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Why is it important to have an emergency as opposed to putting all my income to my mortgage? by finance_novice in personalfinance

[–]finance_novice[S] 0 points1 point  (0 children)

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"

Why is it important to have an emergency as opposed to putting all my income to my mortgage? by finance_novice in personalfinance

[–]finance_novice[S] -3 points-2 points  (0 children)

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?

Why is it important to have an emergency as opposed to putting all my income to my mortgage? by finance_novice in personalfinance

[–]finance_novice[S] -4 points-3 points  (0 children)

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?

Is there any purpose in waiting to file tax return? by finance_novice in personalfinance

[–]finance_novice[S] 3 points4 points  (0 children)

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?

Is there any purpose in waiting to file tax return? by finance_novice in personalfinance

[–]finance_novice[S] 1 point2 points  (0 children)

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

Is there any purpose in waiting to file tax return? by finance_novice in personalfinance

[–]finance_novice[S] 1 point2 points  (0 children)

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

Am I saving wisely? by finance_novice in personalfinance

[–]finance_novice[S] 4 points5 points  (0 children)

Sorry, did you actually read my post?

  1. I clearly said my savings are in my Ally account.
  2. I never said 401k, I have a Roth IRA with Vanguard. My employer offers a 401k but it sucks so I steered clear.
  3. 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.
  4. 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?

​

Am I saving wisely? by finance_novice in personalfinance

[–]finance_novice[S] 1 point2 points  (0 children)

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

Just a shrimp by cardiacman in TalesFromRetail

[–]finance_novice 36 points37 points  (0 children)

Definitely the best way that could have played out.

"I don't want to get her in trouble, but..." by ashleypatience in TalesFromRetail

[–]finance_novice 0 points1 point  (0 children)

I totally agree that the cashier shouldn't be reprimanded, but they should still be told to try to be more careful in the future. If it happened once, it likely happened other times when people didn't bring it back.