| Looking to start a new life |
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freshstart
New Member
Cash: $ 0.65
Posts: 3
Joined: 27 Jul 2005
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| Looking to start a new life |
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Hi There:
First off, i did a google search for finance forums and came across several, but this one seemed to be the best of the best. So hopefully, I can learn from all you experienced investors. Here is my current situation:
I am 1 year into my 5 yr Chapter 13 bankruptcy. My monthly pmts are $600. My annual salary is $80,000. I have 1 child. His monthly daycare is $600. Because of the bankruptcy, my only monthly expenses other than the ones above are utilities, car insurance, etc...that would amount to roughly $500. I have no mortgage/rent due to family.
What would you suggest would be the best way to start my road back to recovery?
Thanks to everyone
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Wed Jul 27, 2005 8:00 pm |
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sayyes
Preferred Member
Cash: $ 11.60
Posts: 143
Joined: 02 Jul 2005
Location: Newport, RI
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Hello freshstart,
I have created a website that will walk you through everything you need to do to get on track. Visit it here:
http://www.ManageYourDollars.com
Ignore the items that don't pertain to you (for instance, it doesn't sound like you have credit card debt) but follow the other advice.
It also has a bunch of money saving tips that you can follow as well.
If you have any questions feel free to contact me.
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Wed Jul 27, 2005 8:14 pm |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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I would start to build up a nest egg with as much as possible with what you have left over. You will want to have an emergency fund of about 6 months of income. The "emergency" fund will also help you to get a credit card (secured) so you can build up a good credit history. Use it wisely!
$$$ Debt Elimination
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Wed Jul 27, 2005 8:34 pm |
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PFFrank
Member
Cash: $ 3.00
Posts: 15
Joined: 22 Jul 2005
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quote:
Originally posted by sayyes
Hello freshstart,
I have created a website that will walk you through everything you need to do to get on track. Visit it here:
http://www.ManageYourDollars.com
I checked out your site. It has some useful advice.
The one thing that stood out at me though was your "ladder of success" under the "Save More" section. I was wondering your logic with the order of rungs 1 (401k) and 2 (short-term savings). I've always been a firm believer of having 4-6 months of emergency savings before ANY other savings/investments. I understand the "free money" logic that goes along with an employer matched contribution to one's 401k. But, if one were to max out their 401k prior to properly funding their emergency savings, they could be asking for trouble. With the economy and job-market still so volatile, I think having 6 months stashed in a liquid account is essential.
Thoughts?
PFFrank.com
Personal Finance, Frankly Speaking
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Thu Jul 28, 2005 6:08 pm |
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sayyes
Preferred Member
Cash: $ 11.60
Posts: 143
Joined: 02 Jul 2005
Location: Newport, RI
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PFFrank,
I agree that one should not "max out" their 401(k) before obtaining a short-term savings account, but I do feel that people should be contributing enough to take advantage of their employer's match.
In the end, it depends on the person. If you feel more comfortable having 6 months of expenses in a liquid account, then that is the right thing for you to do. If I did that, I would be kicking myself that I was missing out on some of my "salary".
I do think it's a good topic for debate, however. Maybe we should open up a new thread on the subject and see what people think...
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Thu Jul 28, 2005 6:23 pm |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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I generally agree, but being in a double income household helps. Since my wife and I have each others income to fall back on an emergency fund is not as crucial. For single income households it is absolutely needed.
$$$ Debt Elimination
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Fri Jul 29, 2005 7:06 pm |
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