Author Topic: Overheard at Work  (Read 5116449 times)

iowajes

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Re: Overheard at Work
« Reply #6950 on: February 20, 2015, 09:56:29 AM »

You can still be Mustachian and not have a budget.

Yep.  I've never had a budget. But we have a 60% savings rate.  I don't track what I spend at all. If I want something, I buy it.  I am just a frugal person and don't usually want things, so the money goes into the savings account, and when the savings account gets too big we put it in the investment accounts (plus an automatic deduction each month to roth IRA and 403b).

Too many people use budgets as a way to SPEND their money, not a way to save it.

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Re: Overheard at Work
« Reply #6951 on: February 20, 2015, 10:08:50 AM »
Too many people use budgets as a way to SPEND their money, not a way to save it.

Well said!!
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ShoulderThingThatGoesUp

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Re: Overheard at Work
« Reply #6952 on: February 20, 2015, 10:34:27 AM »
Another old one, this one from my wife. Her coworker walked into the Audi dealership and said "I can spend X, what can you do for me?"

He also got into a bar fight one night - but outside a fancy bar, so he was wearing a dress shirt. Since my wife had sewn a lot of what she wore at that job (tutoring kids in math at a failing high school), he brought the shirt in and asked if it was fixable. It wasn't, of course.

cashstasherat23

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Re: Overheard at Work
« Reply #6953 on: February 20, 2015, 10:36:09 AM »
Talking to my friend at work in the kitchen during lunch:

CW: I am trying to start packing my lunch more often, because I am spending so much on lunches out!
Me: (Doing happy dance inside) That's great! Do you use Mint? I started bringing my own lunch every day after I saw how I was spending hundreds on there and couldn't stomach it!
CW: I tried, but it was too much information for me. I feel like no matter what, you will be spending a few hundred on food though at least!
Me: Not me! I spend about $150 a month on groceries, and have maybe one or two lunches out a month as a little treat. I guess it's easier now that I live alone though and can buy more in bulk.
CW: Yeah, and living with roommates, when they order food, you kind of have to order food, you know? I can't believe you spend so little on food, that's impossible!

And now that I am thinking about this, I had another conversation with this girl a few weeks ago regarding our 401k. Our employer contributes 3% of salary regardless of whether we contribute or not. I am contributing 11% now, and think that is low, but she told me the following:

CW: I contribute about 3%...I am thinking about doing more, but it's just so hard! I need the money.

Now I am munching on my homemade chicken, bacon, ranch flatbread that cost probably $1.50 total, and pondering how much this girl is wasting on the crappy $10+ lunches she buys every day that could be going to her 401k. Will keep trying to get through to her though!

Pooperman

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Re: Overheard at Work
« Reply #6954 on: February 20, 2015, 10:43:28 AM »
Talking to my friend at work in the kitchen during lunch:

CW: I am trying to start packing my lunch more often, because I am spending so much on lunches out!
Me: (Doing happy dance inside) That's great! Do you use Mint? I started bringing my own lunch every day after I saw how I was spending hundreds on there and couldn't stomach it!
CW: I tried, but it was too much information for me. I feel like no matter what, you will be spending a few hundred on food though at least!
Me: Not me! I spend about $150 a month on groceries, and have maybe one or two lunches out a month as a little treat. I guess it's easier now that I live alone though and can buy more in bulk.
CW: Yeah, and living with roommates, when they order food, you kind of have to order food, you know? I can't believe you spend so little on food, that's impossible!

And now that I am thinking about this, I had another conversation with this girl a few weeks ago regarding our 401k. Our employer contributes 3% of salary regardless of whether we contribute or not. I am contributing 11% now, and think that is low, but she told me the following:

CW: I contribute about 3%...I am thinking about doing more, but it's just so hard! I need the money.

Now I am munching on my homemade chicken, bacon, ranch flatbread that cost probably $1.50 total, and pondering how much this girl is wasting on the crappy $10+ lunches she buys every day that could be going to her 401k. Will keep trying to get through to her though!

Bring her a homemade lunch one day with a recipe and a price. She'll be blown away.

johnny847

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Re: Overheard at Work
« Reply #6955 on: February 20, 2015, 10:48:05 AM »
Too many people use budgets as a way to SPEND their money, not a way to save it.

Well said!!
Agreed. I fell into this trap for a bit after I had established a budget...and then discarded the budget. I'm saving even more than before now.

cashstasherat23

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Re: Overheard at Work
« Reply #6956 on: February 20, 2015, 10:56:11 AM »
Talking to my friend at work in the kitchen during lunch:

CW: I am trying to start packing my lunch more often, because I am spending so much on lunches out!
Me: (Doing happy dance inside) That's great! Do you use Mint? I started bringing my own lunch every day after I saw how I was spending hundreds on there and couldn't stomach it!
CW: I tried, but it was too much information for me. I feel like no matter what, you will be spending a few hundred on food though at least!
Me: Not me! I spend about $150 a month on groceries, and have maybe one or two lunches out a month as a little treat. I guess it's easier now that I live alone though and can buy more in bulk.
CW: Yeah, and living with roommates, when they order food, you kind of have to order food, you know? I can't believe you spend so little on food, that's impossible!

And now that I am thinking about this, I had another conversation with this girl a few weeks ago regarding our 401k. Our employer contributes 3% of salary regardless of whether we contribute or not. I am contributing 11% now, and think that is low, but she told me the following:

CW: I contribute about 3%...I am thinking about doing more, but it's just so hard! I need the money.

Now I am munching on my homemade chicken, bacon, ranch flatbread that cost probably $1.50 total, and pondering how much this girl is wasting on the crappy $10+ lunches she buys every day that could be going to her 401k. Will keep trying to get through to her though!

Bring her a homemade lunch one day with a recipe and a price. She'll be blown away.

The thing is, she also loves trying out new recipes. She tells me all the time about the things she has made in her crockpot. Reasons why I think she has potential, but is just trapped in a spendypants lifestyle because that's what everyone around us is doing.

celticmyst08

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Re: Overheard at Work
« Reply #6957 on: February 20, 2015, 11:15:57 AM »
My coworker has been in the process of refinancing her condo mortgage. She just found out yesterday it was appraised for $220k -- she bought it in 2011 for $105k. So that's awesome, right? But then she was saying, "I have so much more equity than I thought; now I can cash out more of it to buy a new car! I can get a way fancier car than I thought I could!"

....nooooooooooo.

Her old car did just die, so she does need something to replace it, but good lord. Her daughter is pregnant so she wants "a big safe SUV that I can transport my grandchild in."
« Last Edit: February 20, 2015, 12:33:35 PM by celticmyst08 »
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marketnonsenses

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Re: Overheard at Work
« Reply #6958 on: February 20, 2015, 12:09:52 PM »
Talking to my friend at work in the kitchen during lunch:

CW: I am trying to start packing my lunch more often, because I am spending so much on lunches out!
Me: (Doing happy dance inside) That's great! Do you use Mint? I started bringing my own lunch every day after I saw how I was spending hundreds on there and couldn't stomach it!
CW: I tried, but it was too much information for me. I feel like no matter what, you will be spending a few hundred on food though at least!
Me: Not me! I spend about $150 a month on groceries, and have maybe one or two lunches out a month as a little treat. I guess it's easier now that I live alone though and can buy more in bulk.
CW: Yeah, and living with roommates, when they order food, you kind of have to order food, you know? I can't believe you spend so little on food, that's impossible!

And now that I am thinking about this, I had another conversation with this girl a few weeks ago regarding our 401k. Our employer contributes 3% of salary regardless of whether we contribute or not. I am contributing 11% now, and think that is low, but she told me the following:

CW: I contribute about 3%...I am thinking about doing more, but it's just so hard! I need the money.

Now I am munching on my homemade chicken, bacon, ranch flatbread that cost probably $1.50 total, and pondering how much this girl is wasting on the crappy $10+ lunches she buys every day that could be going to her 401k. Will keep trying to get through to her though!

Depending on roommates it is sometimes hard to keep food in the house. I had to find a new roomate once because he was allways short on cash and eating my food. I started eating out all the time so he couldnt.

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Re: Overheard at Work
« Reply #6959 on: February 20, 2015, 01:33:06 PM »
Too many people use budgets as a way to SPEND their money, not a way to save it.

Well said!!
Agreed. I fell into this trap for a bit after I had established a budget...and then discarded the budget. I'm saving even more than before now.

So your contention is that budgets just encourage people to spend money frivolously and that they would be frugal if only they freed themselves from budgeting?

This doesn't work that way for us. We find that planning and tracking our spending with a monthly budget to be an important part of ensuring that our money goes to the right places and doesn't take too many detours into silliness. I don't think it is just for beginners either. We've been budgeting (initially on paper and now in Excel) for about 25 years and we still find it useful. My parents have kept a budget now for at least 40 years and they find it useful.

Further, most of the people who tell me that they never budget because they can keep their finances in their heads are people who also struggling financially. A budget or cashflow statement is an important financial tool.

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Re: Overheard at Work
« Reply #6960 on: February 20, 2015, 01:34:40 PM »
Depending on roommates it is sometimes hard to keep food in the house. I had to find a new roomate once because he was allways short on cash and eating my food. I started eating out all the time so he couldnt.

I used to have a problem with roommates drinking my beer. So I switched to scotch, which none of them could stomach. Problem solved.

I bet you could apply the same solution to food... though you might have to acquire a taste for kimchi or grasshoppers or something like that.

vivophoenix

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Re: Overheard at Work
« Reply #6961 on: February 20, 2015, 01:37:44 PM »
Depending on roommates it is sometimes hard to keep food in the house. I had to find a new roomate once because he was allways short on cash and eating my food. I started eating out all the time so he couldnt.

I used to have a problem with roommates drinking my beer. So I switched to scotch, which none of them could stomach. Problem solved.

I bet you could apply the same solution to food... though you might have to acquire a taste for kimchi or grasshoppers or something like that.

interesting,  i had a room mate that would drink any and everything including very expensive scotch when his red label,  dollar store handle ran out. solved that with some water and soy sauce. 


FoundPeace

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Re: Overheard at Work
« Reply #6962 on: February 20, 2015, 02:02:11 PM »
Too many people use budgets as a way to SPEND their money, not a way to save it.

Well said!!
Agreed. I fell into this trap for a bit after I had established a budget...and then discarded the budget. I'm saving even more than before now.

So your contention is that budgets just encourage people to spend money frivolously and that they would be frugal if only they freed themselves from budgeting?

This doesn't work that way for us. We find that planning and tracking our spending with a monthly budget to be an important part of ensuring that our money goes to the right places and doesn't take too many detours into silliness. I don't think it is just for beginners either. We've been budgeting (initially on paper and now in Excel) for about 25 years and we still find it useful. My parents have kept a budget now for at least 40 years and they find it useful.

Further, most of the people who tell me that they never budget because they can keep their finances in their heads are people who also struggling financially. A budget or cashflow statement is an important financial tool.

I think most of us who don't have a budget do track their budget (I track my spending and review it regularly, but don't have a budget). If I set up a budget that says $100 for going out to eat, then I might spend that money, even if I don't really want to.

The object is to just think about your purchases and why you are making them.

vivophoenix

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Re: Overheard at Work
« Reply #6963 on: February 20, 2015, 02:04:51 PM »
Too many people use budgets as a way to SPEND their money, not a way to save it.

Well said!!
Agreed. I fell into this trap for a bit after I had established a budget...and then discarded the budget. I'm saving even more than before now.

So your contention is that budgets just encourage people to spend money frivolously and that they would be frugal if only they freed themselves from budgeting?

This doesn't work that way for us. We find that planning and tracking our spending with a monthly budget to be an important part of ensuring that our money goes to the right places and doesn't take too many detours into silliness. I don't think it is just for beginners either. We've been budgeting (initially on paper and now in Excel) for about 25 years and we still find it useful. My parents have kept a budget now for at least 40 years and they find it useful.

Further, most of the people who tell me that they never budget because they can keep their finances in their heads are people who also struggling financially. A budget or cashflow statement is an important financial tool.

I think most of us who don't have a budget do track their budget (I track my spending and review it regularly, but don't have a budget). If I set up a budget that says $100 for going out to eat, then I might spend that money, even if I don't really want to.

The object is to just think about your purchases and why you are making them.

if you spend money cause your budget 'told you to do it', you have bigger problems

the idea is to stay within or under your  budget, not fill it up like a garbage bag

sabertooth3

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Re: Overheard at Work
« Reply #6964 on: February 20, 2015, 02:05:24 PM »
Her daughter is pregnant so she wants "a big safe SUV that I can transport my grandchild in."

*slams head against desk*

Translation: "I want an oversized, overpriced gas-guzzler so I have license to drive like a maniac over ice patches and act shocked when I hit another car."

When I was learning to drive, my dad showed me a can of Coca Cola and said "This is how much metal there is between you and the road. Remember that when you're out there and drive accordingly." He wasn't a mechanic so I don't know if that's 100% true or not, but it really opened my 16-year-old eyes and made me drive much more defensively.

johnny847

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Re: Overheard at Work
« Reply #6965 on: February 20, 2015, 02:11:51 PM »
Too many people use budgets as a way to SPEND their money, not a way to save it.

Well said!!
Agreed. I fell into this trap for a bit after I had established a budget...and then discarded the budget. I'm saving even more than before now.

So your contention is that budgets just encourage people to spend money frivolously and that they would be frugal if only they freed themselves from budgeting?

This doesn't work that way for us. We find that planning and tracking our spending with a monthly budget to be an important part of ensuring that our money goes to the right places and doesn't take too many detours into silliness. I don't think it is just for beginners either. We've been budgeting (initially on paper and now in Excel) for about 25 years and we still find it useful. My parents have kept a budget now for at least 40 years and they find it useful.

Further, most of the people who tell me that they never budget because they can keep their finances in their heads are people who also struggling financially. A budget or cashflow statement is an important financial tool.

Now you're just putting words in my mouth.
The very first thing I said on the matter was
Quote from: johnny847
You can still be Mustachian and not have a budget. However, for the average person who hasn't build his or her frugality muscles a budget is a great tool to curb spending.
And my reasoning was
Quote from: johnny847
I found that when I had a budget, near the end of the month I would say oh I have $X left over this month for category Y, so I can blow $X on Z. However, I didn't really need to buy Z.

What I said was a budget is a great tool for those starting out to curb spending. But once you've done that and built your frugality muscles, a budget can be counterproductive because it tells you it's ok to spend money on something that you don't actually need.

Nowhere did I say or agree to somebody else saying that everybody falls into this trap and hence everybody should discard their budget once they have built their frugality muscles.

As FoundPeace says,
I think most of us who don't have a budget do track their budget (I track my spending and review it regularly, but don't have a budget). If I set up a budget that says $100 for going out to eat, then I might spend that money, even if I don't really want to.

The object is to just think about your purchases and why you are making them.
I also track my spending carefully and make sure i'm not buying things frivolously. But there's no explicit budget.

celticmyst08

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Re: Overheard at Work
« Reply #6966 on: February 20, 2015, 03:00:42 PM »
*slams head against desk*

Translation: "I want an oversized, overpriced gas-guzzler so I have license to drive like a maniac over ice patches and act shocked when I hit another car."

When I was learning to drive, my dad showed me a can of Coca Cola and said "This is how much metal there is between you and the road. Remember that when you're out there and drive accordingly." He wasn't a mechanic so I don't know if that's 100% true or not, but it really opened my 16-year-old eyes and made me drive much more defensively.

No kidding, the whole "I need an SUV 'cuz they're safer!" thing drives me batty.

It's especially depressing because this coworker is an otherwise nice person. But she is insanely gullible and ignorant. For example, she tried to convince me that she doesn't use microwaves because "they turn water into something that isn't water!" She was also just explaining to me over lunch how the new car she's going to purchase will be a great investment.
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jmusic

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Re: Overheard at Work
« Reply #6967 on: February 20, 2015, 03:21:53 PM »
*slams head against desk*

Translation: "I want an oversized, overpriced gas-guzzler so I have license to drive like a maniac over ice patches and act shocked when I hit another car."

When I was learning to drive, my dad showed me a can of Coca Cola and said "This is how much metal there is between you and the road. Remember that when you're out there and drive accordingly." He wasn't a mechanic so I don't know if that's 100% true or not, but it really opened my 16-year-old eyes and made me drive much more defensively.

No kidding, the whole "I need an SUV 'cuz they're safer!" thing drives me batty.

It's especially depressing because this coworker is an otherwise nice person. But she is insanely gullible and ignorant. For example, she tried to convince me that she doesn't use microwaves because "they turn water into something that isn't water!" She was also just explaining to me over lunch how the new car she's going to purchase will be a great investment.

I don't use a microwave because... I don't own one.  I even cook TV dinners (when I'm feeling lazy) on the stove sometimes. :)

Her new car will definitely be a great investment.  For the dealer and the bank.

fantabulous

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Re: Overheard at Work
« Reply #6968 on: February 20, 2015, 03:59:46 PM »
Depending on roommates it is sometimes hard to keep food in the house. I had to find a new roomate once because he was allways short on cash and eating my food. I started eating out all the time so he couldnt.

I used to have a problem with roommates drinking my beer. So I switched to scotch, which none of them could stomach. Problem solved.

I bet you could apply the same solution to food... though you might have to acquire a taste for kimchi or grasshoppers or something like that.

interesting,  i had a room mate that would drink any and everything including very expensive scotch when his red label,  dollar store handle ran out. solved that with some water and soy sauce.

bahahaha

Timmmy

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Re: Overheard at Work
« Reply #6969 on: February 20, 2015, 05:26:05 PM »
"they turn water into something that isn't water!"

Steam?

johnintaiwan

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Re: Overheard at Work
« Reply #6970 on: February 20, 2015, 06:13:58 PM »

interesting,  i had a room mate that would drink any and everything including very expensive scotch when his red label,  dollar store handle ran out. solved that with some water and soy sauce.

You are too nice. I solved that problem in University by filling an empty bottle of Jack Daniels with tobacco spit. Was pretty easy to find out who the thief was.

caliq

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Re: Overheard at Work
« Reply #6971 on: February 20, 2015, 06:28:36 PM »

interesting,  i had a room mate that would drink any and everything including very expensive scotch when his red label,  dollar store handle ran out. solved that with some water and soy sauce.

You are too nice. I solved that problem in University by filling an empty bottle of Jack Daniels with tobacco spit. Was pretty easy to find out who the thief was.

Oh lord I wouldn't wish that on my worst enemy...

DH used to spit in my empty Diet Coke bottles and one day I grabbed one thinking it had a little bit of soda left.......much screaming and vomiting ensued :(

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Re: Overheard at Work
« Reply #6972 on: February 21, 2015, 12:08:32 AM »
Too many people use budgets as a way to SPEND their money, not a way to save it.
I'm probably somewhere in the middle at the moment.

My tracking spreadsheet projects forward to the end of the month and predicts our savings rate. We aim for 50% each month and don't include income for sources other than salary so we will always save more than 50%. Knowing this, when it gets towards the end of the month and the sheet shows that we are tracking for 52 or 55%, I always end up upping our spend on luxury items. Last night we bought take away and a bottle of wine because I knew that it wouldn't impact negatively on our goal of 50% even though we had a meal planned and the ingredients in our house.

By putting too much emphasis on that short term goal of 50% and not enough on the long term goal of financial independence, we are selling ourselves short.

Cheers for the comment and making me think about it a bit more deeply :)

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Re: Overheard at Work
« Reply #6973 on: February 21, 2015, 09:30:41 AM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans. 

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Re: Overheard at Work
« Reply #6974 on: February 21, 2015, 10:52:30 AM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans.
That is impressive...in a bad way.

Still having a student loan balance after 19 years is still feasible with income based repayment plans. A quick search shows IBR's can go on for 20 or 25 years, depending on the plan. Any remaining balance after the period ends is forgiven.
Forgiven debts are generally counted as income, but the IRS says certain qualified student load forgiven balances are not taxed as income. I didn't read too much into this, so I'm not sure if forgiven balances after completing the terms of the IBR plan qualifies.

Cheddar Stacker

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Re: Overheard at Work
« Reply #6975 on: February 21, 2015, 11:29:22 AM »
We graduated 14 years ago with various SL's totalling about $50k. We paid off a small one and consolidated the rest. Sallie Mae gave us a 25 year repayment plan at 4%. I paid a little extra here and there, but now I pay the minimums. I could write a check today to pay them off, but I don't want to. I think they are scheduled to mature in another 6-7 years. I hope to FIRE before then, so I might retire with SL debt.

Different strokes.
Indecision may or may not be my problem.

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Re: Overheard at Work
« Reply #6976 on: February 21, 2015, 11:47:54 AM »
We graduated 14 years ago with various SL's totalling about $50k. We paid off a small one and consolidated the rest. Sallie Mae gave us a 25 year repayment plan at 4%. I paid a little extra here and there, but now I pay the minimums. I could write a check today to pay them off, but I don't want to. I think they are scheduled to mature in another 6-7 years. I hope to FIRE before then, so I might retire with SL debt.

Different strokes.
But I take it you've made a conscious decision to invest while not paying these student loans down faster than the minimum because you think you can earn more than 4% post tax on the difference (and I agree on the math here).
I'm a bit of a cynic when it comes to coworkers overheard on this thread, and I assume that Unique User's CW is not doing what you're doing (and I'm pretty sure the statistics tilt in the favor of this assumption).

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Re: Overheard at Work
« Reply #6977 on: February 21, 2015, 12:00:32 PM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans.
That is impressive...in a bad way.

Still having a student loan balance after 19 years is still feasible with income based repayment plans. A quick search shows IBR's can go on for 20 or 25 years, depending on the plan. Any remaining balance after the period ends is forgiven.
Forgiven debts are generally counted as income, but the IRS says certain qualified student load forgiven balances are not taxed as income. I didn't read too much into this, so I'm not sure if forgiven balances after completing the terms of the IBR plan qualifies.


The standard repayment term on federal student loans 19 years ago was 30 years.

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Re: Overheard at Work
« Reply #6978 on: February 21, 2015, 12:16:51 PM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans.
That is impressive...in a bad way.

Still having a student loan balance after 19 years is still feasible with income based repayment plans. A quick search shows IBR's can go on for 20 or 25 years, depending on the plan. Any remaining balance after the period ends is forgiven.
Forgiven debts are generally counted as income, but the IRS says certain qualified student load forgiven balances are not taxed as income. I didn't read too much into this, so I'm not sure if forgiven balances after completing the terms of the IBR plan qualifies.

My best friend has been paying on her Stafford student loans for about 5 years paying the minimum.  I looked at her numbers and if she keeps paying the minimum it'll take another 14-16 years.  Over the life of her loans she'll end up paying an extra 25% in total interest.
« Last Edit: February 21, 2015, 01:24:55 PM by Travis »

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Re: Overheard at Work
« Reply #6979 on: February 21, 2015, 12:32:50 PM »
I'm at work now and CW1 just told CW2 that a mile is way too far to walk.

A while back a big group of us (~15) decided to go for lunch at a place 10 city blocks away from our office. 13 people drove, 2 of us walked. So they took 3 or 4 cars to drive one mile, in pleasant weather on a sunny day. The other walker and I arrived at the restraunt before the car clowns because we work downtown and you have to circle several blocks to find a place to park. And then pay for parking!
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Re: Overheard at Work
« Reply #6980 on: February 21, 2015, 01:02:09 PM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans.
That is impressive...in a bad way.

Still having a student loan balance after 19 years is still feasible with income based repayment plans. A quick search shows IBR's can go on for 20 or 25 years, depending on the plan. Any remaining balance after the period ends is forgiven.
Forgiven debts are generally counted as income, but the IRS says certain qualified student load forgiven balances are not taxed as income. I didn't read too much into this, so I'm not sure if forgiven balances after completing the terms of the IBR plan qualifies.


The standard repayment term on federal student loans 19 years ago was 30 years.
Damn that's a long time. That's as long as some mortgages!

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Re: Overheard at Work
« Reply #6981 on: February 21, 2015, 01:09:19 PM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans.
That is impressive...in a bad way.

Still having a student loan balance after 19 years is still feasible with income based repayment plans. A quick search shows IBR's can go on for 20 or 25 years, depending on the plan. Any remaining balance after the period ends is forgiven.
Forgiven debts are generally counted as income, but the IRS says certain qualified student load forgiven balances are not taxed as income. I didn't read too much into this, so I'm not sure if forgiven balances after completing the terms of the IBR plan qualifies.


The standard repayment term on federal student loans 19 years ago was 30 years.
Damn that's a long time. That's as long as some mortgages!


True that. I'm not absolutely positive on the 30 year – maybe 75% positive, but if it wasn't 30 it was 25. Of that I'm certain.


What's the standard term now?

Edited add I found it. I was thinking about the standard plan for consolidation loans, which all of us did back about that time because the rates were much lower than for individual Stafford loans. 10 years is the standard repayment time on a non-consolidation loan.

https://studentaid.ed.gov/repay-loans/understand/plans/standard
« Last Edit: February 21, 2015, 01:15:37 PM by Rural »

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Re: Overheard at Work
« Reply #6982 on: February 21, 2015, 09:20:17 PM »
This actually happened at a previous job, but the follow up makes it even funnier.

I had a boss at a financial firm who also worked as a waiter at night because he so badly needed the money.  Guy had to work 100 hours a week between the two jobs to afford his lifestyle.  One day he goes to a dealership, not to buy a car, but because the owner of the dealership is a client and he needs to sign some paperwork.  My boss is gone much longer than he needed to be and comes back with a Mercedes SL550 hard top sports car!   I knew he was a car guy, and I assumed the client just let him borrow it for the day.  He is soo excited!   Then he announces its his new car, and everyone is congratulating him.

Me:  "So let me guess, he let you borrow it for the day?"
Boss:  "Nope, I bought it, thats why I was gone so long, we already did the paperwork and the trade in on my old car(an Acura)."
Me:  "So you went to get papers signed... and you bought a car?"
Boss:  "Well I saw it, test drove it for fun while I was there, and just decided to buy it.  Closed the deal, got the papers signed, and I walked away with a Mercedes!"

Me(later, when no one else can hear):  "Can you actually afford that?"
Boss:  "Its going to be a stretch, I'm not sure."

3 months later he is freaking about about the payments on this thing, and trying to sell it without losing his shirt.  Eventually sells it, and gets a used SUV.  This was all a couple years ago.  He sent me a text of his new car.  Brand new Corvette.... and there was a new Acura parked next to it in the picture.

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Re: Overheard at Work
« Reply #6983 on: February 21, 2015, 09:26:29 PM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans.
That is impressive...in a bad way.

Still having a student loan balance after 19 years is still feasible with income based repayment plans. A quick search shows IBR's can go on for 20 or 25 years, depending on the plan. Any remaining balance after the period ends is forgiven.
Forgiven debts are generally counted as income, but the IRS says certain qualified student load forgiven balances are not taxed as income. I didn't read too much into this, so I'm not sure if forgiven balances after completing the terms of the IBR plan qualifies.


The standard repayment term on federal student loans 19 years ago was 30 years.
Damn that's a long time. That's as long as some mortgages!


True that. I'm not absolutely positive on the 30 year – maybe 75% positive, but if it wasn't 30 it was 25. Of that I'm certain.


What's the standard term now?

Edited add I found it. I was thinking about the standard plan for consolidation loans, which all of us did back about that time because the rates were much lower than for individual Stafford loans. 10 years is the standard repayment time on a non-consolidation loan.

https://studentaid.ed.gov/repay-loans/understand/plans/standard

Mine are on a 30-year term, so I'm about 12 years in on them.  They had some interest rate float-down clauses based on auto-payments and good repayment history, so they're locked in at 1.875% now.  The reduction from the initial interest rate knocked a couple years off of the repayment term, too.  At worst, the payment is just annoying because I almost forget about it, so I'll eventually pay off the lump sum, but certainly in no hurry at that sweet rate.

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Re: Overheard at Work
« Reply #6984 on: February 22, 2015, 07:02:17 AM »
True that. I'm not absolutely positive on the 30 year – maybe 75% positive, but if it wasn't 30 it was 25. Of that I'm certain.


What's the standard term now?

Edited add I found it. I was thinking about the standard plan for consolidation loans, which all of us did back about that time because the rates were much lower than for individual Stafford loans. 10 years is the standard repayment time on a non-consolidation loan.

https://studentaid.ed.gov/repay-loans/understand/plans/standard

Mine were ten years, guess I just assumed they all were! 

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Re: Overheard at Work
« Reply #6985 on: February 23, 2015, 07:01:13 AM »
CW and I were bitching about how we'd love to quit and leave the bs.  I shared that once DD's college is paid for, I'm only working if I want to.  She shares that she has already told her daughter that said daughter is on her own because CW is still paying for her own student loans for a degree earned 19 years ago, said degree took 8 years to earn.  I'm still trying to figure out how after 19 years you could still have student loans.
That is impressive...in a bad way.

Still having a student loan balance after 19 years is still feasible with income based repayment plans. A quick search shows IBR's can go on for 20 or 25 years, depending on the plan. Any remaining balance after the period ends is forgiven.
Forgiven debts are generally counted as income, but the IRS says certain qualified student load forgiven balances are not taxed as income. I didn't read too much into this, so I'm not sure if forgiven balances after completing the terms of the IBR plan qualifies.


The standard repayment term on federal student loans 19 years ago was 30 years.
Damn that's a long time. That's as long as some mortgages!


True that. I'm not absolutely positive on the 30 year – maybe 75% positive, but if it wasn't 30 it was 25. Of that I'm certain.


What's the standard term now?

Edited add I found it. I was thinking about the standard plan for consolidation loans, which all of us did back about that time because the rates were much lower than for individual Stafford loans. 10 years is the standard repayment time on a non-consolidation loan.

https://studentaid.ed.gov/repay-loans/understand/plans/standard

Mine are on a 30-year term, so I'm about 12 years in on them.  They had some interest rate float-down clauses based on auto-payments and good repayment history, so they're locked in at 1.875% now.  The reduction from the initial interest rate knocked a couple years off of the repayment term, too.  At worst, the payment is just annoying because I almost forget about it, so I'll eventually pay off the lump sum, but certainly in no hurry at that sweet rate.

Why not set it up on auto pay and ride out the full term? 

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Re: Overheard at Work
« Reply #6986 on: February 23, 2015, 07:41:29 AM »
Why not set it up on auto pay and ride out the full term?

It will probably be our ONLY debt left at some point, so it will be nice to just knock it out, be 100% debt-free and not have to worry about the payment.  Not that I normally let my checking account get that low, but I do tend to forget about it, so when the auto-draw goes through, it's just a minor annoyance that I forgot to budget it.

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Re: Overheard at Work
« Reply #6987 on: February 23, 2015, 07:52:09 AM »

interesting,  i had a room mate that would drink any and everything including very expensive scotch when his red label,  dollar store handle ran out. solved that with some water and soy sauce.

You are too nice. I solved that problem in University by filling an empty bottle of Jack Daniels with tobacco spit. Was pretty easy to find out who the thief was.

Oh lord I wouldn't wish that on my worst enemy...

DH used to spit in my empty Diet Coke bottles and one day I grabbed one thinking it had a little bit of soda left.......much screaming and vomiting ensued :(

my mom did this once too, when her brother used to chew tobacco and used an empty Pepsi can. ahhhh the horror!!!

"they turn water into something that isn't water!"

Steam?

bahahaha!

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Re: Overheard at Work
« Reply #6988 on: February 23, 2015, 08:36:57 AM »
...the two he had in his name had been closed by the companies due to inactivity back in 09 we had found out.  And there were a number of questions on how we accumulated our level of assets I assure you.
Have you considered using them for normal expenses just for the rewards? There's really no downside if you manage them right.
I'll always keep (and regularly use) mine - even at a moderate level of spending, I pull in several hundred bucks a year in cash and travel credits.
This actually happened at a previous job, but the follow up makes it even funnier.

I had a boss at a financial firm...
How do financial firms manage to be staffed by people with such a complete lack of financial sense?
« Last Edit: February 23, 2015, 08:45:46 AM by zephyr911 »
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Re: Overheard at Work
« Reply #6989 on: February 23, 2015, 08:59:09 AM »
...the two he had in his name had been closed by the companies due to inactivity back in 09 we had found out.  And there were a number of questions on how we accumulated our level of assets I assure you.
Have you considered using them for normal expenses just for the rewards? There's really no downside if you manage them right.
I'll always keep (and regularly use) mine - even at a moderate level of spending, I pull in several hundred bucks a year in cash and travel credits.
This actually happened at a previous job, but the follow up makes it even funnier.

I had a boss at a financial firm...
How do financial firms manage to be staffed by people with such a complete lack of financial sense?

Because that's how sales works!

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Re: Overheard at Work
« Reply #6990 on: February 23, 2015, 09:51:57 AM »
Heard a coworker walk up to our benefits department to discuss taking a loan out against her 401k. Another coworker (who has been employed here for 25 years) encouraged her, stating she had done so to buy a few cars throughout the years because she liked 'paying herself instead of a bank.'

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Re: Overheard at Work
« Reply #6991 on: February 23, 2015, 09:55:44 AM »
Heard a coworker walk up to our benefits department to discuss taking a loan out against her 401k. Another coworker (who has been employed here for 25 years) encouraged her, stating she had done so to buy a few cars throughout the years because she liked 'paying herself instead of a bank.'
I can't even.... She's stealing from herself! In an economic profit sense.

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Re: Overheard at Work
« Reply #6992 on: February 23, 2015, 11:47:01 AM »
Heard a coworker walk up to our benefits department to discuss taking a loan out against her 401k. Another coworker (who has been employed here for 25 years) encouraged her, stating she had done so to buy a few cars throughout the years because she liked 'paying herself instead of a bank.'
I can't even.... She's stealing from herself! In an economic profit sense.

so many things wrong with doing stuff like this.  your 401k money is protected money.  pulling it out for a loan is bad not mentioning all the other issues.  and getting into what your money could be making for you etc.
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Re: Overheard at Work
« Reply #6993 on: February 24, 2015, 12:31:31 AM »
Conversation with a contractor for the business I manage, talking about him showing up at the store we contract to, every morning, and then disappearing for 20 minutes (every day) while he leaves his semi truck running (to warm up, it's -10*F outside...).

Me: Can you please explain why our customer is complaining that you leave your truck running, unattended every morning?
Him: Yea man. Do you have a favorite place you like to eat?
Me: Um? That's an odd question. Yea man, my house. I cook all of my meals. I love it.
Him: Common man. Really? Every one?
Me: Yes. Every. Single. One.
Him: Yea, but what about breakfast? I mean, we work so early in the morning, you know? (HAHAHA. 7AM! HAHAHA)
Me: I've never eaten breakfast at a restaurant on a workday in my entire life... (the exception being when I travel for work)
Him: Well, I don't know about you, but with getting up at 6:00am, with my kid and all, there is no way that I have time in the morning to make breakfast. That's just the way it is.
Me: Ok. So is this where you go every morning?
Him: That's what I'm getting at. I get to the store, start the truck to let it warm up (legit thing to do when it's -10*), and then drive my Tahoe to TacoBell to get breakfast. I go every morning, cause honestly it's way better than Burger King or McDonalds.
Me: Dude, why don't you just load your truck at the store and then drive the semi to taco bell and get your breakfast then?
Him: They don't open the dining room until 10am. The drive through is open at 7am. I have to go through the drive through. I can't possibly get the semi truck through there.
Me: Dude. Okay man. I'll tell the store that we're going to start at 7:30am instead of 7am, and you can hit the drive through on the way into work. Ok? So you can have your breakfast, and you won't be leaving the store/truck every morning after showing up on time. And the store won't have to bitch anymore. OK? Deal?
Him: Man, thanks. I really appreciate it!

HOLY SHIT. I'm 2,000 miles away from this contract. I'm in Seattle, he's in Wisconsin. He's been driving to the store (passing the taco bell on the way), getting to the store, starting the truck, driving back to the Taco Bell, hitting the drive though, and driving back to work.

NOT only is this guy buying at LEAST $40-$50worth of breakfast every week (~$8 x 6days/wk), he's driving his damn Tahoe an extra 7 miles/day so he can hit the store first... $160-$200 every month for BREAKFAST! That's 2/3 my grocery bill for me and my wife!

This guy is 6'2" and 380lb. I want to tell him he's killing himself. That his 40oz extra-large soda at 7am is killing him. That this is part of the reason he experienced gout  this year at AGE 30!!! But it's not my prerogative. I don't know his life. Instead I find myself enabling him, so as the appease the business relation with the store, and so I don't have to replace the contractor at an unaffordable cost. The customers love him. He makes us money. What's an Operations Manger to do? FAAAAAAAAAACK!
« Last Edit: February 24, 2015, 12:40:06 AM by bigalsmith101 »
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dividendman

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Re: Overheard at Work
« Reply #6994 on: February 24, 2015, 12:37:13 AM »
bigalsmith101 your story is hilarious.

It's also hilarious how often you guys say "dude" and "man". haha.

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Re: Overheard at Work
« Reply #6995 on: February 24, 2015, 01:37:42 AM »
bigalsmith101 your story is hilarious.
It's also hilarious how often you guys say "dude" and "man". haha.

"Dude, I gotta relate to these people! You know what I mean man? Man, it's like, managing these dudes should be easy, but these dudes just can't figure shit out for themselves. MAN!"

Honestly, I try to write exactly as I speak, to convey the story. I've slowly become an expert at "talking" in different forms to convey the same message to the 10 guys and 1 women working for us. We hold contracts all over the US, and each contractor has a different background. It ranges from southern style polite hospitality with the lady (my favorite), all the way to super coarse language full of swear words with one of our guys in Wyoming. I have to remember to tone it down, and reign in the mild stupidity that fills my mind when I converse with some of these guys. Every one of the contractors are older than me, from 2yrs to 30+, so I work at making sure they can relate to me on a personal level, and speech is a personal attribute many people neglect in communication. So far so good!
« Last Edit: February 24, 2015, 01:58:24 AM by bigalsmith101 »
I spent the first 6 years of "real" life in a self imposed semi retirement, to secure a lifetime of stories. Now it's time to secure the next lifetime through the badassity of FI.

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Re: Overheard at Work
« Reply #6996 on: February 24, 2015, 06:14:43 AM »
Not a really crazy money amount, but two co-workers just gave up their soda habits for Lent.  One was drinking 12 diet Cokes a day, the other was drinking 12 Mountain Dews (holy shit diabeetus).

The thought of waking up and drinking either of those in the morning really grosses me out.  Thought of this because of bigalsmith101's story about the guy drinking 40 oz of soda at 7 am.
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GuitarStv

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Re: Overheard at Work
« Reply #6997 on: February 24, 2015, 06:35:32 AM »
Not a really crazy money amount, but two co-workers just gave up their soda habits for Lent.  One was drinking 12 diet Cokes a day, the other was drinking 12 Mountain Dews (holy shit diabeetus).

The thought of waking up and drinking either of those in the morning really grosses me out.  Thought of this because of bigalsmith101's story about the guy drinking 40 oz of soda at 7 am.

Hmmm.  Sugar in a mountain dew is 77g for 590mL (http://www.sugarstacks.com/beverages.htm), so assuming the guy is drinking 12 of the smallest 355 ml cans . . . that works out to 556g of sugar a day.

That's 2223 calories just from sugar.  I'm assuming he's an obeast?

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Re: Overheard at Work
« Reply #6998 on: February 24, 2015, 07:00:48 AM »
Hmmm.  Sugar in a mountain dew is 77g for 590mL (http://www.sugarstacks.com/beverages.htm), so assuming the guy is drinking 12 of the smallest 355 ml cans . . . that works out to 556g of sugar a day.

Holy shit. That's 1.22 lbs. of sugar a day.
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AH013

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Re: Overheard at Work
« Reply #6999 on: February 24, 2015, 07:20:18 AM »
Not a really crazy money amount, but two co-workers just gave up their soda habits for Lent.  One was drinking 12 diet Cokes a day, the other was drinking 12 Mountain Dews (holy shit diabeetus).

The thought of waking up and drinking either of those in the morning really grosses me out.  Thought of this because of bigalsmith101's story about the guy drinking 40 oz of soda at 7 am.

Hmmm.  Sugar in a mountain dew is 77g for 590mL (http://www.sugarstacks.com/beverages.htm), so assuming the guy is drinking 12 of the smallest 355 ml cans . . . that works out to 556g of sugar a day.

That's 2223 calories just from sugar.  I'm assuming he's an obeast?

Now now, Mountain Dew does make a diet version, so maybe he drinks diet (or a mix of diet & regular?).

Although I'm sure with that much daily intake the Yellow 5 & BVO is probably doing more damage than a pound of sugar if it was all regular...that stuff is only considered "safe" by the FDA at "normal" intake levels, and in quantities approaching 2 liters a day has been linked to some truly messed up stuff like oozing skin lesions, neurological disorders inhabiting the ability to walk, liver failure, etc.