Investing 101

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Jez
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Re: Investing 101

#26

Post by Jez »

Thank you for the advice, Princess. That is where I was going to start: expense money in the bank. I might open a savings account at a local CU. They seem to have a slightly better return. My raise almost doubled what I was making, so I should be able to put the money aside.

I am going to force Dawn to sit down with me and a spreadsheet and we are going to work on a budget. She has been hanging by a thread for the last few years, so part of what I want to do is give her a breather for a few months to get a bit of a cushion. I won't drain myself, but I am going to see what I can temporarily take over so she can get back on track.

The 401k the bank offers is maxed on matching and is geared toward my age automatically, so that is taken care of. I will also be rolling the bit I have from my last 401 into this new one, probably. I am trying to have a five year plan for once. I have also learned the fine art of worst-case-scenario planning, so am going to save towards that.

Thanks again, everybody for the advice. I appreciate it. I have some goals, that I should probably actually write down so I don't lose track.
I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet, strange, I am ungrateful to those teachers.

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Jez
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Re: Investing 101

#27

Post by Jez »

Gonna necro an old thread from last year just to give y'all a feel for where I'm at.

It's been good. Great even. My 401k is singing along just fine (though it seems to have lost a little bit the last quarter, less than 1%, but it's long term you need to look at with those, so not panicking).

I have set up a savings account with Ally, an online only bank that gives a great return with no minimum balance required. It's a pain in the arse to move money out of it, so it's I'm really unlikely to touch it. There is no debit card for it. Anything I do has to be done via the phone app and transfers to the checking account can take 3-5 business days (tested it and it took 4). If I need to transfer funds, I need them now, so that is a good way to not to transfer money since it takes too long. I have my direct deposit set up to put 100/paycheck into that account. Since I just got it set up a couple of months ago, there isn't much there but it's growing.

I discovered some debt that I didn't know I had by reviewing my credit report more closely then I normally do. I'm happy to say that everything that is in collections on that report is now paid off, and the last of my medical bills are now on a payment plan and should be gone within 6 months at most.

Dare I say I'm actually feeling a little bit optimistic? Maybe? Just a smidge?

The paying off of the collections should help raise my credit score by several points which will help a lot when I go to get a car. Still wishy washy on which one but I'm working on narrowing it down. I need to start test driving, but I think in about 5 months, I'll be ready with a down payment saved and a better credit score.

I am having some dental work done tomorrow, which will be $1500 AFTER insurance (extraction of broken tooth, crown that is holding the tooth together, and a bridge being made to replace said tooth). Luckily, I have an FSA which will let me pay for the dental work and I won't be going literally out of pocket. The money is put in the account by my employer and I pay the employer back the fund via pre-tax deductions. I was going to see if could get Care Credit and not use up most of my FSA on this dental work, but Care Credit declined me.

I didn't have enough recent Revolving Credit history. Ironically, because I don't have credit cards, i can't get credit. :bored:

Anyway, wanted to share my progress on adulting. I think I'm doing pretty good so far. :dance:
I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet, strange, I am ungrateful to those teachers.

~Khalil Gibran
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Re: Investing 101

#28

Post by MN-Skeptic »

:cheer: :cheer: :cheer:

Good for you!
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Re: Investing 101

#29

Post by Tiredretiredlawyer »

:bunny: :happyfamily:
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Re: Investing 101

#30

Post by RoadScholar »

Good on ya, hon. :thumbs:
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X3
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Re: Investing 101

#31

Post by NotaPerson »

:rockon: :bunny: :rockon:
Am I being detained?
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Princess foofypants
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Re: Investing 101

#32

Post by Princess foofypants »

Great work! I know it isn’t easy but doesn’t it feel great?
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neonzx
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Re: Investing 101

#33

Post by neonzx »

Jez wrote: Mon Mar 09, 2020 5:11 pm Gonna necro an old thread from last year just to give y'all a feel for where I'm at.

It's been good. Great even. My 401k is singing along just fine (though it seems to have lost a little bit the last quarter, less than 1%, but it's long term you need to look at with those, so not panicking).

I have set up a savings account with Ally, an online only bank that gives a great return with no minimum balance required. It's a pain in the arse to move money out of it, so it's I'm really unlikely to touch it. There is no debit card for it. Anything I do has to be done via the phone app and transfers to the checking account can take 3-5 business days (tested it and it took 4). If I need to transfer funds, I need them now, so that is a good way to not to transfer money since it takes too long. I have my direct deposit set up to put 100/paycheck into that account. Since I just got it set up a couple of months ago, there isn't much there but it's growing.
...
I didn't have enough recent Revolving Credit history. Ironically, because I don't have credit cards, i can't get credit. :bored:

Anyway, wanted to share my progress on adulting. I think I'm doing pretty good so far. :dance:
Great job!
And, yes you can get credit. And, no I'm not talking about scam high interest cards. Your credit profile is made up of numerous factors. It doesn't matter how much income you have. They want to see some track record of handling unsecured debt.

If there is a credit Union in your area, consider banking with them if you qualify. Many have programs to help people establish your credit through small loans.

Look at Capital One or other national CC brands that offer a reboot chance with no annual fee. Qualification is normally easy but the credit line starts low, however it estabishes responsible money management. Get one, put a Netflix or Amazon Prime membership on it, but leave card locked up and pay the balance every month.

A friend of mine told me he likes selflender.com (and I just recently have seen they are adverting on TV). It reports as a personal loan but you are paying yourself back into CD.

All of these things take time.
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Re: Investing 101

#34

Post by Whatever4 »

I agree with neonzx. Credit unions are awesome for helping you establish credit. Most (but not all) credit unions offer credit cards. The CUs can be more flexible than big banks, so if you are rejected for a credit card, you can go in and explain to a CU officer why they should accept you. Start off with a very low limit (like $500) and pay off religiously. In a six months to a year, ask to increase the limit.

Credit unions usually have lower fees and interest rates, but fewer rewards. Don’t worry about rewards until you get better credit.

When W2 and I were youngsters, we bought a washer at Sears and opened a Sears card for it. We paid on time every month and paid it off in 6 months. After that, we had a credit history.

Good luck! You are off to a great start.
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Re: Investing 101

#35

Post by Maybenaut »

The Quaid Brothers did this short primer on establishing credit back in the 80’s...

"Hey! You know, we left this England place because it was bogus. So if we don't get some cool rules ourselves, pronto, we'll just be bogus too." - Thomas Jefferson
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Jez
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Re: Investing 101

#36

Post by Jez »

I have had credit cards in the past, but got rid of them several years ago. I do have a Fingerhut account that I will but something smallish, usually for the office, then pay off within 2 months if not immediately. My score is actually quite good, but not perfect.

I know how credit scores work. One of my contractor jobs was documenting how the bank calculated the scores in house and I did a ton of research on both FICO and Vantage 2.0. Even wrote in house documents on them to supplement what we had to give to the feds.

One thing they look at, and is stupidly weighted, is the number of revolving accounts in good standing there are. I have one.

I may try in a couple of months once the collections balances I just paid off drop from the report. The amount wasn't huge and was a small ratio to my income, but should jump my score by at least 20 pts.

I am looking at a car in about 3 months time. I will probably get a qualifying loan from a CU. My last car was financed by a credit union and they were great to work with, even thru my bankruptcy all those years ago. I need to find a good one around here, though. Gotta start researching that as well.
I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet, strange, I am ungrateful to those teachers.

~Khalil Gibran
Pulaski
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Re: Investing 101

#37

Post by Pulaski »

You may want to check out a Capital One Secured Card . Your credit line equals your deposit (over 200.00) and it's a very well known company.


https://www.capitalone.com/credit-cards ... astercard/
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Jez
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Re: Investing 101

#38

Post by Jez »

Just checked my score (use Credit Karma). Up 28 point on Equifax and 21 points on TransUnion. Seems to jump a couple of points when I prefer from Fingerhut then pay it off. May order some bath towels.
I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet, strange, I am ungrateful to those teachers.

~Khalil Gibran
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