Red or Black? - Page 2

russotto · 01-04-2005, 02:53 PM

Black. I use credit cards but pay them off each month. I spent a lot of money last year (mostly that New Zealand vacation mentioned elsewhere), so was red for the year but I had the savings to cover it.

Of course, making the property not count is cheating... I've got six figures of debt in the house.

Beestie · 01-04-2005, 03:15 PM

Quote:

Originally Posted by russotto

Of course, making the property not count is cheating...

Not really. You own a house worth 100,000 and you owe $98,000 on it you are technically in the black for $2,000 (transaction costs notwithstanding).

When there is no corresponding asset to the debt, that is a problem even if only a temporary one.

lookout123 · 01-04-2005, 03:19 PM

also, having a free and clear home is not the wisest choice. Real Estate with either appreciate or depreciate in value irrespective of the amount owed on it. if you can pay 4-6% interest annually on a mortgage balance and have a greater portion of your net worth invested wisely you will have more for your retirement nest egg in the long run.

lookout123 · 01-04-2005, 03:21 PM

BTW, i have to change my previous answer as i will now finish january seriously in the red. i just purchased another piece of land last night and will have to wait 6-8 weeks to pull my money back out and return it to my investments.

Skunks · 01-04-2005, 01:19 PM

Being still in school I'm somewhat oblivious to just how dire my finances are, but y'all've got me thinking. Are there any big college-years fiscal shoulda-woulda-coulda's, beyond the obvious "get all your food, booze, and pot from friends & shack up with a business/econ/compsci major from a rich family"?

(I like the "use plastic, not cash" bit, particularly with online banking and such.)

garnet · 01-04-2005, 01:51 PM

Quote:

Originally Posted by Skunks

Are there any big college-years fiscal shoulda-woulda-coulda's...

Don't charge up the credit cards, no matter how tempting it may seem. It's scary how easy it is for college kids to get credit these days, and I definitely fell into that trap. At one point I received an offer for a pre-approved credit card with a $5,000 limit, and I didn't even have a job at the time (yup, I got it, and shortly after had it maxed out). I had a good time in college, but it took me almost 10 years to pay off that stuff. I've certainly learned my lesson...don't do it!

Beestie · 01-04-2005, 02:01 PM

Quote:

Originally Posted by Skunks

Are there any big college-years fiscal shoulda-woulda-coulda's, beyond the obvious "get all your food, booze, and pot from friends & shack up with a business/econ/compsci major from a rich family"?

I think you pretty much have it figured out.

Beyond that, I'd try to keep a low limit on the cards and resist the temptation to increase to the level that credit card companies would like you to raise it to. The Capital Ones of the world would love nothing more than to own your ass once you get out of school.

I always tried to get a job on campus that I could use to offset some expense like being a dorm advisor in exchange for free rent or work in the cafeteria for free food. Jobs that pay with real money are fine but I tended to piss away the money.

Kitsune · 01-04-2005, 02:09 PM

Are there any big college-years fiscal shoulda-woulda-coulda's, beyond the obvious "get all your food, booze, and pot from friends & shack up with a business/econ/compsci major from a rich family"?

Avoid those damn student ID debit cards that don't permit you to use the money anywhere else but on campus. We ended up burning the money away in the school store on stupid crap because we weren't permitted to widthdraw the money until we had graduated (ha ha). Meal plans are sometimes a massive waste, too -- go to the grocery store and sustain on the joys of college, like Coco Puffs, coffee, and Ramen.

melidasaur · 01-04-2005, 02:24 PM

I really hate how credit card companys prey on college students. I fell victim to their free tshirts and candy bars as a college student and it pains me to see other college students fall victim to them. Whats sad is with all of the credit card debt that I did rack up in college, I have nothing to show for it. I didn't buy anything cool, just crap!

I work on a college campus now and really try to tell all of my students that credit cards are evil and not the way to build up your credit. Pay your cell phone bill on time, pay your tuition... that will help you build up your credit without going into debt.

My other thing is - if you don't have the money to pay for it now, do you really need it? Emergencies are one thing... but if you don't have $500 to pay for a pair of jeans, do you really need them? I don't think so.

garnet · 01-04-2005, 02:34 PM

Quote:

Originally Posted by Kitsune

[i]Meal plans are sometimes a massive waste, too -- go to the grocery store and sustain on the joys of college, like Coco Puffs, coffee, and Ramen.

I agree. I never got my money's worth out of the meal plans. Most of the food was gross anyway, and I never got up early enough to eat breakfast, so that was a waste of 1/3 of the cost. I did a lot better with a mini-fridge and microwave in my dorm room.

Happy Monkey · 01-04-2005, 02:33 PM

Pay your credit card bill in full every month. Pretend that the balance is the minimum payment.

elSicomoro · 01-08-2005, 01:06 PM

All I have now is my student loan, which was originally $8250--I'm almost halfway through paying it off (6 years down, 6 to go), but I might try to pay it off sooner. Rho owes 4 or 5 more payments to CCCS and she's debt-free.

View Poll Results: How much debt do you hold?
$20k+	2	6.45%
$10k-20k	1	3.23%
$6k-10k	5	16.13%
$2k-5k	3	9.68%
$0-1k	3	9.68%
I break even each month	4	12.90%
I'm in the black each month	13	41.94%
Voters: 31. You may not vote on this poll

01-04-2005, 03:19 PM	#3
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	also, having a free and clear home is not the wisest choice. Real Estate with either appreciate or depreciate in value irrespective of the amount owed on it. if you can pay 4-6% interest annually on a mortgage balance and have a greater portion of your net worth invested wisely you will have more for your retirement nest egg in the long run. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

01-04-2005, 03:21 PM	#4
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	BTW, i have to change my previous answer as i will now finish january seriously in the red. i just purchased another piece of land last night and will have to wait 6-8 weeks to pull my money back out and return it to my investments. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

01-04-2005, 02:24 PM	#9
melidasaur Traded your soul for pogs. Join Date: May 2004 Location: Champaign, IL Posts: 646	I really hate how credit card companys prey on college students. I fell victim to their free tshirts and candy bars as a college student and it pains me to see other college students fall victim to them. Whats sad is with all of the credit card debt that I did rack up in college, I have nothing to show for it. I didn't buy anything cool, just crap! I work on a college campus now and really try to tell all of my students that credit cards are evil and not the way to build up your credit. Pay your cell phone bill on time, pay your tuition... that will help you build up your credit without going into debt. My other thing is - if you don't have the money to pay for it now, do you really need it? Emergencies are one thing... but if you don't have $500 to pay for a pair of jeans, do you really need them? I don't think so. __________________ I love England, what can I say?

01-04-2005, 02:33 PM	#11
Happy Monkey I think this line's mostly filler. Join Date: Jan 2003 Location: DC Posts: 13,575	Pay your credit card bill in full every month. Pretend that the balance is the minimum payment. __________________ _________________ \|...............\| We live in the nick of times. \| Len 17, Wid 3 \| \|_______________\| [pics]

01-04-2005, 02:53 PM	#1
russotto Professor Join Date: Jan 2001 Posts: 1,788	Black. I use credit cards but pay them off each month. I spent a lot of money last year (mostly that New Zealand vacation mentioned elsewhere), so was red for the year but I had the savings to cover it. Of course, making the property not count is cheating... I've got six figures of debt in the house.

01-04-2005, 01:19 PM	#5
Skunks I thought I changed this. Join Date: Nov 2002 Location: western nowhere, ny Posts: 412	Being still in school I'm somewhat oblivious to just how dire my finances are, but y'all've got me thinking. Are there any big college-years fiscal shoulda-woulda-coulda's, beyond the obvious "get all your food, booze, and pot from friends & shack up with a business/econ/compsci major from a rich family"? (I like the "use plastic, not cash" bit, particularly with online banking and such.)

01-04-2005, 02:09 PM	#8
Kitsune still eats dirt Join Date: Sep 2003 Location: Tampa, FL Posts: 3,031	Are there any big college-years fiscal shoulda-woulda-coulda's, beyond the obvious "get all your food, booze, and pot from friends & shack up with a business/econ/compsci major from a rich family"? Avoid those damn student ID debit cards that don't permit you to use the money anywhere else but on campus. We ended up burning the money away in the school store on stupid crap because we weren't permitted to widthdraw the money until we had graduated (ha ha). Meal plans are sometimes a massive waste, too -- go to the grocery store and sustain on the joys of college, like Coco Puffs, coffee, and Ramen.

01-08-2005, 01:06 PM	#12
elSicomoro Person who doesn't update the user title Join Date: Jan 2001 Posts: 12,486	All I have now is my student loan, which was originally $8250--I'm almost halfway through paying it off (6 years down, 6 to go), but I might try to pay it off sooner. Rho owes 4 or 5 more payments to CCCS and she's debt-free.

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