Debt Dumpers - 2017

[DLgal]

Yes, I do. He is so brilliant and it kills me he works PT scooping ice cream and it's seasonal at that. My only hope is that working a crappy job for min wage helps him see how important it is to further his knowledge and get SOME kind of job skills.
He is considering joining the Navy. Dh says of all the military branches, that is probably the safest and there are things he can go to school for there that can transfer into civilian world.
Omg, the worrying never ends.

My younger ds, still in HS, wants no parts of college and says he wants to be a plumber. My BIL is a contractor and while out to dinner last night he told me when he needs a plumber on a job, he pays $125/hr.
Zoinks!
The good thing about that is once he is accepted into an apprenticeship, he gets paid to work and attend classes. Pay is low in the beginning of course but still way higher than min wage and we don't end up with loans.

Have your son look into the Air Force. Lots of opportunities for brilliant minds there. Navy probably wouldn't be ideal...lots of time on ships in war zones...and not too many technical specialties. The Air Force is the most "luxe" branch....they have all the money.

 

[EilonwyWanderer]

As someone who is helping to put her nearly 40 year old husband through college for an undergraduate degree right now--make them get a degree or go into a trade! The job market SUCKS when you're older and don't have a degree! First-contact for HR is automated for most places and tons of entry level jobs ask for a college degree. Before your resume even gets seen if you can't check that degree box it gets tossed. It's insane.

And keep in mind there are LOTS of distance options they can do! Even Harvard has a night school and it's cheaper than going full time

 

[Jen and Ashwin]

Have your son look into the Air Force. Lots of opportunities for brilliant minds there. Navy probably wouldn't be ideal...lots of time on ships in war zones...and not too many technical specialties. The Air Force is the most "luxe" branch....they have all the money.

One of my cousins just joined the Air Force last fall and applied into the administrative branch. She can actually get credit towards a bachelors degree while serving. Her goal is to eventually go to law school. I am very proud of her for making this choice. She is the youngest of 3 and her two older siblings didn't do much to build a career or get an education. My aunt, retired from the navy, doesn't have the resources to help pay for college for her children. My cousin is a lot more ambitious than her siblings and the Air Force is going to give her the opportunities to accomplish her goals without needing support from her parents. If your son is considering military service and is more technologically inclined, I think the Air Force is the way to go.

 

[MrsTurnerLovesDisney]

Not to burst your bubble but $15k is what ds20's college cost for 1 semester, not including room & board which was around $10k/year. Yes, there are cheaper options but not all schools offer the same majors and this was relatively close to home (1 hour drive) and offered what he wanted.
I would expect it to at least double in 15 years.
We looked into Rutgers and the cost more than quadrupled since I attended in the mid 80's.
Still was cheaper than the school ds chose but it didn't offer his desired major.

For babies being born now, I would venture to guess $200k would be good for kids 20 yrs from now for 4 years of undergrad.

Just saying...

I actually probably won't push college for my daughter but more of a trade.

$15k is great amount to save considering I had none saved for me.
Additionally I live in a college town a big college at that so she would live at home if she attended that college.

I know it's not much in the eyes of folks going to BIG name colleges but our local college is one of the highest ranked in the state and considering DH and I only bring home about $37k a year we are happy to have a starting point.

 

[Jen and Ashwin]

I actually probably won't push college for my daughter but more of a trade.

$15k is great amount to save considering I had none saved for me.
Additionally I live in a college town a big college at that so she would live at home if she attended that college.

I know it's not much in the eyes of folks going to BIG name colleges but our local college is one of the highest ranked in the state and considering DH and I only bring home about $37k a year we are happy to have a starting point.

$15k can go a long way towards an associate's degree or trade school expenses. I think that any amount of savings towards post-high school career development is really great. Don't let high college costs discourage you.

 

[Ngwira]

I would say, make sure that you are contributing enough at work for any kind of match that your employer offers. I am lucky in that I contribute 5% of my income to my 403(b) and the university matches with 10%, so that puts us at 15% of income from the get go. This money is tax advantaged, thus it reduces our overall income on our tax returns each year. But that means that we will pay taxes on it when we withdraw it after retirement. Our overall goal is to save 20% of income, since that will likely ensure enough money at retirement to maintain our standard of living, even if market returns are just mediocre over our careers. To get the extra 5%, I am contributing to a Roth IRA. This account is not tax advantaged, meaning that I am putting in money that I have already paid taxes on but that means that when I withdraw the money after retirement, I don't have to pay any taxes later. I think that in the long run, it will be good to have both types of accounts so that we can take advantage of the different benefits to help reduce our taxes later on in retirement. Starting this year, I am now capping my Roth IRA contributions ($5500 per year, since I am under 50).

DH will have been at his job for one year starting in September, so he will start getting the 10% income match for his 403(b) too. And before the end of the year, I would like to open a Roth IRA for him as well so that we can up our retirement savings to be a true 20% of our combined salaries.

As for the kid's college savings accounts, it is a good goal, but I would hold off contributing money towards those until you are putting away at least 10-15% of your income towards retirement savings first. This is especially important given that your DH is much closer to retirement than you are. I would definitely still open 529 accounts for each of your children and encourage family and friends to contribute to these accounts for your children's birthdays or holidays. This is exactly what I plan to do for our kids, since honestly, kids can only have so many toys and clothes, etc. You will need to do some research on your state's 529 account to make sure that it is a good plan. If your state plan isn't that great, you can always open a non-resident account for another state, which doesn't put any restrictions on how the money can be saved or used later. Michigan's plan is very highly rated and is administered by the well regarded company, TIAA, which is the same company that runs my 403(b). They offer good investment options with very low fees. It also will give us a state income tax reduction, which will be helpful. For those reasons, I plan to open DD's 529 account in Michigan. But if our state plan wasn't that great, I would have looked for a great plan in another state.

Check out this page to see your state's plan: http://www.savingforcollege.com/529_plan_details/

Thanks to your post, I upped my contribution to my 401k.

 

[AmyAnne]

I know it's not much in the eyes of folks going to BIG name colleges but our local college is one of the highest ranked in the state and considering DH and I only bring home about $37k a year we are happy to have a starting point.

Keep in mind that "big name colleges" can turn out to be less expensive than a local, in-state option. This was the case for all of my kids--our in-state public schools only offer a few high-dollar merit awards, so my kids would have paid almost full price. They all ended up at private schools that offered them enough merit aid that the bottom-line cost was actually less than if they had chosen an in-state public school. Now, if they could have lived at home and attended the in-state school, that would have been a different financial equation, but that wasn't an option for them.

 

[ruadisneyfan2]

Have your son look into the Air Force. Lots of opportunities for brilliant minds there. Navy probably wouldn't be ideal...lots of time on ships in war zones...and not too many technical specialties. The Air Force is the most "luxe" branch....they have all the money.

He loves, loves, loves being at sea. Don't know where he got that from. (cough, cough)

 

[DLgal]

He loves, loves, loves being at sea. Don't know where he got that from. (cough, cough)

Navy ships are a FAR cry from cruise ships... LOL!

 

[ruadisneyfan2]

Navy ships are a FAR cry from cruise ships... LOL!

Yes, he is aware.
I meant it more like some people dont want any parts of being in the ocean where they cant see land, getting seasick, etc.

 

[fifthdimensiondweller]

As far as college savings- while it's very important to be realistic about what college will cost for your child- no amount is too little to save! My parents were able to help me a lot because I was an only child. DH's parents didn't save anything for any of their kids because they relied on scholarships and none of them got any significant ones, even as honor students with stacked schedules and extracurriculars! It's much more competitive than it was even 10, 15 years ago and will only get more so. I don't know how much longer it can go on like this, since at this rate a LOT of young people entering the workforce can't afford to put any money back into the economy after loans and bills! DH and i consider ourselves lucky because we can still afford to travel about once a year and even we struggle to make that happen! I really hope the next generation has it easier!

As far as how this month is going for us, June got off to a rocky start. We had to put $350 towards the vet for our cat, he had his routine checkup and needs $220 in dental work done. Then our out to eat budget got blown due to DH's birthday (didn't plan well enough in advance for it) and us getting food while going to/ coming from my appointments, etc. I have HAD IT. With going out to eat ruining my budget. Why am I paying , double, triple, for meals I could make at home?! That's not happening again! Then a very good friend from college asked me to be in her wedding, which was supposed to be in 2019. She pushed it up to 2018 so, being 16 weeks pregnant, I had to rush out and get my bridesmaid dress ($80) before I got too big to get it fitted properly. Then, DH got a medical bill for an ER visit he had in November. UGH.

Plus, we had just put a deposit down on our 3 night Disney cruise for next September (2018) of $300 because, ya know, we didn't forsee the other $500 in expenses around the corner! We can cancel that if we need to, but we should be ok. I try not to cancel out travel since we typically only get to go away maybe 4 nights a year on average and it's really the one thing that makes all the sacrifices for debt dumping worth it!

 

[DisneyMandC]

Well thought I was going to be coming on here to talk about how I waaaaay overspent this weekend, but it all worked out. DH and I headed out of state for our horse's first show. I knew it would be expensive, but I got down there and had a little bit of sticker shock when my horse also ended up needing a vet at one point. Nothing that can be done about it, just one of those things and obviously I'm not going to deny my horse necessary veterinary attention. Between the vet bill and our entry fees I was feeling a little pressed for cash by the time we got home last night. However, my trainers stayed at the show until today to show my horse in two more classes, and boy am I glad they did. My horse ended up winning us $1200!! So after our trainer's 10% cut, our winnings covered all of our entry fees as well as our vet bill! Not to mention that my horse won his class the first time he's ever been shown, so I would be happy enough with that without any money

 

[pblack]

Well thought I was going to be coming on here to talk about how I waaaaay overspent this weekend, but it all worked out. DH and I headed out of state for our horse's first show. I knew it would be expensive, but I got down there and had a little bit of sticker shock when my horse also ended up needing a vet at one point. Nothing that can be done about it, just one of those things and obviously I'm not going to deny my horse necessary veterinary attention. Between the vet bill and our entry fees I was feeling a little pressed for cash by the time we got home last night. However, my trainers stayed at the show until today to show my horse in two more classes, and boy am I glad they did. My horse ended up winning us $1200!! So after our trainer's 10% cut, our winnings covered all of our entry fees as well as our vet bill! Not to mention that my horse won his class the first time he's ever been shown, so I would be happy enough with that without any money

Congrats on your horse! Sounds like this show worked out better for you then some of your previous ones.

 

[DnA2010]

Well thought I was going to be coming on here to talk about how I waaaaay overspent this weekend, but it all worked out. DH and I headed out of state for our horse's first show. I knew it would be expensive, but I got down there and had a little bit of sticker shock when my horse also ended up needing a vet at one point. Nothing that can be done about it, just one of those things and obviously I'm not going to deny my horse necessary veterinary attention. Between the vet bill and our entry fees I was feeling a little pressed for cash by the time we got home last night. However, my trainers stayed at the show until today to show my horse in two more classes, and boy am I glad they did. My horse ended up winning us $1200!! So after our trainer's 10% cut, our winnings covered all of our entry fees as well as our vet bill! Not to mention that my horse won his class the first time he's ever been shown, so I would be happy enough with that without any money

Wooohoo! I can't remember what you show now? Was it reining?

 

[DisneyMandC]

Wooohoo! I can't remember what you show now? Was it reining?

I show in hunter events on the AQHA circuit

 

[DnA2010]

I show in hunter events on the AQHA circuit

ah right! has AQHA finally got their noses off the ground? My hubby showed western pleasure as a kid and was mortified when I showed him videos of how the horses go now! All lame looking and noses in the dirt! I was just at a show on the weekend as my pony is on full lease to a nice H/J barn and it's nice to see the H/J hunters going with pace and expression- as someone who has hunted in England, this crazy discipline we've created in NA is quite the joke over in Europe, this manufactured gait would have you left in the dust on a real hunt. I know the George Morris types are pushing for hunters to get moving and not to be penalized for showing life when they move and jump. Poll level with the wither now?

 

[dayvewc]

I'm back (briefly). Finished the really big trip out west with my mom, it was a great trip. She really enjoyed seeing everything. (Went to my sisters in Albuquerque for 4 days, 2 days at the Grand Canyon, 4 days in Vegas, 5 days at Disneyland, 2 days in San Diego, 3 days travel to San Antonio with a stop in Phoenix, then a day travel home) She raved about Disney and flowers and seeing the Pacific and saguaro cactus and wasn't impressed with Vegas. She spent so much time talking about all the different flowers she saw, that I have (90%) convinced her to go to EPCOTs Flower & Garden festival next spring.

The trip was mostly pre-paid for, but there were some souvenirs and gifts I picked up, but overall came back well under the budget I was hoping to spend.

But, while we were traveling, I got an email from my homeowners insurance, and they want a few repairs done around the house. I haven't had a chance to price it out yet, but I'm hoping I can do most of the work myself and only have to buy the supplies (have to replace a row of shingles on the edge of the house, cut down a small tree that is too close to the house, and replace about 4 siding panels).

I've been trying to read and catch up here, so congrats to the ones that are being successful (and having a princess in a few more months) and I feel you for the ones that are having difficulties, but we are all here to support each other.

PS. If anyone here is DVC members and might have an extra 10 points you'd be willing to sell/rent/loan/transfer, please message me.

 

[pblack]

I'm back (briefly). Finished the really big trip out west with my mom, it was a great trip. She really enjoyed seeing everything. (Went to my sisters in Albuquerque for 4 days, 2 days at the Grand Canyon, 4 days in Vegas, 5 days at Disneyland, 2 days in San Diego, 3 days travel to San Antonio with a stop in Phoenix, then a day travel home) She raved about Disney and flowers and seeing the Pacific and saguaro cactus and wasn't impressed with Vegas. She spent so much time talking about all the different flowers she saw, that I have (90%) convinced her to go to EPCOTs Flower & Garden festival next spring.

Sounds like you and your mom had a blast!

 

[DnA2010]

Welcome back! Sounds like a fantastic trip!

I'm back (briefly). Finished the really big trip out west with my mom, it was a great trip. She really enjoyed seeing everything. (Went to my sisters in Albuquerque for 4 days, 2 days at the Grand Canyon, 4 days in Vegas, 5 days at Disneyland, 2 days in San Diego, 3 days travel to San Antonio with a stop in Phoenix, then a day travel home) She raved about Disney and flowers and seeing the Pacific and saguaro cactus and wasn't impressed with Vegas. She spent so much time talking about all the different flowers she saw, that I have (90%) convinced her to go to EPCOTs Flower & Garden festival next spring.

The trip was mostly pre-paid for, but there were some souvenirs and gifts I picked up, but overall came back well under the budget I was hoping to spend.

But, while we were traveling, I got an email from my homeowners insurance, and they want a few repairs done around the house. I haven't had a chance to price it out yet, but I'm hoping I can do most of the work myself and only have to buy the supplies (have to replace a row of shingles on the edge of the house, cut down a small tree that is too close to the house, and replace about 4 siding panels).

I've been trying to read and catch up here, so congrats to the ones that are being successful (and having a princess in a few more months) and I feel you for the ones that are having difficulties, but we are all here to support each other.

PS. If anyone here is DVC members and might have an extra 10 points you'd be willing to sell/rent/loan/transfer, please message me.

 

[dayvewc]

Sounds like you and your mom had a blast!

We did. She did especially. She kept telling me how happy she was to get to see things she never thought she'd be able to see.

Welcome back! Sounds like a fantastic trip!

Thanks. It was.