Dave Ramsey, debt, credit cards, retirement, etc

[vitaly]

I don't understand the correlation between your wife's bad back and the car she drives.

The requirements were: fully adjustable heated bucket seats, the best suspension you can get for the money, AWD, traction control, enough power, auto tranny, handling (should not wear you off during your 2-hour commute), 4-door sedan, reliability, etc.
In 2004 the options were: 330xi, A4 and obviously the G35x.

 

[vitaly]

unless managers had a vested interest in the well being of the company...and unless YOU are running it or directly involved...STAY AWAY!

agreed

 

[Fro Diesel]

The requirements were: fully adjustable heated bucket seats, the best suspension you can get for the money, AWD, traction control, enough power, auto tranny, handling (should not wear you off during your 2-hour commute), 4-door sedan, reliability, etc.
In 2004 the options were: 330xi, A4 and obviously the G35x.

Dayum that sounds like a sweet ride. I have always like what Nissan does with there high end cars.

 

[Matt_E]

So do we. My wife commutes 50 miles to work each way. My commute is 46 miles each way. Our jobs require us to be there no matter what. We live in NJ and have to drive in any conditions, an excuse like "my Corolla did not make it" will get you fired. We also need at least one SUV and a safe baby hauler, did I mention my wife has a bad back? So, it's a 2004 G35x financed at 3.8% for her and a 2006 Xterra at 4.0% for me, both bought new. The only two vehicles I've bought new from a dealership in my life out of about 20 I've owned.

Pretty much why I decided to go with Toyota. I need something that runs.
My previous S10 Blazer didn't always fill that requirement.

Keep in mind that the psychological satisfaction of being debt free has much value to many people.
It does to me - even though I didn't think so before hand.

 

[SuperJETT]

So it makes more sense to pay off a 10k student loan @ 3.2% before a 20k cc debt @ 19.9%?

:dunno:
The concept is great, but interest rates and the time to pay off (realistically) should be taken into account.

if it were all about math, you wouldn't be in debt in the first place...

 

[Matt_E]

A snide remark that has nothing to do with the question and makes no sense.

No offense, of course.

 

[Mark44]

LOL this cracks me up, people getting financial advice on a jet ski forum. LOL

Mark44

 

[Matt_E]

It's about the same quality as the technical motor building advice, what's the problem? :biggrin: :haha:

 

[SuperJETT]

A snide remark that has nothing to do with the question and makes no sense.

No offense, of course.

I haven't had time to type much lately, and today is the same.

Basically, if you were to tell someone to start paying on their $20k credit card balance, who did not have good financial behavior to start with, they'd see that as an insurmountable challenge and it's doubtful they'd get it done and follow through.

You have to build some confidence and spending habits, $20k is not the way to start someone off IMO.

I do agree with the numbers, yeah it makes sense that way to someone that has control of their money.

 

[SuperJETT]

It's about the same quality as the technical motor building advice, what's the problem? :biggrin: :haha:

Are you sure it's not better than most of the engine advice around here?

 

[Matt_E]

I haven't had time to type much lately, and today is the same.

Basically, if you were to tell someone to start paying on their $20k credit card balance, who did not have good financial behavior to start with, they'd see that as an insurmountable challenge and it's doubtful they'd get it done and follow through.

You have to build some confidence and spending habits, $20k is not the way to start someone off IMO.

I do agree with the numbers, yeah it makes sense that way to someone that has control of their money.

Okay, that makes much sense and I do agree.
Thank you. :squint:

Are you sure it's not better than most of the engine advice around here?

Point taken, you're right. :haha:

 

[Mark44]

p

It's about the same quality as the technical motor building advice, what's the problem? :biggrin: :haha:

LOL so true!

Mark44

 

[CuzzinOlaf]

OK, to pay off debt you obviously need to budget. How do you guys budget? What is sensible or over the top, meaning, being too generous to yourself. I am chipping away at my debt but would love to hear how much people budget themselves for certain things. I.E. gas money, food money, toy allowance, misc. allowance. I have no problem living a frugal life if needed. What is too much per week/bi-weekly.

 

[Snackem]

that all depends on what you need. I would get your last bank statement and highlight all your food purchases in one color then do all of your gas purchases with another color. If you took out some cash and you know you used it for gas and/or food then make sure to count that. then go back and add up all those expenses. That is what you spend on food and gas, if you want to cut it back some go ahead but do not cut too much to start with. It's amazing how much people spend on food and they don't even realize it. As far as a 'toy' allowance and misc. I would put all of that towards your debt. You will be out of debt that much faster and then you can have that much more to spend on toys.

 

[CuzzinOlaf]

that all depends on what you need. I would get your last bank statement and highlight all your food purchases in one color then do all of your gas purchases with another color. If you took out some cash and you know you used it for gas and/or food then make sure to count that. then go back and add up all those expenses. That is what you spend on food and gas, if you want to cut it back some go ahead but do not cut too much to start with. It's amazing how much people spend on food and they don't even realize it. As far as a 'toy' allowance and misc. I would put all of that towards your debt. You will be out of debt that much faster and then you can have that much more to spend on toys.

That's the ticket... I gotta keep track more AND/OR limit myself to a lesser amount and see if I can do it. Hmmmmm! :Banane35:

 

[Matt_E]

First of all, pay yourself first. (You're already doing that)
I have 401(k) coming out of my check as well as an automatic deposit of a few hundred bucks to my emergency savings account.
I work with what's left.
From experience, I know right about what I spend on groceries and gas.
My bills are a given.
It takes keeping track of your expenses for a while and figuring out how much you need to spend.
Then, budget for that.
We use cash where possible.
Example: We have a gift fund of $85/month.
It goes in an envelope that we just keep adding to. Some months have no birthdays, but it just keeps building for Christmas.

 

[Snackem]

The first month or two that you do a budget you will be way off. That's ok. Just adjust when you NEED to. It might mean that if you eat out a lot to begin the month with that you spend the last two weeks eating Ramen and hamburger helper. If you do then hopefully you learn your lesson and next week you do not eat out as much to begin the month with.

 

[Matt_E]

Saw a good one on another board: :lmao:

Would it be a good choice to finance a new car using a Home Equity loan over doing a traditional loan?

I'm running numbers on a traditional car loan and it's looking like a car that cost $20k with 9% interest over a 5 year loan term would cost $150 per month in interest alone.

What would be the reason to do or not to do a home equity loan for getting a car?

Is it possible to get a home equity loan without touching or changing my existing mortgage?

EDIT: Let me clarify by saying I would treat it like a 5 year loan still even if the term was for 15 years.

My purpose for doing it would be to pay less towards interest and more towards principal on the car loan.

 

[slickchaos]

OK, to pay off debt you obviously need to budget. How do you guys budget? What is sensible or over the top, meaning, being too generous to yourself. I am chipping away at my debt but would love to hear how much people budget themselves for certain things. I.E. gas money, food money, toy allowance, misc. allowance. I have no problem living a frugal life if needed. What is too much per week/bi-weekly.

food is one area people are suprised they blow so much money on.. i used to buy a coffee every morning and buy lunch @ work..

i was able to save at least 150 bucks a month more by bring my lunch in and making coffee...

coffee is a great example... buy a bucket of folgers choices for 7 bucks that will last you 3 months or spend 2 dollars for 1 cup of dunkin donuts !! (cofee is big up here)

 

[dbrutherford]

I keep a budget on Microsoft Excel. My work provides a deposit advice online so I can see all the deductions coming out of my salary for taxes, retirement, ect... I know exactly what goes where as far as that goes.

For other expenditures though, I keep my check book register on the same MS Excel document. I can check my bank statements online and I update my spreadsheet several times a day. I mainly use my debit card for everything and rarely carry cash.

Speaking of gasoline and food... I had no idea how much I was spending on groceries/eating out/alcohol. I barely drink but a beer or two week. but I was spending major $$$ on groceries and eating out. I am tryign to cut back as much as possible. I have been packing my lunch just about every single day at work since starting work after college. I also try to limit buying sodas or drinks at the vending machines or convience stores. They are way more expensive and add up. I usually make a gallon of ice tea and kool aid at home and drink them or water instead. I will admit I have a Red Bull addiction and buy a 4 pack every time I go to the grocery store. I also try to buy groceries once a week and get what I am actually going to eat. When i first moved away from home for work I was always buying way too much and throwing stuff away. Not good for a budgeting standpoint.

What was more shocking though was when I started keeping track of all the ski related stuf I was buying. Granted I shelled out a big chunk of change for an engine this year. Then I bought a bunch of other stuff to build my ski. But considering I owe almost 8k on my credit card and 2k on my 4-wheeler... I have spent about 4.5k on ski parts this year alone. Puts it all into perspective some!

Keep track of everything. If you really wanted to, you can cut a lot of your spending out! I am proud to say though I haven't charged one time to a credit card for over two years! I have been paying 525 a month on my 4-wheeler and it will be paid off in the clear in August. Then it will be 500 a month on my student loan since the interest is higher on it than my CC. A budget is helpful, but it still takes disicipline. I am still working on that part of the equation...