Considering changing my strategy

iVillage Member
Registered: 01-25-2006
Considering changing my strategy
17
Thu, 09-25-2008 - 5:50pm

Wondering if anyone is considering changing their priorities in light of economic news.

Pages

iVillage Member
Registered: 01-23-2007
Thu, 09-25-2008 - 6:09pm

Peggy:

Great topic. I've been thinking a lot about this as well; but, it seems you are getting a better employer match on your 401k than I am.

I think all of your ideas have merit and are worth further consideration, except for the last one. You have wiped out that consumer debt. Don't move things around from your student loans unless you really think bankruptcy is a possibility (and I don't get the impression you're in that boat at all).

Congrats on knocking out that consumer debt!

Dee


iVillage Member
Registered: 04-10-2003
Thu, 09-25-2008 - 9:23pm

Great topic!


I have to agree with Dee. All of those options have merit except for the last. You don't seem close to bankruptcy so that doesn't seem to be an issue. What about a mix of some of the options. If you are getting nervous, I think I would hold off on the additional payments and maybe reduce spending until you get a cushion that makes you feel more comfortable.


I personally went the roommate route. The difference of course is that I have ALWAYS had roommates so it wasn't a shock. I can see how it would be if you are used of living on your own!


Good luck with whatever you decide.


Bex -

iVillage Member
Registered: 07-22-2008
Fri, 09-26-2008 - 11:26am

I agree, a great topic to discuss. One that we are all at least thinking about, if not taking some sort of action in light of recent events. And to be sure, more events in the future. no matter what the leaders decide about the economy, we are in for a long road ahead.


I also agree with everyone else's response. I think all your ideas, except for the last one, are worth looking at. Like you said yourself, you could defer your student loans if it came to that.


In times like these, I think that a feeling of personal peace goes a long way. Do you know what move would make you feel more at ease with the current conditions? Maybe having easy access to funds, in case of a job loss? And then focus on other options after that?


Sounds like the roommate option would create more stress for you than it's worth. Since you have options, I wouldn't resort to this unless it were your only choice left.


Congrats on taking the initiative to be aware, that's half the battle sometimes!


iVillage Member
Registered: 08-22-2008
Fri, 09-26-2008 - 7:24pm

Unless private student loans operate very differently, I wouldn't move it to a credit card.

iVillage Member
Registered: 01-25-2006
Mon, 10-06-2008 - 6:00pm

Well, blech....the stock market still took another hit today.

iVillage Member
Registered: 09-26-2006
Mon, 10-06-2008 - 7:19pm

I have lost a lot of money in this downdraft. However, I think it may be a great time to pile money into an index fund. I am *trying* to see how I can benefit from this in the long run, LOL, between tears!

Putting in one extra mortgage payment per year makes your loan about 1/3 shorter. I just refi'd to a fixed rate 1.5 years ago, and if I stay here, in 18.5 years I'll own the house! Even if I sell, I'll own a lot more of the house..

:) Recreating Myself

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Wed, 10-08-2008 - 9:15am

I'd probably work on #1 first - just build up that fund so you could live with minimal expenses for 6 months.

I read recently that if you're single or part of a two-income household, you need to have 6 months living expenses set aside (12 months if you're married with only one income). That's what I'd make sure of first. You don't want a stroke of bad luck to be something that haunts you for the next 5-10 years.

I wouldn't give up the 401k contribution. Run through a savings calculator to see the effect of reducing your contribution. What you save now has HUGE impact on your ability to retire. I wish I'd been much smarter about that earlier in my career.

Kelly

iVillage Member
Registered: 01-25-2006
Fri, 10-10-2008 - 6:13pm

Spent some time today crunching numbers and it looks like if I throw my snowball into savings instead of at the student loan and actually do all the other saving I budget for (but lots of times weasel out of for more spending money) I could have just shy of 6 mos. of living expenses in the bank by the end of June next year.

iVillage Member
Registered: 11-17-2007
Fri, 10-10-2008 - 8:03pm

I wasn't sure about the CDs so when they came due I cashed them in and put the money in the checking account because it was covered and paying 4.01 which was more then the CD If the CDs keep raises like they have in the last week I will convert the money back to CDs


If I was young which I am not I would look into city bonds or state bonds funds as part of my 401 I don't know how to this we never had 401K funds

iVillage Member
Registered: 04-12-2007
Sat, 10-11-2008 - 8:13am

I hated to do it, but I reduced my 401k contribution a few percentage points as I was being too aggressive with it and that meant our daily lives were suffering the consequences.

Pages