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How to Break the Living Paycheck-to-Paycheck Cycle

Young_ChitlinYoung_Chitlin YCN Chief/FCC Member/#RedVelvetSquad Member/IC Task Force GeneralASUville, PhoenixPosts: 23,852 ✭✭✭✭✭
edited March 2014 in Strictly Business
TLDR so I'm posting some good points, feel free to read the rest and tell me what you think. I'm kind of going through this right now.
By: Trent Hamm

Look for Regular Expenses You Can Trim Away

The first big step is to trim your monthly expenses. Reduce that cable bill and that cell phone bill. Get rid of unused memberships, like gym memberships or country club memberships. Look for ways to tone down your home energy use. Start a carpool or start using public transportation. Start cooking at home more and eating out less. All of these things will ease the monthly pressure on your wallet, allowing you to stop feeling like you’re falling behind and instead start getting ahead a little.

Cap Your Non-Essential Spending Each Month
We all spend some money on things we don’t really need. Instead of just spending as opportunities arise, put a cap on that spending each month. Allow you and your spouse a cash allowance each month and agree that your discretionary spending comes from this cash and this cash alone. Make the amount lower than what you normally spend, but not enough lower that you’re tempted to cheat. Then, when you’re used to the amount, consider lowering it a bit more until you find a sweet spot of savings and fun.

As You Gain Some Breathing Room, Move Towards Paying Bills Right When They Come In

One thing that many people living paycheck to paycheck waste money on is late fees. You’re a couple days late on a bill because you were waiting around for your paycheck, so you’re dinged for an extra five bucks. It used to happen to me all the time—and it was a serious money leak. The best solution for handling this as you move towards financial stability is to start paying your bills as soon as they come in–that way, you avoid the late fees by a mile. Later on, as you get more comfortable, you can develop your own bill-paying routine–I pay mine monthly–but the best way to handle things just as you’re getting some cash built up in your account is to pay bills ASAP.

Don't Carry more Than One Credit Card with you

Leave the rest at home. The only reason you should be carrying a credit card in your pocket is to cover emergencies or for specific purchases. Thus, carrying more than one credit card in your wallet is not only an identity theft concern, it’s also temptation to spend more than you should.
I personally have three credit cards. Two of them are for specific purchases only, so I leave them at home. The other is my general use card, and it’s the only one that resides actively in my wallet. Because I recognize that I need to keep a healthy free balance on it for emergencies, it makes the temptation of the plastic much lower.

http://lifehacker.com/how-to-break-the-living-paycheck-to-paycheck-cycle-1445330680?utm_source=recirculation&utm_medium=recirculation&utm_campaign=tuesdayAM

¡No contaban con mi astucia!
5 Grand wrote: »
I see a lot of people saying they'd "give" family members money.

Thats not what you want to do.

You want to set up a trust fund so they get a monthly payment. You can set up a trust fund so your mother gets, say, $10,000 a month for the rest of her life. According to my math, $10,000 per month for 20 years is $2.4 million. That's better than giving her $2.4 million up front because she can blow it all in a matter of days and then she'll want more and you'd feel obligated to give it to her.

So if you win, don't "give" anybody anything. Set up a trust fund.

Now that I think about it, I could set up a trust fund for my brother. I'd give him $10,000 a month. He's about 45 now so $10,000 per month for 40 years is only $4.8 million. That makes more sense than giving him the money in one lump sum.

AggyAF wrote: »
Anyone else think it's crazy only about 10 posters regularly post here and we got damn near 500 pages?

All the other sports threads on here are people with hobbies. This is football - the beautiful game. We eat, sleep and drink football.

hqg-277.gif


SionNothingButTheTruthtraestarWhoisDonG???ThatDamnJaySo ILLvitoriaDisciplined InSightits....JOHN BPapaDoc223jee504Young Stefdnyce215TheBoyRobigev240jniam
«1345

Replies

  • Young_ChitlinYoung_Chitlin YCN Chief/FCC Member/#RedVelvetSquad Member/IC Task Force General ASUville, PhoenixPosts: 23,852 ✭✭✭✭✭
    @Sion have you had a chance to read the article?
    ¡No contaban con mi astucia!
    5 Grand wrote: »
    I see a lot of people saying they'd "give" family members money.

    Thats not what you want to do.

    You want to set up a trust fund so they get a monthly payment. You can set up a trust fund so your mother gets, say, $10,000 a month for the rest of her life. According to my math, $10,000 per month for 20 years is $2.4 million. That's better than giving her $2.4 million up front because she can blow it all in a matter of days and then she'll want more and you'd feel obligated to give it to her.

    So if you win, don't "give" anybody anything. Set up a trust fund.

    Now that I think about it, I could set up a trust fund for my brother. I'd give him $10,000 a month. He's about 45 now so $10,000 per month for 40 years is only $4.8 million. That makes more sense than giving him the money in one lump sum.

    AggyAF wrote: »
    Anyone else think it's crazy only about 10 posters regularly post here and we got damn near 500 pages?

    All the other sports threads on here are people with hobbies. This is football - the beautiful game. We eat, sleep and drink football.

    hqg-277.gif


  • SionSion Moderator, Legion of Trill, AHH Content Producer, AHH Editor Posts: 45,643 Regulator
    @Sion have you had a chance to read the article?

    Yes, I thought it was a good contribution. It takes a bit of discipline but it's the way out of hell's kitchen. I'll be honest fam I've been there before but I made it out. So I know anybody can do it, it's a lot of people who have unnecessary costs & spending habits that zap their finances. It's all about prioritizing & being disciplined instead of dropping $550 on the new smartphone or going broke to cop that new Benz to 'keep up with the jones', niggas should throw that money into a savings account or something that will preserve their money. Aint nothing worse than not having a nest/safety egg for just in case situations.
    IC Moderator and AHH Editor

    http://community.allhiphop.com/categories/site-help

    ^^^ If you need anything go here

    jono wrote: »
    This is the folly of the internet. Its become a bastion of misinformation, rumors, conspiracies and propaganda. A place where a person with no face or name can make accusations at any time with no verification or credentials and brainwash a small segment of people.
    T. Sanford wrote: »
    Message to the trills of the IC: May Legion Of Trill be your enemies downfall
    Young_Chitlintraestarjee504bigev240
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    I also saw this article yesterday and also looked at the comments afterwards. I believe it was a great contribution as well, @Sion nailed it as usual. However there was a specific user named HerrKutz who was saying basically "no shit sherlock", which he actually does make a point from the other perspective of this situation. But I'm glad you shared this and although I didn't add my take on the page, since I'm here I'll express it here:

    Never assume that people aren't already taking budget cuts and living below the means in order to make a living. I work for the government and where I'm at I believe over 50-75% of the employees there were furloughed, this year we've had two different government shutdowns. Imagine how they (regardless of how much they make) would have to budget their money and find ways to survive until that rebound check comes in. I was fortunate for both times to not be affected.

    But however from my perspective, I'm dealing with that regardless of the shutdowns. I'm living paycheck to paycheck right now. The amount of money that I get paid for a normal person who doesn't have a substantial amount of debt (or cares lol), they would love to have 40K...but I relate to the many recent college graduates looking for that starting break to help pay down their debt. I'm in that category and do not IMO relate to others, so to answer the "how to break living from paycheck to paycheck" question, it's a combination of many things and patience.

    I participate in the stock market game with @Sion as well as many things on IC and more recent have took my attention to my career at this point. My solution to this problem is basically look for a better position elsewhere. I've done more career management over the course of 4 months than I've ever imagined, because I needed to evaluate why it was so difficult for me to find another position. I've had arguments with friends and family over me staying at my current job, the thing is is that it's about working to what you are good at. When you want just a job to pay your bills, a salary job is great but when you are working on your career, it's a different ballgame especially today regardless of the job market. You want to be apart of positions that will develop and use your essential skills and build as you move on other positions. When you become comfortable at your position and not active on bettering your career, you could get out of your debt with your current job but you would allow time to pass by without playing the field. Thats basically my situation and why I've decided even though I'm still at this current job and I see no other positions around the building to build and the lack of training and updated technology, why I'm so fixed on leaving.

    So back to the debt, with over 50K in debt collectively, I'm looking at paying it as soon as possible. Right now, if I focus on my credit card, I would be able to create more options and opportunities to pay the other debt. Basically I'm doing whats called the "snowball method" where you are paying the lowest debt (as well as the others) but paying it all the way down to 0, then focusing on another debt. My problem is when I pay off all my bills, I have only few dollars remaining for two weeks, so I end up using more resources to get through the next pay period. Now I will stay at my current job until I see something better, but now I'm more into networking and looking to talk with people in the IT industry in order to find out how they got into their position.

    My solution to the paycheck to paycheck is to create a plan. My plan is to reach 60K or more (my friends and family believe I'm being alittle unrealistic lol) in my current situation and with that much I could not only help put extra money to pay down debt but be in a better career position (Data Scientist, Software Developer, etc) where I'm bring my current skills to a new position while learning and adapting to the newest technologies and programming languages. Part of that plan would help my goal to pay off my two credit cards in FULL, then focus on my car loan, then get to my student loan in that order. While doing that, start saving to my money market account, invest more, etc. So hopefully I can fulfill my goals!

    Young_ChitlinMD_PROPER
  • Young_ChitlinYoung_Chitlin YCN Chief/FCC Member/#RedVelvetSquad Member/IC Task Force General ASUville, PhoenixPosts: 23,852 ✭✭✭✭✭
    traestar wrote: »
    I also saw this article yesterday and also looked at the comments afterwards. I believe it was a great contribution as well, @Sion nailed it as usual. However there was a specific user named HerrKutz who was saying basically "no shit sherlock", which he actually does make a point from the other perspective of this situation. But I'm glad you shared this and although I didn't add my take on the page, since I'm here I'll express it here:

    Never assume that people aren't already taking budget cuts and living below the means in order to make a living. I work for the government and where I'm at I believe over 50-75% of the employees there were furloughed, this year we've had two different government shutdowns. Imagine how they (regardless of how much they make) would have to budget their money and find ways to survive until that rebound check comes in. I was fortunate for both times to not be affected.

    But however from my perspective, I'm dealing with that regardless of the shutdowns. I'm living paycheck to paycheck right now. The amount of money that I get paid for a normal person who doesn't have a substantial amount of debt (or cares lol), they would love to have 40K...but I relate to the many recent college graduates looking for that starting break to help pay down their debt. I'm in that category and do not IMO relate to others, so to answer the "how to break living from paycheck to paycheck" question, it's a combination of many things and patience.

    I participate in the stock market game with @Sion as well as many things on IC and more recent have took my attention to my career at this point. My solution to this problem is basically look for a better position elsewhere. I've done more career management over the course of 4 months than I've ever imagined, because I needed to evaluate why it was so difficult for me to find another position. I've had arguments with friends and family over me staying at my current job, the thing is is that it's about working to what you are good at. When you want just a job to pay your bills, a salary job is great but when you are working on your career, it's a different ballgame especially today regardless of the job market. You want to be apart of positions that will develop and use your essential skills and build as you move on other positions. When you become comfortable at your position and not active on bettering your career, you could get out of your debt with your current job but you would allow time to pass by without playing the field. Thats basically my situation and why I've decided even though I'm still at this current job and I see no other positions around the building to build and the lack of training and updated technology, why I'm so fixed on leaving.

    So back to the debt, with over 50K in debt collectively, I'm looking at paying it as soon as possible. Right now, if I focus on my credit card, I would be able to create more options and opportunities to pay the other debt. Basically I'm doing whats called the "snowball method" where you are paying the lowest debt (as well as the others) but paying it all the way down to 0, then focusing on another debt. My problem is when I pay off all my bills, I have only few dollars remaining for two weeks, so I end up using more resources to get through the next pay period. Now I will stay at my current job until I see something better, but now I'm more into networking and looking to talk with people in the IT industry in order to find out how they got into their position.

    My solution to the paycheck to paycheck is to create a plan. My plan is to reach 60K or more (my friends and family believe I'm being alittle unrealistic lol) in my current situation and with that much I could not only help put extra money to pay down debt but be in a better career position (Data Scientist, Software Developer, etc) where I'm bring my current skills to a new position while learning and adapting to the newest technologies and programming languages. Part of that plan would help my goal to pay off my two credit cards in FULL, then focus on my car loan, then get to my student loan in that order. While doing that, start saving to my money market account, invest more, etc. So hopefully I can fulfill my goals!

    The bold perfectly describes my situation. It's frustrating af to not have much money when you are working your tail off to get it. I'm looking at getting a second job to have some extra spending money, but also to pay off debts. The snowball method sounds like a good plan to follow
    ¡No contaban con mi astucia!
    5 Grand wrote: »
    I see a lot of people saying they'd "give" family members money.

    Thats not what you want to do.

    You want to set up a trust fund so they get a monthly payment. You can set up a trust fund so your mother gets, say, $10,000 a month for the rest of her life. According to my math, $10,000 per month for 20 years is $2.4 million. That's better than giving her $2.4 million up front because she can blow it all in a matter of days and then she'll want more and you'd feel obligated to give it to her.

    So if you win, don't "give" anybody anything. Set up a trust fund.

    Now that I think about it, I could set up a trust fund for my brother. I'd give him $10,000 a month. He's about 45 now so $10,000 per month for 40 years is only $4.8 million. That makes more sense than giving him the money in one lump sum.

    AggyAF wrote: »
    Anyone else think it's crazy only about 10 posters regularly post here and we got damn near 500 pages?

    All the other sports threads on here are people with hobbies. This is football - the beautiful game. We eat, sleep and drink football.

    hqg-277.gif


    traestarTheBoyRoMD_PROPER
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    traestar wrote: »
    I also saw this article yesterday and also looked at the comments afterwards. I believe it was a great contribution as well, @Sion nailed it as usual. However there was a specific user named HerrKutz who was saying basically "no shit sherlock", which he actually does make a point from the other perspective of this situation. But I'm glad you shared this and although I didn't add my take on the page, since I'm here I'll express it here:

    Never assume that people aren't already taking budget cuts and living below the means in order to make a living. I work for the government and where I'm at I believe over 50-75% of the employees there were furloughed, this year we've had two different government shutdowns. Imagine how they (regardless of how much they make) would have to budget their money and find ways to survive until that rebound check comes in. I was fortunate for both times to not be affected.

    But however from my perspective, I'm dealing with that regardless of the shutdowns. I'm living paycheck to paycheck right now. The amount of money that I get paid for a normal person who doesn't have a substantial amount of debt (or cares lol), they would love to have 40K...but I relate to the many recent college graduates looking for that starting break to help pay down their debt. I'm in that category and do not IMO relate to others, so to answer the "how to break living from paycheck to paycheck" question, it's a combination of many things and patience.

    I participate in the stock market game with @Sion as well as many things on IC and more recent have took my attention to my career at this point. My solution to this problem is basically look for a better position elsewhere. I've done more career management over the course of 4 months than I've ever imagined, because I needed to evaluate why it was so difficult for me to find another position. I've had arguments with friends and family over me staying at my current job, the thing is is that it's about working to what you are good at. When you want just a job to pay your bills, a salary job is great but when you are working on your career, it's a different ballgame especially today regardless of the job market. You want to be apart of positions that will develop and use your essential skills and build as you move on other positions. When you become comfortable at your position and not active on bettering your career, you could get out of your debt with your current job but you would allow time to pass by without playing the field. Thats basically my situation and why I've decided even though I'm still at this current job and I see no other positions around the building to build and the lack of training and updated technology, why I'm so fixed on leaving.

    So back to the debt, with over 50K in debt collectively, I'm looking at paying it as soon as possible. Right now, if I focus on my credit card, I would be able to create more options and opportunities to pay the other debt. Basically I'm doing whats called the "snowball method" where you are paying the lowest debt (as well as the others) but paying it all the way down to 0, then focusing on another debt. My problem is when I pay off all my bills, I have only few dollars remaining for two weeks, so I end up using more resources to get through the next pay period. Now I will stay at my current job until I see something better, but now I'm more into networking and looking to talk with people in the IT industry in order to find out how they got into their position.

    My solution to the paycheck to paycheck is to create a plan. My plan is to reach 60K or more (my friends and family believe I'm being alittle unrealistic lol) in my current situation and with that much I could not only help put extra money to pay down debt but be in a better career position (Data Scientist, Software Developer, etc) where I'm bring my current skills to a new position while learning and adapting to the newest technologies and programming languages. Part of that plan would help my goal to pay off my two credit cards in FULL, then focus on my car loan, then get to my student loan in that order. While doing that, start saving to my money market account, invest more, etc. So hopefully I can fulfill my goals!

    The bold perfectly describes my situation. It's frustrating af to not have much money when you are working your tail off to get it. I'm looking at getting a second job to have some extra spending money, but also to pay off debts. The snowball method sounds like a good plan to follow

    Well first off, I've heard many people going through this exact situation themselves. When you have a vast amount of debt, it takes a grave percentage of your wages especially during your beginning entry level of your career. My problem with my current job is also the reason it would be very difficult to find and work a part time job, its the fact of working office hours on the weekday that blocks times to work elsewhere. It's possible and weekend jobs is possible, but I have to make sure it doesn't interfere with my primary job. So I'm basically bottlenecked, pending I don't find anything. I have a raise expected soon and it will help but I don't believe it's going to be enough, but I do know that it'll speed things up alittle.

    I have a plan C in the process where I'm setting up to do freelance jobs, that'll take alittle time and since I was planning that anyway, that doesn't matter.

    Basically my plan consists of going through a rundown of all the long term debts (loans, bills, etc) from small to largest. Then create a cycle of which I am distributing my revenue towards multiple resources. And for each resource, once it's paid off, it becomes another option again. But then also the money you used to pay that debt since it's done will now go to another loan or bill and the process continues. Part of my cycle also includes savings such as a money market account, investment account, 401K, etc. Now you are creating a resource of which you can go to for emergency reasons.

    I just sat down and ran down all my debt, savings accounts, and worked out a schedule to follow to fulfill my goals. Next, I created a salary goals spreadsheet where I would calculate the amount of money that I make now and include the bills and loans that I pay on a bi-weekly basis. Then compare it to a chart of different salaries and see what type salary would boost my progress.

    Young_Chitlin
  • black caesarblack caesar Posts: 12,036 ✭✭✭✭✭
    edited October 2013
    Great article. I've been there before. It takes discipline to save. Also, you should save 20% for your check into an emergency fund account.
    awq1l4.png


    xp0aqu.png
  • LUClENLUClEN Absence makes the heart grow fonder of someone else Posts: 20,559 ✭✭✭✭✭
    earn more income
    The rapper from linkin park would body the dudes in the xxxtentacion cypher
    blakfyahking
  • Young_ChitlinYoung_Chitlin YCN Chief/FCC Member/#RedVelvetSquad Member/IC Task Force General ASUville, PhoenixPosts: 23,852 ✭✭✭✭✭
    Dude at the bank told me to pay off my smallest credit cards first, to have a savings account to fall back on in the event you lose your job.
    ¡No contaban con mi astucia!
    5 Grand wrote: »
    I see a lot of people saying they'd "give" family members money.

    Thats not what you want to do.

    You want to set up a trust fund so they get a monthly payment. You can set up a trust fund so your mother gets, say, $10,000 a month for the rest of her life. According to my math, $10,000 per month for 20 years is $2.4 million. That's better than giving her $2.4 million up front because she can blow it all in a matter of days and then she'll want more and you'd feel obligated to give it to her.

    So if you win, don't "give" anybody anything. Set up a trust fund.

    Now that I think about it, I could set up a trust fund for my brother. I'd give him $10,000 a month. He's about 45 now so $10,000 per month for 40 years is only $4.8 million. That makes more sense than giving him the money in one lump sum.

    AggyAF wrote: »
    Anyone else think it's crazy only about 10 posters regularly post here and we got damn near 500 pages?

    All the other sports threads on here are people with hobbies. This is football - the beautiful game. We eat, sleep and drink football.

    hqg-277.gif


    traestar
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    edited November 2013
    Dude at the bank told me to pay off my smallest credit cards first, to have a savings account to fall back on in the event you lose your job.

    Was he the CSR (customer service representative), Financial Advisor, or Bank Teller?

    Part of the snowball method is to pay off the easiest and smallest debt first, get that out of the way. Then move on to the next one. A Savings Account for example could be a "savings account" at a said bank. But I recommend earning Annual Percentage Yield with a money market account from a reputable company. When you put funds in a money market account, it compounds interest based on how much money is in that account. So you are making money by depositing your money at the bank. This will basically be your emergency savings in case of events like losing your job and also even looking for your job.

    To organize and plan out how much money you want to save, use this calculator here:

    http://www.bankrate.com/calculators/savings/saving-goals-calculator.aspx


    Young_ChitlinTheBoyRoChi Snow
  • Young_ChitlinYoung_Chitlin YCN Chief/FCC Member/#RedVelvetSquad Member/IC Task Force General ASUville, PhoenixPosts: 23,852 ✭✭✭✭✭
    traestar wrote: »
    Dude at the bank told me to pay off my smallest credit cards first, to have a savings account to fall back on in the event you lose your job.

    Was he the CSR (customer service representative), Financial Advisor, or Bank Teller?

    Part of the snowball method is to pay off the easiest and smallest debt first, get that out of the way. Then move on to the next one. A Savings Account for example could be a "savings account" at a said bank. But I recommend earning Annual Percentage Yield with a money market account from a reputable company. When you put funds in a money market account, it compounds interest based on how much money is in that account. So you are making money by depositing your money at the bank.

    I believe it was a financial advisor
    ¡No contaban con mi astucia!
    5 Grand wrote: »
    I see a lot of people saying they'd "give" family members money.

    Thats not what you want to do.

    You want to set up a trust fund so they get a monthly payment. You can set up a trust fund so your mother gets, say, $10,000 a month for the rest of her life. According to my math, $10,000 per month for 20 years is $2.4 million. That's better than giving her $2.4 million up front because she can blow it all in a matter of days and then she'll want more and you'd feel obligated to give it to her.

    So if you win, don't "give" anybody anything. Set up a trust fund.

    Now that I think about it, I could set up a trust fund for my brother. I'd give him $10,000 a month. He's about 45 now so $10,000 per month for 40 years is only $4.8 million. That makes more sense than giving him the money in one lump sum.

    AggyAF wrote: »
    Anyone else think it's crazy only about 10 posters regularly post here and we got damn near 500 pages?

    All the other sports threads on here are people with hobbies. This is football - the beautiful game. We eat, sleep and drink football.

    hqg-277.gif


    traestar
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    traestar wrote: »
    Dude at the bank told me to pay off my smallest credit cards first, to have a savings account to fall back on in the event you lose your job.

    Was he the CSR (customer service representative), Financial Advisor, or Bank Teller?

    Part of the snowball method is to pay off the easiest and smallest debt first, get that out of the way. Then move on to the next one. A Savings Account for example could be a "savings account" at a said bank. But I recommend earning Annual Percentage Yield with a money market account from a reputable company. When you put funds in a money market account, it compounds interest based on how much money is in that account. So you are making money by depositing your money at the bank.

    I believe it was a financial advisor

    That makes sense, they would give that type of advice. I used to be a bank teller a few years ago.

    BUt still, invest in a money market account! You will not regret it.

    http://www.bankrate.com/funnel/savings/savings-results.aspx?local=false&IRA=false&prods=33&ic_id=CR_searchMMASavingsRates_checking_MMASavings

  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    Right when I was on that savings goal calculator page, I just created a pdf of what I'm looking to save

  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    Today, I just got an email from my director saying that they are going to look at giving me a promotion. This should give me enough time before I look for a better job.

    Young_ChitlinValentinez A. Kaiser
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    back into this thread..and re reading again. you guys should minimize 401k contributions and cut up your credit cards/close them. minimize your monthly expenses...and stack 2-3 g's for an emergency fund. then..begin paying off debts using the snowball method

    After paying off CC debt, I'd hold on to those credit cards before I close them. Give a little time for your credit score to reflect the change, because I believe I read somewhere that doing that could hurt your score if you do it too early.

    I haven't done 401k contributions in three years because of my debt, but I do STILL have a few IRA accounts. That loan option is still there for BIG IMPORTANT down payments like a house, car, or property. But I want to focus on stability first before making ANY big purchases.

  • shit_happensshit_happens Posts: 4
    traestar wrote: »
    back into this thread..and re reading again. you guys should minimize 401k contributions and cut up your credit cards/close them. minimize your monthly expenses...and stack 2-3 g's for an emergency fund. then..begin paying off debts using the snowball method

    After paying off CC debt, I'd hold on to those credit cards before I close them. Give a little time for your credit score to reflect the change, because I believe I read somewhere that doing that could hurt your score if you do it too early.

    I haven't done 401k contributions in three years because of my debt, but I do STILL have a few IRA accounts. That loan option is still there for BIG IMPORTANT down payments like a house, car, or property. But I want to focus on stability first before making ANY big purchases.

    Not putting at least 5% in your TSP(401K) is a huge mistake as a gov employee, no matter what your financial status is. You are leaving a 5% match on the table. It is free money. You should invest at least 5%, if not 10%, THEN increase your withholding to equal your current take home pay. The 5% reduces your taxable income which means you can afford it because you pay less income taxes now. I doubled my account balance in 2013 following this method. If you are inputting anything into your IRA it should be diverted to your TSP because your employer isn't matching your IRA contributions but they will match your TSP. Furthermore, if you receive a tax refund every year, you should adjust your withholding even more to put the refund into your TSP over the course of the year. Trust me, I received this financial advice last year it is the best advice I have ever received. You can use the IRS's withholding calculator to assist you. When you increase your balance, you can take small loans (i.e. $10,000) @ 2-3% to pay off debt at higher interest rates.
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    traestar wrote: »
    back into this thread..and re reading again. you guys should minimize 401k contributions and cut up your credit cards/close them. minimize your monthly expenses...and stack 2-3 g's for an emergency fund. then..begin paying off debts using the snowball method

    After paying off CC debt, I'd hold on to those credit cards before I close them. Give a little time for your credit score to reflect the change, because I believe I read somewhere that doing that could hurt your score if you do it too early.

    I haven't done 401k contributions in three years because of my debt, but I do STILL have a few IRA accounts. That loan option is still there for BIG IMPORTANT down payments like a house, car, or property. But I want to focus on stability first before making ANY big purchases.

    Not putting at least 5% in your TSP(401K) is a huge mistake as a gov employee, no matter what your financial status is. You are leaving a 5% match on the table. It is free money. You should invest at least 5%, if not 10%, THEN increase your withholding to equal your current take home pay. The 5% reduces your taxable income which means you can afford it because you pay less income taxes now. I doubled my account balance in 2013 following this method. If you are inputting anything into your IRA it should be diverted to your TSP because your employer isn't matching your IRA contributions but they will match your TSP. Furthermore, if you receive a tax refund every year, you should adjust your withholding even more to put the refund into your TSP over the course of the year. Trust me, I received this financial advice last year it is the best advice I have ever received. You can use the IRS's withholding calculator to assist you. When you increase your balance, you can take small loans (i.e. $10,000) @ 2-3% to pay off debt at higher interest rates.

    I'll check into that thanks. But one thing to correct you, I worked for the gov but I was NOT a full government employee, as a contractor they did have different IRA/401K packages but those were from primary contractor I worked for. They were no different than the plans that other temp HR agencies have. I actually forgot about the employer match, because the job I was in about 4 years ago took that away later on down the year. But I will actually look into that now with my current contractor firm.

  • Young_ChitlinYoung_Chitlin YCN Chief/FCC Member/#RedVelvetSquad Member/IC Task Force General ASUville, PhoenixPosts: 23,852 ✭✭✭✭✭
    ¡No contaban con mi astucia!
    5 Grand wrote: »
    I see a lot of people saying they'd "give" family members money.

    Thats not what you want to do.

    You want to set up a trust fund so they get a monthly payment. You can set up a trust fund so your mother gets, say, $10,000 a month for the rest of her life. According to my math, $10,000 per month for 20 years is $2.4 million. That's better than giving her $2.4 million up front because she can blow it all in a matter of days and then she'll want more and you'd feel obligated to give it to her.

    So if you win, don't "give" anybody anything. Set up a trust fund.

    Now that I think about it, I could set up a trust fund for my brother. I'd give him $10,000 a month. He's about 45 now so $10,000 per month for 40 years is only $4.8 million. That makes more sense than giving him the money in one lump sum.

    AggyAF wrote: »
    Anyone else think it's crazy only about 10 posters regularly post here and we got damn near 500 pages?

    All the other sports threads on here are people with hobbies. This is football - the beautiful game. We eat, sleep and drink football.

    hqg-277.gif


    traestarK_Fisher
  • Young_ChitlinYoung_Chitlin YCN Chief/FCC Member/#RedVelvetSquad Member/IC Task Force General ASUville, PhoenixPosts: 23,852 ✭✭✭✭✭
    Got one of my credit cards paid off. On my way to debt freeland
    ¡No contaban con mi astucia!
    5 Grand wrote: »
    I see a lot of people saying they'd "give" family members money.

    Thats not what you want to do.

    You want to set up a trust fund so they get a monthly payment. You can set up a trust fund so your mother gets, say, $10,000 a month for the rest of her life. According to my math, $10,000 per month for 20 years is $2.4 million. That's better than giving her $2.4 million up front because she can blow it all in a matter of days and then she'll want more and you'd feel obligated to give it to her.

    So if you win, don't "give" anybody anything. Set up a trust fund.

    Now that I think about it, I could set up a trust fund for my brother. I'd give him $10,000 a month. He's about 45 now so $10,000 per month for 40 years is only $4.8 million. That makes more sense than giving him the money in one lump sum.

    AggyAF wrote: »
    Anyone else think it's crazy only about 10 posters regularly post here and we got damn near 500 pages?

    All the other sports threads on here are people with hobbies. This is football - the beautiful game. We eat, sleep and drink football.

    hqg-277.gif


    traestarkillap
  • PapaDoc223PapaDoc223 Brooklyn,NYPosts: 2,162 ✭✭✭✭✭
    Black Enterprise said that you should have 6-12 months worth of income in your savings account. Great thread. I hope it doesnt die. Imma bookmark this.


    Black%2BMoon%2B-%2BEnta%2BDa%2BStage%2B-%2B1993%2B-%2BNY.jpg


    11247116_1589911341287396_1858971814_n.jpg
    1_zpsakdv1ju8.jpg
    "I'm from Brooklyn, a place where stars are born
    Streets are shot up, apartment buildings are torn."
    -Gza

    "We gotta mob, but it takes dough to make bread
    We workin wit cement try to make bricks."
    -Steele

    "We got the Bucktown Boot Camp attitude kill a man"
    -Buckshot

    We comin' through, all you hear is ten boots stompin'
    Got you shittin' in you're drawers, just starin', lookin', watchin'
    What's our next move? Hope it's not in you direction
    'Cuz you know you're fucked up and left home without protection
    -Tek
  • Peace_79Peace_79 Sion Posts: 8,964 ✭✭✭✭✭
    Check this out

    https://www.youneedabudget.com/

    It includes $60 software (after the free trial) if you want to use it. There is also tons of free content that explains the philosophy.

    It is a simple framework that helps you build towards living off of last month's income for all of your expenses, savings, etc. It also helps you save towards rainy days etc. The software makes it easier to apply the framework and visualize your budget.

    Essentially, you build towards a buffer sitting in your account that equals an entire month of your income. Therefore, each month, all of your expenses come out of last month's income and your current month's income replaces the buffer.

    This method literally prevents you from living paycheck to paycheck. You can even take out 0% loans from your own buffer and pay yourself back the next month. The best part though is the peace of mind and the shift with how you view your money. With this system, in theory you could pay all of your bills, expenses, savings, monthly debt, spending money etc on the first day of the month and still have money left over. This is all before you receive your first paycheck that month. This freedom makes scheduling bills effortless. You don't have a to worry about when the payment will draft, the money is already there.

    It really is a powerful mindset to work towards. It helped me out a lot. If any if you are interested, I am happy to answer any questions.
    killaptraestarKoltrain
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
    PapaDoc223 wrote: »
    Black Enterprise said that you should have 6-12 months worth of income in your savings account. Great thread. I hope it doesnt die. Imma bookmark this.

    Money Market Account >>>>> Savings Account unless there is a APY

    Young_ChitlinPeace_79
  • traestartraestar Atlantic City, NJPosts: 6,030 ✭✭✭✭✭
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