NT Get Out Of Debt/Frugality/Financial Thread (Will Be Updated Regularly)

[yeezy st laurent]

Originally Posted by Stixx

1600 for rent?? you could be paying for a house

DC- thread is on point, will check back in regularly... I have been bringing my lunch to work for a long while. I also try to cook more to avoid eating ar restaurants.

I haven't exactly gotten saving down but I'm making efforts.

Regarding student loans, I've always heard them being referred to as "good debt", anyone wanna clear this up???

RL Treyce/SP2K8

Good debt includes anything you need but can't afford to pay for up front without wiping out cash reserves or liquidating all your investments. In cases where debt makes sense, only take loans for which you can afford the monthly payments.

Bad debt includes debt you've taken on for things you don't need and can't afford (that trip to Bora Bora, for instance). The worst form of debt is credit-card debt, since it usually carries the highest interest rates.
So a student loan is good debt until you can't pay it off.

 

[purehoopa1]

Man I am trying to finish paying my debt off too! Got a couple grand between credit cards and school stuff. Not to mention a 2008 Scion tc that I co-signed for my brother

SMH! M-O-F FML! So not only am I trying to pay off my debt but trying to build my credit back up with all the delinquencies he had within 1 year. Yeah I took over the car payments because he wasn't responsible or accountable for his actions. NT I am trying to move forward so I got 2 jobs and am dedicating this year to debt!

 

[chicagos finest 23]

One of the worst purchases you can make is buying a brand new car and see it drop a couple of Gs in a few months.

 

[waystinthyme]

Originally Posted by Chicagos Finest 23

One of the worst purchases you can make is buying a brand new car and see it drop a couple of Gs in a few months once you drive it off the lot.

fixed.

-waystinthyme

 

[waystinthyme]

Originally Posted by purehoopa1

Man I am trying to finish paying my debt off too! Got a couple grand between credit cards and school stuff. Not to mention a 2008 Scion tc that I co-signed for my brother

SMH! M-O-F FML! So not only am I trying to pay off my debt but trying to build my credit back up with all the delinquencies he had within 1 year. Yeah I took over the car payments because he wasn't responsible or accountable for his actions. NT I am trying to move forward so I got 2 jobs and am dedicating this year to debt!

if he can't keep up with the payments, why not sell the car back? and yeah, co-signing for family members is such a sticky situation...always make sure you have a back-up plan, you don't want someone else's financial irresponsibility to ruin the credit you worked so hard to build up...

-waystinthyme
  

 

[eaalto]

Originally Posted by DCAllAmerican

Bringing your own lunch is the way to go. I have a friend that refuses to bring his own lunch to work. Easily $100+ a month. Seems like nothing but all $ is something. He says he doesn't mind paying for the convenience of good food. I understand but I am too cheap to do that. Plus I work out at lunch so I can't leave the building.

---

I can tell my story about student loans. I probably came out of school owing about $12K. People always told me, "Damn thats good." I didn't think it was good, I think it should have been 0. So I practically spent $1000 per month until I paid it off. It took just about a year. I didn't want the interest to continue to build up so I said, "forget this, I am paying this off ASAP."

So I paid that off in March of 09. I just hate the feeling of knowing the check you get each 2 weeks from your job is going to someone else. I never want to live that way again.

I have had a Target Credit Card since the day 2K7 came out. I used it to get like 30% off of an XBOX 360. I knew I wanted a CC, but I didn't know the right time. I think that was a great time. It has a Visa logo so it is taken everywhere.

I use my card from time to time and I pay the bill at the end of each month. No late fees. On time since I opened the card.

I am looking for a REAL CC that gives me rewards. I am looking at this at the moment - http://consumers.creditne..._Back/Amex_Blue_Cash.php

5% cash back for each use.

Here is another article on some credit cards - http://www.askmrcreditcar.../thebestcreditcards.html

DC, it's not 5% cash back for each use, it's 5% cash back on special purchases (gas/drug store/grocery store), and 1.25% on general purchases.  You have to spend $6,500 in a 12 month period to get those levels of cash back.  

 

[eaalto]

Originally Posted by YoungTriz

my money is all messed up right now.... i just bought a house and now trying to figure out the average cost of my utilities... i went from paying $750 for a apartment, now a $1,600 mortage, and i have CC's.... about to pay off a some CC's with the 8g's from the first time home buyers credit....

The property tax and interest you pay on your mortgage are tax deductible, so your end of the year deductions might be high enough that you could add a ridiculous number of allowances to your withholding and your take home pay will be much larger.  It's worth considering.  

 

[kg21]

Posting in here so I can read later.

 

[shaunhillftw49]

Originally Posted by waystinthyme

• when you go out, only carry cash and only the maximum amount you're willing to spend--a lot of people tend to get wreckless with their credit cards and open tabs once they get a few drinks in them...

Yeah, when you use a card as oppose to cash, you won't literally feel a smaller pocket. Visually seeing the cash= good deterrent from buying crap. So if you're just going to the mall and intend to make small purchases, leave the card behind. You also won't be able to make a possibly regrettable purchase.

 

[Mister Meaner]

Just a few months ago, I was struggling with about 3K is CC debt. I've had that for about 2 years and didn't see any progress so I decided to do something about it. I applied for a loan from my Credit Union where my paycheck is direct deposited. I did this last August and they automatically deduct $100 a month (or $50 every paycheck). Paying the minimum, it would take me 2 years and some change, let's say 3 to pay that off. However, every month, I add another $100 to that.

Essentially, I tell myself every month that no money is being taken out of my paycheck & I just took a major paycut

. Whatever works, you know. So right now, my balance is about $1300. I'm very proud of my progress in this short amount of time.

I don't use my CCs right now, and I suspect one of them is suspended right now due to inactivity, but that's all good. Having felt the pressure of debt compounding and being a monthly nuisance, I am well equipped to handle future responsibilities regarding my credit.

Additionally, I direct deposit $100 a paycheck to another account (my first account with BoA). I've been doing this since around the same time of the loan and can actually pay off the rest of it, but those 0s look too nice for me to mess with.

I haven't made much sacrifice in doing this either. I spent money frivolously on clothes (sneakers to be exact) & my ex. Now that I've grown away from shoes & my ex is my ex, those two no longer rip away at my funds. I still make purchases here and there, but everything is within my budget.

Now if I only had a job where I was making some decent change. I'm severely underpaid.

 

[waystinthyme]

Originally Posted by Super Producer J

Now if I only had a job where I was making some decent change. I'm severely underpaid.

QFT.

i'm happy at my job now, but i'm definetely being underpaid...tough situation, but may have to look for something new soon.

-waystinthyme
  

 

[nostrandave68]

Originally Posted by Chicagos Finest 23

One of the worst purchases you can make is buying a brand new car and see it drop a couple of Gs in a few months.

True but a car isn't an investment, its a depreciating asset.

 

[freshsince1982]

the chart i follow

 

[DCAllAfrican]

Yea I can't see myself ever buying a new car. If I can't pay for it ALL right then and there, I won't buy it.

Originally Posted by eaalto

Originally Posted by DCAllAmerican

Bringingyour own lunch is the way to go. I have a friend that refuses to bringhis own lunch to work. Easily $100+ a month. Seems like nothing but all$ is something. He says he doesn't mind paying for the convenience ofgood food. I understand but I am too cheap to do that. Plus I work outat lunch so I can't leave the building.

---

Ican tell my story about student loans. I probably came out of schoolowing about $12K. People always told me, "Damn thats good." I didn'tthink it was good, I think it should have been 0. So I practicallyspent $1000 per month until I paid it off. It took just about a year. Ididn't want the interest to continue to build up so I said, "forgetthis, I am paying this off ASAP."

So I paid that off in March of09. I just hate the feeling of knowing the check you get each 2 weeksfrom your job is going to someone else. I never want to live that wayagain.

I have had a Target Credit Card since the day 2K7 cameout. I used it to get like 30% off of an XBOX 360. I knew I wanted aCC, but I didn't know the right time. I think that was a great time. Ithas a Visa logo so it is taken everywhere.

I use my card from time to time and I pay the bill at the end of each month. No late fees. On time since I opened the card.

I am looking for a REAL CC that gives me rewards. I am looking at this at the moment - http://consumers.creditne..._Back/Amex_Blue_Cash.php

5% cash back for each use.

Here is another article on some credit cards - http://www.askmrcreditcar.../thebestcreditcards.html

DC,it's not 5% cash back for each use, it's 5% cash back on specialpurchases (gas/drug store/grocery store), and 1.25% on generalpurchases.  You have to spend $6,500 in a 12 month period to get thoselevels of cash back.  

You are right. It is 5$ on every purchase for me because I only buy groceries and gas.

 

[queencitysneakerqueen]

Very good thread thanks for the tips

 

[infyrno23]

Great post, I'll be checking this thread for updates.
I really want to start my own business but I'm in Hella debt.
I need to do some research on how to start a small business, I know there are government grants etc I could get.

 

[aepps20]

Originally Posted by wawaweewa

Many people aren't willing to make the necessary sacrifices. Many of the things that we think of as needs are actually wants. Having "wants" is OK but not while you're in debt.

This

So many people act lie being on a budget is a bad thing.

 

[nnarum]

I owe 19k in student loans and then those bad boys are gone.
I can knock them out within 15 months if I pinch my pennies. That is my only debt right now. It feels like death and hangs over me at work. I can't stop thinking about it and I hate owing money.

I want to save to upgrade my car. My Explorer has about 150k on it and I only plan on keeping it another 3-5 years.
Also want to save up a down payment for a home. Trying to get 10-20% saved as well... Also don't plan on buying something huge, I would rather have it paid for and start stacking money.

No frivolous spending the next couple years. Time to be a grown up.

I've cut up my CC and closed them down. I don't like paying the bank money anymore. Although I never really kept a balance, I overspent when I used them.

Good luck to those digging out of debt and changing their lives.

 

[dabottom305]

Store Brand vs Name Brand

Cornflakes to Macaroni & cheese, peanut butter and bread. The staples of a frugal diet for most of us high debt, low-income wage earners. Is there a difference between name brand and store bought? Yes, there absolutely is. In price.

Just like generic medication and name brand medication you're most likely paying extra for the look of the packaging and the name behind it, although they both provide the same benefits and have the same ingredients..

 

[aepps20]

My next piece of advice is don't buy things just to impress others.

 

[nnarum]

Originally Posted by aepps20

My next piece of advice is don't buy things just to impress others.

Exactly. People spend money to impress people they don't like.

 

[aepps20]

1. Save as much money as you can. Trust me, when things get tight you'll be glad you did

2. Use Credit Cards Sparingly- We all know it's really easy to flash a credit card to pay for things but credit card debt can get out of hand in a hurry.

3. If you really don't need a new car and your current one is paid off keep it that way. Car payments/Lease payments are terrible and they take money away from things you may want (saving for a down payment on a house)

4. If your job provides you with a free train/bus pass take advantage of it. As some of you know I work fairly long hours and sometimes the hour it takes the train to get me to my car is a hassle, but it saves me a ton on gas.

5. Bring your own lunch to work.

6. If you don't need, or can't afford the unlimited cell phone calling plan don't get it.

7. If you're really serious about saving money set up a high interest savings account and deposit money into it every pay check. The reason I recommend a high interest savings account isn't because of the interest but because it usually takes 4 to 5 days to transfer money between the high interest savings account and your regular savings account. This will prevent you from dipping into your emergency savings fund.

8. Avoid places and people that cause you to carelessly spend money.

9. Having the latest and greatest gadget, shoes, cars, etc doesn't mean a thing if you have to struggle and strain every month to make the payments.

10. Don't live beyond your means just to impress people that aren't worth impressing.

11. Check out movies from your local library. They have all the new releases and they're free.

12. I know that with the economy many people have had to move back in with their parents. If your parents allow you to stay with them rent free take advantage of that situation and save money but make sure you contribute something to the household (groceries, electric bill, etc).

13. Write your financial goals down. I can't explain this tip, but for some strange reason writing your goals down makes them more concrete and realistic.

14. Student loans are an inevitable reality for many( law school for me) so don't get too stressed out about them. Just keep making your payments on time and eventually you will pay them off.

15. Keep your body healthy (proper diet, hand sanitizer, etc) nothing will get you in debt quicker than medical bills.

16. Regular car maintenance.

I'll be back with more tips later. I would like to add that I am by no means perfect when it comes to money, but every tip I've listed I do myself and they work. If you guys are like me you don't strive to be millionaires but you strive for financial independence where you don't have to think about money.

 

[DCAllAfrican]

Well I bumped this to spread the news. I opened up a Discover account in January. I was looking for a CC that gave me cash back rewards. I already had stellar credit so I really didn't need another CC. Well I have gained $30 in cash back since this year started. I plan on making that $100 by the end of the year. Just a heads up

 

[snaggykicks]

Originally Posted by the PGA tour

Get yourself a sugar momma

this

 

[jking0821]

Originally Posted by nnarum

I owe 19k in student loans and then those bad boys are gone.
I can knock them out within 15 months if I pinch my pennies. That is my only debt right now. It feels like death and hangs over me at work. I can't stop thinking about it and I hate owing money.

I want to save to upgrade my car. My Explorer has about 150k on it and I only plan on keeping it another 3-5 years.
Also want to save up a down payment for a home. Trying to get 10-20% saved as well... Also don't plan on buying something huge, I would rather have it paid for and start stacking money.

No frivolous spending the next couple years. Time to be a grown up.

I've cut up my CC and closed them down. I don't like paying the bank money anymore. Although I never really kept a balance, I overspent when I used them.

Good luck to those digging out of debt and changing their lives.

This  My college debt is way higher then that.  But i am pinching as much as possible and throwing as much money at my college debt as i can.