Recent comments in /f/personalfinance

The-Cozy-Honeycomb t1_jeaghu9 wrote

Reply to Book recommendations by Constant-Thing-8744

Possibly too simple for where you’re at, but if you don’t have a budget plan that you’re 100% happy with already, then I highly recommend You Need a Budget by Jesse Mecham. It changed the way I think and feel about budgeting.

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nantuech t1_jeafu3z wrote

Reply to comment by DireFog in Is it normal to pay an extra 66% of a home loan back to your bank? by TenDogsInATrenchcoat

>is it fair to say that this is a bad deal by European standards?

Yes. Absolutely.

OP used the Euro symbol, so it may come from a country from the Euro zone. I didn't see more info about the country.

I can't talk for each specific country obviously. But a 38 years loan isn't the norm in a lot of euro countries (more like 20 or 25 max. Can go up to 30 in very specific circumstances). More importantly : the fact that the huge interests are due even with an anticipated reimbursement.

It's the case in my country (in the Euro zone) and very probably in all other euro zone countries : loans can be renegociated, in length and rates. Conditions of the renegociation can be specific to the loan/country (i.e. there may be a cost for the renegociation, that cost can be significant). Given the current level of interest rates, I would be very careful about the possibility of renegociating, and its cost. As there is a chance that interests rates will fall down again in 5,10 or 15 years, which considering OP's time-line would still be early

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sir_richard_head t1_jeafkk3 wrote

Reply to Got out of a hole now what by Possible_Late

>Since the assumption is that these will be shorter term investments and short term the markets not looking great.

Set up fixed rate CDs with your local bank/credit union. You should be able to get a rate of 4-5% for a set duration of time. These are safe investments and if you have a fixed rate, would not be subject to a market crash or whatever. If you have a sense of when you may want to start house hunting, you can get a CD that will go until roughly that point in time with a rate locked in. If you aren't sure, you can just perpetually open shorter term CDs.

>Secondly, should I be splitting money between down payment money and general long term investing (outside of 401k which I’m already contributing for company matching)

Your expenses are incredibly low and you have a very high salary. You should be contributing as much as you can to your 401k, not just what your company matches. Take a look at the prime directive in the wiki for where to put money after that. As far as saving goes, get an idea of how much money you will need for a down payment and start budgeting out that amount. You should get a sense of "I need to set aside $x per month for a down payment." After that, invest as much as you can in retirement savings.

>Thirdly, I’m looking to keep pushing my salary up, my current job at least in the next year doesn’t look like it has a ton of upward movement rn

Lookin' is free. It's just always going to be a trade off. Few places have an increase in responsibility or pay without also increasing the stress or hours you spend at work. It's okay to take some time to just be happy if you want. Life is what you make of it. Don't exist just to meet other people's goals and achieve other people's dreams. Set your own markers for success and decide your own path to get there.

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innkeeper_77 t1_jeafj4r wrote

Reply to I make 42k and I work from home 4 out of 5 days a week. I signed a 60k offer onsite 23 miles there and back 45 min, 45 min back. Does this make any sense? by RemarkableCell1859

Living with your parents- I’d totally do it and stay at home for a while. It’s a terrible commute but I assume you are young and that this will be a good step up in your career, probably helping you long term.

That commute is too far to do forever in my opinion, but at this point I think it likely makes sense given the limited info.

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CrimsonRaider2357 t1_jeaemnt wrote

Reply to How do I calculate what % to contribute to my 401k? by beatplusmelody

How much can you afford to contribute?

Assuming your goal is to max it out, that would be $22500. Assuming you have 20 paychecks left, it will probably take a full paycheck cycle for the contribution to update, so I will assume you are splitting that among 19 paychecks, for a contribution of $22500/19=$1184 per paycheck remaining. Each paycheck has a gross salary of $175k/27=$6481, so you would contribute $1184/6481=18.2%. Note this does not include your bonus.

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Gmscott0 t1_jeaehxy wrote

Reply to Loan to friend Question by Locutus747

I would be suspicious of this. If they get your DL info then they can use it to open other accounts for them I. Your name. Years ago I leased my house to a family member with the option to buy it for what I owed. The housing market when through the roof after that. They ended up with almost 200k in equity. They decided to buy for what was left. They wanted me to pay all closing costs and make other concessions. I told them they were already getting 200k. What else did they want. A couple years later they lost the house due to pulling all the equity out. I still don’t talk to them.

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Mashtatoes t1_jeadofd wrote

Reply to I make 42k and I work from home 4 out of 5 days a week. I signed a 60k offer onsite 23 miles there and back 45 min, 45 min back. Does this make any sense? by RemarkableCell1859

It’s an extra 6 hours of your time for those four days of commute. (Might be a little more in total if your current commute on that 5th day is shorter). Assuming a 40 hour workweek, that’s a 15% increase in hours for a 42% pay increase (minus whatever you pay in gas). That seems worth it to me if you can put up with the drive.

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