January '26 Chat -- Happy New Year, and Welcome to DuramaxDiesels.com!!!!

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malibu795

malibu795

misspeelleerr
Apr 28, 2007
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Been picking lots of brains about this today, one person mentioned, before you go full send on investing, work on getting Year's wage in the bank, as if something major happens, I have no other major source of income. Which nice thing is monthly expenses aren't much
 
2004LB7

2004LB7

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malibu795 said:
Been picking lots of brains about this today, one person mentioned, before you go full send on investing, work on getting Year's wage in the bank, as if something major happens, I have no other major source of income. Which nice thing is monthly expenses aren't much
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This is good advice. I say a minimum of 6 months of mortgage, food, utilities and other expenses stashed away. A year is definitely better. This is money you have instant access too. But not the same funds as your emergency expenses which are unpredictable. You want all the predictable expenses as mentioned above to have a 6-12 month savings stored where you can rely on it if you loose your job or the economy takes a turn and you need time to get back on your feet and find another source of income/job.

Then build up a reserve of emergency funds for well, emergencies. You don't want to put everything on insurance as they can be slow to respond or pay put. Basically you can use your emergency funds to pay for vehicle repairs, roof or whatever until the insurance pays out. Then put that back into the emergency account.

When you have a comfortable amount in both accounts. Start working on a retirement account.

If you can't do all these. Might need to re-evaluate your life choices ?

Sorry. Another rant ?
 
malibu795

malibu795

misspeelleerr
Apr 28, 2007
9,212
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in the buckeye state
Excellent rant sir ? ?
It's definitely easier being single with no kids ?

Think my uncle and I are re-negotiating rent this year mainly due to electric rate going up..
One goal is to be able to pay rent 6-12m out at a time..
Get back to paying car insurance at lump sum.

Downside, it will slow my projects down.... Probably should dump some of them??
 
shakenfake

shakenfake

Moron
Sep 15, 2022
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Look up Financial Order of Operations. This is the way.

6 months of emergency fund is fine. Doesn’t mean 6 months of wages just 6 months of “I can survive off this”

I’ve spent a “long” (count years I’ve been working not many) time obsessing over this subject. No idea why but I’m constantly planning and changing the plan for years down the road. I have no goal to retire early, I just refuse to be poor. I’ll die before I let myself struggle in that way.

Currently I’m doing 22% in 401k and maxing out my Roth IRA every year.


Don’t forget your HSA!!!
 
T

Trimox

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Aug 31, 2017
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malibu795 said:
Excellent rant sir ? ?
It's definitely easier being single with no kids ?

Think my uncle and I are re-negotiating rent this year mainly due to electric rate going up..
One goal is to be able to pay rent 6-12m out at a time..
Get back to paying car insurance at lump sum.

Downside, it will slow my projects down.... Probably should dump some of them??
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Please don't think that way. If you pay 6-12 month in advance the landlord will put that money in an account (or something) to make interest. Yes it will take some work but even 6 months worth on Tbills is worth more than nothing. Saving that much is a good thing. Learning how to make it work for you is a lot harder.
 
N2BRK

N2BRK

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Dec 31, 2009
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Another feather in the Roth cap - You are allowed to remove your contributions (not earnings!) in a Roth without penalty, if you opened the account 5 years prior. So in an emergency, you won't get hit with a early withdrawal 10% penalty and added income/tax like you would if you tapped your traditional IRA.

I'd hate to see anyone do this, but as a last resort it is better than some other options like a tax hit or big CC interest.
 
kidturbo

kidturbo

Piston Tester
Jul 21, 2010
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Somewhere On The Ohio
www.marinemods.us
Still out my tour of the southland. Here's another bridge of the day pix .

Where's Waldo?
2f197bd3a39a07c9859b0ce5dfff56d8.jpg


Sent from my SM-S906U1 using Tapatalk
 
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Y

yellowchevy

Well-known member
Sep 9, 2010
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Louisburg, KS for now
The biggest thing on saving for retirement is to just start!!
It doesn't pay much at all but if you bank locally or online they all have saving account. Start with $100/week or whatever you're able to afford.
Start that habit/discipline.

Like others have said, if your employer has a match do a direct deposit so you don't even have to think about doing it yourself; I know direct deposit and a match are different but both are a great way to fuel retirement.

Sent from my Pixel 10 Pro using Tapatalk
 
Dozerboy

Dozerboy

Well-known member
Jun 23, 2009
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TX of course
2004LB7 said:
This is close but not quite right. "Credit score" is a measure of how profitable you are to a bank or loan institution. Basically how much money can they make off of you. If you are bad at paying back loans and CC, you default on the loan, the bank looses money, or better said, they didn't make as much as they could.

Sorry if I kinda went of a rant.... I do that sometimes ?
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I think my credit score is almost 850. I'm kind of surprised it's that high because they don't make Jack off me. Yeah we charge everything but it's paid off at the end of every month. So all they're really making of me is credit card fees. I also regularly get vehicle loans but pay them off within a few weeks once I can pull the money out of investments. When I bought my house I found a lender that would allow me to buy the interest rate down to 0.25%. Anyone that wants to loan me money is going to "lose" money on the deal or I'm not doing it.
 
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