Comments on: My Financial Priorities http://www.llamamoney.com/my-financial-priorities/ It's not just money - it's Llama Money Mon, 29 Aug 2011 22:29:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Llama Money http://www.llamamoney.com/my-financial-priorities/comment-page-1/#comment-914 Llama Money Thu, 04 Sep 2008 02:48:18 +0000 http://www.llamamoney.com/my-financial-priorities/#comment-914 LAL - there's a valid argument for choosing to do things your way. Previously I had the same viewpoint - after all, you can *generally* get higher returns from investing than you will pay on most debts. If you're child free ( i have no idea if you are? ), then I say go for it. You sound like you've planned it out and aren't doing things halfhazardly. Me, I'm going to stick with the getting rid of debt plan. I've got a kid at home who depends on me, and my wife will be quitting work soon. Only having one income and a ton of debt will be stressful. If I can reduce that debt load, then I'll feel less stressed, and can enjoy life more. After that, it's time to invest like crazy ;) LAL – there’s a valid argument for choosing to do things your way. Previously I had the same viewpoint – after all, you can *generally* get higher returns from investing than you will pay on most debts. If you’re child free ( i have no idea if you are? ), then I say go for it. You sound like you’ve planned it out and aren’t doing things halfhazardly.

Me, I’m going to stick with the getting rid of debt plan. I’ve got a kid at home who depends on me, and my wife will be quitting work soon. Only having one income and a ton of debt will be stressful. If I can reduce that debt load, then I’ll feel less stressed, and can enjoy life more. After that, it’s time to invest like crazy ;)

]]> By: LAL http://www.llamamoney.com/my-financial-priorities/comment-page-1/#comment-877 LAL Wed, 03 Sep 2008 04:05:31 +0000 http://www.llamamoney.com/my-financial-priorities/#comment-877 I am focusing on investing. We have taken out $25.5k in Student Loans over the past three years now. We invest in our 401k and IRAs because the loans are deferred until my DH is done and we need the tax break. We are 29 and 31 and of course have a mortgage. We also have only had 1 cars in our lives now 8 and 9 years old. I think we're pretty frugal and reasonable. So we're leveraging ourselves because my DH is doing a part-time MBA, and we're pretty sure when he's done his income will go up a lot making paying off the student loan debt easy. I am focusing on investing. We have taken out $25.5k in Student Loans over the past three years now. We invest in our 401k and IRAs because the loans are deferred until my DH is done and we need the tax break.

We are 29 and 31 and of course have a mortgage. We also have only had 1 cars in our lives now 8 and 9 years old. I think we’re pretty frugal and reasonable.

So we’re leveraging ourselves because my DH is doing a part-time MBA, and we’re pretty sure when he’s done his income will go up a lot making paying off the student loan debt easy.

]]> By: RJ http://www.llamamoney.com/my-financial-priorities/comment-page-1/#comment-306 RJ Tue, 08 Apr 2008 15:56:40 +0000 http://www.llamamoney.com/my-financial-priorities/#comment-306 Blasphemous indeed :) But you're right, if you have many different kinds of debt managing all of it as well as investing can be a chore(Talk about your balancing acts). That's why I'm examining my monthly obligations to see where I can simplify, substitute, or downright eliminate them. It's going to be an ongoing thing for sure, I don't even think of it as a money-saving hobby, rather an investment in my future :) Blasphemous indeed :)
But you’re right, if you have many different kinds of debt managing all of it as well as investing can be a chore(Talk about your balancing acts). That’s why I’m examining my monthly obligations to see where I can simplify, substitute, or downright eliminate them. It’s going to be an ongoing thing for sure, I don’t even think of it as a money-saving hobby, rather an investment in my future :)

]]> By: Llama Money http://www.llamamoney.com/my-financial-priorities/comment-page-1/#comment-302 Llama Money Tue, 08 Apr 2008 02:38:11 +0000 http://www.llamamoney.com/my-financial-priorities/#comment-302 If you have double digit debt, then that definitely takes priority over everything else. Some may disagree, but I'd say it takes priority even over retirement savings ( blasphemy! ). Fortunately all my debt is in the low single digits. My problem is just that there's so damn much of it! My monthly obligations are simply outrageous, and don't allow me much flexibility. Too bad that means my investments will be light for now, but I think I'll be happier going this route. If you have double digit debt, then that definitely takes priority over everything else. Some may disagree, but I’d say it takes priority even over retirement savings ( blasphemy! ).

Fortunately all my debt is in the low single digits. My problem is just that there’s so damn much of it! My monthly obligations are simply outrageous, and don’t allow me much flexibility. Too bad that means my investments will be light for now, but I think I’ll be happier going this route.

]]> By: RJ http://www.llamamoney.com/my-financial-priorities/comment-page-1/#comment-292 RJ Mon, 07 Apr 2008 17:23:14 +0000 http://www.llamamoney.com/my-financial-priorities/#comment-292 I'm focusing on paying my debt off first. In order to get into the rich house, I have to getting out of the poorhouse is my first goal(shameless plug :) It really doesn't make sense to invest in things that get you single digit returns (8 percent is asking too much these days)when you have debt that has double digit interest. In the end you wind up with a negative rate on your return. It's better to pay of the debt first, then once it's paid off then concentrate on investing. There are some exceptions though. You're retirement accounts for one. I'd definitely contribute to the retirement fund first up to the full company match. IRA's are a gray area for me right now though. On one hand you want to use all available resources to pay off your debt (high interest private student loans in my situation). But then again each year you don't contribute to an IRA is opportunity lost in terms of compund interest. Damn if you do, damn if you don't I suppose :) I’m focusing on paying my debt off first. In order to get into the rich house, I have to getting out of the poorhouse is my first goal(shameless plug :)
It really doesn’t make sense to invest in things that get you single digit returns (8 percent is asking too much these days)when you have debt that has double digit interest. In the end you wind up with a negative rate on your return. It’s better to pay of the debt first, then once it’s paid off then concentrate on investing.
There are some exceptions though. You’re retirement accounts for one. I’d definitely contribute to the retirement fund first up to the full company match. IRA’s are a gray area for me right now though. On one hand you want to use all available resources to pay off your debt (high interest private student loans in my situation). But then again each year you don’t contribute to an IRA is opportunity lost in terms of compund interest. Damn if you do, damn if you don’t I suppose :)

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