Author Topic: Personal Finance and the Economy  (Read 1689 times)

clean

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Re: Personal Finance and the Economy
« Reply #45 on: October 17, 2020, 04:59:08 PM »
Quote
I've always been surprised by people who choose to receive their salary over 12 months. It's not just the tiny interest you get from putting aside some of it on a savings account, but it also helps deal with unexpected expenses. It's much better to dip into a savings account for your summer salary than to not pay off a credit card and pay 20% interest. But then I've seen people choose a 12 month salary while carrying credit card debt, and I'd be mortified to look at what the rest of their financial planning looks like.

I worked with someone that took the bigger check (over 9 months) but was unable to save for summer. Therer was ALWAYS an "unexpected expense".  He found himself in the position of HAVING to teach summers (for 2 schools! ) to get by because even in summer, there were ALWAYS "unexpected expenses"

Once he bit the bullet (after his divorce, if that matters) and went to 12 months, then he was better able to budget.  For some, IF they have the money they spend it!  Even when it means 'eating your seed corn' IF it was there, it was gone.  Better that he didnt get it, than to have spent a 12 month salary in 9 months (or less)!!

So SOME people are better off getting the money in 12.

For me, the first year I was at the old school, I took 12 because it lowered my taxes the first year (as my income was lower since I took home less that first year because the rest was paid in the next calendar year), and after that, it didnt matter. 
"The Emperor is not as forgiving as I am"  Darth Vader

spork

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Re: Personal Finance and the Economy
« Reply #46 on: October 21, 2020, 10:23:04 AM »
I sent a paper check for $3,000 to my mortgage lender. I wrote "apply to principal ONLY" on both the check and and payment form that I put in the envelope. The bank applied the majority of the $3,000 toward next month's payment, even though I have automated monthly debit to my mortgage from my checking account with the same bank. I called to complain and was told that the error would be corrected by Wednesday of next week.

In other personal finance news, I correctly diagnosed the reason the washing machine was leaking water onto the basement floor. The replacement part cost less than $22, which I apparently installed successfully. And the part arrived at my door from an out-of-state warehouse via FedEx less than 24 hours after I ordered it. Local appliance repair shops were out of stock and quoted me higher prices. Hiring someone to do the job would have cost me at least $150. And the price of a new washer, which would be a front-loading model rather than the top-loading one we have now, is $1,200.

evil_physics_witchcraft

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Re: Personal Finance and the Economy
« Reply #47 on: October 21, 2020, 10:54:09 AM »
I sent a paper check for $3,000 to my mortgage lender. I wrote "apply to principal ONLY" on both the check and and payment form that I put in the envelope. The bank applied the majority of the $3,000 toward next month's payment, even though I have automated monthly debit to my mortgage from my checking account with the same bank. I called to complain and was told that the error would be corrected by Wednesday of next week.

In other personal finance news, I correctly diagnosed the reason the washing machine was leaking water onto the basement floor. The replacement part cost less than $22, which I apparently installed successfully. And the part arrived at my door from an out-of-state warehouse via FedEx less than 24 hours after I ordered it. Local appliance repair shops were out of stock and quoted me higher prices. Hiring someone to do the job would have cost me at least $150. And the price of a new washer, which would be a front-loading model rather than the top-loading one we have now, is $1,200.

I find it so satisfying to fix things myself (and with some help). Services are expensive! Glad you saved some money!