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How Much Do You Budget For Entertainment?

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    #16
    Matco and Snap On are great tools, but their salesmen are real good at getting mechanics to buy them on credit.
    Like kids in the candy store.

    Comment


      #17
      Originally posted by Fishindude77 View Post
      Matco and Snap On are great tools, but their salesmen are real good at getting mechanics to buy them on credit.
      Like kids in the candy store.
      Boy, do I know it!

      Comment


        #18
        Originally posted by amastewa93 View Post
        Capital One - $477.64 (18%)
        Conn's - $318 (interest-free)
        Navient Student Loans - $24,548 (around 6%, it is broken down into different loans)
        VW Car Loan - $20,490 (13.5%)
        Matco/SnapOn Tools - $7,449
        Taxes (2018) - $8,839.14 (25% - this one is the priority after the two smaller accounts are paid off)

        Total: $62,121.78

        We have had offers to refinance our vehicle - thoughts on this?
        OMG yes. If you can get that interest rate knocked down, that would be great. 13.5% on a car is nuts.

        His tool bills - these are needed for his line of work and, unfortunately, he'd lose money trying to sell them back at this point.
        It might be worth taking a loss now to get out of the deal. You'd have to run the numbers. Of course, you'd also need to have the cash on hand to replace the tools so that probably isn't an option, or at least not a priority, right now.
        Savings - we both need to think more about how to budget for this.
        You'll get differing opinions on this. Some will say to focus on the EF and debt. Others will say you should at least get in the habit of putting something into retirement on a regular basis, even if it's only $25 or $50/month. I don't think either is wrong.

        You've got a couple of credit cards that will be gone very soon freeing up even more income. Maybe that's the time to start putting some towards retirement.


        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

        Comment


          #19
          [QUOTE=amastewa93;n705275]Thanks for all the feedback everyone! We sat down and talked it out last night and both agreed paying down our debts should be our #1 priority (after our EF is re-established). The expenses listed above are currently all of the expenses we have. However, when he was only bringing home $400 to $500 per month, our finances took a bit of a dive. I'm thinking if we focus on it we will be able to cut our debt in half (maybe more) this year. That's our goal anyway.

          Here is the debt info I have on hand (I'll need to get his interest rates for his tool bills)...

          Capital One - $477.64 (18%)
          Conn's - $318 (interest-free)
          Navient Student Loans - $24,548 (around 6%, it is broken down into different loans)
          VW Car Loan - $20,490 (13.5%)
          Matco/SnapOn Tools - $7,449
          Taxes (2018) - $8,839.14 (25% - this one is the priority after the two smaller accounts are paid off)

          Total: $62,121.78

          So you have $2500/month to put topaying off things.

          I would pay off the Capital One and Conn's first this month. That will be $800 out of $2500. Then I would take $1700 and put it $1200 to IRS and $500 to EF 1st month.

          2nd month - $500 EF and $2000 to IRS
          3rd Month - $500 EF and $2000 to IRS
          4th Month $500 EF and $2000 IRS
          5th Month $500 EF and $2000 IRS - this month it will be less than IRS

          I would then take 1 month and then put $2500 to EF. That will give you ~$5k in EF.

          I would look into a cheaper cell phone plan. There is t-mobile or att. I swear it's cheaper. Ours is old so it's cheap. Or cricket or google fi. Cricket unlmited and hotspot is $60/month so it's $120 for two of you. Worth looking into. I bought my phone for $200 so you can get a cheap phone that works. I would definitely keep the car and just pay it off. I would probably pay $1250 to car loan and $1250 savings. Why? Because you need to save and pay for taxes unless that is already taken out of the gross before the $7k. If it's not then you need to save it because you need to break the cycle working 1099 jobs of being behind in taxes.
          LivingAlmostLarge Blog

          Comment


            #20
            [QUOTE=LivingAlmostLarge;n705282]
            Originally posted by amastewa93 View Post
            Thanks for all the feedback everyone! We sat down and talked it out last night and both agreed paying down our debts should be our #1 priority (after our EF is re-established). The expenses listed above are currently all of the expenses we have. However, when he was only bringing home $400 to $500 per month, our finances took a bit of a dive. I'm thinking if we focus on it we will be able to cut our debt in half (maybe more) this year. That's our goal anyway.

            Here is the debt info I have on hand (I'll need to get his interest rates for his tool bills)...

            Capital One - $477.64 (18%)
            Conn's - $318 (interest-free)
            Navient Student Loans - $24,548 (around 6%, it is broken down into different loans)
            VW Car Loan - $20,490 (13.5%)
            Matco/SnapOn Tools - $7,449
            Taxes (2018) - $8,839.14 (25% - this one is the priority after the two smaller accounts are paid off)

            Total: $62,121.78

            So you have $2500/month to put topaying off things.

            I would pay off the Capital One and Conn's first this month. That will be $800 out of $2500. Then I would take $1700 and put it $1200 to IRS and $500 to EF 1st month.

            2nd month - $500 EF and $2000 to IRS
            3rd Month - $500 EF and $2000 to IRS
            4th Month $500 EF and $2000 IRS
            5th Month $500 EF and $2000 IRS - this month it will be less than IRS

            I would then take 1 month and then put $2500 to EF. That will give you ~$5k in EF.

            I would look into a cheaper cell phone plan. There is t-mobile or att. I swear it's cheaper. Ours is old so it's cheap. Or cricket or google fi. Cricket unlmited and hotspot is $60/month so it's $120 for two of you. Worth looking into. I bought my phone for $200 so you can get a cheap phone that works. I would definitely keep the car and just pay it off. I would probably pay $1250 to car loan and $1250 savings. Why? Because you need to save and pay for taxes unless that is already taken out of the gross before the $7k. If it's not then you need to save it because you need to break the cycle working 1099 jobs of being behind in taxes.
            Thanks so much for this input! I think that this is a great plan and probably what we will use to construct our budgeting plans around!! It is really doable and helps us get our taxes paid off fairly swiftly.

            Comment


              #21
              Originally posted by disneysteve View Post
              OMG yes. If you can get that interest rate knocked down, that would be great. 13.5% on a car is nuts.

              You'll get differing opinions on this. Some will say to focus on the EF and debt. Others will say you should at least get in the habit of putting something into retirement on a regular basis, even if it's only $25 or $50/month. I don't think either is wrong.

              You've got a couple of credit cards that will be gone very soon freeing up even more income. Maybe that's the time to start putting some towards retirement.
              Yeah - I think we will look into refinancing here this year to see if we can get a lower interest rate on the car. Once we have a good EF in place, I think we will start an IRA, which will help us a bit on taxes as well. As we pay more things off, we will be able to toss more money towards savings.

              Can't wait to keep you all updated on our progress here!

              Comment


                #22
                Originally posted by amastewa93 View Post

                Yeah - I think we will look into refinancing here this year to see if we can get a lower interest rate on the car. Once we have a good EF in place, I think we will start an IRA, which will help us a bit on taxes as well. As we pay more things off, we will be able to toss more money towards savings.

                Can't wait to keep you all updated on our progress here!
                If your MAGI is between 104k and 124k you may not be able to deduct all of the traditional IRA.

                May want to look into that and verify.

                Comment


                  #23
                  I would do a roth IRA anyway. Your tax bracket is so low might as well take advantage while you still can. Why bother with IRA? Unless it's a sep IRA? Then yes.
                  LivingAlmostLarge Blog

                  Comment


                    #24
                    Originally posted by LivingAlmostLarge View Post
                    I would do a roth IRA anyway. Your tax bracket is so low might as well take advantage while you still can. Why bother with IRA? Unless it's a sep IRA? Then yes.
                    Thanks for this info! We will be looking into starting one (likely around the summer).

                    Comment


                      #25
                      Originally posted by amastewa93 View Post

                      Thanks for this info! We will be looking into starting one (likely around the summer).
                      If you were eligible for a Roth in 2019 (and do not currently have a Roth account) I strongly recommend opening one before tax day so your 5-year clock starts.

                      you could add a small amount too, (e.g. $25) just to get it established.

                      Comment


                        #26
                        Originally posted by Jluke View Post

                        If you were eligible for a Roth in 2019 (and do not currently have a Roth account) I strongly recommend opening one before tax day so your 5-year clock starts.

                        you could add a small amount too, (e.g. $25) just to get it established.
                        That's good information to have! I didn't think I could open one without a substantial amount to put into it.

                        Comment


                          #27
                          Originally posted by amastewa93 View Post

                          That's good information to have! I didn't think I could open one without a substantial amount to put into it.
                          Many places have zero minimum deposit. You can't do something like Vanguard, which I believe has a $1,000 minimum, but you can open one elsewhere and later, if you wish, transfer it to another place once your account is larger.
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment


                            #28
                            I was referring to depositing money in the “settlement fund” under a Roth.

                            you most likely won’t be able to invest until you have a minimum (or enough to buy 1 share of an ETF)

                            Comment


                              #29
                              Originally posted by disneysteve View Post

                              Many places have zero minimum deposit. You can't do something like Vanguard, which I believe has a $1,000 minimum, but you can open one elsewhere and later, if you wish, transfer it to another place once your account is larger.
                              Yes - We looked into it yesterday and my credit union offers an IRA that I can open for $1. I have to fill out some paperwork and either fax it or mail it in but it looks like that will be where we get started! They'll also automatically draft a set amount (up to me) from my BofA account. I'll be working on getting that paperwork done before the end of the week.

                              Comment


                                #30
                                Originally posted by amastewa93 View Post

                                Yes - We looked into it yesterday and my credit union offers an IRA that I can open for $1. I have to fill out some paperwork and either fax it or mail it in but it looks like that will be where we get started! They'll also automatically draft a set amount (up to me) from my BofA account. I'll be working on getting that paperwork done before the end of the week.
                                Perfect. Start small and increase as your circumstances allow, but getting in the habit of saving regularly month after month will make a world of difference 10 or 20 years from now. Just be sure to check on whatever accounts the CU offers to make sure you won't be paying any ridiculous fees.
                                Steve

                                * Despite the high cost of living, it remains very popular.
                                * Why should I pay for my daughter's education when she already knows everything?
                                * There are no shortcuts to anywhere worth going.

                                Comment

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