Our BetterMost Community > BetterMost People
Money-saving tips!
Kerry:
--- Quote from: Wishes on August 29, 2007, 02:23:32 pm ---Kerry, How wonderful that you will be able to purchase your retirement home for cash.
But I don't even want to get started on a retirement plan with my employer. A 401K retirement plan is offered but it would be all my own money. No matching from my employer so I do not do it.
I bought a house almost 6 years ago. While I do not really enjoy owning a house I know that the equity from this place will help with my retirement. House prices are falling here but I have never refinanced, so I'm not worried about it.
I have no debt except my mortgage (thank goodness!) I have found the house has taken money but it has also appreciated a great deal. I made no cosmetic improvements except the kitchen linoleum. (I could not live with the orange)
--- End quote ---
I have heard the argument in favour of paying rent, in preference to owning one's own home. I have experienced both renting and owning and I personally prefer the latter. After paying off my mortgage several years ago, I continued to save the same amount that was previously paying the mortgage, and I've created a very nice nest egg for my retirement by doing so (and continue to do). It's often not easy to save, but it is certainly always worthwhile! :D
Kelda:
--- Quote from: Nutmeg Guy on August 30, 2007, 09:56:02 am ---My best advice for not spending money? Don't go food shopping when you are hungry! :)
--- End quote ---
Oh god, I'm terrible for doing that - as we tend to get out shopping right after work on a Friday, so it doesn't clutter up our weekend.
So my treats for the weekend are often eaten on a friday night - I tend to buy the nice looking desserts that are in the discounted isle as they are about to go past their sell by date that I would never buy at full price (they're expensive enought when reduced!!)
But I do sometimes go a little mad when it comes to the food shopping cos its nearly teatime and I'm getting peckish!
serious crayons:
If you have a savings account in a regular bank, move it to an online-only account. HSBC and ING are a couple that are considered pretty good, and they pay somewhere around 5 percent interest -- much higher than most regular banks' savings accounts.
I'm confused about how much you save by paying down a mortgage. On the one hand, yes, it's nice to minimize your house debt. On the other, you get a tax deduction on the interest and it's already much lower than credit-card interest. So I think it's best to pay your credit cards off first, anyway, as Laura said earlier.
A few years ago, I would have thought you'd be better off taking on a lot of house debt than investing in the stock market, because the returns on real estate were so much greater than they would be on other investments. For instance, we owned our last house for 10 years and sold it for more than twice as much as we'd bought it for. Nowadays, though, you can lose money you've invested in your house. We bought our current house about a year and a half ago and are now trying to sell it -- we probably won't even get back what we put into it. I keep telling myself that we aren't losing any more than we'd have paid in rent, plus we got that tax deduction ... but still, it's discouraging.
Kelda:
maybe its the different scenario of UK v USA? Certainly the interest rates for mortgages is quite high currently.
Certainly - my credit cards are 0% interest - so the only loan causing me interst just now is my car loan (5 months to go) my student loan (very very low interest rate) and my mortgage - by reducing my term by 6 years (paying off 6 years early) I've estimated I will save £9k.
Wishes:
--- Quote from: ineedcrayons on August 30, 2007, 10:47:18 am ---
A few years ago, I would have thought you'd be better off taking on a lot of house debt than investing in the stock market, because the returns on real estate were so much greater than they would be on other investments. For instance, we owned our last house for 10 years and sold it for more than twice as much as we'd bought it for. Nowadays, though, you can lose money you've invested in your house. We bought our current house about a year and a half ago and are now trying to sell it -- we probably won't even get back what we put into it. I keep telling myself that we aren't losing any more than we'd have paid in rent, plus we got that tax deduction ... but still, it's discouraging.
--- End quote ---
Oh I'm so sorry to hear this. I peeked and saw you are in Chicago. The housing market is slumping and I feel bad for those who bought at the height of the market and now are facing equity loss. I have much less sympathy for those who refinanced the heck out of their house and spent the money on unneeded things.
I bought this house just as the market was starting to climb and everything was sold sold sold. I started looking in a smaller town and ended up living where I really didn't want to. Now people who should have never been given a house loan are loosing thier houses. It's really a mess and it does make me mad that these loans were taken and given to persons who should have kept renting.
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version