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+--- Thread: Madison MoneySports - Personal Finance Thread (/showthread.php?tid=11501)
RE: Madison MoneySports - Personal Finance Thread - Tyler.M - 09-29-2020
I have about 10k left in student loans but still need to get my emergency savings up to the three month mark. Would you smart money guys recommend I prioritize student loans and take advantage of the 0 interest thing til year end or focus on emergency savings? My gut says emergency savings as its insurance against going back into debt but having my entire payment go to principal on my loans is hard to overlook.
RE: Madison MoneySports - Personal Finance Thread - Apoc - 09-29-2020
(09-29-2020, 03:13 PM)Tyler.M Wrote: I have about 10k left in student loans but still need to get my emergency savings up to the three month mark. Would you smart money guys recommend I prioritize student loans and take advantage of the 0 interest thing til year end or focus on emergency savings? My gut says emergency savings as its insurance against going back into debt but having my entire payment go to principal on my loans is hard to overlook.
In this order:
- high interest debt
- emergency savings
- low interest debt
- home improvement
Madison MoneySports - Personal Finance Thread - JPolen01 - 09-29-2020
I'm going to advocate you do no home improvement work until you have padded the savings account. What if you open up the walls and find extensive mold or a cracked support beam? Will you have the funds to go deeper on the project? Once you start, the final cost is never what you thought it would be.
The projects you're talking about address in the tens of thousands of you hire a contractor.
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RE: Madison MoneySports - Personal Finance Thread - Sijray21 - 09-29-2020
(09-29-2020, 03:34 PM)Apoc Wrote:(09-29-2020, 03:13 PM)Tyler.M Wrote: I have about 10k left in student loans but still need to get my emergency savings up to the three month mark. Would you smart money guys recommend I prioritize student loans and take advantage of the 0 interest thing til year end or focus on emergency savings? My gut says emergency savings as its insurance against going back into debt but having my entire payment go to principal on my loans is hard to overlook.
In this order:
- high interest debt
- emergency savings
- low interest debt
- home improvement
yeah, this.
home improvement (not to be confused with necessary repairs) should be last, for sure. i also don't classify a mortgage under low interest debt; it's in a category all on its own and i've done home improvement (cash) obviously without having my mortgage paid off since i'm still doing that.
RE: Madison MoneySports - Personal Finance Thread - Tyler.M - 09-29-2020
(09-29-2020, 03:54 PM)Sijray21 Wrote:(09-29-2020, 03:34 PM)Apoc Wrote:(09-29-2020, 03:13 PM)Tyler.M Wrote: I have about 10k left in student loans but still need to get my emergency savings up to the three month mark. Would you smart money guys recommend I prioritize student loans and take advantage of the 0 interest thing til year end or focus on emergency savings? My gut says emergency savings as its insurance against going back into debt but having my entire payment go to principal on my loans is hard to overlook.
In this order:
- high interest debt
- emergency savings
- low interest debt
- home improvement
yeah, this.
home improvement (not to be confused with necessary repairs) should be last, for sure.
Excellent advice. Thank you. Student loans are 5.5% avg so I would consider them "low" interest debt. I'll do them after emergency savings.
RE: Madison MoneySports - Personal Finance Thread - Apoc - 09-29-2020
You could always do one month at emergency, then split your money across both emergency and student loan debt. It doesn't have to be binary.
RE: Madison MoneySports - Personal Finance Thread - .RJ - 09-29-2020
Just dont fall into the trap of doing all your home improvement right before you sell or move out.
Enjoy that shit, says the guy that did a $60k renovation as soon as he moved in and no ragrets (dot gif)
RE: Madison MoneySports - Personal Finance Thread - Apoc - 09-29-2020
(09-29-2020, 05:47 PM).RJ Wrote: Just dont fall into the trap of doing all your home improvement right before you sell or move out.
Don't you know the best condition your house will ever be in while you live there is when you sell it??
I know two different people who spent six figures on home improvement, only to move 12-18 months later.
RE: Madison MoneySports - Personal Finance Thread - Tyler.M - 10-01-2020
That's a good point on home improvement. I think I want to keep my home long term after I leave and in its current state, I'd struggle to find good renters that wouldn't further trash the place.
Really though, my problem is that I've perpetually said "I'm moving out of the area in the next year" for the past 8 years but I keep getting promoted or finding new jobs that pay higher in low-cost Harrisonburg, so I stay. That means my impetus for improving the place (the prime motivation is attracting better renters and a higher price) keeps getting pushed back. And my finances, too. More so my finances, really.
RE: Madison MoneySports - Personal Finance Thread - Senor_Taylor - 10-23-2020
Does anyone know about the FHA loan Forebearance through the CARES act? I don't want to go into details, but I just want to make sure the person I'm talking to about this is okay. I thought at the end of Forebearance, you have to pay everything you deferred all at once?
https://rd.usda.gov/sites/default/files/Interagency_COVID19_Housing_Forbearance_FS_Borrowers.pdf
RE: Madison MoneySports - Personal Finance Thread - D_Eclipse9916 - 10-23-2020
(10-23-2020, 10:48 AM)Senor_Taylor Wrote: Does anyone know about the FHA loan Forebearance through the CARES act? I don't want to go into details, but I just want to make sure the person I'm talking to about this is okay. I thought at the end of Forebearance, you have to pay everything you deferred all at once?
https://rd.usda.gov/sites/default/files/Interagency_COVID19_Housing_Forbearance_FS_Borrowers.pdf
"FHA does not require lump sum repayment at the end of the forbearance."
It specifically states if you were current on your mortgage as of March 1st, it is NOT required lump sum. Looks like you got to contact them as it is an option not a clear stipulation. Mortgage companies do want you to stay in your house, and are willing to usually work with you on a new payment plan. However, they have to see a clear path to payment vs just extending and "hoping" for payment.
"FHA does not require lump sum repayment at the end of the forbearance, and has developed the COVID-19 Standalone Partial Claim to assist with repayment. If borrowers were current or less than 30 days delinquent as of March 1, 2020, they may be entitled to this option.
A partial claim is a zero interest, no fee, junior lien on the borrower’s property that will become payable when the borrower sells their home, pays off their mortgage, or their mortgage otherwise terminates. If the borrower does not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools to help repay missed payments over time.
For more information on FHA mortgages please call 1-800-CALL-FHA (1-800-225-5342)."
RE: Madison MoneySports - Personal Finance Thread - Senor_Taylor - 10-23-2020
(10-23-2020, 10:57 AM)D_Eclipse9916 Wrote:(10-23-2020, 10:48 AM)Senor_Taylor Wrote: Does anyone know about the FHA loan Forebearance through the CARES act? I don't want to go into details, but I just want to make sure the person I'm talking to about this is okay. I thought at the end of Forebearance, you have to pay everything you deferred all at once?
https://rd.usda.gov/sites/default/files/Interagency_COVID19_Housing_Forbearance_FS_Borrowers.pdf
"FHA does not require lump sum repayment at the end of the forbearance."
It specifically states if you were current on your mortgage as of March 1st, it is NOT required lump sum. Looks like you got to contact them as it is an option not a clear stipulation. Mortgage companies do want you to stay in your house, and are willing to usually work with you on a new payment plan. However, they have to see a clear path to payment vs just extending and "hoping" for payment.
"FHA does not require lump sum repayment at the end of the forbearance, and has developed the COVID-19 Standalone Partial Claim to assist with repayment. If borrowers were current or less than 30 days delinquent as of March 1, 2020, they may be entitled to this option.
A partial claim is a zero interest, no fee, junior lien on the borrower’s property that will become payable when the borrower sells their home, pays off their mortgage, or their mortgage otherwise terminates. If the borrower does not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools to help repay missed payments over time.
For more information on FHA mortgages please call 1-800-CALL-FHA (1-800-225-5342)."
Thank you. I asked them to call and make sure. They applied last night.
RE: Madison MoneySports - Personal Finance Thread - Tyler.M - 10-29-2020
I'm here with another great question. So, rule of thumb is to keep your "transportation" expenses to between 15% to 20% of your monthly take home pay. So, including gas, insurance, car payment and whatever you stash away for parts/maintenance a month, it should be somewhere around that percentage, max. With my car and motorcycle (I'm still on payment plans for both), I'm at about 22% which means I'm out of the regular range (and one of the reasons I want to wait on a second car).
BUT that rule of thumb is generally for squares who don't do car things as a hobby. What would be a better % range for an enthusiast? Do you guys look at this way when figuring up how to afford another vehicle?
RE: Madison MoneySports - Personal Finance Thread - Apoc - 10-29-2020
Anything over 15% seems high to me... and being an enthusiast should go into the entertainment category, not transportation.
RE: Madison MoneySports - Personal Finance Thread - Tyler.M - 10-29-2020
(10-29-2020, 08:31 PM)Apoc Wrote: Anything over 15% seems high to me... and being an enthusiast should go into the entertainment category, not transportation.
That's smart. If I separateerate out my motorcycle stuff, I would be closer to the 15% total for primary transportation.
Madison MoneySports - Personal Finance Thread - JPolen01 - 10-29-2020
I've never even thought of car payments as a percentage of income. Interesting. Ours is 6.8% for reference. Although that's just car payments. I stopped keeping track of gas spending many moons ago because I'm not going to change my driving habits due gas prices (lucky that we can afford to do this no matter the cost).
I guess my point is, can you currently afford your payments? Can you still contribute your desired amount into savings, etc?
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Madison MoneySports - Personal Finance Thread - ViPER1313 - 10-29-2020
I am not spending nearly enough. Accord is only 3%... maybe 5 once you factor in all the other gas/insurance.
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RE: Madison MoneySports - Personal Finance Thread - .RJ - 10-29-2020
if you add car + motorcycle + motorcycle project + bicycles as transportation....
ah fuck, burrito.
RE: Madison MoneySports - Personal Finance Thread - Kaan - 10-30-2020
I think i'm keeping my tundra for a long time... i cant justify these new(er) truck prices at all...
It would be cheaper (buy a long shot) to buy a replacement engine and trans, get the whole truck under coated, and bedline the paint and all.
RE: Madison MoneySports - Personal Finance Thread - Senor_Taylor - 10-30-2020
So is this gross income before taxes AND other deductions? Mine comes out to be like <9% if that's the case. $550 for the truck and $250 for the Fiesta.
Add in gas and insurance and maybe that's another $350 a month? I suppose that's alright. That can't be right. I feel like I spend a lot of money on car payments. Are people really out there dropping $800+ a month on car payments when they aren't enthusiasts?