Wanting Financial Freedom, but A New Car Is My Current Goal

[JoeWras]

Yes, it does. Cramped, but 2 car seats will definitely fit.

Then stick with it. Buying another is just a waste, and another months or years of FI delayed. Interest on car payments can eat you alive.

My parents -- your grand or great grand parents -- stuffed kids in cars like you wouldn't believe. Only the families with 5+ kids had station wagons in my neighborhood. Everyone else piled into Chevy Novas and Ford Tempos. I know we didn't need car seats so you could pile 3 or 4 kids in there. Yes, it was a death trap. But that extra kid back then counts as the seat, so it was the equivalent of 2 with car seats today.

They dealt with it. Didn't seem to be any other way, it just was. I'm amazed, actually, at how little stuff our parents had to raise kids.

 

[Accidental Retiree]

I will try to make this quick.



I want a new car, because I feel my current car is too small for my growing family. I am looking at a used Hyundai Santa Fe. I won't spend over $12,000.

Refinance your current car, if you can, and put your refund into savings.

 

[Todd-O]

Sorry, but I'm not getting this. Lately there have been many people posting, at least what seems to me as, extremely outrageous clamis.

I'm not trying to be nosey but how exactly are you:

1. a fulltime student
2. work 1 full time job and
3. work 1 part time job

All while 5 months (I think you said) pregnant

I just don't see how all of that is possible.

 

[Texas Proud]

A $4k tax refund is ridiculous when your monthly expenses are so tight. Interest free loan to the gov't. Adjust your withholdings and get more in your monthly paycheck.

The OP probably doesn't have much in the way of withholdings to adjust, the " refund" is likely a payment of the earned income credit and child tax credit

Yes, my refund was credits for education, EIC, and the child tax credit.

You can still adjust your withholding for the credits.... that is unless you had nothing withheld and all $4K are credits...

 

[kaharris05]

Sorry, but I'm not getting this. Lately there have been many people posting, at least what seems to me as, extremely outrageous clamis.

I'm not trying to be nosey but how exactly are you:

1. a fulltime student
2. work 1 full time job and
3. work 1 part time job

All while 5 months (I think you said) pregnant

I just don't see how all of that is possible.

Unfortunately, it's true.

Full-time student: my school offers classes that are 8 weeks long (a semester is 16 weeks long), and I take two classes at a time. So, since full-time status is 12 credit hours, I take 4 classes a semester (3 credit hours each), so I am full-time. I go to class on Monday evenings and Wednesday evenings (6-9pm).

I work Monday - Friday 8 AM -5 PM at my full-time job. I work Saturday and Sunday at my part-time job (I am a server, so the hours vary).

So, yes, it is possible.

ETA: Being 5 months pregnant has not changed my ability to work or go to school. My pregnancy has been completely normal, with no complications, so that doesn't really affect anything. The only impact my pregnancy is currently having is I get tired quicker. That's not a reason to prohibit me from working or going to school though.

 

[kaharris05]

You can still adjust your withholding for the credits.... that is unless you had nothing withheld and all $4K are credits...

I need to do more research on withholdings. I thought I filled that form out (the W-9 I'm assuming) correctly. I'm not sure how else it was supposed to be done. If I remember correctly, I had two deductions: 1 for myself, and 1 for my child.

 

[kaharris05]

Refinance your current car, if you can, and put your refund into savings.

Thanks for everyone's advice about refinancing! I just did an application on lending tree. I am waiting for results now.

 

[growing_older]

That I never would have expected. How can you refinance a $3000 car on which you owe $8800?

 

[kaharris05]

That I never would have expected. How can you refinance a $3000 car on which you owe $8800?

So far I keep getting denial emails so the lending companies share your sentiment...

I am going to call my current lender during my lunch break about my payments. I noticed that about $10-$20 a month is going toward principle, the rest (of a $360.55/month payment) is for interest. I don't mind giving them the $4,000 tax refund, as many have suggested, but I do not want to pay $4,000 on interest. I want all of that money applied to principle. I hope that's possible...

 

[Texas Proud]

I need to do more research on withholdings. I thought I filled that form out (the W-9 I'm assuming) correctly. I'm not sure how else it was supposed to be done. If I remember correctly, I had two deductions: 1 for myself, and 1 for my child.

It's the W-4.... from the instructions...

​

"Tax credits. [FONT=HelveticaNeueLT Std,HelveticaNeueLT Std][FONT=HelveticaNeueLT Std,HelveticaNeueLT Std]You can take projected tax credits into account in figuring your allowable number of withholding allowances. Credits for child or dependent care expenses and the child tax credit may be claimed using the [/FONT][/FONT]Personal Allowances Worksheet [FONT=HelveticaNeueLT Std,HelveticaNeueLT Std][FONT=HelveticaNeueLT Std,HelveticaNeueLT Std]below. See Pub. 505 for information on converting your other credits into withholding allowances.
"[/FONT][/FONT]
[FONT=HelveticaNeueLT Std,HelveticaNeueLT Std][FONT=HelveticaNeueLT Std,HelveticaNeueLT Std][/FONT][/FONT]
[FONT=HelveticaNeueLT Std,HelveticaNeueLT Std][FONT=HelveticaNeueLT Std,HelveticaNeueLT Std]
[/FONT][/FONT]

 

[rbmrtn]

There is an online calculator for the W-4. Also if you got a full refund and owe no taxes you can claim with holding exemption

2013 Withholding Calculator

 

[kaharris05]

Thanks! I just got a new W-4 from HR. I will fill this out today.

 

[FinanceDude]

When the 2nd child is born, your costs to run the household will go up substantially from today. Have you budgeted for that? You can move the 3 year old from the $250 a week place to the $150 a week place, but when you add in child number 2 you will be back at $250 a week..........

There are a few questions I would like to ask but they are none of my business......

 

[kaharris05]

When the 2nd child is born, your costs to run the household will go up substantially from today. Have you budgeted for that? You can move the 3 year old from the $250 a week place to the $150 a week place, but when you add in child number 2 you will be back at $250 a week..........

There are a few questions I would like to ask but they are none of my business......

I'm still working on figuring out how the budget will change when child #2 is born. One of the grandmothers has offered to watch baby #2 for free (she doesn't watch my daughter, because I don't want her sitting around watching tv all day). At least if she watches the baby for a few months that will give me time to get a better job (hopefully...).

If you want to ask more questions that will help me, please go ahead. I'm learning a lot from this forum, so any additional help is appreciated.

 

[REattempt]

I don't mind giving them the $4,000 tax refund, as many have suggested, but I do not want to pay $4,000 on interest. I want all of that money applied to principle. I hope that's possible...

Google is your friend...how to pay on principle only and what to ask for from current lender:

http://www.bankrate.com/brm/news/debt/20050520a1.asp

 

[REattempt]

More questions.

If you want to ask more questions that will help me, please go ahead. I'm learning a lot from this forum, so any additional help is appreciated.

What do you have for emergency funds? If you use all 4K on the car, what do you have for emergencies?

Why a BA vs. Masters vs PhD? How much debt will you have from each level of education? What are your job prospects and typical salary from each level? Have you looked at the real long term implications of these choices on your likely income and required payments vs. your desire for financial freedom? (see post #20 in this thread..)

 

[FinanceDude]

I'm still working on figuring out how the budget will change when child #2 is born. One of the grandmothers has offered to watch baby #2 for free (she doesn't watch my daughter, because I don't want her sitting around watching tv all day). At least if she watches the baby for a few months that will give me time to get a better job (hopefully...).

Well, that is good, I did not know that.

Won't you have to take some time off from your jobs to take care of the new baby? A new car and a new baby would upset the budget quite a lot. I have 2 kids myself and contrary to popular belief, they are expensive. As far as the boyfriend goes, for the sake of your kids I hope he is a reponsible father..........

 

[haha]

As far as the boyfriend goes, for the sake of your kids I hope he is a reponsible father..........

And if he is or if he isn't, he can be made to pay up if it is established that he is the father.

He seems to be missing from all this discussion and planning, which seems very odd.

What is his income? What hours does he work? Do you want him around the children?

This entire discussion has a very odd tone as it is missing references to one of the main actors. You problems should be quite a bit less dire if there were 2 people rowing this boat instead of one.

Ha

 

[marinauser]

Are you actually paying full-time tuition to only take 12 hours? If so, you seem to be wasting money since a full load would certainly be more than 12 hours. If you pay by the hour would it actually be less expensive? Most people I know going to school full time would take 15 to 18 hours on a semester basis and more than 12 even on a quarter basis.

 

[Milton]

All help and criticism appreciated! I really need help!!!!

There is nothing wrong with your choices (single parent of a young child, with another on the way; heavily-financed car that you desire to trade in on a more expensive model; intention to pursue expensive and prolonged education leading to relatively low-paying career in "counselling"): however, they are all completely inconsistent with your professed wish for financial freedom.

I don't mean to be judgmental, and repeat that your lifestyle is entirely legitimate: you are essentially self-supporting and paying your bills, and have nothing to be ashamed of. That said, it appears that you want early retirement about the same as I want to speak German (i.e., it would be nice, but I'm not willing to do any heavy lifting to actually make it happen).

With the greatest possible respect, you don't need any significant help. You just need to evaluate your priorities and decide whether financial independence is sufficiently important to you that you are now prepared to make the necessary sacrifices to achieve that goal.

 

[Milton]

I noticed that about $10-$20 a month is going toward principle, the rest (of a $360.55/month payment) is for interest. I don't mind giving them the $4,000 tax refund, as many have suggested, but I do not want to pay $4,000 on interest. I want all of that money applied to principle. I hope that's possible...

When you borrow money you have to do so on the lender's terms, which unfortunately will include hefty interest given your poor credit score, low income and lack of collateral.

The only way to avoid paying interest is to avoid debt. to the extent possible, save money and pay cash for all purchases.

 

[sheehs1]

I'm still stuck on the 22% interest for a car loan. How did that happen? Car loans have been anywhere from possibly 0% to 3% the last 5 years.

Like another has asked I'm also stuck on the child support. Boyfriend or not, he owes monthly for the child and the one on the way, assuming it's the same guy.

Not wanting to really get into your relationship with your significant other but presumably part of your responsibility as a parent is to protect your children, financially and otherwise. Is there legal documentation stating the child or children are his, such as on the birth certificate(s)? Do you have a court order or a legal agreement for child support? if you don't, I'd recommend one.

If he isn't paying that on a timely basis or skips months, then the next stop would be child support enforcement because only when you involved them does the legal clock actually start to tick regarding his legal financial responsibility (unless rules have changed). They will keep track of any money not paid and accrue it for the children. It is their legal right to have this money.

Think about what you need to have in place in case something happens to you, if you can not work, or if he leaves and marries someone else down the road, etc. You can phrase it that it isn't against him, it is for the children to ensure their financial well being....etc.

So..I guess I got into this anyway....

 

[kaharris05]

What do you have for emergency funds? If you use all 4K on the car, what do you have for emergencies?

Why a BA vs. Masters vs PhD? How much debt will you have from each level of education? What are your job prospects and typical salary from each level? Have you looked at the real long term implications of these choices on your likely income and required payments vs. your desire for financial freedom? (see post #20 in this thread..)

I don't have emergency funds. Never have...

A couple of people have asked about how much my education is TRULY costing me. I appreciate that, because I've never thought about it. According to my credit report I have $47,900 in student loans already (4 years of undergrad). I need to research how much graduate school is actually going to cost me.

 

[kaharris05]

Well, that is good, I did not know that.

Won't you have to take some time off from your jobs to take care of the new baby? A new car and a new baby would upset the budget quite a lot. I have 2 kids myself and contrary to popular belief, they are expensive. As far as the boyfriend goes, for the sake of your kids I hope he is a reponsible father..........

Yes, children are extremely expensive! My jobs give me 6 weeks of unpaid leave. Any more than that would have to be for a medical reason, or I risk not having a job to come back to. Yes, that 6 weeks off will definitely upset the budget. I was hoping to save some money to use during that time. So far, I haven't been able to.

 

[kaharris05]

And if he is or if he isn't, he can be made to pay up if it is established that he is the father.

He seems to be missing from all this discussion and planning, which seems very odd.

What is his income? What hours does he work? Do you want him around the children?

This entire discussion has a very odd tone as it is missing references to one of the main actors. You problems should be quite a bit less dire if there were 2 people rowing this boat instead of one.

Ha

I don't like to include his income when working out my budget, because he isn't consistent. Sometimes he helps, mostly he doesn't. Someone else asked if I get child support. No, I don't. That's my fault. I should apply, but he keeps saying he needs to pay off some bills before big chunks of his check starts missing. I guess I'm being too nice in even caring about all that... So, for now, I just consider myself on my own, since I basically am, and I try to work things out that way.