I can't haz monies - Banking, Finances, and mebe Doomsday?

[ViPER1313]

I agree with DJ and Evan, so that is why I support credit unions. They don't have all the crazy ATM networks, long banking hours and 1000s of branch locations, but they are not in it to make a profit (unlike BoA, Chase, WaMu, etc... everyone in the CU is a shareholder, so any profit is returned to you as better savings dividends and loan rates) so you get a better deal if you are not a baller. It all seems like a moot point to me - I can't find one reason why a bank is better than a credit union other than national branch and ATM availability. With direct deposit and surcharge free ATMs, who cares??

[Evan]

so are free bank accounts a right now?

I do have a problem with being charged to access my own money. Especially since the bank is profiting from my money in the first place, and banning these stupid fees only means that they make incredible amounts of money instead of ludicrous amounts.

then dont use a bank. nobody is forcing you to. banks provide a service, a service which they may charge for. You may elect to pay them or not.

writing laws telling a business what services they can and cant charge for is completely asinine

[ViPER1313]

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Get bailed out, then increase your fees and foreclose on more houses without proper procedure or due process = profit!

[Goodspeed]

then dont use a bank. nobody is forcing you to. banks provide a service, a service which they may charge for. You may elect to pay them or not.

writing laws telling a business what services they can and cant charge for is completely asinine

Meh, banks have always been highly regulated.

All I'm saying is, how do we know that what they plan to charge for services, per person, isn't similarly too high? If their aim is to recoup the extra billions they used to make via sometimes-ridiculous overdraft fees, late charges, etc., then it stands to reason that the planned charges deserve a second thought. I'm just trying to be smart with my money

[D_Eclipse9916]

Goodspeed, if youd like to sit down with my mom and I and plan out a good strategy and specifics with your money, we are more than willing to help.

Ill give you a few clues right off the bat if you want stability and earnings potential in your money:

1. Leave as little in your checking account as possible, but enough to avoid fees
2. Have a savings account worth 6 months of your living expenses (and dont lie to yourself)
3. Did you maximize your IRA/Roth IRA? After meeting the first two, your next objective is to maximize these accounts. Compounding interest on non-taxable income (Roth IRA) over 50 years is fucking amazing. Simple way to put it: IRA you dont pay tax now, you pay later, Roth IRA, you pay tax now, no tax later.
4. All remaining money can be strategized between stocks/mutual funds and CDs. Expect to buy a new car in a year or two? Money should be in a no-fee CD, remaining can go to mutual funds/stock market. It should always be diversified and viewed as LONG-TERM investments. You only lose money if you sell the stock (or it simply goes out of business). By diversifying and using it long-term, you are basically using a *smoothing* factor on the market, making your investment more stable, and although you can make more money short-term, your exposing yourself to risk. Remember, the consistent drivers wins the season, the fast but erratic driver has his highs, but has a high likelihood of not winning the season.


And duh, never leave a balance on your credit card/pay off any debt as quickly as possible. Fees and compounding interest work against you here! Yes car loans is DEBT, I cant beleive the amount of people who beleive its just a monthly bill at this point. Your worried about a $25 fee on your checking yet you GIVE away money with your car loan. When did it become acceptable in this country to borrow money on loan for a non-investment?

[ViPER1313]

Yes car loans is DEBT, I cant beleive the amount of people who beleive its just a monthly bill at this point. Your worried about a $25 fee on your checking yet you GIVE away money with your car loan. When did it become acceptable in this country to borrow money on loan for a non-investment?

First off, not everyone is in the warped economic situation that you are currently in (high paying job, minimal living expenses), not everyone is a mechanic, and some people need reliable transportation but don't have 10k lying around. But aside from that, I would rather have an additional 15k in my savings account and pay off a car at $2XX dollars a month (even though it means losing money in the form of interest payments) than pay cash up front and not have that money should I need it.

[D_Eclipse9916]

First off, not everyone is in the warped economic situation that you are currently in (high paying job, minimal living expenses), not everyone is a mechanic, and some people need reliable transportation but don't have 10k lying around. But aside from that, I would rather have an additional 15k in my savings account and pay off a car at $2XX dollars a month (even though it means losing money in the form of interest payments) than pay cash up front and not have that money should I need it.

? Reliable transportation can be had for 3-5k out of a honda accord from the 90s. Just cause you want something new doesnt mean you "have" to have it. And guess what? I have minimal living expenses because I didnt buy things that put me in that. I dont have a house/I dont have a car payment.

Take for example your situation, you wanted a new car, even though you had a "running SHO". You also went and bought a house, when you could have lived at home/rented a cheap apartment. I was supposed to go out and buy a "newish" truck when I left college, cause I do make good money. However after looking at car loans/depreciation I CHOSE not to because I felt I could not truly afford (I could easily afford the payments, but then im wasting money, and I could save up the money over long run but was it truly worth it?). In the end I waited a full year and 3 months to save up sufficient cash over and beyond what I bought my $16,000 Denali for. Even if it costs me 3k a year to maintain (which is astronomical, I have spent $30 for oil so far), it would take over 10 years of that to break-even with a full-size truck that was new.

Also, you knew I wanted a house, but I chose to wait, because I dont think nI could "reasonably" afford a house around here at my salary and I make decent money. In fact ill probably be waiting another 2.5 years to build up sufficient (but then again a house "can" be an investment)


Oh and if you have 15k , dont spend 15k on the car, therefore you have more left. Spending all your money violates number #2 of my rule, at least 6 months of living expenses. Shit, hyundais have 10 year/100,000 mile warranties and can had that cheap. To get your full worth out of it, go those 10 years. If you save only $1500 a year, youve got another brand new car. PS-- My mom didnt work, raised 2 kids and had shit for child support,. We lived okay, and she kept her 22 year old car. She aint a mechanic and she kept it for 22 year. So dont think my situation has an impact.

[D_Eclipse9916]

Im done, I wont respond anymore, I was trying to help.

If youd like help for maximizing your dollar, you can speak with my mom, who never had my "warped view". She was a bank manager for 6 years out of college (quit to get married, AKA retirement for 26 years), and handled the finances for her and my dad's real estate investments/taxes/ and everything inbetween. You will find she knows how to eke out every dollar (she will tell you to keep your old car/posessions longer, makes the single largest impact).

[Apoc]

I think the problem is not what you say, but that you sound like a douchekap saying it.

[ViPER1313]

I think the problem is not what you say, but that you sound like a douchekap saying it.

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This....

DJ, I wasn't even using myself as a comparison point, I don't know why you thought this was some reflection of my financial choices..... but simply point out a flaw in your knowledge that applies to a lot of people (which actually doesn't include me...) A lot of people don't have the "choices" you seem to base your personal responsibility off of. A lot of people can't live at home to save money (for family or personal reasons,) especially a home in an affluent area that opens up a lot of higher paying jobs like the one you have. If all of those things aren't made available to you, you can't make that "choice."

Secondly, your truck example shows that you don't understand the full value of a car (which includes depreciation and probability of getting into an accident), or the maintenance costs you can incur taking an older car to a shop. Even a $3-5k Honda isn't going to take 20k miles of yearly abuse for cheap (because not everyone lives 5 miles from work) when you are taking it to an independent shop to DIAGNOSE and repair things (because most people aren't mechanics who can tell a shop what to fix, and lots of shops are crooked), and if (god forbid) you ever wreck that car, you are going to look like a genius when you get $500 for that car you put 8k into.

Your advice on saving money is sound, I am just trying to show another viewpoint.