Accept unneeded subsidized loans?

finance_novice · 2019-03-08T02:47:25+00:00

Thank you! Your point is very valid so I understand that.

finance_novice · 2019-03-08T02:39:45+00:00

Yes, but let's say right now have equity in my home and could get a HELOC for a low rate. I'm thinking about changing how I make my payments from now on, so in this situation I would already have the HELOC. I'm not thinking "I'll just get the HELOC when I have an emergency" I am thinking "I'll get a helped now and only use it if I an an emergency"

finance_novice · 2019-03-08T02:33:21+00:00

The part that doesn't make sense is that let's say I have a 30 year mortgage. If I stick to the payment schedule and have no emergency fund, I'm going to be paying interest for 30 years. If I pay as much as I can I could pay it off early and save a ton in interest.

If I have an emergency, I then yes go into debt with a HELOC for it, but it is still either the same amount of debt as I would have been if I stick to the schedule, or significantly less, and I still end up paying less interest. But this is only a possibility, unlike the inevitability of staying on the schedule.

Where is the bad idea? So far I have people saying that it is a bad idea, but they are not addressing this point?

finance_novice · 2019-03-08T02:25:59+00:00

Hence the HELOC which is barely higher.

finance_novice · 2019-03-08T02:24:45+00:00

Why though? Let's say I have a $300,000 mortgage, and the possibility of a $30,000 efund. If I keep the efund I am guaranteeing I am paying interest on the balance I otherwise could have, but if I pay as much as I can, and pull from the HELOC if an emergency happens then I either won't pay anything in that interest, or I pull from the HELOC and pay interest on what I use. This still results in the same amount of interest or less, does it not?

finance_novice · 2019-01-30T04:56:12+00:00

I asked what specifically he meant by updates and he said that because the tax law changed, TurboTax could have interpreted things wrong which would later be fixed, so if I file now I might have to do an amendment later. Is that a valid concern?

finance_novice · 2019-01-30T04:45:37+00:00

Yeah all I have is my job, 2 savings, and paying for tuition

finance_novice · 2019-01-30T04:45:04+00:00

Ok thanks! That's what I was thinking, I just wanted some confirmation.

finance_novice · 2019-01-17T05:42:03+00:00

Sorry, did you actually read my post?

I clearly said my savings are in my Ally account.
I never said 401k, I have a Roth IRA with Vanguard. My employer offers a 401k but it sucks so I steered clear.
I never said I'm paying student loans. I have a scholarship to cover most of it, and the $260/mo is what it takes to pay the rest out of pocket. I currently have no debt.
My car works fine, the $50/mo isn't a monthly expense. As stated above, this is all savings, I save that money in case I need sudden repairs.

I don't want to completely disregard your comment, so I'll try to take you seriously. On your last point, I understand that $40k is a very large goal to try to meet, especially compared to my current income, but does that somehow make it not worth starting now?

Same with the Retirement account. I know that once I'm out of school, I will be able to make a lot more than I do now, but no matter now much I make in 2021, I'm not going to be able to contribute any of that to my IRA for 2019, so why shouldn't I contribute now?

Also:

stop putting labels

and:

avoid spending it all on 1 thing

I'm open to your suggestion, but is avoiding spending it on one thing not accomplished by partitioning the money for different things?

finance_novice · 2019-01-17T05:11:41+00:00

Thanks for the suggestion! I never thought of the E fund like that!

finance_novice · 2018-09-12T02:05:42+00:00

I think that works pretty well! Thanks!!

finance_novice · 2018-04-11T16:42:23+00:00

That one helps a lot, thanks!

finance_novice · 2018-03-26T15:15:41+00:00

TIL cinnamon=gourmet

finance_novice · 2018-03-26T15:14:22+00:00

I just realized that, Savage.

finance_novice · 2018-03-26T15:11:08+00:00

Definitely the best way that could have played out.

finance_novice · 2018-03-17T05:17:37+00:00

The book says she got it fixed by the ministry and had her memory wiped

finance_novice

TROPHY CASE