My old man was like that and I went on a 4-year long spending spree once I started earning my own money before I realized he's right.
Now if only someone would talk me out of getting a motorcycle.
-
Please take a moment and update your account profile. If you have an updated account profile with basic information on why you are on Air Warriors it will help other people respond to your posts. How do you update your profile you ask?
Go here:
Edit Account Details and Profile
Looking for a Little Financial Advice
- Thread starter jt71582
- Start date
My old man was like that and I went on a 4-year long spending spree once I started earning my own money before I realized he's right.
Now if only someone would talk me out of getting a motorcycle.
Just to throw it out there, the USAA career starter loan is a good loan to use to consolidate everything into one monthly payment. Because the rate is 2% which is much better than the 5+ % you will be getting on anything financed with others. I have used this loan to pay for part of my car and used the remainder as an investment. Since making over 2% is pretty easy to do in the investment world(assuming you have a good financial advisor or a good working knowledge of the markets), I am turning a profit on that loan. Also take advantage of things like 12 months no interest on big purchases assuming you can pay it off in 12 months. Doing that on big ticket items like furniture and other large purchases will free up cash on a month to month basis. However, do not finance with those type of specials if you cant pay it off before it bites you in the butt. If you want to compare things or ask questions PM me. We sound about equal except for the student loans. I also have a Mlynch financial advice who helps with my investments. Before him I was making a fair amount of income handling my own investments, but flight school doesnot leave me enough time to do it myself anymore.
In regards to a car payment, I'm definitely looking for something fairly cheap. The ensign-mobile thing was more of a joke than anything else. It looks like I'll be okay financially. I'll look into the TSP and other plans - my Dad is a CPA/financial advisor so he should be able to help with everything as well. I just didn't want to go to him immediately because he thinks everything I ever do with money is stupid.
Look. My dad asks me every time I come home and often times on the phone "How I'm doing" (read: financially) so I know how it goes having a dad ask 20 questions about your money all the time.
Bottom line: MAKE A BUDGET! Then, after you do that, LIVE BY THE BUDGET!
I have a 450 payment for my USAA Loan, 250 payment for consolidated student loans and the regular utilities and bills every month. I still have money allocated for "fun" and "clothes" every month, and not 20 bucks either, so it can be done.
Just figure out all your bills, figure out how much you "want" for certain categories (like "fun") and then put it all together into a budget.
ANOTHER important thing: before I even see my money every month (and my income reflects this deduction on my budget) 10% (about 250 bucks) goes directly into TSP. I never see this money, so I can't blow it. DO THIS. This is the easiest way to save/invest. If you want to go over and above TSP, then set up an automatic withdrawl for other accounts such as a savings account (ING direct for emergencies or saving up for a big spend etc) or a money market account for stock or mutual fund investing etc.
PM me for more info or ideas.
YF36
Banned
If you need a car and are willing to take a loan Dodge and Chevy are both offering interest free financing for 72 mos. Thats free money. Dodge also has a $4000 incentive. Keep in mind, not all of the vehicles they sell are big trucks. They have some nice cars like the new Malibu, etc. (I am starting to sound like a car dealer) None the less, free money is free money.
Just a heads up, once you go to OCS your pay drops dramatically due to not receiving BAS and BAH anymore since the Navy is putting you up in barracks and feeding you three meals a day. Just be sure to plan for that.
As far as a car goes, buy a used Honda, they're plenty reliable and you won't be taking a huge depreciation hit. Personally, I wouldn't lease a car. Why pay $300-400 a month for the use of something that you won't be able to use because you are on deployment. In addition, you won't be in the same location as where you leased the car, how will you get it back to the dealer?
Good on you though for getting your finances in order, as I'm looking at buying my first house, I'm glad my dad was hard on me.
m0tbaillie
Former SWO
I'm only making plans thus far until May/June of 09 - *before* I head to OCS. I'm only factoring in the money I'll make during that time and no further.
I sat down today and looked at everything for my student loans, I had been putting it off because I knew it was going to be a huge number and this stuff is freakingscary!
I'm going to be paying about 400/month to my student loans, depending on what interest rate I lock into when I consolidate. The question is, will this be too much for me to handle as a new O-1? The base pay is around 2500 for new butter-bars, but I know I'm going to have a car payment and cell phone stuff to pay too...not to mention whatever rent isnt covered by BAH. Plus I'd love to be saving some money for the hookers and blow. :smgreen_1
I'm not looking for anyone to share specifics, but if you could look at my financial situation and compare it to your own when you were in my shoes, I'd greatly appreciate it.
may not be an option for you but you are entitled to defer your student loans in some cases for the life of your military career. i have several folks that have done this. i have a form one guy gave me and i give it folks all the time i don't know how to attach it here
but i think i got it right and maybe you can see it
Not true. At least as recently as last year. I got BAH during OCS. We specifically got briefed that we WERE ENTITLED to BAH at OCS (if you were BDCP, that is). Ah.... yet ANOTHER perk of BDCP....
.Bad gouge!
IT IS NOT FREE MONEY! Seriously - look at what they are doing: offering a choice between the "incentive" (a discount to the actual market value of the new vehicle) or an interest free loan. Even if you have perfect credit and qualify for zero percent financing then you are simply getting the opportunity to pay above market value for a new car. Look at the resale values of the models these "deals" are available on and you will see how long you will be upside down on a 72 month loan.
Basic facts - you will always lose in financing a depreciating asset, but if you need to finance your vehicle (and most of us had to, at least initially) then sit down, make a spreadsheet, and look at the actual total costs associated with your different options. Note in the quick example I attached the real value of the car would be 21,000 - a person who took the 0% financing would have paid 25,000 for the privilege of the lower interest rate. Factor in that the car would at best be worth 50% of the REAL value (not the inflated price) in two years and you can see that you would be upside down for quite awhile. Can't afford the down payment? Set that to 0 in the example and see the effect.
(NOTE: that spreadsheet took 5 minutes - therefore it is not the most user friendly and I simplified the compounding of the interest but it makes the point and ought to be able to help you see the real costs).
IT IS NOT FREE MONEY! Seriously - look at what they are doing: offering a choice between the "incentive" (a discount to the actual market value of the new vehicle) or an interest free loan. Even if you have perfect credit and qualify for zero percent financing then you are simply getting the opportunity to pay above market value for a new car. Look at the resale values of the models these "deals" are available on and you will see how long you will be upside down on a 72 month loan.
Basic facts - you will always lose in financing a depreciating asset, but if you need to finance your vehicle (and most of us had to, at least initially) then sit down, make a spreadsheet, and look at the actual total costs associated with your different options. Note in the quick example I attached the real value of the car would be 21,000 - a person who took the 0% financing would have paid 25,000 for the privilege of the lower interest rate. Factor in that the car would at best be worth 50% of the REAL value (not the inflated price) in two years and you can see that you would be upside down for quite awhile. Can't afford the down payment? Set that to 0 in the example and see the effect.
(NOTE: that spreadsheet took 5 minutes - therefore it is not the most user friendly and I simplified the compounding of the interest but it makes the point and ought to be able to help you see the real costs).
Couple thoughts... to get an ensign mobile for the sake of getting an ensign mobile is foolish. Nobody gives 2 shits about what you drive... unless its a chick car that is deserving of the questioning of your manhood.
As for the lease option... I know people who have gotten out of their vehicle leases because they are going on deployment. I personally stay away from leasing because if you finance a vehicle for purchase, one day you will stop making payments and still have something where with leasing you are always making payments in order to keep something.
I personally would recommend buying a car thats only a year or so old. Let someone else take the big depreciation hit and you still have a vehicle in good shape for your own use. 1 year corporate lease turn-ins are pretty good IMO. Low mileage and regularly maintained.
YF36
Banned
First, the incentive is not an either/or proposition. They are offering the incentive with the financing. Further, you still have the opportunity to negotiate. Beat the dealer down and sign if the numbers are right. You can shop deals nationwide now via the net. Now I am not advocating going into debt for a vehicle but lets face it, people do it every day. Might as well get a zero interest loan.
I am not sure where you are coming from, but the fees for my USAA IRA are very low. It is just a mutual fund that I have designated an IRA, no fees paid.
And I am not sure where you can say that a broker's IRA will be better. I am no financial wizard but I do know that nothing is guaranteed when it comes to the markets. While my mutual funds have not done so well the past few months, overall they have done quite well.
100% ditto. No fees on my mutual funds purchased in my IRA account. I have a money market account as well if I choose to purchase stocks (which I plan on doing shortly).
My funds have done well overall, but are down of late.