November 2, 2010

  • A Financial Post...

    It's unfortunate that whether one has money or not, it's always on the brain.
    Here are the Facts:
    a) I'm almost "out of debt." I can pay off my Target Visa without flinching every month (and it's usually not a small bill), and I have one other credit card that's barely over $1K left. I paid off my other card this last summer using my summer school money. In addition to all that, my rent is extremely low, and I haven't had a car payment for almost two years (I think).
    b) I've saved up a lot - A LOT - in the last few months; I had money in May when we thought we were going to buy a home, and now that has just increased.
    c) As mentioned, the bug is paid off but... she's over 10-years-old now. And, she's a bug - I would like to get through snow better this winter, and I've decided (85% sure) that she should be stored for the winters now. [p.s. The sentimental value I hold for her outweighs the money I'd get for a "trade-in." Plus, with my savings, I can put money down.]

    Here are my Financial Ponderings at this Time, especially after reading This:
    --- Do I absolutely need a new(er) vehicle? I have my eye on a beautiful black Ford Edge (2008), but the payments on it could easily be in the upper 300s per month. I can afford this quite easily, but do I need to? I've been told by my mortgage banker person that I could afford an inexpensive home and a vehicle, but... do I need to?
    --- How much longer do we look for a house? Should we "settle"? We've seen some okay ones (do-able ones) in Wahpeton, and after what happened in May, I think the bf & I are more hesitant. Walking away from making offers has been the default for us; however, I still ooh and ahh over homes, and he's skeptical of everything.
    --- Do I/we really need a home right now? Not necessarily (I mean = CHEAP RENT!), but after living away from each other for the last 4 (of the 8 total years together) years, it's probably time to make that jump. AND if I didn't have to drive to Fargo every-other-weekend, that could cut down on my need for a new(er) vehicle too.   p.s. My cat lives with him because I can't have pets. :o (
    --- There are storage issues too. If we found a home, I'd be able to store the bug easily. Without a home, more money is spent on a storage unit per month IF I can find one in town (not that one should get a home just to store vehicles, but it's the trade-off). Then again, with a home near campus, I could store the bug and WALK - no need for another vehicle.

    Side Issues:
    --- I used to be about $10K in debt due to credit cards. Now, I am not, and I have a beefy savings account (plus, I finally moved over my MN retirement monies into an IRA-Roth!), so it freaks me out a bit to SPEND BIG.
    --- Speaking of spending, I've even toned down my shopping at major retail stores; when I feel I need to shop, I hit Savers, Plato's Closet, or Clothes Mentor. Okay, Target too, but it's not like their jeans are $75!
    --- I really, REALLY don't want to be an apartment-dweller for much longer. I want to remodel a house fifteen times like my dad, and I don't want to live feet away from my students.
    --- I would like to have a dog in the near future; therefore, I need a yard.
    --- After I turned 33 in January, during a crappy blizzard, I wanted my 33rd year to be the year of threes = car, home, dog. None of that has occurred. Maybe the blizzard was a sign?
    --- When it comes time to write up holiday cards, I feel I'll have nothing super cool to say. I mean, I potentially might have a chapter in a book coming out; I may be getting into a Ph.D. program; I will probably be getting tenured next year. All future-based things. Even a fact, that I'll be an aunt in January, isn't THIS YEAR. Ugh.

    That last side issue got me thinking last night that everyday can be special. If I get to the end of the year and nothing super special has occurred, I want to at least know that it was a fun year. I mean, I have had fun this year, and maybe I've just put too much pressure on myself to do BIG, GRAND things. Hell, when we lost the house in May, I decided to apply for a Ph.D. program which lead to the Chuck Klosterman book. I purposely gave myself something special to half-ass brag about so I'd have SOMETHING. That's either insane or pathetic or both.

    If you've read this, and you'd like to give me advice or feedback, that'd be super.

Comments (6)

  • Well, you've super-encouraged me in my teaching this semester, and that was fun for me!

    I almost always advocate simpler, cheaper living, so I say that if the bug can get you through the winters, then do not buy something else.  As it regards a house - harder for me to advise, as you're living away from loved ones and having a house would bringer you closer.

  • @sonnetjoy - Thank you for the compliment...!
    The bug could probably get through this winter... (I've been saying that for a few winters now, and she's a trooper), but I want to drive her around for many years to come. So, I'd like to store her and have her forever. She's a symbol of many things for me, and I want to drive her when I'm older. :o )

  • I'm no financial guru, but I've bought two houses and have learned more about the process each time. Most importantly, the more money down when it comes time to buy a house, the better. If you can muster up 20% of the price, you'll avoid paying mortgage insurance, which can add up to $500-1000 (or more) per year. Frugality now will pay off later.

    And though the monthly payments on 30 year mortgages look enticingly low, do what you can to get a 20-, 15-, or 10-year loan if you really like the house and want to stay in it. Rates are better and the amount of money you'll save on total interest is amazing. There's not very many chances to make $50k without doing anything, but if you go with a shorter loan, you will.

  • @Jake - Wonderful advice. Thank you. Saving up for a 20% down payment is do-able (especially on a $75-100K home - that's how cheap they come in southeast North Dakota!) and I've had others say that shooting for a 15-year loan is not a bad idea too. Maybe waiting, even after already waiting two-ish years, will allow us to save more and purchase smarter. Again, thank you. It's nice to hear from non-bankers and non-relatives/loved ones; you're more objective!

  • @teacher47 - I think it does sound like time for the two of you to find a house. I am 30, and I feel it's time for me as well to settle down. I would do so for sure if I knew I had tenure, and pick something near to the school to cut down on harsh travel issues. Perhaps you and he would feel better in a "rent-to-own" type of house? Where you can put some of the down payment towards a house purchase?

  • I truly relish whilst I go through your blogs and articles.
    lån penge billigt

Comments are closed.

Post a Comment