@ovis90 Curious - is there ever a time we shouldn't have been thankful for r/personalfinance? I've seen quite a few posts pop up on the front page from people who have had their lives turned around by this sub, so it seems like you folks do bloody good work. But nothing's perfect - have there been any disasters?
‘Tis the season to be thankful and I‘m starting with you r/personalfinance
- Thread starter ovis90
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@kaylove1 The disaster risk is the frugalcirclejerk type stuff. If you make absolutely every decision in your life with "what will this do to my income/expense spreadsheet" as the only concern, you wind up with a comforting number on your Vanguard account while sitting alone in your cold featureless efficiency apartment eating lentils.
But for most people seeking financial advice, this is like a morbidly obese person worrying about starving to death if he starts using myfitnesspal, running three times a week, and cutting out french fries. Our culture has a massive addiction to taking consumer debt for frivolous purchases (cultivated by an omnipresent advertising industry, in which one of the primary objects of advertising are little plastic cards that loan you money at .01% below legal usury so you can buy the other stuff), and only the rare oddballs who are so worried about saving money they don't ever enjoy themselves or even cut corners on their basic needs to keep more cash.
But for most people seeking financial advice, this is like a morbidly obese person worrying about starving to death if he starts using myfitnesspal, running three times a week, and cutting out french fries. Our culture has a massive addiction to taking consumer debt for frivolous purchases (cultivated by an omnipresent advertising industry, in which one of the primary objects of advertising are little plastic cards that loan you money at .01% below legal usury so you can buy the other stuff), and only the rare oddballs who are so worried about saving money they don't ever enjoy themselves or even cut corners on their basic needs to keep more cash.
@moje I really like these analogies. It's definitely a balance between enjoying life with what you have today v. building a foundation to live a fruitful life in the future. We try to cut on things like eating out, a car, and buying material toys and instead we focus on travel. We budget a set amount for travel/vacation each month and that's really where most of our disposable income goes. Allows us to maintain that balance between building a strong financial structure while enjoying life in our 30s.
resjudicata
New member
resjudicata
New member
hearty1100
New member
@kaylove1 Any advice about how to run your life from complete strangers in their free time will come with some big risks. However, people who take the advice are likely to blame themselves, not us, or avoid talking here again, if the advice wasn’t good.
This sub often suggests divorce without asking questions. This is an incredibly expensive process, and deprives people who were barely making rent of the second income they need.
The advice given is often not matched to the skill level or capacity of the person asking for help. Grieving people may not be able to take on some of the projects we suggest, and financial novices may walk away thinking they’re unable to learn.
I’ve also seen several posts where people strongly push selling a car without asking about employment options within biking distance.
This sub often suggests divorce without asking questions. This is an incredibly expensive process, and deprives people who were barely making rent of the second income they need.
The advice given is often not matched to the skill level or capacity of the person asking for help. Grieving people may not be able to take on some of the projects we suggest, and financial novices may walk away thinking they’re unable to learn.
I’ve also seen several posts where people strongly push selling a car without asking about employment options within biking distance.
bringmetothelight
New member
@bringmetothelight “Paying down debt is guaranteed ROI.”
I don’t remember the user that said that but thank you. That comment started it all.
I don’t remember the user that said that but thank you. That comment started it all.
resjudicata
New member
@ovis90 Inspiring for me too. Currently undecided if we should pay down 40% off our mortgage @ 4% or invest. Investment comes with a risk but higher returns where as paying down is a guaranteed 4% ROI. It also helps recasting the mortgage to lower down payments and increase cash flow every month. That extra money can be invested!
So confused!
So confused!
@flowerbud Someone told me the worst decision was usually not making any decision at all. You’ll figure out which way to go soon enough I’m sure.
Maybe a combination of both too?
Maybe a combination of both too?
@flowerbud I would say pay down the mortgage.
The way you worded it is a little confusing. Are you buying and looking to put 40% down? Or have you already purchased your home and have the money now to pay off 40% of it?
If it is the latter, make sure that your mortgage allows for additional payments to be put directly towards the principal. Depending on how much your house costs, that could be a LOT of interest down the road that you aren't paying.
The way you worded it is a little confusing. Are you buying and looking to put 40% down? Or have you already purchased your home and have the money now to pay off 40% of it?
If it is the latter, make sure that your mortgage allows for additional payments to be put directly towards the principal. Depending on how much your house costs, that could be a LOT of interest down the road that you aren't paying.
@oppmuntre apologies for that, paying down the mortgage balance by 40%
Without recasting the interest savings are > 150K!
After recasting the interest savings are about 100K
Looking to recast it as well after the payment is done, that should reduce monthly payments significantly and the extra savings could be invested gradually.
Have you (or anyone) gone through a recasting through Chase?
Without recasting the interest savings are > 150K!
After recasting the interest savings are about 100K
Looking to recast it as well after the payment is done, that should reduce monthly payments significantly and the extra savings could be invested gradually.
Have you (or anyone) gone through a recasting through Chase?
@flowerbud I have not. If you can pay down that much of the mortgage balance without affecting your other saving/ budgeting needs then you are in great shape.
As for recasting, depending on how comfortable you are with the current payments, you could just pay it off faster. Otherwise a monthly reduced payment sounds pretty nice as well.
As for recasting, depending on how comfortable you are with the current payments, you could just pay it off faster. Otherwise a monthly reduced payment sounds pretty nice as well.
@oppmuntre thanks! We have been pretty diligent the last couple of years after paying off our student loans, maxing out 401k, Roth IRA. Even though pay increased, the lifestyle did not change much from student days. The Goal is to be done with this now so we can start a family as expenses will just sky rocket once kids are involved!
@flowerbud Recasting is great. You can continue to pay your same mortgage payment as prior (just moving the excess to the "extra principle" line in your autopay) but if you ever experience hardship you can ditch that and your emergency fund lasts longer or refills faster.
Or invest the difference. We don't kink shame.
Or invest the difference. We don't kink shame.
@miaooor Thanks!
The statement from Chase that we need to put in a request and they will then approve kind of disheartens me, does this mean for whatever reason they could deny recasting? Our accounts are in good standing but I would like to know for sure that after I have paid all that money, the mortgage would be recast.
The statement from Chase that we need to put in a request and they will then approve kind of disheartens me, does this mean for whatever reason they could deny recasting? Our accounts are in good standing but I would like to know for sure that after I have paid all that money, the mortgage would be recast.