Date: Wed, 5 May 2004 09:46:00 CST
From: "ks" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Need to start saving/investing!
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	V4eeOWcy5QwKQSrDIlH/DrcXiCbVAfSYsnl0QkskViK5yuJdG4M3zw==
	=GXrb


"ks"  wrote in message news:...
> > 1) owning a home while living in sin is a bad idea.  She doesn't
> > have any ownership despite contributing to the house.  If you die
> > or leave, she is simply out in the cold.  No one should leave them-
> > selves unprotected like this.
>
Actually I added her to the title when we refinanced last week.
>
> > 2) your re-fi plan could blow up in your face.  Interest rates
> > are on the rise, and Greenspan has indicated that they will go up
> > considerably in the next 18 months.  With two variable lines of
> > mortgage credit, you could see your payments go way up.  You should
> > be looking at a fixed rate loan.
>
The loan we got is fixed for 5 years then adjustable after that.  2nd is
adjustable, but we have a small balance.
>
> > 3) you cannot even afford the place you have right now, let alone
> > buying something new in 5 years.  You are in over your head, as
> > indicated by having debt and not being able to save.  If anything,
> > you should plan to sell this house and buy something that is more
> > in your price range.
>
Not sure why you feel we can't afford this house.  I've owned if for three
years... and in those 3 years my unsecured debt has actually gone down.  I'd
say I'm doing better than when I was living in my apartment.  I don't feel
I'm "house poor" by any means.  Like I said I have spent too much on some
hobbies which has been the major reason for the CC debt.  I have throttled
back consideribly and feel my spending is under control now.  I have budget
and try religiously to stick to it.
>
> > 4) if you are broke and living in sin, why spend thousands on an
> > extravagent wedding?  How about taking a weekend flyer to Las Vegas
> > and doing it for $1000, and not going an additional $12K in debt.
> > Later on, when you are back on your financial feet, then have some
> > kind of 2nd wedding.

I am going to vegas in a few weeks... It's an option, but not what either of
us wants.  Point taken though, we still have a full year to save for the
wedding we both want.

> > OK, you have a $4700 debt at 10%, which is an extremely high rate
> > of interest, and you have $5500 sitting earning almost nothing.
> > Do you see a problem in search of a solution here?  Pay off the
> > $4700, and you will save $500 a year in interest.  That is like
> > free money.
>
We thought about that, but didn't do it because we didn't want to touch our
'wedding money'.  I am on pace to have this paid off by november, I
calculate it to come out to around $225 in interest at the most by then.
Yes, it's like flushing $$ down the toilet, so I will reconsider paying it
off now and then rebuilding the wedding fund with what I was paying towards
the CC.

> > You have just identified the crux of your problem.  You are spending
> > far more than you earn.  You have a house that you cannot afford.
> > You have a very expensive luxury car that you cannot afford.  You
> > are planning a social event (wedding) that you cannot afford.  You
> > have all these hobbies that you cannot afford.  All you are doing
> > is spend, spend, spend, spend, and you do not have the earnings
> > to do that.  Something has to give here, and if you keep going
> > this way, it is going to be either bankruptcy or foreclosure.
>
How is this ending in bankruptcy when ALL of my debt is on its way down.  CC
debt will be paid off in November.  Wedding will be saved for and paid for
IN CASH by May.  After that we can put our resources into getting rid of my
car payment early and paying of the small 2nd mortgage.  I'm not sure
they'll forclose on a house I've NEVER made a late payment on.  Like I said,
I think my spending WAS a problem.  I think I've been a lot more responsible
and sensible in the past year.
>
> > Spend, spend, spend, spend.  Wake up dude...you cannot afford to
> > take a honeymoon right now!  You are broke!  You are in debt,
> > and don't even have any life insurance, emergency fund, and
> > only a pitance in retirment savings.  Your priorities are all
> > screwed up.  Wake up and get with the program.
>
I am trying to get with the program.  That is why I have cut my debt in more
than half, and plan to finish paying it off (other than my car) in a few
months.
>
> > Like I said earlier, you have a spending problem.  You are a money
> > drunk.  You cannot help spending every dime you have.  That needs
> > to change.  You need to go on a money diet.
>
That is changing, that is why I'm actually getting debt paid off instead of
incurring more, and trying to make a plan for paying for a wedding (yes
rather expensive) in CASH, and then starting to get some reserve savings
together.
>
> > Finally, you need to get married to that woman and stop living in
> > sin.
>
I caught the 'living in sin' the first 8 times you mentioned it.