Entries in debt (14)

Sunday
08Mar2009

Net Worth Update - February 2009

DateSun, March 8, 2009

Here's the DH net worth update for February 2009:

February was a slow cold month.  And some of that rubbed off on my finances.  My investments took a VERY big hit, but as I mentioned before, I'm quite alright with that. 

You'll also see quite a jump in our vehicle assets.  No, we didn't add a widescreen TV to one of our cars.  Instead, I went back through Kelley Blue Book to revalue our cars.  This is something I typically do once every few months.  There tends to be a gap because I take an aggressive depreciation on these assets on a monthly basis.

Here's to hoping for a stronger March!

 

 

CommentPost a Comment | |
by Authorkeith tagged , , , , , in
Saturday
28Feb2009

Starting My Emergency Fund

DateSat, February 28, 2009

Now that I'm a parent, one of my major goals this year is to establish an emergency fund.  There are many different philosophies on the best size, but the general rule of thumb is to set aside 3 months expenses and keep it liquid. 

Unfortunately, that figure is just too high for me to be comfortable with.  That figure would be up near $20,000!  And given that my wife and I are in pretty stable fields and have decent job security, I would rather focus on paying down debt before I reach that high of a figure.

Instead, what I'd like to do is reach about half of that over the course of the year.  My current emergency fund level is sitting at a paltry $2000, so I have a long way to go.  And given how tight funds are right now, this $10,000 figure is probably unrealistic.  Regardless, I'm going to shoot for it.  If I come up a bit short, I'll finish up in 2010.

 

CommentPost a Comment | |
by Authorkeith tagged , , , in
Friday
27Feb2009

Why I Didn't Buy A $50 Dollar Raffle For A Million Dollar House

DateFri, February 27, 2009

Just after the new year, I found myself drawn into the website: fiftydollarhouse.com. 

My wife and I have been talking about getting rid of our house in hopes for something bigger.  Unfortunately, given that we bought at the peak of the market back in 2006, we're now upside-down in our mortgage.  This, coupled with the VERY low rent rates, leaves us with very little options.

This is what made the website so intriguing.  For $50 (and who can't come up with $50?), I could own my dream home in a great location.  So what could it hurt?  Thankfully, I didn't make any quick decisions and instead, played a quick numbers game.

 

The house is valued at: $1,250,000

Guessing my gift tax would be roughly 40% (or $500,000)

Annual Property Taxes (in 2008): $4499 (or  $375 a month)

Roughly Upside-down in our current mortgage by: $50,000

equals...

A guaranteed mortgage I'd have to take out immediately for my $50 house.  And best of all, I wouldn't be able to afford repayment on such a high mortgage.  So, my only option would be to immediately unload the house - which is not something I'd want to be forced to do in a buyers market. While I'm sure I'd still come out ahead, it wouldn't be close to turning $50 into $1.25 million.

I gave the computer screen a quick grin and closed my web browser.

 

Note: looks like the winners are trying to unload the house - though for different reasons.

CommentPost a Comment | |
by Authorkeith tagged , , , , , in
Monday
23Feb2009

Top 10 Worst Financial Habits

DateMon, February 23, 2009

Some of these are common sense, but often we still fail to avoid them anyway.  I found it to be a good reminder, so I thought I'd post it here for everyone else.

The biggest one for me?

6. Missing Payments - It’s one thing to not have the money to pay; it’s another to forget to pay. Dumb, Dumb and Dumb!

 

[Source: thetruthofcredit.com]

Comment1 Comment | |
by Authorkeith tagged , , , , , , , in
Thursday
19Feb2009

Seven Ways The Stimulus Package Could Help You

DateThu, February 19, 2009
  1. Wage Earners & the Self-Employed
  2. First-Time Homebuyers - Unfortunately, that $15,000 credit was dropped from the final package.  I am in no way an economist, but I think this would have gone a long way to get folks buying houses again.  But in any case, there's still an $8,000 credit if you're buying your first house (as always, restrictions apply).  Hopefully this will make a difference.  I'm tired of seeing houses for sale in my neighborhood for months and months.  I'm tired of seeing the eviction stickers.  I'm tired of seeing the foreclosures and subsequent housing auctions.
  3. Home-Owners Looking to Improve Home Energy-Efficiency - Here's one that looks like it'll apply directly to me.  I've been putting off replacing the weather stripping around the front door (it's quite drafty).  And I'd LOVE to put in one of those on-demand water heaters - but I'll have to do a cost-benefit analysis on that one.  When all is said and done, I probably won't get much money back in the form of tax credits, but hey.. it's better than nothing.
  4. Vehicle Buyers - I definitely won't fall into this bucket.  It'll be awhile before my wife or I buy a new car again.  But for those who do, being able to deduct all of those taxes will certainly be a nice help come next year.
  5. Students - I'm happy to see some nice credits to help bring down the cost of college.  I know I'll be paying off student loans for MANY years to come.
  6. The Unemployed - All I can say, is that I'm unbelievably greatful that I'm in a VERY secure position at work.  I just don't know what I'd do otherwise.  I'm not to the point where my emergency fund will float us for any lengthy period of time should I have to look for a new job.  And I'm not planning on building that up too high until I can get some debts paid down.
  7. Middle Classers Scheduled to Get an AMT Tax Hit


[Source: mint.com]

CommentPost a Comment | |
by Authorkeith tagged , , in
Page 1 2 3 Next 5 Entries »