how's that for a guaranteed return in today's market?) I don't get any match at all, but I'm still contributing. You get 1.25% of your salary for free, so take advantage of it! If you have the money available to you, it's always a good idea to put some of it toward retirement.

Also, the thing that people need to get out of their heads is investing for retirement based on the current market state. ALWAYS save for retirement, no matter what. If you need to change to a more conservative asset allocation for your own peace of mind, fine... but keep putting money away. You don't know what the market will be like when you retire--for all you know, it could be like today! So I'll repeat myself (for the ump-teenth time), contribute to your 401k! At least do it up to the 5% of your salary that your company will match to.

[disneysteve]

Originally Posted by MiikeB

I don't appreciate being called a her and she!

My apologies.

[segmond]

I don't see any difference between the 22" and 24", unless you work from home and it will improve productivity and save you some time, I say forget it.

[rizzmo]

I agree with steve you shouldn't have purchased the monitor. Looking at your financial picture as a whole, it doesn't seem like you two are all that concerned with getting out of debt.

[MiikeB]

Originally Posted by rizzmo

I agree with steve you shouldn't have purchased the monitor. Looking at your financial picture as a whole, it doesn't seem like you two are all that concerned with getting out of debt.

To be honest I really am not that concerned with being "out of debt." Although it can be said that the cars are bad debt, I am not at all uncomfortable with this level of debt. I do intend to get these paid off early but am in no rush. My SO just got his car refinanced down to 7%, same term remaining and mine is at 6%.

All the 0% CC balances are things we needed when I bought the home such as washer/dryer, new fridge (the old one died after we moved in) etc. I do not feel like we at all have an overspending problem as we ALWAYS end our months with a surplus of atleast several hundred dollars.

I do not want to take new debt on, but I am very comfortable with my current position.

[TBH]

Originally Posted by kork13

So I'll repeat myself (for the ump-teenth time), contribute to your 401k! At least do it up to the 5% of your salary that your company will match to.

I agree with you, kork, but remember that the OP is a 21-year-old student who has only been at his job for a year. Sounds to me like he is contributing enough to get the full match, and is ahead of most people who don't get jobs with 401ks until they are 22 or 23 and have finished college. My first job with a retirement plan didn't come until I was 25. I had a Roth starting at age 20, but my contributions were very sporadic until I got out of grad school.

So, yes, I also hope the OP is making those 401k contributions, but I also want to say good for him that he's already saving for retirement, knows exactly what his debt level is and is working on paying it off, and is being smart about paying his SO's debt at a reasonable pace instead of throwing everything he's got at it. Sounds like the relationship is pretty stable but he is young and as a same-sex couple they don't have the protection marriage provides in the event of a break-up.

[ActYourWage]

Originally Posted by MiikeB

To be honest I really am not that concerned with being "out of debt." Although it can be said that the cars are bad debt, I am not at all uncomfortable with this level of debt. I do intend to get these paid off early but am in no rush. My SO just got his car refinanced down to 7%, same term remaining and mine is at 6%.

All the 0% CC balances are things we needed when I bought the home such as washer/dryer, new fridge (the old one died after we moved in) etc. I do not feel like we at all have an overspending problem as we ALWAYS end our months with a surplus of atleast several hundred dollars.

I do not want to take new debt on, but I am very comfortable with my current position.

Please don't ever become comfortable with debt.

[kork13]

Originally Posted by TBH

I agree with you, kork, but remember that the OP is a 21-year-old student who has only been at his job for a year. Sounds to me like he is contributing enough to get the full match, and is ahead of most people who don't get jobs with 401ks until they are 22 or 23 and have finished college. My first job with a retirement plan didn't come until I was 25. I had a Roth starting at age 20, but my contributions were very sporadic until I got out of grad school.

Fair point, I only made mine because I understood his comments to say that he was disappointed with his employer's plan, so he wasn't putting much in. However, my assumption could easily be mistaken, so you're correct in your assessment there.... and of course, we all know what happens when you assume things...... (or does no one know that joke?)

[kork13]

Originally Posted by ActYourWage

Please don't ever become comfortable with debt.

I would have to disagree slightly.... It's not necessarily an awful thing to be comfortable with one's debt. To some (many?), that simply means that they accept the fact that the debt exists, and are working to reduce it as necessary. However, it's not something to be so uncomfortable with that you're constantly under the gun about it.

That said, I do agree with your point that people shouldn't be lackadaisical about taking on debt. I just don't think of debt as a "four letter word" (as was mentioned elsewhere) that must be feared and avoided at all costs...

[MiikeB]

Originally Posted by ActYourWage

Please don't ever become comfortable with debt.

As above poster mentioned, I am not haphazardly taking on debt. I am comfortable with it in terms of understanding the consequences of what debt I do have and I think long and hard before taking on any debt (except my car, which I admit was a mistake...I did think long about it but not very hard).

[disneysteve]

Originally Posted by kork13

I do agree with your point that people shouldn't be lackadaisical about taking on debt. I just don't think of debt as a "four letter word" (as was mentioned elsewhere) that must be feared and avoided at all costs...

Originally Posted by MiikeB

As above poster mentioned, I am not haphazardly taking on debt. I am comfortable with it in terms of understanding the consequences of what debt I do have and I think long and hard before taking on any debt

I agree. Not all debt is bad and not all debt is avoidable. As I've said before, if not for debt, I wouldn't have my college and medical school degrees and, thus, my career. Without debt, I wouldn't have my home. Without debt, I wouldn't have my current car.

Debt is a financial tool that can be very beneficial when properly used.

[tripods68]

You can't afford it.

[whitestripe]

the thing is, of course you can afford it if you have the money or the credit to pay for it. the question is do you have enough self control to pay off your debt before buying another big ticket item? well no, you don't. which is why you're in debt in the first place.