Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-16-2013, 07:32 PM   #81
Full time employment: Posting here.
 
Join Date: Mar 2011
Posts: 534
I am normally a proponent of emergency funds but frankly that 22% car loan on which you pay 300+ in interest a month with $20 going to principle qualifies as a house-on-fire emergency as far as I'm concerned.

I would pay the entire 4k toward it, keep the Kia (of course!) and put every spare dollar you can toward that car payment until its gone. Then drive the Kia in to the ground.
__________________

__________________
jon-nyc is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-16-2013, 08:10 PM   #82
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,263
Quote:
Originally Posted by jon-nyc View Post
I am normally a proponent of emergent funds but frankly that 22% car loan on which you pay 300+ in interest a month with $20 going to principle qualifies as a house-on-fire emergency as far as I'm concerned. ...
I agree, but I wonder about the 'mechanics' (no pun intended) of that car loan pay-off.

She has an $8,800 balance. If she sinks $4,000 into it, she will still have the same payments (but for a shorter time), right? I wonder if she might be better off getting the whole amount saved up, then pay it off and lose the payments altogether? I suppose there is a balance there - if it takes her a very long time to raise the full amount (likely), I guess she could hit the end of the loan first by paying off the $4,000 now. It just concerns me that she loses the $4,000 in liquidity, but is still making those payment each month for a while. There is no short-term benefit, and she is in a crunch.

But 22% is a monster, no doubt.

If the dad (small 'd') is forced to start making payments, that car can be paid off sooner. That's a big piece of this puzzle.

Secondary Q: A 2007 car with 120,000 miles? That's about 2x the average miles/year. Why so many miles - you said you bought in 2007 (I assume new)?

-ERD50
__________________

__________________
ERD50 is offline   Reply With Quote
Old 03-17-2013, 10:02 AM   #83
Dryer sheet aficionado
 
Join Date: Mar 2013
Posts: 34
Quote:
Originally Posted by Live And Learn View Post
I wanted to echo this also. You are obviously bright, strong and determined. Keep up that attitude and work towards your financial goals. The longest journey starts with a single step.

I'm so glad you didn't run away from us when we started with the "tough love" speaches !

Thanks everyone! I'm trying to catch up on replies now. I will definitely not run away from tough love. I asked for it, and definitely needed it. When I get off work tonight I will start researching the earning potential for a counselor, and how my student loans may affect me in the long run. I'll be back to share more and hopefully answer some of the questions posed to me.
__________________
kaharris05 is offline   Reply With Quote
Old 03-17-2013, 10:11 AM   #84
Dryer sheet aficionado
 
Join Date: Mar 2013
Posts: 34
Quote:
Originally Posted by ERD50 View Post
I agree, but I wonder about the 'mechanics' (no pun intended) of that car loan pay-off.

She has an $8,800 balance. If she sinks $4,000 into it, she will still have the same payments (but for a shorter time), right? I wonder if she might be better off getting the whole amount saved up, then pay it off and lose the payments altogether? I suppose there is a balance there - if it takes her a very long time to raise the full amount (likely), I guess she could hit the end of the loan first by paying off the $4,000 now. It just concerns me that she loses the $4,000 in liquidity, but is still making those payment each month for a while. There is no short-term benefit, and she is in a crunch.

But 22% is a monster, no doubt.

If the dad (small 'd') is forced to start making payments, that car can be paid off sooner. That's a big piece of this puzzle.

Secondary Q: A 2007 car with 120,000 miles? That's about 2x the average miles/year. Why so many miles - you said you bought in 2007 (I assume new)?

-ERD50
That's a good point about the car. More research needed...

As for the miles, the first two years I had the car I did a lot of cross-state trips. May not have been a big difference if I did one or two, but I did it about twice a month for that two years. I also lived 30 miles (one way) from my job during that two years. Yes, I bought the car new...
__________________
kaharris05 is offline   Reply With Quote
Old 03-17-2013, 10:47 AM   #85
Recycles dryer sheets
 
Join Date: Jan 2013
Posts: 144
Hi
Late to this thread. I agree that you are an intelligent and motivated woman.

If you can see a way that you can pay your bills during the next year or so then I vote for the paying down the loan ASAP. I ran the difference between paying off 8800 and 4800. 33 payments versus 16 AND over 2000 difference is interest paid

Good luck and take care of yourself and your 1.5 children!
__________________
Sarah S is offline   Reply With Quote
Old 03-17-2013, 01:02 PM   #86
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Congratulations on hanging in there with our advice! That's a good start.

I haven't seen anyone mention the 6 weeks off without pay you're going to have to finance, though maybe I missed it. You definitely need a plan for that. At least some of that $4000 will disappear during that time I would assume. Absolutely pay as much as you can on the loan principal, but not to the point of missing paying bills again. So be careful balancing the bills and the loan. And leave a little margin just in case that 6 weeks doesn't work out completely as expected. That may mean paying off just $500 now and waiting until after the new baby has arrived before paying any more towards the loan.
__________________
Animorph is offline   Reply With Quote
Old 03-17-2013, 01:31 PM   #87
Thinks s/he gets paid by the post
Keim's Avatar
 
Join Date: Feb 2007
Location: Moscow
Posts: 1,128
I'd hold off on paying off on the loan until after the birth. God forbid, but cash may come in handy-and it is not very far off.
__________________
You can't enlighten the unconscious.
But you can hit'em upside the head a few times to make sure they are really out...
Keim is offline   Reply With Quote
Old 03-18-2013, 06:47 AM   #88
Full time employment: Posting here.
Badger's Avatar
 
Join Date: Nov 2008
Posts: 825
Quote:
Originally Posted by kaharris05 View Post
That's a good point about the car. More research needed...

As for the miles, the first two years I had the car I did a lot of cross-state trips. May not have been a big difference if I did one or two, but I did it about twice a month for that two years. I also lived 30 miles (one way) from my job during that two years. Yes, I bought the car new...
A little good news is the miles are mostly highway miles and not constant hard wearing "stop and go" in traffic.

Cheers!
__________________
Badger is offline   Reply With Quote
Old 03-18-2013, 07:34 AM   #89
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,501
Quote:
Originally Posted by Keim View Post
I'd hold off on paying off on the loan until after the birth. God forbid, but cash may come in handy-and it is not very far off.
That is my suggestion too. Without the baby on the way I'd say split the difference and keep $2k in cash, pay off $2k of the loan to at least minimize some of the interest expense on it.

But with all the unknowns with the baby I'm in your camp. Maybe wait another year until things are stable with that issue, then be more aggressive about paying down the loan.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now   Reply With Quote
Old 03-18-2013, 08:39 AM   #90
Dryer sheet aficionado
 
Join Date: Mar 2013
Posts: 34
So many choices!!! Keep the $4,000 for the baby, send the $4,000 to my lender, or send $2,000 to my lender and keep the other $2,000. This is a really tough choice!! I am leaning toward sending them $2,000, and saving the rest for the baby since I don't have any savings right now.

I just got some depressing information from salary.com. In my state, with a Masters in Counseling I can expect to make between $13 and $21 per hour. I make more than that minimum now! I always expected a bigger pay increase with each new degree. I'm not even using my education now for the jobs I have. I think I might wait for graduate school, at least until I figure out a graduate degree program that will allow me to make more money, but still be something I am interested in. The graduate debt just doesn't seem worth a possible pay decrease to $13 per hour.
__________________
kaharris05 is offline   Reply With Quote
Old 03-18-2013, 09:03 AM   #91
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: No. California
Posts: 1,600
You have gotten quite a bit of great feedback, but I want to comment on the child support issue from a personal viewpoint.

The father of my children decided he didn't want to pay anything to help me raise them. He would say he was going to help with daycare, but then would tell me didn't have the money when it was time to pay the daycare provider....leaving me hanging.

So, I went to the county and through their District Attorney child support program they took him to court and got a child support judgement. At not cost to me. That is a county service.

Then they proceeded to try and pry money from him for his child support payments. It was out of my hands and when he did pay, he paid directly to them and they paid me. That kept the accounting out of my hands and they applied the pressure, not me.

He still did not pay and at one point they found a bank account he had and they confiscated it and paid me.

So, even though he may seem that he will help now, things change and his priorities may not lie with your kids as time goes on. Especially when he gets a new girlfriend.

While I never could rely on regular child support checks, I did get some help here and there. But only because I had a court order for child support.
__________________
KB is offline   Reply With Quote
Old 03-18-2013, 10:51 AM   #92
Full time employment: Posting here.
Badger's Avatar
 
Join Date: Nov 2008
Posts: 825
Quote:
Originally Posted by kaharris05 View Post
So many choices!!! Keep the $4,000 for the baby, send the $4,000 to my lender, or send $2,000 to my lender and keep the other $2,000. This is a really tough choice!! I am leaning toward sending them $2,000, and saving the rest for the baby since I don't have any savings right now.

I just got some depressing information from salary.com. In my state, with a Masters in Counseling I can expect to make between $13 and $21 per hour. I make more than that minimum now! I always expected a bigger pay increase with each new degree. I'm not even using my education now for the jobs I have. I think I might wait for graduate school, at least until I figure out a graduate degree program that will allow me to make more money, but still be something I am interested in. The graduate debt just doesn't seem worth a possible pay decrease to $13 per hour.
Glad to see you are doing the extra research. I had to make some similar decisions. In my case I decided not go for a terminal degree since the break even point would have been about 25+ years. Fortunately, over the course of 20 years working at jobs that I liked but were not what I really wanted(coupled with determination, hard work, and a little luck) I was able to land my desired career without the degree. You just never know. The next 20 years were great.

It's all been a big adventure and I wouldn't have changed a thing. Even the few bumps in the road along the way. Now I'm looking toward the next 20 years.

Cheers!
__________________
Badger is offline   Reply With Quote
Old 03-18-2013, 09:12 PM   #93
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,066
Quote:
Originally Posted by kaharris05 View Post
I just got some depressing information from salary.com. In my state, with a Masters in Counseling I can expect to make between $13 and $21 per hour. I make more than that minimum now!
Yes, that's pretty much as I expected. I don't know much about psychotherapy (presumably that's what you have in mind?), but I do know that there is not exactly a shortage of practitioners.

Quote:
Originally Posted by kaharris05 View Post
I'm not even using my education now for the jobs I have.... I always expected a bigger pay increase with each new degree.
If I may say this without sounding condescending - which is not my intent - I have difficulty understanding why you waited until this point before conducting very basic research (salary.com!) and performing a costs/benefits analysis of your past and (potential) future education. It is well known that both undergraduate and graduate degrees are very expensive and in many fields of study provide extremely limited economic advantages.
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 03-18-2013, 10:30 PM   #94
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
Quote:
Originally Posted by kaharris05 View Post
I just got some depressing information from salary.com. In my state, with a Masters in Counseling I can expect to make between $13 and $21 per hour. I make more than that minimum now! I always expected a bigger pay increase with each new degree. I'm not even using my education now for the jobs I have. I think I might wait for graduate school, at least until I figure out a graduate degree program that will allow me to make more money, but still be something I am interested in. The graduate debt just doesn't seem worth a possible pay decrease to $13 per hour.
Be glad you found out this information now. Many AA degrees have a great time and cost to salary payback. With two little ones to support, if I was in your shoes I would look for a career with excellent job prospects, a salary that could support a family and minimal additional schooling for now.
__________________
daylatedollarshort is offline   Reply With Quote
Old 03-18-2013, 10:45 PM   #95
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,382
Quote:
Originally Posted by daylatedollarshort View Post
Be glad you found out this information now. Many AA degrees have a great time and cost to salary payback. With two little ones to support, if I was in your shoes I would look for a career with excellent job prospects, a salary that could support a family and minimal additional schooling for now.
She is already a senior in a 4 year college. If I were her, I would finish this, then decide what is next.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   Reply With Quote
Old 03-18-2013, 11:28 PM   #96
Full time employment: Posting here.
ShortInSeattle's Avatar
 
Join Date: Jan 2012
Location: Seattle
Posts: 517
Quote:
Originally Posted by Milton View Post

If I may say this without sounding condescending - which is not my intent - I have difficulty understanding why you waited until this point before conducting very basic research (salary.com!) and performing a costs/benefits analysis of your past and (potential) future education. It is well known that both undergraduate and graduate degrees are very expensive and in many fields of study provide extremely limited economic advantages.
Unfortunately many college students are presented with the idea that college is a golden ticket. When I was in my BA program I wasn't thinking about ROI either! What sounds like common knowledge isn't so common to uneducated investors, which is what most students are.

I teach freshman courses and we go through this exercise together. (Compare college costs against expected salaries, and discuss demand for jobs.) Always eye opening.

SIS
__________________
ShortInSeattle is offline   Reply With Quote
Old 03-19-2013, 12:05 AM   #97
Dryer sheet wannabe
 
Join Date: Feb 2011
Posts: 14
Kaharris,

Sounds like you are taking all this advice well. It is not always easy to hear. What sort of jobs would you be looking at with your bachelor's degree?

I'm sure it must seem like everyone else has a new car, so why don't you? Remember that they are likely no better off, just with a slightly better credit score. Speaking of, if you can improve your credit score (without spending more money) it might help your car insurance rates which seem high. The other thing is turning 25. So definitely shop around after your birthday if not before.

Have you checked out mrmoneymustache.com? You might get a lot out of that as well.

Best wishes!
__________________
Spooky is offline   Reply With Quote
Old 03-19-2013, 12:18 AM   #98
Recycles dryer sheets
 
Join Date: Apr 2007
Posts: 354
What was attractive to you about counselling? If it was the "helping people" aspect of things, maybe you can get that through another profession -- like physical therapy, or speech therapy, or autism support, or even being a CPA or a plumber! Keep your mind and your eyes open for careers that will allow you to do what you think is meaningful while making a good salary. I'm not really sure what any of the above pay, but might be worth looking into. The book "Do What You Are" is an interesting resource that uses the Meyers Briggs typology to try to lay out what kinds of careers you might be well suited for -- might be worth getting at the library or your school's career center if you know your MBTI type.

Also, don't overlook the earning potential of what you are currently doing, even if it doesn't seem like your dream job. What kind of work are you doing? Maybe there are ways to find new positions in management or higher level work in the same industry that will build on your existing experience. Even something like restaurant work can be very lucrative if you are in the right position (manager of an upscale restaurant, for example, or even shift leader on the waitstaff -- I had a friend who paid for most of grad school by waitressing at an upscale steak house. Made several hundred dollars a night working on the weekends).
__________________
lhamo is offline   Reply With Quote
Old 03-19-2013, 08:04 AM   #99
Full time employment: Posting here.
Badger's Avatar
 
Join Date: Nov 2008
Posts: 825
Quote:
Originally Posted by lhamo View Post
What was attractive to you about counselling? If it was the "helping people" aspect of things, maybe you can get that through another profession -- like physical therapy, or speech therapy, or autism support, or even being a CPA or a plumber! Keep your mind and your eyes open for careers that will allow you to do what you think is meaningful while making a good salary. I'm not really sure what any of the above pay, but might be worth looking into. The book "Do What You Are" is an interesting resource that uses the Meyers Briggs typology to try to lay out what kinds of careers you might be well suited for -- might be worth getting at the library or your school's career center if you know your MBTI type.
+1
I regularly recommend my students take this test. It's a short and fun test and worth considering. I would think the college you are presently attending would offer this to students at no charge. Check with your Guidance Dept. for this and for other information on career paths in which you may find an interest. You are a student there. It should all be free. Take advantage.

Cheers!
__________________
Badger is offline   Reply With Quote
Old 03-19-2013, 08:28 AM   #100
Dryer sheet aficionado
 
Join Date: Mar 2013
Posts: 34
Quote:
Originally Posted by Milton View Post
Yes, that's pretty much as I expected. I don't know much about psychotherapy (presumably that's what you have in mind?), but I do know that there is not exactly a shortage of practitioners.


If I may say this without sounding condescending - which is not my intent - I have difficulty understanding why you waited until this point before conducting very basic research (salary.com!) and performing a costs/benefits analysis of your past and (potential) future education. It is well known that both undergraduate and graduate degrees are very expensive and in many fields of study provide extremely limited economic advantages.
Quote:
Originally Posted by lhamo View Post
What was attractive to you about counselling? If it was the "helping people" aspect of things, maybe you can get that through another profession -- like physical therapy, or speech therapy, or autism support, or even being a CPA or a plumber! Keep your mind and your eyes open for careers that will allow you to do what you think is meaningful while making a good salary. I'm not really sure what any of the above pay, but might be worth looking into. The book "Do What You Are" is an interesting resource that uses the Meyers Briggs typology to try to lay out what kinds of careers you might be well suited for -- might be worth getting at the library or your school's career center if you know your MBTI type.

Also, don't overlook the earning potential of what you are currently doing, even if it doesn't seem like your dream job. What kind of work are you doing? Maybe there are ways to find new positions in management or higher level work in the same industry that will build on your existing experience. Even something like restaurant work can be very lucrative if you are in the right position (manager of an upscale restaurant, for example, or even shift leader on the waitstaff -- I had a friend who paid for most of grad school by waitressing at an upscale steak house. Made several hundred dollars a night working on the weekends).
Unfortunately (or fortunately, depending on how you choose to look at it), when I was trying to decide what to do with my life money was not a factor. I chose counseling/psychology because I want to help people and do therapy. I knew the earning potential once I earned my PhD was high, but I never thought about earning potential along the way. Additionally, when I chose my field I did not have a child, so my only financial concern was taking care of myself (much easier than supporting myself and 2 children will be). Yes, I should have done the research sooner, but I didn't. I can't change that now. I will focus on the future though and how I can make things better. I will definitely find the book mentioned above and see what else I can do. I don't want to give up on getting a PhD in Psychology, but until I get there, I need to do something that provides more income.
__________________

__________________
kaharris05 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 02:20 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.