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Jilly
04-29-2009, 02:46 PM
That thread has me curious:

Say one is getting tax money back. It's a significant amount of money. And say that same one's husband/wife is still in the process of job searching. The couple already has money saved for about three months worth of the unemployed spouse's salary. What would be the suggestion they do with the tax money?

I don' tknow how to do a poll....so we'll do it this way:

a. Put the money in savings
b. Pay off the car, and gain an extra $400 a month by doing so
c. Invest the money into things to upgrade the house you hope to sell in a few years
d. Other

Deberg_1990
04-29-2009, 02:48 PM
b. Pay off the car, and gain an extra $400 a month by doing so


This.

jiveturkey
04-29-2009, 02:50 PM
I'd hold on to it until the spouse has a job. What if the job search continues for 9 months? What good is the extra $400 then?

Lzen
04-29-2009, 02:52 PM
That thread has me curious:

Say one is getting tax money back. It's a significant amount of money. And say that same one's husband/wife is still in the process of job searching. The couple already has money saved for about three months worth of the unemployed spouse's salary. What would be the suggestion they do with the tax money?

I don' tknow how to do a poll....so we'll do it this way:

a. Put the money in savings
b. Pay off the car, and gain an extra $400 a month by doing so
c. Invest the money into things to upgrade the house you hope to sell in a few years
d. Other

e. Get a divorce.














j/k :D

CoMoChief
04-29-2009, 02:52 PM
Depends on how much it is and how long you plan on having your car I guess.

I'd pay off my car. Car payments suck. Just getting that monkey off your back will help down the road. In a few months the money you save from that would almost be the amt of your tax money you get back anyways I would think.

Der Flöprer
04-29-2009, 02:52 PM
I'd hold on to it until the spouse has a job. What if the job search continues for 9 months? What good is the extra $400 then?

It means you won't have your car repossessed. Pay off the car.

Jilly
04-29-2009, 02:52 PM
I'd hold on to it until the spouse has a job. What if the job search continues for 9 months? What good is the extra $400 then?

Well, it would be an extra $400 a month? See, this is where I'm stuck. Seems like both ways would work?

El Jefe
04-29-2009, 02:52 PM
That thread has me curious:

Say one is getting tax money back. It's a significant amount of money. And say that same one's husband/wife is still in the process of job searching. The couple already has money saved for about three months worth of the unemployed spouse's salary. What would be the suggestion they do with the tax money?

I don' tknow how to do a poll....so we'll do it this way:

a. Put the money in savings
b. Pay off the car, and gain an extra $400 a month by doing so
c. Invest the money into things to upgrade the house you hope to sell in a few years
d. Other



This.

Jilly
04-29-2009, 02:54 PM
e. Get a divorce.














j/k :D


awful

El Jefe
04-29-2009, 02:54 PM
I'd hold on to it until the spouse has a job. What if the job search continues for 9 months? What good is the extra $400 then?


400 bucks extra a month, so that's $3600.00 (if it went 9 months) bucks so that's nothing to laugh about.

Donger
04-29-2009, 02:56 PM
You don't really gain much from paying off the car, probably. Have you compared what the payoff is versus what the total remaining payments would be?

Jilly
04-29-2009, 02:57 PM
You don't really gain much from paying off the car, probably. Have you compared what the payoff is versus what the total remaining payments would be?

Oddly enough, it's about the same amount of money

vailpass
04-29-2009, 02:58 PM
Cash reserves are the most effective method of surviving a reduced positive cash flow situation.

Donger
04-29-2009, 02:59 PM
Oddly enough, it's about the same amount of money

Nothing odd about it, really. Therefore, it is not logical to do so, considering the employment situation. I'd keep the money liquid in case unexpected expenses arise, but that's just me.

Valiant
04-29-2009, 03:02 PM
That thread has me curious:

Say one is getting tax money back. It's a significant amount of money. And say that same one's husband/wife is still in the process of job searching. The couple already has money saved for about three months worth of the unemployed spouse's salary. What would be the suggestion they do with the tax money?

I don' tknow how to do a poll....so we'll do it this way:

a. Put the money in savings
b. Pay off the car, and gain an extra $400 a month by doing so
c. Invest the money into things to upgrade the house you hope to sell in a few years
d. Other

Either A or B

BWillie
04-29-2009, 03:03 PM
Don't have a car payment in the first place. Why pay interest on an asset that will not gain value, when you can have a older vehicle that is almost just as dependable. And if it does break down, it will be a cheap fix, and won't even approach what you would spent a month on the car payment. Additionally, collision coverage is typically the most expensive part of a car insurance policy. If you have an inexpensive yet dependable vehicle, you don't have a need for collision coverage. Great cheap dependable vehicles are out there.

But, here comes Dane saying I'm stupid for not wanting to drive a expensive vehicle.

Third Eye
04-29-2009, 03:05 PM
Nothing odd about it, really. Therefore, it is not logical to do so, considering the employment situation. I'd keep the money liquid in case unexpected expenses arise, but that's just me.

Absolutely.

RJ
04-29-2009, 03:07 PM
I'd go with paying off the car. That's one less bill to worry about, just in case hubby doesn't find another job right away. Or, if he does, you can use the $400 a month for something else.

talastan
04-29-2009, 03:08 PM
B because if the job search continues for a while you'll need a vehicle no matter what.

vailpass
04-29-2009, 03:10 PM
Don't have a car payment in the first place. Why pay interest on an asset that will not gain value, when you can have a older vehicle that is almost just as dependable. And if it does break down, it will be a cheap fix, and won't even approach what you would spent a month on the car payment. Additionally, collision coverage is typically the most expensive part of a car insurance policy. If you have an inexpensive yet dependable vehicle, you don't have a need for collision coverage. Great cheap dependable vehicles are out there.

But, here comes Dane saying I'm stupid for not wanting to drive a expensive vehicle.

A car is NOT an assett, a car is an expense. If you think of a vehicle as an investment you are taking a false approach.

For you the proper choice may be to allocate the minimal amount of funds towards this expense and in return receive the minimum amount of utility. For others the increase in utility may justify the additinal funds allocated towards this expense.
Another consideration is the comfort and safety of one's spouse and children. Though maybe not to you this feature is worth expending additional funds to some.
And new leather smells good.

vailpass
04-29-2009, 03:12 PM
The only thing that will see you through unexpected expenses during a reduced cash in-take period is cash reserves. It is well known that unforeseen expenses occur in directly opposite proportion to the time when you most need them.
Cash on hand.

Donger
04-29-2009, 03:13 PM
Honestly, it's a little scary how many people are recommending paying off the car.

jiveturkey
04-29-2009, 03:14 PM
Honestly, it's a little scary how many people are recommending paying off the car.
Fur riz!

I was beginning to think that I'm crazy.

DeezNutz
04-29-2009, 03:15 PM
A.

The final car payment is always a balance transfer away, and you've already mentioned that the money you'd spend continuing to make payments would be similar to the payoff amount.

Having the money in savings provides the added benefit of a safety net if life happens...

Fat Elvis
04-29-2009, 03:17 PM
Go with A. If you need emergency money, it is there. Paying off the car won't help you if you actually need the money. Just make sure you don't piss away the money that you would of used for paying off the car on stupid things.

You are at the end of your car loan apparently so you are basically paying just principal. Think of the small amount of interest you are paying as insurance against an unexpected bill.

PS- Taking a loan on a depreciating asset isn't the wisest use of money in the first place.

Amnorix
04-29-2009, 03:20 PM
If your spouse's job prospects are reasonably good and you are confident your cash in-hand is sufficient to cover the period that they are out of work, then the correct answer is to pay off the car.

If you're worried about their job prospects and a liquidity crunch, then put the money into savings. Try to find a reliable bank offering a somewhat decent rate of interest, rather than the bank down the street just because it is down the street.

EDIT: noting Donger and others saying sit on the cash, I can't disagree. It is certainly the more conservative approach. If the job hunt goes on longer than expected, then paying off teh car may end up being a painful mistake.

beavis
04-29-2009, 03:21 PM
Honestly, it's a little scary how many people are recommending paying off the car.

This.

Dave Ramsey has brainwashed a lot of people. Getting out of debt is a great thing, but not at the expense of common sense.

Iowanian
04-29-2009, 03:22 PM
Eliminate the car note, split any remaining between other debt(CC) and savings.

Reducing your existing debt will make it easier to come up with enough to get by during the job search. The spouse in this hypothetical situation could also be doing odd jobs, mowing yards or whatnot to help out in the interim.

vailpass
04-29-2009, 03:28 PM
This.

Dave Ramsey has brainwashed a lot of people. Getting out of debt is a great thing, but not at the expense of common sense.

I know a guy who made a hell of a lot of money flipping houses in the Phoenix market over the past 5 years. He did it all using the bank's money. The Dave Ramsey never-borrow-always-pay-cash would have cost this guy a pile of money.

I read the Dave Ramsey credo out of curiosity. It struck me as training wheels for financial management. You will never crash using it but you sure as hell won't win any races.

wutamess
04-29-2009, 03:30 PM
Actually Dave Ramsey says now is not the time to follow his plan.
Stockpile your $. Don't pay extra on ANY bills (his words, not mine).
So I changed my mind to answer A.

Final answer.

DeezNutz
04-29-2009, 03:31 PM
I know a guy who made a hell of a lot of money flipping houses in the Phoenix market over the past 5 years. He did it all using the bank's money. The Dave Ramsey never-borrow-always-pay-cash would have cost this guy a pile of money.

I read the Dave Ramsey credo out of curiosity. It struck me as training wheels for financial management. You will never crash using it but you sure as hell won't win any races.

I know a guy who made a ton of money doing that, too.

And then the market crashed and he was left holding the bag...

Oops.

Coach
04-29-2009, 03:32 PM
Honestly, it's a little scary how many people are recommending paying off the car.

Well, it really depends on their interest rate. If it's somewhere below 2.0%, I would say that you would be better off putting that $ in the savings, if you aren't having any trouble paying it off in the first place.

But if it's a high interest one, (typically it's usually a used vehicle, or a bank loan) I would probably try to get rid of it if possible, or at least make larger payments without sacrificing your money.

And I'm with you, I'd put it in the savings, or at least put it in a CD where you could earn a little bit of money in return, if you already have a savings account that can get you through a period of time.

vailpass
04-29-2009, 03:32 PM
I know a guy who made a ton of money doing that, too.

And then the market crashed and he was left holding the bag...

Oops.

****ing amateurs, I love 'em. I'm now buying their repoed props at pennies on the dollar.

Amnorix
04-29-2009, 03:43 PM
Eliminate the car note, split any remaining between other debt(CC) and savings.

Reducing your existing debt will make it easier to come up with enough to get by during the job search. The spouse in this hypothetical situation could also be doing odd jobs, mowing yards or whatnot to help out in the interim.

Well, wait. If they have Credit Card debt then that gets gotten rid of FIRST. That wasnt' listed as an option.

But if you have CC debt you get rid of it FIRST.

RJ
04-29-2009, 03:55 PM
Honestly, it's a little scary how many people are recommending paying off the car.


I recommend that only because that's what I would do. I don't like owing money so whenever I can pay off a debt I do. If Jilly is comfortable with the car payment then she should bank the money. My answer isn't about financial management, it's about peace of mind.

Jilly
04-29-2009, 03:58 PM
Well, wait. If they have Credit Card debt then that gets gotten rid of FIRST. That wasnt' listed as an option.

But if you have CC debt you get rid of it FIRST.


HYPOTHETICALLY.....


no CC debt. no debt besides the car.

Job prospects are not the greatest.....but there are some options for the interim that are more of a part time pay then a professional full time pay.
And this "hypothetical" couple is getting by with one income...but barely. So, any little bit a month to ease the crunch would be nice.


There's a lot of good stuff in this thread.

Stewie
04-29-2009, 04:01 PM
****ing amateurs, I love 'em. I'm now buying their repoed props at pennies on the dollar.

And doing what with them? This market has a long way to go to reach equilibrium where housing prices equals income. We ain't there yet. Phoenix has now seen property values drop 50% and they still can't sell them. Wages never kept up with property values without tricky financing, but those days are long gone. The people who were getting $250K loans on $70K earnings are completely out of the market and will be for a long time. Real estate is a completely different paradigm these days. Thinking you're buying properties for pennies on the dollar is true, but those prices were based on values driven by people with no money. It was a complete sham. A $200K home is affordable to far, far fewer people today compared to 18 months ago.

RJ
04-29-2009, 04:02 PM
Hypothetically, could the unemployed spouse use part of this money to take a couple of months off to spend drinking beer, sitting around in his underwear watching Three Stooges reruns, playing golf and posting on CP?

Hypothetically.

Valiant
04-29-2009, 04:05 PM
Honestly, it's a little scary how many people are recommending paying off the car.

I could only see it IF YOU KNOW you will have some sort of job soon...

Valiant
04-29-2009, 04:06 PM
HYPOTHETICALLY.....


no CC debt. no debt besides the car.

Job prospects are not the greatest.....but there are some options for the interim that are more of a part time pay then a professional full time pay.
And this "hypothetical" couple is getting by with one income...but barely. So, any little bit a month to ease the crunch would be nice.


There's a lot of good stuff in this thread.

Save the money then..

Valiant
04-29-2009, 04:07 PM
Hypothetically, could the unemployed spouse use part of this money to take a couple of months off to spend drinking beer, sitting around in his underwear watching Three Stooges reruns, playing golf and posting on CP?

Hypothetically.

LOL, who would do that??? whistles as he leaves the thread..

Jilly
04-29-2009, 04:10 PM
Hypothetically, could the unemployed spouse use part of this money to take a couple of months off to spend drinking beer, sitting around in his underwear watching Three Stooges reruns, playing golf and posting on CP?

Hypothetically.

Perhaps. If, say, hypothetically, said spouse wishes for the money to be used for a divorce. Hypothetically, of course.

shitgoose
04-29-2009, 04:10 PM
Stay liquid. Don't worry about the car note.

Donger
04-29-2009, 04:11 PM
I recommend that only because that's what I would do. I don't like owing money so whenever I can pay off a debt I do. If Jilly is comfortable with the car payment then she should bank the money. My answer isn't about financial management, it's about peace of mind.

Meh. I don't like emotional decisions when it comes to finances. It's just basic math.

vailpass
04-29-2009, 04:13 PM
And doing what with them? This market has a long way to go to reach equilibrium where housing prices equals income. We ain't there yet. Phoenix has now seen property values drop 50% and they still can't sell them. Wages never kept up with property values without tricky financing, but those days are long gone. The people who were getting $250K loans on $70K earnings are completely out of the market and will be for a long time. Real estate is a completely different paradigm these days. Thinking you're buying properties for pennies on the dollar is true, but those prices were based on values driven by people with no money. It was a complete sham. A $200K home is affordable to far, far fewer people today compared to 18 months ago.

Equilibrium has nothing to do with it. There are plenty of buyers at certain levels who pay cash for a good deal. If you grab an auction prop for 170k in the 85254 or PV outlier where the surrounding homes were bought for $450k and the owners are current, clean the pool and shine the tile then dump it for $225 you are in and out with the money.

My dad told me something a long time ago that has proven true: the best time and place to make money is where and when people tell you there is no money to be made.

RJ
04-29-2009, 04:16 PM
Perhaps. If, say, hypothetically, said spouse wishes for the money to be used for a divorce. Hypothetically, of course.


I'm sure that said spouse, faced with such a hypothetical scenario, would never want to spend a couple of months behaving as I described.

A couple of hypothetical weeks, on the other hand.....;)

RJ
04-29-2009, 04:17 PM
Meh. I don't like emotional decisions when it comes to finances. It's just basic math.


I admit to being a worrier, it's just my nature.

jiveturkey
04-29-2009, 04:23 PM
Stay liquid. Don't worry about the car note.
Listen to shitgoose.

I only quoted him/her because I wanted to type shitgoose.

Sully
04-29-2009, 04:32 PM
Here's the job issue...

AT WORST, I will have a job by August.
I'm looking for a teaching job. It's a tough market, as is any other (and I picked a horrible subject). If I don't get a teaching job, I will be subbing, and/or doing para work. If those fall through, i will wash dishes at Pizza Hut if need be.

What are the prospects?
Hard to say. I have several years of experience at schools (mostly special ed, which is a big plus), GREAT references, and three years of coaching. The downside is that fewer schools are hiring for fewer classrooms. So there is a bit of that in the works. I "feel" like it's going to work out, though that hope dwindles each day. However, just today 2 more great jobs opened up in the area, both of which need coaches, and one of which I have a connection to. So I can't handicap what the odds are that I'll be teaching in the fall...but I feel decently about it. Just a lot of sit around and wait, right now.

Stewie
04-29-2009, 04:34 PM
Equilibrium has nothing to do with it. There are plenty of buyers at certain levels who pay cash for a good deal. If you grab an auction prop for 170k in the 85254 or PV outlier where the surrounding homes were bought for $450k and the owners are current, clean the pool and shine the tile then dump it for $225 you are in and out with the money.

My dad told me something a long time ago that has proven true: the best time and place to make money is where and when people tell you there is no money to be made.

I had no idea the real estate market was so easy to manipulate. Buy one week for 170K, sell later for 225K. Somehow no one could afford the 170, but suddenly there are buyers at 225. That's nice work, if you can get it.

KC Dan
04-29-2009, 04:58 PM
Actually Dave Ramsey says now is not the time to follow his plan.
Stockpile your $. Don't pay extra on ANY bills (his words, not mine).
So I changed my mind to answer A.

Final answer.
Agreed!!! Minimum's on everything and hold cash until job situation stabilizes.

kstater
04-29-2009, 05:05 PM
Put it in the bank(solvent) until you get a job. Don't touch it unless needed, then pay the note after the income starts coming in.

Mr. Krab
04-29-2009, 05:14 PM
Most interest rates suck, pay off debt. Especially if you can completely pay off a car or something that would net you more money each month.

vailpass
04-29-2009, 06:02 PM
I had no idea the real estate market was so easy to manipulate. Buy one week for 170K, sell later for 225K. Somehow no one could afford the 170, but suddenly there are buyers at 225. That's nice work, if you can get it.

You are apparently correct, you have no idea how the market works but that doesn't stop you from talking like you do. Like we used to say in school "that's alright, that's okay you're gonna' work for us someday"

Time between flips varies; you have to be strong enough to maintain. The key is recognizing the deal, separating the wheat from the chaf. My dad taught me how a long time ago. No need for you to be bitter.

Any idiot can make a couple bucks in a boom, this is the time people who know what they are doing pland and wait for. Read yourself some Warren Buffet sometime if you are really interested.

JASONSAUTO
04-29-2009, 06:05 PM
Honestly, it's a little scary how many people are recommending paying off the car.

yeah i would save the money(i mean dont touch it at all) if S/O finds a job then pay off the car. only works if you dont nickel and dime the savings to death while waiting, but if you need it in a couple of months it will be REAL handy. 3 months isnt enough with an impending job search coming up

Saul Good
04-29-2009, 06:26 PM
This.

Dave Ramsey has brainwashed a lot of people. Getting out of debt is a great thing, but not at the expense of common sense.

Dave Ramsey wouldn't advocate paying off the car right now. His plan is only for use in non-emergency situations. Loss of a job qualifies as an emergency. He would tell you to pile up as much cash as possible until steady employment is found. Once he finds a secure job, then he can take any remaining cash and aggressively pay off debts. Until then, maintain as much liquidity as possible.

beavis
04-29-2009, 06:49 PM
Dave Ramsey wouldn't advocate paying off the car right now. His plan is only for use in non-emergency situations. Loss of a job qualifies as an emergency. He would tell you to pile up as much cash as possible until steady employment is found. Once he finds a secure job, then he can take any remaining cash and aggressively pay off debts. Until then, maintain as much liquidity as possible.

I've heard him tell multiple people that were upside down in cars to sell them, and take on the extra debt so they can go buy a beater. I don't see how this accomplishes anything other than giving someone else a really good deal on a car.

Like I said before, I agree with most of his ideas in principle, I just think he takes it to an extreme that could lead to people making some really stupid decisions. Bottom line, people who aren't good with money, have no business taking on debt of any kind.

Dicky McElephant
04-29-2009, 06:54 PM
Put it in the bank(solvent) until you get a job. Don't touch it unless needed, then pay the note after the income starts coming in.

This.

prhom
04-29-2009, 06:56 PM
I've heard him tell multiple people that were upside down in cars to sell them, and take on the extra debt so they can go buy a beater. I don't see how this accomplishes anything other than giving someone else a really good deal on a car.

Like I said before, I agree with most of his ideas in principle, I just think he takes it to an extreme that could lead to people making some really stupid decisions. Bottom line, people who aren't good with money, have no business taking on debt of any kind.

As much as it sucks to pay interest on something you no longer have its just math:


Interest + Principal on a $25k car loan
>
Interest + Principal on $6k beater car loan + Interest on upside down debt from old car

Dicky McElephant
04-29-2009, 06:56 PM
Actually Dave Ramsey says now is not the time to follow his plan.
Stockpile your $. Don't pay extra on ANY bills (his words, not mine).
So I changed my mind to answer A.

Final answer.

How the fuck does that help? If you're paying the minimum due on debt and nothing else.....you're basically spinning your wheels and paying more money in interest to the debt. I'm doing the opposite right now....paying way more than I should. I can survive off of turkey sandwiches for a while as long as the wifey and daughter are taken care of.

Bowser
04-29-2009, 07:00 PM
Cash it out and take it to Ameristar. Put the money on black and double your take. Then put it all down on a blackjack table and hit 21. Then, go get a hotel room there and party all night.

prhom
04-29-2009, 07:01 PM
How the **** does that help? If you're paying the minimum due on debt and nothing else.....you're basically spinning your wheels and paying more money in interest to the debt. I'm doing the opposite right now....paying way more than I should. I can survive off of turkey sandwiches for a while as long as the wifey and daughter are taken care of.

I think he was saying make your normal payment, but don't pay extra principal payments. I agree with you on this though. I look at extra principal payments as investing in stuff I already have. I've got to make that payment anyway and since my car loan is at 5.99% I figure I'd be hard pressed to beat that in the market now anyway.

Saul Good
04-29-2009, 07:25 PM
I've heard him tell multiple people that were upside down in cars to sell them, and take on the extra debt so they can go buy a beater. I don't see how this accomplishes anything other than giving someone else a really good deal on a car.

Like I said before, I agree with most of his ideas in principle, I just think he takes it to an extreme that could lead to people making some really stupid decisions. Bottom line, people who aren't good with money, have no business taking on debt of any kind.

It's not extra debt. It's less debt.

If you owe $20,000 on a car that is worth $15,000 and you sell it for $15,000 and buy a beater for cash for $2,000 you are $13,000 closer to making ends meet.

Generally, he doesn't tell people to sell the car. He only advocates selling when the amount owed on the car is preposterously high compared to the household income. If someone makes $24,000 a year and has a car payment of $550, he will tell them to sell the car and get a note for the difference. What would you suggest? Should they keep paying the car payment and get evicted, have their lights turned off, etc. instead?

Saul Good
04-29-2009, 07:34 PM
How the **** does that help? If you're paying the minimum due on debt and nothing else.....you're basically spinning your wheels and paying more money in interest to the debt. I'm doing the opposite right now....paying way more than I should. I can survive off of turkey sandwiches for a while as long as the wifey and daughter are taken care of.

Actually, paying more than you should is great on unsecured debt. It's a bad idea on amortizing loans, though. Mathematically speaking, you should pay the minimum amount owed on amortizing loans until you can afford to pay off the entire thing at once.

When you pay off an amortizing loan, it doesn't lower your amount owed each month the way credit card loans do. Essentially, you are just giving the bank an interest free loan when you pay extra. That money goes towards principle on the back end, but it doesn't lower the amount of interest you are paying on the front end.

Also, it is actually easier for a bank to foreclose on someone who has paid extra because they have equity in the house. A bank would much rather take possession of a house with a lot of equity because they know that they will be able to sell it for a high enough price to get what they are owed. A bank is much more likely to make accommodations for someone who has little to no equity because they won't get their money out of the house when they sell it.

There are a myriad of other reasons, but that's another thread entirely. My philosophy is that unsecured debts should be paid as aggressively as possible and amortizing loans should be paid off in a lump sum as quickly as possible.

macdawg
04-29-2009, 09:37 PM
HYPOTHETICALLY.....


no CC debt. no debt besides the car.

Job prospects are not the greatest.....but there are some options for the interim that are more of a part time pay then a professional full time pay.
And this "hypothetical" couple is getting by with one income...but barely. So, any little bit a month to ease the crunch would be nice.


There's a lot of good stuff in this thread.

Barely getting by with one income?

Sell the car & replace it with something cheaper. Your spouse can buy a nicer car once they begin working, in the meantime you can't afford it.

MahiMike
04-30-2009, 07:44 AM
If I was unemployed, I'd hoard every dime. don't pay anybody off. Just keep it in the bank.

MahiMike
04-30-2009, 07:45 AM
Barely getting by with one income?

Sell the car & replace it with something cheaper. Your spouse can buy a nicer car once they begin working, in the meantime you can't afford it.

Even better.

Amnorix
04-30-2009, 07:59 AM
HYPOTHETICALLY.....


no CC debt. no debt besides the car.

Job prospects are not the greatest.....but there are some options for the interim that are more of a part time pay then a professional full time pay.
And this "hypothetical" couple is getting by with one income...but barely. So, any little bit a month to ease the crunch would be nice.


There's a lot of good stuff in this thread.

Based on that, I'd bank the cash.

Amnorix
04-30-2009, 08:00 AM
That thread has me curious:

Say one is getting tax money back. It's a significant amount of money. And say that same one's husband/wife is still in the process of job searching. The couple already has money saved for about three months worth of the unemployed spouse's salary. What would be the suggestion they do with the tax money?

I don' tknow how to do a poll....so we'll do it this way:

a. Put the money in savings
b. Pay off the car, and gain an extra $400 a month by doing so
c. Invest the money into things to upgrade the house you hope to sell in a few years
d. Other

BTW, unless you intentionally like giving the government an interest free loan as a way of "forced savings", you'd be better off doing a bit of math and coming up with a better withholding rate structure, unless you had something weird happen last year that resulted in so much overwithholding.

Jilly
04-30-2009, 09:51 AM
Cash it out and take it to Ameristar. Put the money on black and double your take. Then put it all down on a blackjack table and hit 21. Then, go get a hotel room there and party all night.

:evil:

Jilly
04-30-2009, 09:52 AM
BTW, unless you intentionally like giving the government an interest free loan as a way of "forced savings", you'd be better off doing a bit of math and coming up with a better withholding rate structure, unless you had something weird happen last year that resulted in so much overwithholding.

Being a minister is a weird profession.....we pay all 15% of social security, aren't taxed on all the income because we get a "housing allowance", etc. so finding the balance between it all is odd. My tax guy and I have a date for May to look at it... Plus, having a child kind of made things a little more odd this past year as well.

Jilly
04-30-2009, 09:54 AM
Barely getting by with one income?

Sell the car & replace it with something cheaper. Your spouse can buy a nicer car once they begin working, in the meantime you can't afford it.

Not selling the car. I have 1 year left of payments and it's the one "reliable" vehicle we have.

And yeah...I'd prefer you not judge us getting by with one income...I think that's pretty good given the circumstances.

macdawg
04-30-2009, 11:43 AM
I think your being touchy I just clarifying what you said in another post as I read through this quickly. I'm not judging at all, I will have my wife quit her job when we have kids. Just saying if it were me I'd sell the car, you can find reliable cars with 80-90k for $3000 easy (whole different topic).

Jilly
04-30-2009, 03:08 PM
I think your being touchy I just clarifying what you said in another post as I read through this quickly. I'm not judging at all, I will have my wife quit her job when we have kids. Just saying if it were me I'd sell the car, you can find reliable cars with 80-90k for $3000 easy (whole different topic).

I think that post says it all. "I will have my wife quit her job when we have kids." Why don't you quit your job?

Hydrae
04-30-2009, 04:03 PM
I think that post says it all. "I will have my wife quit her job when we have kids." Why don't you quit your job?

He's afraid his wife will come on here and talk about how he isn't employed. :D

macdawg
05-01-2009, 01:09 AM
I think that post says it all. "I will have my wife quit her job when we have kids." Why don't you quit your job?


And yeah...I'd prefer you not judge us...I think that's pretty good given the circumstances.

BWillie
05-01-2009, 02:08 AM
Cash it out and take it to Ameristar. Put the money on black and double your take. Then put it all down on a blackjack table and hit 21. Then, go get a hotel room there and party all night.

Bad idea. I once put $400 on black. I lost. Then I went back into the bathroom and literally started decking myself in the face. Alcohol may or may not of been involved.