Author Topic: Need advice  (Read 783 times)

Ryanpascarelli

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Need advice
« on: December 10, 2016, 12:37:54 PM »
Hey guys. I have posted here maybe once before and have had a lot of things happen since and so now I'm trying to get my financial life in order and could use your help.

Unfortunately, earlier this year, me and my wife got a divorce. I ended up with roughly $30,000. I bought a condo and used some of the money for the down payment on that. I also totaled my car last month and bought a new car. I am now trying to get into a good place with my finances now that I have a home and am settled in. I constantly try to optimize my finances but am feeling stressed over having debt and not enough savings. Any help would be greatly appreciated.

Luckily earlier this year i landed a job in the gas union here in Massachusetts. I am making $28.69 per hour and after my training for my current position is over, I go right up to about $40 per hour. Also, I am able to work as much overtime as I want. Anything over 60 hours is double time. I plan on doing that quite a bit. This is currently what my finances look like.

Income after 6% 401k, $57 per week for hsa and taxes: $2800
Mortgage: $964 including condo fees
Car payment: $171
Insurance: $122
Student loans: $110
Netflix: $12
Verizon: $88 including $36 for device payment
Comcast: $35
Gas for car: $150
Groceries: $200

Debt

Mortgage: $121,200 @ 3.5%
2015 Subaru Legacy: $9800 @ 1.74 %
Student loans: $9800 @ 6%
iPhone financed through Verizon: $833 @ 0%

Money

Savings: $7300
Checking: $1400
Old 401k: $15000
New 401k: $2600
Apple Stock: $3000 w/ 29 shares

I feel very confused about what to do next and how to do this right so I am in a good place financially. I am very grateful for any help you guys can offer. Thank you

Ryan

ruraljuror

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Re: Need advice
« Reply #1 on: December 10, 2016, 08:54:24 PM »
The number of line items in your budget is pretty sparse, you sure this is everything? If so, looks like you're clearing almost $1k per month even before your hefty raise. With ample emergency cash and relatively low rates on your debt, why not throw the $1k toward your 401k? If the 6% on the student loan is bothering you, consider splitting your extra cash between the 401k and student loan until it's paid off. Seems like you're in solid shape even before the dramatic pay increase.

MDM

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Re: Need advice
« Reply #2 on: December 10, 2016, 09:08:40 PM »
I feel very confused about what to do next and how to do this right so I am in a good place financially. I am very grateful for any help you guys can offer. Thank you
Is Investment Order helpful?

Larsg

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Re: Need advice
« Reply #3 on: December 16, 2016, 11:39:55 PM »
I would roll your old 501K over to folio investments where you get 2 free window trades per day as well as 3.00 per day out side of window trades. There is an annual fee but will make up for it in the low trading fees. Not that I recommend trading a lot in your retirement accounts but it does give you the opportunity to take control, set stop losses for stocks that may be going through a risky patch or same with ETF.s. They also have a wide variety ETF/Mutal Funds and all kinds of portfolios you can buy in one based upon your risk criteria or you can make up your own portfolio, again very inexpensive so you have the opportunity to really lean and pay attention to fees that can eat away at your returns over time and I wish I knew all of this when I was young but know it now. Then I would also work on your iPhone financed through Verizon: $833 @ 0%. I used to get into these traps too where I felt like I had to have an iPhone every couple of years and fell into these deal when in reality, shop around you get all kinds of deals. In fact, for phone in general now, while at home, we use google talk. we can call anywhere in the country for free. We plug it into the Skype headphones for micros (get on amazon for about 30 bucks) and they sound then become very high quality. Then in reality we really don't need a cell phone all that much so can reduce minutes and text down to very little. work should pay for work related calls and then also, over time, you may work yourself into a role where the company pays for your cell phone. You may have to fork out the initial 200 bucks vs the 800+ you are paying now but you then keep it forever - stop the upgrades as they are unnecessary - and then you have no need really for a cell phone at home unless you switch jobs. Then money mustache has thread somewhere on track phones - anyone chime in on this and I'm sure there are threads out here too on that.

For your 122 insurance, is that for car insurance? If so, that seems a bit high so I would definitely shop around for a better rate - hit Geico.

Sorry about your Divorce but good for you that you have moved on in a healthy way and keeping focused. Make sure you are taking time to enjoy life, so many things to do for FREE :).