Give a Kid some financial advice.....

[theDude24]

Been a member for a few years and read that everyone has been through a lot of stuff - here is my life in a nut shell.

Went to college for 4 years, graduated and have a job - finances:

College Loans - 45K
Car Loan - 15K
Credit Card Bills - 10K

Monthly Bills
Cell, Rent, Utilities, etc. - 800
Monthly Loan payment - 400
Try to pay off 500 a month on CC
gas, groceries, etc. - 300

So in general, about 2000 a month
Make 65K a year - so about 4000 after taxes.

so i will have an extra 2000 or so after bills.

What to do with the extra? Ideas/Thoughts?

Should I pay off college loans? Credit Card? (or just whichever has the highest rate?)
Is it worth it for me to start investing in a 401K at work, or use that money to pay off debt first????


I know some of you will come in and say "Bet it on the Skins this weekend" or whatever

But figured you might have good avice for me!

Appreciated

 

[fletchisrhsm]

Been a member for a few years and read that everyone has been through a lot of stuff - here is my life in a nut shell.

Went to college for 4 years, graduated and have a job - finances:

College Loans - 45K
Car Loan - 15K
Credit Card Bills - 10K

Monthly Bills
Cell, Rent, Utilities, etc. - 800
Monthly Loan payment - 400
Try to pay off 500 a month on CC
gas, groceries, etc. - 300

So in general, about 2000 a month
Make 65K a year - so about 4000 after taxes.

so i will have an extra 2000 or so after bills.

What to do with the extra? Ideas/Thoughts?

Should I pay off college loans? Credit Card? (or just whichever has the highest rate?)
Is it worth it for me to start investing in a 401K at work, or use that money to pay off debt first????


I know some of you will come in and say "Bet it on the Skins this weekend" or whatever

But figured you might have good avice for me!

Appreciated

<meta http-equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CRHSM%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><o:smarttagtype namespaceuri="urn:schemas-microsoft-comffice:smarttags" name="stockticker"></o:smarttagtype><!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> </w:Compatibility> <w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id=ieooui></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> Get rid of your DEBT ASAP, unless its a mortgage because when the high inflation kicks in, that type of debt wouldn't be bad <st1:stockticker>IMO</st1:stockticker>, in fact it would be good. Especially if we start to ramp up the presses more and get some hyperinflation. Also, i would invest in tangible wealth. I know not a popular decision around here but i would. Real estate and commodities would be my play. Fiat paper is is what backs the <st1:stockticker>DOW</st1:stockticker>, i would stay away long term, but i guess thats just me.



PS:
Bet it all on...


Texas A&M +9
<o></o>

 

[DarrylParsons]

Pay off loans first, starting with the ones with higher rates. Don't even think of next steps until that's done. Otherwise enjoy life and don't make any commitments beyond a couple of years to anyone for anything. When you hit 30 or so come back and ask again.

 

[D2bets]

Simple, pay off the credit cards. Student loan isn't bad, pay that over the 20 years or whatever. Car loan what's the rate? Invest in 401k up the match but use any extra after that to pay off the credit card.

Your misc expenses are low. I think I spend that much most every weekend. lol

 

[Dave007inVegas]

Pay off your CC first, Car next. If you get matching % on 401K at work by all means start one. Leave student loan for last as you can at least deduct the interest. Reduce your debt to zero (excluding student lone) as fast as possible and when you get to the point where you have some breathing room invest in a house and build equity, the slump won’t last forever. GL and :toast:

 

[DarrylParsons]

Re: the 401k

If it's one where the company contributes, then I'd try to negotiate something with the company to get a different type of benefit instead that costs them less but is of more use to you. Win-win situation there.

 

[gtc08]

student loans are horrible. debt is debt. i have a pay as you go motto. id pay off the debt asap. forget about this 20 year talk.

 

[D2bets]

student loans are horrible. debt is debt. i have a pay as you go motto. id pay off the debt asap. forget about this 20 year talk.

Student loans are usually very low interest, long payment period and interest is deductible if you're income i below a certain level. Not horrible. Wouldn't be too quick to pay it off. Rather have some cash in the bank.

 

[gtc08]

yea, I have a pay as you go plan though. When i was doing undergrad, I had to pay roughly 10k in state a year for tuition. I worked 2 full time jobs in the summer and had 10k for school. I matched every expense with my income. This idea of 20 year old loans is just devestating imo.

 

[nimue77]

student loans are horrible. debt is debt. i have a pay as you go motto. id pay off the debt asap. forget about this 20 year talk.

Bad advice from the Marxist....how surprising.

 

[gtc08]

paying off debt is bad? you damn credit card junkie.

 

[SportsAlmanac2000]

My advice... don't come to a gambling forum for financial advice. Seriously, each reply in this thread is off in one way or another.

1) Find out if your employer matches your contribution to the 401k. If they do, you should sign-up for that immediately and start contributing, up to the % your employer matches. It's free money - take it!

2) Pay off either your car loan or credit card debt - which ever one has the higher interest rate.

3) When you have either your car debt or credit debt paid off, snowball that payment on to the other debt and get that paid off.

4) Pay off your student loans.

 

[Willie99]

Pay off the highest interest debt you have and it's always wise to put money into your 401-k. Actually, it's wise to save period.

It's also wise not to take any of our advice too seriously, although I do like Bama today.

 

[koidog]

You're in good shape. Pretty easy, pay of Credit Card debt First. If some of your college Loan is higher interest pay that off too.

Anything that's low interst just pay monthly bill.

I'd also tell you to buy a condo or a small house. Buyers market, bid low and you may land something nice. Just don't "fall in love" with a place.

In 5 years you could easily turn that around for a nice profit.

 

[Daheavy1]

My advice... don't come to a gambling forum for financial advice. Seriously, each reply in this thread is off in one way or another.

1) Find out if your employer matches your contribution to the 401k. If they do, you should sign-up for that immediately and start contributing, up to the % your employer matches. It's free money - take it!

2) Pay off either your car loan or credit card debt - which ever one has the higher interest rate.

3) When you have either your car debt or credit debt paid off, snowball that payment on to the other debt and get that paid off.

4) Pay off your student loans.

The 401K is free money and it has the potential to grow incrementally. I agree with your order or priorities.

 

[nimue77]

paying off debt is bad? you damn credit card junkie.

Paying off a low interest loan is stupid if you can make more on the money elsewhere.
I owe nothing on my credit card or anywhere else for that matter.

 

[pubguy]

If it floats, flies, or f**ks - rent it. Everything else pay in cash.

Seriously, credit cards first. Get those cards to the point that you pay the whole balance each month then put them aside for emergency.

 

[tiznow]

Pay off loans first, starting with the ones with higher rates. Don't even think of next steps until that's done. Otherwise enjoy life and don't make any commitments beyond a couple of years to anyone for anything. When you hit 30 or so come back and ask again.

why would a hyperinflationist suggest paying off loans/debts :think2: :toast:

that said this deflationist agrees

401k fuggetaboutit

pay off debt now now now

 

[tiznow]

If it floats, flies, or f**ks - rent it. Everything else pay in cash.

Seriously, credit cards first. Get those cards to the point that you pay the whole balance each month then put them aside for emergency.

actually if shit really hits the fan as far as your personal situation

credit cards are the easiest type of debt to get away from

student loans on the other hand are hard to get away from

but assuming your economic situation doesn't get really fucked up where you are defaulting on debt than yeah i agree go with CC first as chances are those are the highest rates you got going currently

 

[DarrylParsons]

why would a hyperinflationist suggest paying off loans/debts :think2: :toast:

that said this deflationist agrees

401k fuggetaboutit

pay off debt now now now

Paying off debt is about freedom. Just a prudent way to live IMO regardless of your prognosis of the markets. Once you're free, then you can worry about predicting what markets will do and make money accordingly. That's my philosophy anyway. In the end it comes down to personal preference. I'm the kinda guy who sleeps better at night knowing I don't owe people stuff. There's an intangible there that's worth a lot to some (like me and you) but maybe not to others.