r/personalfinance

I’m a current college student, earning about 1.2k a month with a few thousand saved and no payments as far as school or rent (cause of my scholarship). I’ve looked for a used car for a while now, within $12k, but there aren’t many options. The only cars within this budget are old high mileage beaters that will probably cost a lot in repairs, so I’m wondering if it’d be a smart idea to lease a car for two years. I do understand that I am kind of throwing that $10-12k dollars away, but I need a car at this point and think it’d be more reliable to lease.

So about 3-4 years ago, I sold my Cadillac sts 2008 due to the transfer case taking a dump. Wish I could’ve saved it but it would’ve cost more money to fix than to just buy a whole other car. Anyways, I got pulled over by a cop not to long ago,(he let me go), be he told me I have two cars under my name. The Cadillac. Me and my buddy were joking around saying I could technically go pick it up sense it’s still under my name legally. Sounds bad, but I have no way of contacting him as well. I can’t find him on messenger becuase we met through marketplace. I rather just have him change it. But he would’ve by now. Any suggestions? Could this affect me in the future?

I (26M) currently own a 2012 Toyota Camry with about 230000 miles. I’m currently been thinking about it is financially worth it to just replace with a new car. The work that has currently been done within 365 days with approximate pricing

⁠1. Computer needed to be replaced. Between the misdiagnoses from Toyota along with the computer, the total spend was around $4000. ( new ignition coils, computer, oil valve, fees from diagnostic.)
2.New tires. Total spend around $900
3.New brakes, calipers and rotors around $2000
4.Replaced alternator and fixed oil leak around $2000 ( note that the alternator was a misdiagnosis and the car still has issues)
5.Most recent quote which hasn’t been paid is $1300 to $2000 for a new catalytic converter. Cars engine has been shutting off unexpectedly.
Estimated total:$10900

I have dumped a lot of money into this car and it feels like economically it might not be good to continue. My plan was to either fix the car by paying $2000 for the catalytic converter or buy a 2025 Camry and try to drive it for as long as possible.

I currently don’t have a lot of cash on hand but I do have and emergency fund and 100,000 in a taxable brokerage. If I did buy a new car, I would be selling out of stocks to pay cash.

Any recommendations and thoughts would be helpful.

I find money management overwhelming, so I'm looking for simplified option to open an HSA and HYSA with the same bank. I looked at the Fidelity Cash Management Account alternative to an HYSA, but wasn't impressed (weaker returns, no FDIC coverage). Are there really no banks offering both genuine HSA and HYSA products?

Edit: Getting schooled on the "weaker returns, no FDIC coverage," part of this post, so please disregard that part if you don't think those concerns would factor into your advice. Just think of this as a post from a new investor who doesn't want to manage 5 different financial statements every month. My inbox is fulllllllllllllllllll.

I recently started a new job selling cars to earn money quickly cause I have a lot of credit card debt. About $9000

My current car is a beater and the transmission is going out, has been for a while and my boss knows this. So I keep talking about upgrading.

My initial plan was to lease something around the $450 range AFTER I had paid off my bills. My boss offered me this, instead of taking money off the car he would buy my car for the cost of my debt. Then I’d lease the car but with no discount. But my payment would be $900 a month. I’m terrified since I’ve never had a car payment. I don’t know if this is a really good offer or-if it would hurt me in the long run

Edit: Okay I’m not doing it. It’s what my gut said but I wanted to ask if there was any financial upside to this. Thank you everyone!

I've got about 5k of credit card debt. It's not ideal, but I think this is a manageable amount and I'd rather get on top of it now before it spirals out of control. I had this card through some tough times where I was unemployed, moving, etc and it's been maxxed out now for a bit. It's hard for me to keep on top of the high interest payment, when all is said and done I'm really only chipping <$50 away at the balance every month with my current payments due to interest. I can afford to allocate a little more to this cause, but I'm wondering if it may be worth it to just close the card entirely.

Truly in my adult life, I've not been the best with credit cards. This is my third one, and my other two I had while I was in college and had to close them after not making payments. The credit history isn't awful, but now I have a full time job that's stable and pays decently well and I feel like if I was to actually start over with a new card fresh I could start healthy habits. But when I've brought up the idea of closing my current card to friends, they tell me I would be better off paying it down even with interest accruing so it doesn't hurt my credit. Ultimately I understand this sentiment, but I'm finding it real hard to get on top of this due to the interest as is and I think it would probably take me a couple years or so more to pay this down if I let it keep accruing. I'd really love to try to zero out the balance faster than this would allow for.

I've reached out to some places about maybe grabbing a personal loan for the amount to lower the interest and keep the loan open, but the only lenders that are getting back to me seem sketchy as hell if I'm being honest.

Is it really *that* bad to close a card? I have other things going on with my credit, I have an auto loan that I make consistent payments on, and I feel like if I had the opportunity to try having a credit card again in a couple years time I really could make some strides but having one at present just feels like it's burdening me more than anything.

Over the past several years, I’ve lost hundreds of thousands of dollars in fraudulent investments. The opportunities were introduced to me through an investment coaching/mastermind group that I trusted. Many of the investments were presented as vetted opportunities with experienced operators and strong returns. Looking back, I can see a lot of red flags that I missed.

Some of the investments have already been exposed as Ponzi schemes or are in receivership, while others have simply stopped communicating or stopped making payments. Between everything, I’ve lost a significant portion of my retirement savings.

The financial loss has been devastating, but honestly the emotional impact has been even worse. I struggle with:
Feeling ashamed that I was fooled.
Constantly replaying every decision and wondering how I could have missed the warning signs.
Feeling like I let my family down.
Losing trust in my own judgment.
Feeling angry at the people who promoted these investments and at myself for believing them.
I’ve spent a lot of time trying to pursue legal remedies where possible, but I know I may never recover most of the money.
I’m fortunate that my career is strong and I’m rebuilding my finances, but I still carry a tremendous amount of grief and anxiety.

For those of you who have experienced large investment losses or financial fraud:
How long did it take before you stopped thinking about it every day?
Did you ever regain confidence in investing?
How did you rebuild trust in yourself?
What helped you move from anger and shame toward acceptance?
Is there anything you wish someone had told you after it happened?

I’m not looking for judgment. I do enough of that myself. I’m hoping to hear from people who’ve been through something similar and found a way to move forward.

Thank you.

I have been working at a full-time job that pays around 76,000 annually and have a part-time job that I work once a week and probably make close to only 8K annually. Because of this, I withheld a little extra on my full-time job this year to make up for it since I noticed i owed more this past year possibly because of it. I don’t really want my full-time employer to know I have a second job, which is part of the reason why I am not putting it on my W-4 but should this matter as long as I am withholding a little extra? I just really do not want to get screwed over with taxes again next year.

So I had surgery last week and in the chaos, I missed the due date for my credit card payment. The due date for the minimum balance was July 2nd, but I did not pay until today (July 5th). I always pay the statement balance, not just the minimum balance, and the last payment date that I paid my statement balance was May 28th.

I’ve seen the info that anything paid within 30 days will not impact your credit score because that’s a late payment and not a missed payment, but I’m confused about where the 30 days starts to count from. Is it from when the payment was due or my last payment? Did I miss this payment or was I late paying it?

I’ve never been late on a credit card payment before, and while I don’t have a plan to extend my lines of credit or apply for any loans, I’m just confused on what to expect as far as credit score being impacted and how this will “count.” I know there’s nothing I can do about it at this point and I fully understand that I can’t undo what’s been done and I will do better going forward, but this was truly just a freak situation because of extenuating circumstances so I don’t foresee it happening again.

27 y/o guy here with about 17k in CC debt that I can’t pay off the minimum payments each month are about $575 per month. I’m looking at sofi loans but the interest rate offered to me is like 25%. I’m seriously considering just taking that loan option just to get out of the CC debt because I’m not making any ground on paying off the actual balance. Any other options I’m unaware of or should be considering? Ik about the 0% transfer balance strategy but I’m not sure that will work for me. Any help would be appreciated.

Hi all, 30M staring down the barrel of a layoff and I want to make sure I'm prepared for the worst in this weird job market.

Currently I make 118k but will be laid off early in August. I'm already interviewing places and hopeful, but I had the thought of what I would do if my savings dried up before I found something new. I live in a MCOL with monthly bills (including mortgage) of around $5k and enough in savings to carry me for about 6 months. The part I find very troubling is I had terrible timing and houses in my area have lost around 40k in value since I purchased so I am a little underwater.

Home:

Owe - 265k

Rate - 4.99

Approx sale value - 220-230k

Retirement:

401k - 50k

IRA - 22K

I have other bills but my budget is already as thin as possible, I'm mainly just looking for thoughts on timing and how you would plan for this situation

ETA: adding since it's come up a few times, a roomate is likely not much of an option. I have dual custody of my son and don't know if there'd be anyone looking to rent that I'd be fine just having around my son.

Also I do plan to just take whatever work I can get in the short term, that mostly just changes the timeline and the question above remains about the same (excluding potentially housing prices change)

I have a loan for an HVAC and water heater I had to replace a few years ago, it's down to just under $2,000. 0% interest. Similarly I have a credit card with about $1800 balance, also 0% interest until March 2027.

I can have those paid off pretty easily by end of year by just making the minimum payments on both, and in December my bonus will cover what's left and then some.

I've been throwing around $1400/month into a HYSA to build my emergency fund and it's almost at 3 months. I'll get an "extra" paycheck this month that will put me well over the mark. I'm maxing my employer 401k contribution already and have been for a bit. I'd like to start a Roth IRA and work on maxing that contribution (or at least half of max for this year), but I also have a car note with about $22k on it, 5.75% interest, $440/month.

My overall monthly income sits at around $7400/month. Bills all-in are around $5000. I've got a buffer of around $1000 I can work things out with. Just looking for advice on whether I should focus on the car since it's not quite low interest, or start putting into a Roth IRA.

Overall I'm behind on retirement. Almost 36, only about $23k in my 401k. Roughly $12k in a HYSA. Just want to do the best I can to make sure I set myself up for retirement.

Heavily considering using retirement funds (401(k)/Roth) to tackle student loans:

Options

• A: Pay off all student loans
• B: Pay off all loans above 5.5% interest
• C: Reduce balance to $12k, bringing average interest down to 3.92%

Current situation

12 student loans, $48k total balance, 5.42% average interest

• $90k old traditional 401(k)
• $11k current 401(k)
• $30k Roth IRA
• $8k in CDs
• Late 30s
• Income: $66k

I'm considering withdrawing about $38k from retirement accounts. I don't love the idea, but with a mortgage and what I see as a limited earning window, it seems more useful to reduce debt now than keep carrying it and hope for loan forgiveness. I don't necessarily need to pay everything off at once, I could eliminate the higher-interest loans first and tackle another group the following year. With mortgage interest and other deductions, I also don't expect the tax impact to be as severe as some assume.

FAQ

"Just use income to pay the loans."

My income isn't high enough to make a significant dent in them.

"Refinance."

Unless someone knows of refinance rates around 1–2%, I don't see much benefit.

"Let the investments grow."

I'm not expecting to become a millionaire, half-millionaire, or even quarter-millionaire from these accounts.

"Get aggressive, live below your means, live off beans and rice"

No comment

(I don't use Reddit often, apologies for any readability issues.) I just recently turned 27, am single, no kids, do not want kids. My parents instilled in me a lot of financial anxiety from a young age, and as a result, I worry often about if I'm saving enough, if I'm 'behind', if I'll be able to retire someday, etc. I became more serious about saving/retirement about 3-4 years ago when I graduated college and started full-time work, but still feel like I have no idea what I'm doing with my money. So, getting some outside opinions would be great!

Salary: $50K/year

HYSA (emergency fund): $11K

Roth IRA: $25K in VOO, I max it out each year

Brokerage: $15K spread across 4-5 stocks and S&P 500

403(b): $3.5K (no employer match unfortunately, I just contribute 6% Roth each month)

Checking account: $7K

My work does contribute on my behalf to a pension that vests after 5 years, but I'm unsure if I'll stay at the job that long (I'm 1 year in) due to the pay. I enjoy my job quite a bit, and can likely stay long-term if I want, so I'm debating if I should stay the 5 years for the pension. The downsides are that there's just about no room for growth, and I don't like the town I'm in. I feel stagnant. Ideally, I would like to move elsewhere for higher pay and a better location.

My take-home pay per month is about $3000 after taxes. Rent is $1300, groceries and gas around $250ish (I try to keep it as low as possible due to the aforementioned anxiety). With the rest, I contribute $1200/month that is split between my IRA and brokerage. My 'fun money' is whatever's leftover each month.

I have $4k left of my student loans. I am thinking of paying them off all at once using a chunk of my emergency fund. I'll also probably need to get another car in a few years, depending on how much longer I can make my current one (paid off) last.

So, does it sound like I'm doing okay with my saving and expenses? The dream is to retire early of course, but I'm really not sure what is possible. Thanks in advance for any advice!

The majority of money I’ve saved the last 25 years (mid six figures) is with Edward Jones managed by the local EJ guy, who I really like. Every year he says the right things, always takes my calls, and seems to care about me and my family.

The thing is I also have a five-figure account in Fidelity mostly in the S&P (and a little bit in a few favorite stocks) that I “manage” myself (really just add to from time to time).

Every time I look, while the Fidelity account goes up, the Edward Jones account stays about the same. It’s up less than 10% in the last 12 months (which I understand in normal times would be a good return… but my Fidelity account is up substantially more in the same time). It feels like it’s always been this way for as long as I’ve had this Fidelity account.

Long story short, I feel like I could do better just by moving everything to Fidelity and putting it in the S&P.

I really like the Edward Jones guy and would feel terrible taking my business away from him. Also, I really don’t know that much about investing since I’ve always relied on him.

I guess I’m looking for opinions about whether or not I’m better off moving everything to Fidelity and, since I don’t know that much (or have the time to learn), putting it mostly in the S&P. And if so how to break up with my EJ guy.

Sorry for oozing a lack of confidence, and thanks in advance for sharing your thoughts!

I had a 401k that got rolled into an IRA when I switched careers. It’s only got about $2,500 in the account. Basically the interest is a few bucks a year less than the fees so it’s not growing. I don’t really need the money, but I was thinking about cashing out and buying some stocks to mess around with. I’d obviously incur a hit on the tax if I did this. I have a PERA account for my new job and I don’t think I can add the IRA to it. I could also switch it to a cheaper IRA and just leave it alone, I think?

What would you do with it? Thanks!

I have 30k in cc debt and my payment with hardship program is currently 500/month. I have been desperately searching for a better job but now i cannot affor to live and pay this bill so I am considering stopping payments. Any advice on how I should proceed? Is this a good idea?

I am curious to hear from anyone if you or your partner purchases luxury fashion items. This could be shoes, belt, bags, wallets, watches, etc. Obviously there is a huge spending range here, but a modest bag could begin at $2k and only goes up from there.

At what point did you feel financially comfortable with making these purchases? Was there a moment when you “made it” and it felt like no big deal? Or does it remain emotionally uncomfortable for you though it’s now financially viable?

Editing to add:

This question is not about my own personal finances, I feel very confident and comfortable with my spending habits. It is, however, a question about something I’m very invested in (designer houses and history) and the cultural proclivity to spend on luxury items, to signal wealth, and to over spend / rack up debt. I’m curious in what ways making these large purchases is in fact responsible and how often is that actually happening.

If this question belongs elsewhere, please direct me!

Brief background: in the middle of a divorce; husband likely going to jail so will lose his income.

My husband and I are divorcing and I am trying to figure out my best moves financially after years of planning joint finances. My divorce attorney is recommending bankruptcy but I have major concerns about it. Here's the details:

House: we are hoping to sell our house but will likely only cover the existing mortgage ($267K) and seller costs. We only bought 2 years ago and the market where we're at is soft. It could net some money (we have $135K in equity based on Redfin's "value" of 402K). In the meantime, we are both staying in the house to save on costs but I will need a new place to live. Once my husband's income stops, I cannot afford the mortgage. While we jointly own the house, the mortgage is only in his name. I am considering letting it go into foreclosure if it doesn't sell. We were told to not attempt a refi right now as it could be considered fraud if my husband goes to jail, so there's no way to pull money out of it.

Cars: 2 financed vehicles - one in his name and one in both our names. We owe about what Ford Credit says is the "trade in value" (about 15K on each). Both cars have 2 more years of financing left.

Retirement accounts: I have 2 401K accounts with a combined total of about $100K. He has a 401K account that has about $225K in it. He cannot liquidate his account until he loses his job or is ordered by the court (either through divorce or the criminal case). He has maxed out borrowing money from his 401K due to legal fees/costs. I could potentially liquidate one of mine that had 80K in it but would have to pay penalties/taxes.

Debt: we both have student loans. Mine are primarily from before the marriage and total $90K but I only need 37 more payments for them to be forgiven and I just signed a three year contract with my current "qualified employer." His total 45K. Both are currently in a 6 month forbearance while we try and separate finances.

We also have about $75K in credit card debt, most of which is in my name.

My divorce attorney has suggested I assume all the debt as a part of the divorce and file bankruptcy but when I asked how I would find a new place to live with a bankruptcy on my record, he said that would have to be worked out before filing. However, my debt is 180K (75K cc, 90K student loans, and 15K car loan) and my gross income is about 60K between a FT job, PT job, and owning a business. I don't think I'll qualify for a mortgage with that debt-to-income ratio and rentals are crazy expensive in the area near my job. Rentals get cheaper once you get about an hour away but that adds commute time and gas expenses.

My idea was to liquidate my husband's retirement funds (mine would remain untouched per the divorce decree)- either when he loses his job or through a QDRO - pay off the cc debt and car loans, and split whatever is left in half (minus taxes and penalties). That way my credit score is saved, I still have cc for emergencies, and I can qualify for a mortgage. My plan means we each leave with a paid off car and our own student loans, but no other debt. That also means we don't need to rely on the house selling at a profit.

Attorney says I'd be better off keeping half of his retirement funds because it won't go away in bankruptcy, which I get, but then I have to find a way to move with a crappy debt to income ratio. My credit score isn't bad (about 740). Co-signers aren't an option for me.

So which plan makes better sense for me given the situation? Am I just being overly anxious about the debt/bankruptcy? Should I sit tight and wait to see if the house sells or gets foreclosed on? Should I see if I can qualify for a mortgage now on my own?

I really want a plan for moving forward.

I have two kids, one is four and the other is coming soon. My wife and I don't make a ton of money and we have debts to pay so we can't afford a lot right now.

My plan is to put money into a 529 account for each kid starting now and then when they turn 18 (or when they start earning income) transfer the money to a Roth IRA to jumpstart their retirement savings. Additionally I am planning to put $50 per month into a UTMA for each kid to save for a car, down payment on a house, or whatever else they need to get a good start when they become adults.

The amount I would be putting into the 529 would be enough to reach the 35,000 max that is transferrable to the Roth IRA. Assuming a 7% growth it would be about $90 to the first kid and $70 to the second kid each month.

Is there a better plan for spending $260 per month?