Comments on: So Glad to Be Back! http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/ Our Journey to a Debt-Free Life Sat, 21 Nov 2009 08:35:00 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: The Result of My Life Insurance Shopping » Blogging Away Debt http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-66657 The Result of My Life Insurance Shopping » Blogging Away Debt Mon, 11 Jun 2007 04:24:55 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-66657 [...] in February, I mentioned that I was shopping around for life insurance. I didn’t have any at all, and my husband has a $25,000 whole life policy. I wanted to get at [...] [...] in February, I mentioned that I was shopping around for life insurance. I didn’t have any at all, and my husband has a $25,000 whole life policy. I wanted to get at [...]

]]> By: The Result of My Life Insurance Shopping » Blogging Away Debt http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-66658 The Result of My Life Insurance Shopping » Blogging Away Debt Mon, 11 Jun 2007 04:24:55 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-66658 [...] in February, I mentioned that I was shopping around for life insurance. I didn’t have any at all, and my husband has a $25,000 whole life policy. I wanted to get at [...] [...] in February, I mentioned that I was shopping around for life insurance. I didn’t have any at all, and my husband has a $25,000 whole life policy. I wanted to get at [...]

]]> By: DC Smith http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-23408 DC Smith Tue, 20 Feb 2007 00:34:32 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-23408 I can't believe how fast you've paid this down. I'm sure that Copper Country-sized mortgage is a big part of it but I'm still thoroughly impressed having beat the CC debt beast back a couple of times myself. I have just under one extra house payment (which of course is a little higher for us trolls) in a savings account. I never sat down and consciously thought about a name, but I always refer to it as the cushion. That's not for real emergencies like complete loss of housing/health/transportation though. I do have a separate fund for that (finally!). The cushion just avoids carrying a CC balance or having late/overdraft fees if I plan poorly or something unexpected pops up (or when the stupid house payment comes out ONE DAY before the paycheck goes in). I can’t believe how fast you’ve paid this down. I’m sure that Copper Country-sized mortgage is a big part of it but I’m still thoroughly impressed having beat the CC debt beast back a couple of times myself.

I have just under one extra house payment (which of course is a little higher for us trolls) in a savings account. I never sat down and consciously thought about a name, but I always refer to it as the cushion.

That’s not for real emergencies like complete loss of housing/health/transportation though. I do have a separate fund for that (finally!). The cushion just avoids carrying a CC balance or having late/overdraft fees if I plan poorly or something unexpected pops up (or when the stupid house payment comes out ONE DAY before the paycheck goes in).

]]> By: fionnmac http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-23162 fionnmac Sun, 18 Feb 2007 19:12:16 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-23162 I suggest calling your emergency fund what it is "Capital". It's money working for you whether it is earning interest from the bank, or it is earning interest from you when you have to borrow from it for emergencies and such just like your credit cards. Capital is not depleted, it is always working for you in some manner. Capital has only a few simple rules, but they will get you to where you want to be. First, if you have income, determine a set percentage to contribute, no more and no less. You have taxes, social security, health, etc. taken out of your paycheck and you manage to live on what is left, so you will adjust. Second, if you need money for emergencies, repairs or such, BORROW from it and pay it back just like any other debt. It should be earning the same rate of interest that it would cost you if you borrowed from a bank or credit card. And even though it may be going back to the same account, your repayment is not the same as your regular contributions. In other words, when you need to borrow from it, make sure you have enough in your budget to make regular payments back to it after your regular contributions. But the nice thing about this is that the money your capital is making from your interest payments is tax free. The IRS will never be able to tax your own contributions. This is a simplified version of what I personally do and it has been very successful for me. I have not paid a single dime to a credit card company for over three years, and it feels very good. And after putting 275000 miles on my 91 Honda Accord, I just bought a 2006 Accord (used but only 12K miles and still 24K bumper to bumper warranty) with cash from my personal Capital. I am making monthly payments of 406 for 66 months which is what my credit union was going to charge me, but my check is deposited into my Capital account instead of their loan dept. And I still make my regular contributions every time I get a paycheck (for me it is 10%). Just some thoughts, maybe a little rant, I didn't expect to keep writing this much, but I live by what I speak. I suggest calling your emergency fund what it is “Capital”. It’s money working for you whether it is earning interest from the bank, or it is earning interest from you when you have to borrow from it for emergencies and such just like your credit cards. Capital is not depleted, it is always working for you in some manner. Capital has only a few simple rules, but they will get you to where you want to be. First, if you have income, determine a set percentage to contribute, no more and no less. You have taxes, social security, health, etc. taken out of your paycheck and you manage to live on what is left, so you will adjust. Second, if you need money for emergencies, repairs or such, BORROW from it and pay it back just like any other debt. It should be earning the same rate of interest that it would cost you if you borrowed from a bank or credit card. And even though it may be going back to the same account, your repayment is not the same as your regular contributions. In other words, when you need to borrow from it, make sure you have enough in your budget to make regular payments back to it after your regular contributions. But the nice thing about this is that the money your capital is making from your interest payments is tax free. The IRS will never be able to tax your own contributions.
This is a simplified version of what I personally do and it has been very successful for me. I have not paid a single dime to a credit card company for over three years, and it feels very good. And after putting 275000 miles on my 91 Honda Accord, I just bought a 2006 Accord (used but only 12K miles and still 24K bumper to bumper warranty) with cash from my personal Capital. I am making monthly payments of 406 for 66 months which is what my credit union was going to charge me, but my check is deposited into my Capital account instead of their loan dept. And I still make my regular contributions every time I get a paycheck (for me it is 10%).
Just some thoughts, maybe a little rant, I didn’t expect to keep writing this much, but I live by what I speak.

]]> By: Laura http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-22916 Laura Fri, 16 Feb 2007 00:06:21 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-22916 Good job on the year anniv and the 15K - it takes a lot of dedication to make both those things happen. Yeah, the life ins quote sounds high to me too... can't advise further on that - I get mine through work and it's very cheap (less than $80/year for $200,000 and I am a smoker). Re the emerg/contingency fund - how about calling it the "Rainy Day Fund"? Then you will have the extra pleasure of yelling out, "It's RAINing" when you have to use it. ;) Best wishes -L Good job on the year anniv and the 15K – it takes a lot of dedication to make both those things happen.

Yeah, the life ins quote sounds high to me too… can’t advise further on that – I get mine through work and it’s very cheap (less than $80/year for $200,000 and I am a smoker).

Re the emerg/contingency fund – how about calling it the “Rainy Day Fund”? Then you will have the extra pleasure of yelling out, “It’s RAINing” when you have to use it.
;)

Best wishes -L

]]> By: Anna http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-22895 Anna Thu, 15 Feb 2007 18:39:45 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-22895 Does your life insurance quote consider smoking status? Because if it does, that might be an incentive to quit! (Just a gentle nudge...:-) ) Does your life insurance quote consider smoking status? Because if it does, that might be an incentive to quit! (Just a gentle nudge…:-) )

]]> By: 3 things about money http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-22892 3 things about money Thu, 15 Feb 2007 16:44:35 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-22892 15K in a year, you are an inspiration! Thank you so much for writing as you do and sharing so many good ideas and thoughtful reflections. 15K in a year, you are an inspiration! Thank you so much for writing as you do and sharing so many good ideas and thoughtful reflections.

]]> By: Kevin M http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-22891 Kevin M Thu, 15 Feb 2007 16:24:36 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-22891 Great job paying down $15K in one year. That is an awesome achievement. I doubt I could have done it. $600 a year for $100K term life on you and your husband? Ouch! Unless you two really have some major health issues, like having had a heart attack or cancer, this is entirely too expensive. 2 years ago, I got $250K and the wife got $150K 10 year term life for $500 a year total. And we are not pictures of health either! I was 41, 100 lbs over weight, had high blood pressure and high cholesterol. The wife was 35 and had the same weight problem, with diabetes (treated with pills) and depression. I'd really recommend shopping around some more, unless you did have major health issues. Also $100K won't do very much for the surviving spouse. Try to bump it up to $500K for each. Right now, I'm in the process of increasing my coverage to $1,000,000 for myself, because the wife and son will need more than $250K if I die. Great job paying down $15K in one year. That is an awesome achievement. I doubt I could have done it.

$600 a year for $100K term life on you and your husband? Ouch! Unless you two really have some major health issues, like having had a heart attack or cancer, this is entirely too expensive.

2 years ago, I got $250K and the wife got $150K 10 year term life for $500 a year total. And we are not pictures of health either! I was 41, 100 lbs over weight, had high blood pressure and high cholesterol. The wife was 35 and had the same weight problem, with diabetes (treated with pills) and depression.

I’d really recommend shopping around some more, unless you did have major health issues. Also $100K won’t do very much for the surviving spouse. Try to bump it up to $500K for each. Right now, I’m in the process of increasing my coverage to $1,000,000 for myself, because the wife and son will need more than $250K if I die.

]]> By: mapgirl http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/comment-page-1/#comment-22890 mapgirl Thu, 15 Feb 2007 15:54:39 +0000 http://www.bloggingawaydebt.com/2007/02/so-glad-to-be-back/#comment-22890 Cheers to your first year and awesome progress paying off your debt! :-) Cheers to your first year and awesome progress paying off your debt! :-)

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