Get out of debt brehs

[phcitywarrior]

You have to be disciplined to do it.

This is what I've heard as well. If you're disciplined then it's free money.

 

[DeuceZ]

Kind of OT but how much are y'all putting into your 401k?

I've increased the %amount over the last 3yrs from 3% to 5%; company matches up to 5% so will likely leave it at that level until the debt is not an issue

 

[Truefan31]

I've heard usually you only want to put up to the max you're company is willing to match.

So if they match you up to %5 of your contribution, then out of every $100 of your paycheck, only put in $5.

Nah if you got an employer match on a 401k, put as much as possible, it means the match is even more, hence free money. Max it out if you can (assuming you have little or no debt).

So assuming it's a match of 5%, if you put in 100, then they'll put in 5, but if you do 200, then they put in 10, so forth and so on.........

Look into Roth 401ks too. Your contribution is after tax dollars, but your growth will be tax free.....

 

[phcitywarrior]

Nah if you got an employer match on a 401k, put as much as possible, it means the match is even more, hence free money. Max it out if you can (assuming you have little or no debt).

So assuming it's a match of 5%, if you put in 100, then they'll put in 5, but if you do 200, then they put in 10, so forth and so on.........

Look into Roth 401ks too. Your contribution is after tax dollars, but your growth will be tax free.....

When I say 5% it means up to 5% of your pre-tax income, of course, it all depends on how your company structures it.

Example: At my company they’ll match you dollar for dollar for the first 3% of your paycheck that you contribute. So if you’re pre-tax income is $1000 and you contribute $30, they’ll contribute $30. After that, they’ll contribute 50 cents for every dollar for the next 2% of your paycheck. So again, if you toss in an additional $20 they’ll contribute $10. After that, there’s no more matching.

That was the scenario I was referring to as it concerns a %5 match.

 

[Silkk]

Got zero bytches, lot more bread

Time to get this snowball effect rolling

 

[phcitywarrior]

Got zero bytches, lot more bread

Time to get this snowball effect rolling

Just keep at it broski. Financial peace is so underrated.

 

[Truefan31]

When I say 5% it means up to 5% of your pre-tax income, of course, it all depends on how your company structures it.

Example: At my company they’ll match you dollar for dollar for the first 3% of your paycheck that you contribute. So if you’re pre-tax income is $1000 and you contribute $30, they’ll contribute $30. After that, they’ll contribute 50 cents for every dollar for the next 2% of your paycheck. So again, if you toss in an additional $20 they’ll contribute $10. After that, there’s no more matching.

That was the scenario I was referring to as it concerns a %5 match.

Gotcha. Yeah at my job they match 100% at 3% of whatever you put in.

Sucks that some 401ks have a cap on employer matching. It hurts the ability to max it out and let that money really grow for you.

 

[DamienWayne]

I'm single. I took like a year and just lived off half my take home pay and saved the other half of it. I use credit cards because I have different cash back cards for different things. I get 2% to 6% cash back depending on where I shop and the card I can use. Thing is most credit card finance charges are 15% or so. Have to pay them in full to not erase my cash back.

My problem is after that savings account emergency fund was done I got really sloppy on my savings. I saved up about 15K last year though and that's what I put in the stock market this year. I probably should have been investing it last year. It sat in a checking account as I built it up all year. Was kinda stupid of me.

I got about 15 k saved up now sitting in my savings wat should I do with it ?

 

[phcitywarrior]

I got about 15 k saved up now sitting in my savings wat should I do with it ?

Are you in debt? If so, take a portion of that savings and start attacking your debt (outside your mortgage, if you have one). Look up the "snowball method". Still leave some of your savings to protect against emergencies. How much you leave is entirely up to you and your lifestyle. It could be anywhere from 1k - 10k, that's your call. If you take out money from your savings then it should all go to paying down your debt; CC bills, car note, medical bills, student loans, parking/speeding tickets etc.

However, If you're out of debt and have 15k saved up, depending on your lifestyle and preferences, either keep adding to the savings until you are at 3-6+ months of expenses (or income to be on the safer side) or cap your savings if you're at that threshold and then put money into higher yield investments.

Mind you, I'm not a financial adviser, I'm just giving you advice I've read in books concerning basic money management and steps to take concerning debt reduction and setting up a financial foundation for the future.

 

[jwonder]

Op had some legit ways off paying off debt. I was heavy in debt in my 20's. 40k in credit card debt. It took me working 2 jobs and selling a house to get rid all of that.

My advice to all is never use credit cards for purchases unless you know you can pay it off. A credit card gives you a false sense of having actual money.

All I use my credit card for now is for utilities and airfare which I pay off before is due

 

[winb83]

I got about 15 k saved up now sitting in my savings wat should I do with it ?

I took all my savings and put it in the stock market. I did set aside 10K in a high yield savings account. That 10K is for emergency use only. In a month the money I put in the market has grown by $1000. The bad part about the markets is they're up and down. Given that I don't need that money any time soon I plan to just park it there and ride it out. People are talking about a possible recession but I'd leave it there past that till the market recovers. Hell I might buy more when stocks dip in the recession to average my cost down.

I put 35% of my money in a S&P 500 tracking index fund. The other 65% is invested in companies I like (Microsoft / Apple / Disney and more).

 

[aXiom]

I took all my savings and put it in the stock market. I did set aside 10K in a high yield savings account. That 10K is for emergency use only. In a month the money I put in the market has grown by $1000. The bad part about the markets is they're up and down. Given that I don't need that money any time soon I plan to just park it there and ride it out. People are talking about a possible recession but I'd leave it there past that till the market recovers. Hell I might buy more when stocks dip in the recession to average my cost down.

I put 35% of my money in a S&P 500 tracking index fund. The other 65% is invested in companies I like (Microsoft / Apple / Disney and more).

I know it's a bytch to try and time the market, but it's better to be all cash during the start of a recession. That way you double/triple/quadruple your money buying great stocks at a discount during the crash and riding them on they way up instead of just breaking even. There's even money to be made on the way down if you've got the stomach for it.

 

[International Playa]

I'm not going on vacation this year, will use that money to pay off debts

 

[phcitywarrior]

How are we all progressing?

Since I've been debt free I've just been stacking up more of my savings. I know summer is when I tend to spend more (weekend trips, concerts, parties, happy hours, graduations, vacation etc) so I've been keeping a low profile for the time being. Also looking to add a second source of income by fall time.

 

[Bane]

I get three checks in May and am using the first one to just pay debts. So far my balance is decreasing still a ways to go though.