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Hey all, So for some really dumb, bone headed idiot reason I've decided to re-open this dang 'ol thing again. It's been about 3 years since the last thread. We're pretty close and simultaneously what feels like pretty far from getting a house, and I'm hoping to end the 10 years of BFC fun-time with the purchase of a house. I'm in way over my head in particular with that, but I don't want to put the horse before the cart too much here. What's been happening since the previous thread? Well to put it lightly I'm about to turn 33, my wife is 31, and our son is four. We're living in a trailer on my mom's property. Seriously, someone help us! Nah that's true but not as bad as it sounds. I work remotely, and we've been traveling and seeing the country RVing for the past year and a half with our kid, hence the RV and truck. During that time we hit up 25 states, got some hella good Nashville hot chicken, had some Santa Fe chile dishes, watched a Detroit Lion's game in Detroit, got some Texas barbecue, camped on gulf beaches, camped on lawns, went to Monterey Bay Aquarium, l saw an rear end-ton of national and state parks, saw a manatee take a poop in the gulf, and went deep sea fishing next to some dolphins in Florida. Pretty cool! We're currently actually living on my mom's property in our RV rent-free (well we pay cable and internet for the house and ourselves as our contribution + our share of utilities). We could get an apartment, but I don't want to spend $1,500/mo. A/C and the heater work well in the trailer so we have our creature comforts. The bad of that has been the RV and truck debt (seen below), which undoubtedly has been, and will continue to be, expensive. We've decided to end our excursion to take care of our finances and get some location stability for our son as he starts Kindergarten, so it's time to pay the piper. June 1st will be the first month that we are in our current financial situation (my wife working, etc). Thread goals: Get out of debt Save a down-payment Buy a house* * Probably. After the thread: Invest/save for retirement. Let's get down to the nitty gritty. La numeros de los "debt": Truck - $45,341.66 @ 5.62% RV - $19,394.64 @ 17.75% (ouch) Student Loan 1 - $1,836.01 @ 6.55% Student Loan 2 - $1,338.46 @ 3.15% Credit Cards - ~$2,600 @ var% So yeah there's a problem there, especially the RV loan. Gross Income: Wife @ $33,280 Me @ $68,640 Net monthly: $6835* * My wife hasn't gotten her first paycheck yet, but I used a paycheck estimator that has been reliable previously. This includes health insurance. I don't know about 401k stuff yet or anything. Now, you might say what's your budget Knyteguy!? What are your gosh darn expenses you blockhead idiot? Well lucky for -you guys- I have that information. Expenses:    February's (the third one) is important here, as we were static for a few months until that point, so that's how we lived when we weren't on the road constantly. That should be a better indicator of what we need moving forward. Concept* Budget  * I am in the process of moving this concept budget over to our actual budget (I don't want to lose historical data), so I'll update this later. This is probably more reflective of next month's budget due to my wife just starting her job so her monthly income will be off, and some remaining cell services from being on the road that I need to cancel. The debt paydown includes the monthly minimum payments, I'll break that up too. Debt Paydown Plan:  I'm expecting a month or two longer here because I'm imperfect. Maybe, and hopefully not but that's what I'm expecting. Since the numbers on the concept and debt pay down can't be completely relied upon yet: the basic gist is take all of my wife's new pay (100% of it since she's been stay at home moming it for awhile), direct deposit it into a separate unused checking account (Ally, which we already have), and use 100% of that for debt. Cancel some cell services we no longer need, I quit smoking, save a bit for an oh-poo poo/truck maintenance fund probably out of my wife's second paycheck (first is going towards credit cards), put the remainder towards debt. Stretch our discretionary. Moving restaurants into fun money and heavily cutting it will be the most difficult for us, more than likely. Any bad stupid mental-gymnastics thus far? I feel it's pretty cut and dried, but let's see. I know I'm having a little fun with you guys in the OP, but I'm expecting the thread to go pretty smoothly. I'm not here to gently caress around (well with the money stuff at least). I think that's a good place to call it. My bitcoin portfolio:   --- Updates June 2019 Paid off Credit Cards: ($2600). New balance: $0 August 2019 - Moved into an apartment (at the behest of the thread and for my son) - Sold $3,360 worth of stuff, $1,760 I got paid in August, $1,500 will pay in September. - Funded the emergency fund ($4,,000) - Starting principal pay downs. - Paid $1,508 towards RV Principal. Previous: $19,234 New: $17,511 May 2020 The RV is nearly sold. We should have the paperwork signed on Friday, but if not definitely in the next few weeks. Knyteguy fucked around with this message at 23:55 on May 26, 2020 |
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Jun 14, 2019 00:20
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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Knyteguy's BFC Thread Redux - So yeah there's a problem there, especially the RV loan.
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Jun 14, 2019 05:13
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Dik Hz posted:The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Knyteguy's BFC Thread Redux - So yeah there's a problem there, especially the RV loan. Eh yeah but we get 12-14 months ahead of us rent free @ $1,500/mo minimum because of the RV. It's our house. Just gotta take care of the loans. I've pre-qualified twice on home loans so I want to get our DTI in a good place (0:100) and our credit score in the best place possible for the best rate and go from there.
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Jun 14, 2019 05:57
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I think one question most people would ask off the bat is, do either of your employers offer a 401(k) plan with matching?
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Jun 14, 2019 06:03
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Out of curiosity how much Truck Equity do you have
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Jun 14, 2019 06:20
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WithoutTheFezOn posted:I think one question most people would ask off the bat is, do either of your employers offer a 401(k) plan with matching? 3% full 5% half, on her 401k, mine is variable from 0-3% or something depending on if it was a good year or not. My benefits are terrible; her benefits are very good. KYOON GRIFFEY JR posted:Out of curiosity how much Truck Equity do you have If we weren't underwater I'd sell it in a heartbeat if that's what you're getting at. I've been considering doing that actually, when we're there on the loan. That was something I was hoping for some input on when the time comes. Knyteguy fucked around with this message at 06:32 on Jun 14, 2019 |
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Jun 14, 2019 06:27
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Used a week of wages from my wife working a temp job (~$417), used $163 in savings, and used some from the debt pay down budget category to pay off one credit card for $689. I was off on my initial credit card estimate. $1,000 left to pay to get that off our backs. I'm holding $500 in savings for an oh-poo poo situation. I'll get that to a $1,000 oh-poo poo savings after the credit cards are paid off which should be on or around the 22nd when we both get paid.  Our fun money is in cash, so the majority of that isn't spent yet. The budget is a bit out of whack still. I may just make a fresh start for July since our historical data will be so drastically different from being on the road anyway. Restaurants and fun money will be combined next month. The old budget made room for both which reflects the current month. The new budget will be $200 in fun money and restaurants combined total, but I'm not going to go too austere since it would be off plan. Any thoughts on that one? Knyteguy fucked around with this message at 15:31 on Jun 14, 2019 |
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Jun 14, 2019 15:27
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Oh man. KG is one of the few BFC threads I really wanted an update to, and it's only gotten worse. *sigh* What is going on with your internet/cell bill being $400+ ??? Hell even the $200 you listed in the budget is too much! Jfc How much are you underwater on the truck? How much are you underwater on the RV? Childcare - is your wife's new job fulltime or is she working while the kid is at school? What will childcare cost during the summer? Etc. My Rhythmic Crotch fucked around with this message at 15:41 on Jun 14, 2019 |
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Jun 14, 2019 15:29
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My Rhythmic Crotch posted:Oh man. KG is one of the few BFC threads I really wanted an update to, and it's only gotten worse. *sigh* cell/internet/cable So that's something I'm looking to change, but we got home 6 weeks ago and I've been wary to cancel because: long story short we stayed with my mom for about 3 weeks last year to come visit and take a break from travel. She was having very bad drug problems (Xanax and alcohol), lost her job because of said drugs, and was going through a divorce and called the cops to get us to leave (the cops said poo poo sorry your mom is in bad shape you don't have to leave you have tenant rights; we left anyway) because she didn't like being called out on her poo poo. So coming home again I somewhat expected there to be issues and didn't want to cancel our cell plans. However things have been great; she's in court-ordered drug counseling, she's not getting hosed up because she's over the divorce, and shits just better. I'm now comfortable to cancel as I don't expect problems with our living situation, at least while she's in counseling which is mandatory to the end of the year. Our plans are unlimited hotspot barring Verizon, and we have AT&T, T-Mobile (my phone) , and Verizon (my wife's phone and a hot spot). This was great on the road, but unnecessary now. I ~may~ be able to sell the plans, as you can't get AT&T or T-Mobile unlimited hotspot usage anymore and I'm apart of an RV internet group. I'm not counting on it, but I'll throw up a post later to see if anyone bites. T-Mobile - $93/mo (prepaid plan no contract) Verizon - $127/mo, this is a contract until August or September AT&T - $93/mo Spectrum - ~$120 for television and cable (which is for the household and is basically our 'rent'). This will stay. I have it at $200 because we just started it and during planning I was unsure exactly what it was. I've been eyeing Republic Wireless or something super cheap. I have a fully paid S7 that is a slow piece of poo poo but I don't care I only use it for work phone calls a couple times a month now that the hotspot is unused. Wife is great with a Pixel 2 shouldn't need phones for awhile. The plans have already been paid for this month so I've got about 2 weeks to figure out how to cut this. I'll update when I get a chance to look over it better which is probably sometime next week. debt underwater About $12k on the truck underwater. RV - no clue. I'm guessing $10k but I haven't seen a comparable yet. I'm comfortable holding onto this debt and keeping it; when we move into a house we can rent it to Burning-Man people for like $3k-5k a season lots of people are making money off Burners doing that every year. Plus we could air bnb it or whatever potentially. I'm not 100% deadset on it but I like having it. childcare My sister manages a daycare so $0. We were going to settle down in the Dallas area, but free rent and free childcare meant we could turbocharge our debt paydown with my wife working fulltime. I can't count on this forever because she may move jobs eventually, but every month we don't pay helps.
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Jun 14, 2019 16:04
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Knyteguy posted:$120 for television and cable. This will stay. We have to rack up all this debt so we can arrange a living situation where we can paydown all this debt! Serious question: do you really want advice? Or are you just here because you want to record what's going on in your life? Knyteguy posted:I ~may~ be able to sell the plans Deck chairs on the Titanic. My Rhythmic Crotch fucked around with this message at 16:21 on Jun 14, 2019 |
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Jun 14, 2019 16:13
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Welcome back! I have so many questions! What happened to your dogs?? (4 of them I think..? There was a cat or two?) Are you guys sure you want to get your kid going to school in Reno or Incline or whatever it was, because yikes?? Physical fitness goals still good? What do you think about Matt Patricia?
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Jun 14, 2019 16:32
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My Rhythmic Crotch posted:We have to rack up all this debt so we can arrange a living situation where we can paydown all this debt! I'm here primarily for motivation and some advice yeah, especially with what to do 6-12 mos down the line, but I guess I'm wondering what there is to do beyond execute the plan right now, like today and this month and next month? The RV is a situation that could be talked about when I know it's no longer underwater, but it is so we've got to grind a bit to get it there. In 2-3 months when we're no longer underwater let's have that discussion. As I said I'm not deadset on keeping it. Like getting into a -normal- living situation is our goal, that's mostly what I want help with. And frankly I'm afraid that when we buy we'll buy the wrong house that's too expensive, or that is too cheap, or that it's a bad decision to buy, and it's all incredibly daunting. Actually thank you for asking this it helped me figure it out. Today I'm simply trying to be pragmatic and stay focused on the immediate things in front of me. nikosoft posted:Welcome back! I have so many questions! What happened to your dogs?? (4 of them I think..? There was a cat or two?) Are you guys sure you want to get your kid going to school in Reno or Incline or whatever it was, because yikes?? Physical fitness goals still good? What do you think about Matt Patricia? Dogs are still trucking. 2 dogs and 2 cats in the ol RV along with a kid and 2 adults. It's absolutely insane, but we're both literally and figuratively closer as a family, and yeah I'm actually very happy despite some challenges. Now with that said I cannot wait to get into something a little bigger than 120sq/ft (guesstimate). Reno isn't bad for schools, at least in the burbs where we're at. 10/10 elementary school down the road, and https://www.coralacademy.org/ is a very respected charter school in the area. One of the reasons we liked Dallas was the school districts are so good, but we've decided Reno is our home for better or for worse, at least until my son is an adult. It took a lot of soul-searching to figure that out. Incline is kind of baller though (https://www.zillow.com/homes/for_sa...201_rect/11_zm/ ) I'd expect them to have good schools (have never checked). MP: I'm a total I trust you until I don't fan so I currently have a lot of faith in him and the current front office, but I think this season and/or next season will speak volumes about where the team is going. Knyteguy fucked around with this message at 16:58 on Jun 14, 2019 |
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Jun 14, 2019 16:48
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Knyteguy posted:I'm here primarily for motivation and some advice yeah, especially with what to do 6-12 mos down the line, but I guess I'm wondering what there is to do beyond execute the plan right now, like today and this month and next month? The RV is a situation that could be talked about when I know it's no longer underwater, but it is so we've got to grind a bit to get it there. In 2-3 months when we're no longer underwater let's have that discussion. As I said I'm not deadset on keeping it. The major problem that I see is that you are going to pour basically 70 grand into debt payments on depreciating things (truck and RV). That 70 grand is basically going to vanish since RVs and vehicles depreciate so quickly. That 70 grand could be used as a house down payment. So I mean, you're here, that's great, but it's very clear to me that you haven't really thought this through. My Rhythmic Crotch fucked around with this message at 17:05 on Jun 14, 2019 |
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Jun 14, 2019 17:01
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My Rhythmic Crotch posted:The major problem that I see is that you are going to pour basically 70 grand into debt payments on depreciating things (truck and RV). Well, I guess what are your thoughts? I understand the situation we're in, and if I could magically sell the truck and the RV right this minute and live in the spare bedroom for a few months to save up the downpayment I would, but what can I do right now? We could technically go get approved on a house right this minute with my wife's IRA as a downpayment, but I know that's the wrong thing to do. My plan with the truck is basically: get it out from underwater, save up $5k-$10k, sell the truck, buy a car in cash. I was going to discuss that with the thread because I don't know if that's the best route to take, but I'm trying to ease into details a bit just to make sure it doesn't get lost in a wall of text.
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Jun 14, 2019 17:12
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Knyteguy posted:Well, I guess what are your thoughts? I understand the situation we're in, and if I could magically sell the truck and the RV right this minute and live in the spare bedroom for a few months to save up the downpayment I would, but what can I do right now? We could technically go get approved on a house right this minute with my wife's IRA as a downpayment, but I know that's the wrong thing to do. How much do you have in cash, savings accounts, etc this very moment? Other than IRAs and 401ks - things you would get penalized for using right now. That is going to highly influence my answer.
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Jun 14, 2019 17:17
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My Rhythmic Crotch posted:How much do you have in cash, savings accounts, etc this very moment? Other than IRAs and 401ks - things you would get penalized for using right now. That is going to highly influence my answer. Just what the YNAB screen says, plus I have (right this minute) $623 in a Vanguard account from about 2 years ago. 
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Jun 14, 2019 17:19
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It's killing me to say this, but I think you need to talk to a bankruptcy lawyer (and professional financial adviser if you can find a good one, I have never had to look so I have no idea) You're 70 grand in the hole and I don't think you have wrapped your head around that, really and truthfully. Use the savings you have to buy a cheap car and get setup in an apartment, get settled into your jobs, then declare BK would be my honest opinion.
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Jun 14, 2019 17:33
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My Rhythmic Crotch posted:It's killing me to say this, but I think you need to talk to a bankruptcy lawyer (and professional financial adviser if you can find a good one, I have never had to look so I have no idea) Well, explain it to me why renting would be better than $20,000 in debt plus interest (looking at this from a where the heck do we live perspective only). $1560 * 12 + (($1500 * .03 + 1560) *12) = $37,980 (let's call it roughly I'm at work) with a 3% rent increase after one year $60 for the pet rent $1,500 for rent. $3,500 for the deposit = $39,950. At least $1,000 to file bankruptcy fees. $40,450. I've run through the apartment process those would be our terms. $20,000 + let's say $15,000 to get out from underneath the truck loan which would be like trade-in value not private party = $35,000. And we own the RV. Our monthly debt to income is 13% right now, would that even be accepted? I thought bankruptcy was for hardship. On top of that there is house appreciation which I don't give a poo poo from an investment perspective, but from a cost perspective, and we're putting off $40,000 from my grandma as down-payment assistance which requires us to get out of debt and to save $20,000. I just don't see it. And that's assuming we put off the house for 2 years after bankruptcy which realistically is probably 3 years with closing times and all of that other garbage. Knyteguy fucked around with this message at 17:49 on Jun 14, 2019 |
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Jun 14, 2019 17:45
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Knyteguy posted:Well, explain it to me why renting would be better than $20,000 in debt plus interest (looking at this from a where the heck do we live perspective only). $1560 * 12 + (($1500 * .03 + 1560) *12) = $37,980 (let's call it roughly I'm at work) with a 3% rent increase after one year $60 for the pet rent $1,500. $3,500 for the deposit = $39,950. At least $1,000 to file bankruptcy fees. $40,450. I've run through the apartment process those would be our terms. I know it's hard to hear. Get a second and third opinion, wait for more folks to come in and give their 2 cents. Also talk to a professional financial adviser! I am just a random guy on the interwebs who is offering free advice.
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Jun 14, 2019 17:51
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My Rhythmic Crotch posted:It's killing me to say this, but I think you need to talk to a bankruptcy lawyer (and professional financial adviser if you can find a good one, I have never had to look so I have no idea) I don't think this makes sense. They won't qualify for Chapter 7 and the vehicles have value, so they'd basically just be paying back their vehicle deficiencies under a bankruptcy plan. They don't need a financial advisor. Deciding not to buy an RV with an 18% loan so that you can maybe "save money on rent" by living illegally in the backyard of your mom who has called the cops to evict you before is not a complex financial decision. When I type that out I'm not sure if I am responding to a troll. I hope so.
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Jun 15, 2019 04:05
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He already owns the RV. Well not really owns, but you know.
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Jun 15, 2019 05:48
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Maybe I'm misreading the YNAB screens but it looks like you're already contributing to a house down payment, and I don't see a case for doing that while you still have a high-interest loan with significant balance. PS: Knyteguy posted:I'm holding $500 in savings for an oh-poo poo situation. I'll get that to a $1,000 oh-poo poo savings after the credit cards are paid off which should be on or around the 22nd when we both get paid. Gazpacho fucked around with this message at 17:49 on Jun 16, 2019 |
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Jun 15, 2019 06:25
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What happened to the sick rear end v8 camaro? What about that VW sandrail? What sort of mental gymnastics did you do to decide this truck/rv was a good idea? How long is the term of the loan on both of them. 17% on the RV - why so loving high? You got a fine rate on the truck. -Quit smoking - holy hell that's a lot of money spent on cigs... -Fix your cellphone/internet bills. -Do you have any retirement savings at all? -Can you refinance the RV? It looks like you might be in a worse financial situation now than you were when you stopped posting (similar to Zaurg). You're a computer toucher if I recall, can you get a better computer touching job? You are a very very very long ways away from being able to afford a house. I mean if you keep smoking maybe you won't need to save much for retirement... n8r fucked around with this message at 04:38 on Jun 17, 2019 |
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Jun 17, 2019 04:19
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There's no reason to take any of this seriously until youre in regularly scheduled therapy
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Jun 17, 2019 04:33
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Knyteguy posted:The funniest part is you can't stop thinking about me n8r bb. https://forums.somethingawful.com/showthread.php?threadid=3827922&pagenumber=346&perpage=40#post491741540 You got me bro.
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Jun 17, 2019 04:38
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Really it's up to you whether to keep $1000 or 1 month essentials in reserve. It's not written in stone and people suggest either one. Although you need to get on top of the RV debt ASAP, I believe that $500 can't cover the range of events that a starter emergency fund needs to cover (eg truck repairs, accidents, unpaid work absence).
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Jun 17, 2019 05:52
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Trillian posted:Deciding not to buy an RV with an 18% loan so that you can maybe "save money on rent" by living illegally in the backyard of your mom who has called the cops to evict you before is not a complex financial decision. seriously your RV housing situation is a ticking time bomb, get your rear end in an apartment and away from your mom ASAP - even if that involves taking a hit on the RV! (you will always take a hit on the RV anyway because they're valueless turds) sell the truck, sell the RV, get an apartment, stop smoking
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Jun 17, 2019 14:33
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n8r posted:What happened to the sick rear end v8 camaro? What about that VW sandrail? n8r posted:https://forums.somethingawful.com/showthread.php?threadid=3827922&pagenumber=346&perpage=40#post491741540 All of that is true. Gazpacho posted:Really it's up to you whether to keep $1000 or 1 month essentials in reserve. It's not written in stone and people suggest either one. Although you need to get on top of the RV debt ASAP, I believe that $500 can't cover the range of events that a starter emergency fund needs to cover (eg truck repairs, accidents, unpaid work absence). I think we'll go with $1,000 for now. KYOON GRIFFEY JR posted:seriously your RV housing situation is a ticking time bomb, get your rear end in an apartment and away from your mom ASAP - even if that involves taking a hit on the RV! (you will always take a hit on the RV anyway because they're valueless turds) We have options if my mom's place doesn't work out; we're completely setup for off the grid living if needed (within commuting distance and legally) and there's also RV parks and whatnot, and we have a free bedroom at my grandma's if needed as well. I did quit smoking. I will sell when we can get out from underneath the loans; the truck at least, and as mentioned the RV isn't something I'm 100% dead-set on keeping. That could be as soon as August but more probably September or October.
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Jun 17, 2019 15:06
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This is very simple. You make $100,000 a year and don't pay rent. Literally all of your debt could disappear in roughly one or two years without that much deprivation. Or you could sell the stupidly expensive truck, and make it disappear in probably 1/2 to 3/4 of a year. There's no need for a bunch of shuffling, confusion, and complicated financial analysis here. It's just a question of whether you will exert the discipline to do this. SlyFrog fucked around with this message at 15:18 on Jun 17, 2019 |
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Jun 17, 2019 15:14
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SlyFrog posted:This is very simple. You make $100,000 a year and don't pay rent. Literally all of your debt could disappear in roughly one or two years without that much deprivation. Thank you, I agree. Living off of one income changed our spending habits. Lifestyle creep is the biggest thing we need to watch out for, so we just need to follow the budget. Do you think we should focus on the truck first over the RV? The RV used market here is very good, so I don't think the thing will depreciate beyond $10,000, especially because we keep it extremely maintained, and have even done a few small upgrades. There's also things like this (as mentioned): https://reno.craigslist.org/rvs/d/fernley-burning-man-rental/6908158335.html This is a different brand and model than ours, but I'd consider it comparable e.g.: aluminum body bunkhouse (and ours is a year newer, but also more well-used): https://reno.craigslist.org/rvs/d/reno-2016-jayco-jayflight-slx-267-bhsw/6913672515.html Knyteguy fucked around with this message at 15:31 on Jun 17, 2019 |
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Jun 17, 2019 15:28
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You really want to rent out an underwater "asset" to a bunch of people going to a drug fueled sex and music festival? That seems like really bad judgement for someone in your situation. Why do you think those rental rates are so high? (hint: there is 99% likelihood they come back trashed)
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Jun 17, 2019 15:36
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Refi the trailer if you insist on keeping it, you can probably cut that interest rate in half even on propser or something
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Jun 17, 2019 15:45
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greasyhands posted:Refi the trailer if you insist on keeping it, you can probably cut that interest rate in half even on propser or something Yeah do this ASAP, reading back through this thread it sounds like you really want to keep it. How much $$ is there in retirement?
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Jun 17, 2019 16:11
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Knyteguy posted:Thank you, I agree. Living off of one income changed our spending habits. Lifestyle creep is the biggest thing we need to watch out for, so we just need to follow the budget. It's simplistic, but this is one of those "high interest rate first" scenarios in my opinion. The RV is only $20,000. With no rent, you should be able to live off of $2,000-3,000 a month, and have $3-4,000 in free cash left at the end of every month (I'm doing a rough tax rate of 20%, leaving you with $80,000 a year after taxes - the numbers might be a tiny bit off, but they're close enough for this purpose). That means you should be able to pay off the RV easily in around six months. Hell, even if you spent a little more each month, you should be able to pay it off super easily inside of a year. I mean, you have the free cash flow to easily, without any stress, throw at least a couple thousand dollars extra at the loan each month for that thing. As you noted, you live in the thing, so paying that off is also keeping you rent free for a while. If you're done towing around the RV, you can sell the truck and get something non-ridiculous to drive. There are vehicles that do not cost $50,000 that can tow RVs, I believe. In any event, at least by getting rid of the RV loan, you're down to loans that don't have utterly ridiculous interest rates. I actually wouldn't advise refinancing the RV loan, just because you should be able to pay it off much faster than it would be worth refinancing for. I assume refinance origination charges and the like would be more than the value of just paying the thing off in six months. After you get rid of the RV loan, your finances are simply a matter of being reasonably high income people who bought way too much vehicle. Not the brightest thing in the world, but certainly not a position where you can't save for retirement, etc. At that point, I think you are left with reasonable options to keep the vehicle and save aggressively on everything else, downsize the vehicle for something more intelligent, etc. But again, the solution to the entire scenario really involves you not pointlessly spending to your income level, but instead using the massive monthly savings you are able to generate to actually pay things off early. I am always a big fan of wiping out your existing debt before saving for retirement. You're not going to get a risk free 5.6% return in this current market. That's what your truck is costing you. But the problem is, too many people hear this advice and don't save for retirement, but then also just spend the money. You actually have to aggressively pay down the debt. SlyFrog fucked around with this message at 16:19 on Jun 17, 2019 |
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Jun 17, 2019 16:15
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Motronic posted:You really want to rent out an underwater "asset" to a bunch of people going to a drug fueled sex and music festival? That seems like really bad judgement for someone in your situation.  Payments on the RV will reduce its interest load significantly faster than payments on the truck. Arguably payments on the truck could enable you to get it above water and then trade it in at a profit (paid to the creditor) but that is complicating the decision with issues of depreciation and market conditions that I wouldn't know how to quantify.
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Jun 17, 2019 16:21
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SlyFrog posted:I actually wouldn't advise refinancing the RV loan, just because you should be able to pay it off much faster than it would be worth refinancing for. I assume refinance origination charges and the like would be more than the value of just paying the thing off in six months. it costs him nothing to actually get an answer to this question
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Jun 17, 2019 16:48
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n8r posted:Yeah do this ASAP, reading back through this thread it sounds like you really want to keep it. A little over $7,000. I don't -really- want to keep the RV, especially once we buy a house. I have a small emotional attachment to it, but if there's anything I've learned the past 18 months it's how to aggressively downsize unneeded/underutilized stuff. I'm here for help on these decisions (and open to listening to them). SlyFrog posted:It's simplistic, but this is one of those "high interest rate first" scenarios in my opinion. The RV is only $20,000. With no rent, you should be able to live off of $2,000-3,000 a month, and have $3-4,000 in free cash left at the end of every month (I'm doing a rough tax rate of 20%, leaving you with $80,000 a year after taxes - the numbers might be a tiny bit off, but they're close enough for this purpose). That means you should be able to pay off the RV easily in around six months. Hell, even if you spent a little more each month, you should be able to pay it off super easily inside of a year. I mean, you have the free cash flow to easily, without any stress, throw at least a couple thousand dollars extra at the loan each month for that thing. As you noted, you live in the thing, so paying that off is also keeping you rent free for a while. So we're basically on the same page here. Your numbers are pretty comparable to what I'm getting as well. We are done towing around the country, and frankly worst case scenario we can rent a truck for a day or ask a family member if we absolutely had to move the RV. I do not give a flying gently caress about what vehicle we have anymore as long as it's a reliable small money pit instead of a reliable big money pit. Re: retirement savings - I'm not going to pretend I can be Mr. Money Mustache anymore like my previous thread and ride a bicycle every single day while living completely austere, but I would like to be secure enough to not work at Wal-Mart at 80 years old and maybe be able to golf or some poo poo I don't know. I'm pretty happy with my lifestyle right now so as long as we don't have to cut too far from what we're currently doing them I'm comfortable. I'm comfortable affirming my wife feels the same. KYOON GRIFFEY JR posted:it costs him nothing to actually get an answer to this question I'll call the bank that financed the loan and see if they'll drop the interest a bit (I've heard of it working before). We've never been late paying them and have had been making payments for 2 years now. So, credit cards -> RV -> truck. Cut the excessive cell bills, update the budget to reflect the new income, call to see if we can get a lower interest rate on the RV from our current lender. Sell the trailer when we're ready to purchase a home, sell the truck as soon as possible. (NSFW language) https://www.youtube.com/watch?v=av5xgkmF-pw&t=4s
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Jun 17, 2019 17:17
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KYOON GRIFFEY JR posted:it costs him nothing to actually get an answer to this question Sure. It does not hurt to check to see what the refinancing would cost. But I've often found that people who do not do things like that often don't really appreciate the costs, and the bankers certainly don't go out of their way to spell out all of the origination fees and other refi fees that they then roll into the loan. So if he does it, he needs to be hyperaware of the actual cost of doing the refi, not just the new interest rate he's getting.
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Jun 17, 2019 17:17
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Quick aside: Don't forget about the cards. You haven't shown their current rates but they are also high-rate debt that would normally have priority over moderate-rate debt.
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Jun 17, 2019 17:26
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| # ? Apr 26, 2024 04:14 |
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Oh man shoot this straight into my veins.
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Jun 17, 2019 17:52
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