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Archive for November, 2018

Getting started now

November 9th, 2018 at 01:00 pm

I keep reading about these atrocious student loans. How people are trying to escape to the jungle. This guy was a philosophy major who owed only $20k Or a teacher who owed once in 2004 $35k but he couldn't pay so he stopped and the interest makes it now $100k+. I'm horrified.

But there are two parts. One a teacher couldn't make ends meet and pay off $35k? Even on a 30 year payment that's a $100/month. Assuming a 15 yeear payment that's a little over $200-300/month. I'm shocked that it was that difficult to pay.

I wonder if people are struggling to get started now because they have very high expectations upon starting out? That it's shocking they can't eat out, travel, etc. That perhaps the lifestyle they expected can't be had on an entry level job?

Or is it really that salaries are so low that owing even $100 is too much? Or is it that we now owe every month on EVERYTHING? That the teacher has the student loan, car payment, CC debt, medical bills just starting out?

I can see how nowadays where you are born and what your parents do makes such a big difference. That some people on this board are able (cheers) to fund college 100%. So their kids will walk out debt free. These same people likely talked to their kids so these same kids won't have CC debt or medical bills. Also these same kids might even be gifted a car so they are starting out with a car, no debt, and an education.

So you are starting from a position of power. I know that these same people on the board were like myself and when we started out we had some student loans, some car loans, maybe even medical and CC debt. But somehow we made it.

How did we manage? I see myself right now strategically thinking about setting my kids up for success. That I'm looking at their college funds of $28k and $22k (8 and 6). Plus we have earmarked this year potentially another $10k each for college. Along with around $5k in taxable accounts for them to just grow.

In all likelyhood our kids will not only have 100% free college, but will have a car, and possibly a home down payment help and maybe even a Roth IRA. So how far ahead of the curve will they be?

I just find it interesting.

Net Worth Calculations

November 1st, 2018 at 10:27 am

We are down around 7.5% from 9/1/18 which it peaked. We are down in mostly our retirement investment accounts. We aren't doing a darn thing. We are holding onto our cash, will invest in January Roth IRA and kids ESA the $12k and $4k. In december we will likely buy out DH's lease for $22k. Right now we are still hanging onto my car loan but that's something up for negotiation to just pay off. But it's at 2.24% and we're earning 1.9% on savings right now with potential for more.

I'm also considering buying the I bonds. Right now the fixed rate is 0.5% announced and that seems good. I'll talk to DH tonight.