23 M, quit my job, $45k savings. Just found out she’s pregnant

[lisette]

@resjudicata Yes, even higher thus the return of the venture.

Think of it like sales, but not sales.

I’m paid by my performance, so margins are really 95%+

Also I’m not using any of my savings in the venture or money, it’s the firms money.

 

[barnetfc]

@lisette Some firm was (and now still is) free rolling you with zero risk while you were working a $19/hr hourly?

No offense dude but none of this is adding up to me. What exactly are you doing lol?

This feels like a major scam or has some obviously large risk that you’re not disclosing.

 

[cherylmae]

@lisette the interests rates make your saving irrelevant.

why wait to pay it when you can pay it in full.

 

[fgalarpe]

@lisette In the end you’re losing money this way.

 

[kristyjohnson3679]

@lisette You could look into applying for a balance transfer credit card (one without an annual fee). Credit karma dot com can be a good place to start. If you qualify they usually have 0% interest for 1+ years. There is usually a 3-5% fee on the balance you transfer. The break even point for a 5% fee assuming you're paying 22% interest is about 2.7 months. Meaning if you don't plan on paying off the debt within 2.7 months it would save you money by paying the fee to transfer it to a 0% interest card.

Math: 22% annual interest / 12 months per year = 1.83% interest currently paying monthly. 5% fee / 1.83% interest per month = 2.73 months break even.

 

[candytails101]

@lisette You can take another shitty loan later if needed. You don't need it right now. You are paying a premium for no value added.

 

[jonlv]

@lisette No pay off your debt with your next two checks

 

[schneila]

@lisette 22% interest isn’t “rough” it’s disastrous. You NEED to pay it off asap

 

[lindseynicole12]

@lisette You effectively do only have $30k in savings, except actually less when you factor in the interest payments.

 

[present]

@lisette Listen man. I saw you love your car. But when your kid is born you’ll love your kid a million times more than then you love your car.

Just be responsible now and get rid of it. It’s cleary a financial anchor and you aren’t in a position (yet) to justify that much spend on a vehicle.

Be responsible, be patient. It’ll work out and you can circle back a little later in life.

 

[lisette]

@present Dang. I might have to do it.

Might be tricky w/ the mods I got on it, but you’re right the child should come first. It’s time to grow up.

 

[jessy200]

@lisette How much do you owe on your car? If you like the car and dont owe much or can pay it off quickly, you can keep it.

 

[lisette]

@jessy200 I owe 28,000 now, I paid off almost $2k last month.

I made $50k last month and used 30% of it to pay off debts, 15% in reserve for taxes, and 50% into a savings, I plan on maintaining this structure until my debt is 0.

If my performance continues, that should be done rather quickly.

If it doesn’t, at least I have the money is reserves.

So to me it’s an asymmetric bet.

I either perform well and wipe out debt, or I perform poorly still have savings and can move laterally to a new industry.

It’s hard to rationalize in my head why cutting down 30% of my savings to pay off debt in a volatile situation is a good idea

 

[jessy200]

@lisette With the success you have had, its by no mistake. Whatever your doing is working and I say keep doing that. But wiping out debt quickly is your best bet long term

 

[trones]

@lisette I’d pay off debt before putting money into savings. Keep a grand or two on savings, and get rid of those 20%+ loans.

And trade in the car for zero payment. No one cares what you drive. Still in a 2014 Camry and multiple properties, solid w-2, and with two kids.

 

[kermmie]

@lisette I’d set 25% aside for taxes.

 

[amelia1]

@lisette ...are you really spending almost as much on your car as on your rent???

 

[lisette]

@amelia1 Yeah.. I know it’s dumb.

And may sound stupid but driving that thing is the only thing that relieves my stress. I manage $2M of trading capital for firms internationally, and that comes with an indescribable amount of stress/pressure on a daily basis.

I don’t play video games, smoke weed, drink, to cope with it, just drive that car, love it too much.

 

[mlm45]

@lisette Find a cheaper coping strategy.

 

[lisette]

@mlm45 Easier said than done. Diagnosed with Bipolar type 2 and severe ADHD, this clunk of metal weirdly enough is what prevents the onset of my manic episodes.

Already in therapy, and on medication.

But you’re right, I’ll have to find another alternative.

Also idky me being honest is getting downvoted?

This was a decision I made BEFORE I knew I was going to be a father.

I’m simply stating that the car gives me a ton of joy and honestly plays a part in keeping me mentally stable w/ everything I have going on.

Nothing wrong with saying that, especially when I prefaced that statement admitting it was dumb.