With this economy & this company, are you getting your financial house in order?

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Anonymous

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We're all in this sinking ship together, its just a matter of who jumps or gets pushed off it first.

Between this company and this horrible economy, what is everyone doing to get their financial house in order?

I've been listening to Dave Ramsey lately, and I'm thinking of paying off my school loans, already paid off the credit cards. I just figure, if I'm not going to have a job, it will be easier with out all the debt.

Any thoughts? (Serious replies only please)
 




Anonymous said:
We're all in this sinking ship together, its just a matter of who jumps or gets pushed off it first.

Between this company and this horrible economy, what is everyone doing to get their financial house in order?

I've been listening to Dave Ramsey lately, and I'm thinking of paying off my school loans, already paid off the credit cards. I just figure, if I'm not going to have a job, it will be easier with out all the debt.

Any thoughts? (Serious replies only please)
Click to expand...

student loan would be the last thing I would pay. It's a tax deduction on the interest. You need to stay liquid. It really depend on your age, monthly expenses, the package you received and many other things. I would not put a lot of emphasis on Dave Ramsey. Also what do you make now? That will determine how quickly you will find another job.
 




Student loan interest is only deductible if you make under a certain amount of money. It is only a good strategy if you are planning to collect unemployment for awhile and it will be in a different calendar year than getting your severance.

You will be able to get hardship deferments if you can't pay your student loans if you lose your job. I would pay those last. If you have no other debt, save or pay down your mortgage.
 








Paid off the house last year and have no other debt. Have an emergency fund of 6 months of expenses, which definitely makes potential layoffs less stressful. And I'm a huge Dave fan. Love, love, love him!
 




don't pay off student loans. remain as liquid as possible. If you are displaced and 9 months from now you are facing mortgage default, who cares if you have student loan debt. If displaced you will be paid for two months, get a severence package then a bonus. The landing is soft, but it dries up very quickly. Trust me I know. The biggest issue will be getting healthcare if you don't have a job in six months.
 




HGHLY Recommend you refinance your house BEFORE you get laid off or volunteer to leave. Once you are gone, you no longer have an "income" and refinancing can be tough so if you need to get your mortgage interest down get it done now before it is too late.
 




you should refinance anywayif you can. Naturally it depends upon how long you have been in the house and how much you total payment is going towards principle. I bought my house in 2005, put 20% down to avoid PMI with a 30 year fixed at 5.45%. I just brought that down to a 15 years at 3.25%, 0 points, and .25 points back to pay for the refinance. It took 8 years off. I was paying 478 a month principle and now I am paying 948 a month towards principle. If you feel you are getting laid off and your mortgage is not underwater, it might be a good idea to pull from it. If you find a job quickly, just put it back in. You will have a comfort zone, a lower rate, and liquidity in case you need it. The feds are buying back shorts and converting them to longs so the rates should stay low for a while. The government is manipulating the market. They did the same thing in the 1940’s and has little effect on the economy. I don’t think it’s a good idea for the government to do this because it takes away from the free market, but I will take the lower rate anyway.
 




Sensed this crap was coming and have been taking my bonus and sacking it away. Purchased rental properties with cash to generate passive income. Maxed out my 401K each year, am fortunate enough to not need my income. PLEASE PICK ME!!!!!
 




I sold a one family house in high tax suburbs and moved into a multifamily in the city limits.
Now I have half the taxes, rental income and can write off my house repairs I could never do before!
 




Anonymous said:
Paid off the house last year and have no other debt. Have an emergency fund of 6 months of expenses, which definitely makes potential layoffs less stressful. And I'm a huge Dave fan. Love, love, love him!
Click to expand...

Huge Dave Ramsey fan here. House is paid for and have 7 figures in retirement. I don't just listen to DR, I actually DO what he says. I'm hoping to get layed off and retire at 53.
 




Yeah because doesn't look like Congress is going to pass Pres. Obama's job's bill, which included extentions for unemployment. That end in Dec. No more 99 weeks, only 6 months. Sad, and the unemployment is still 9.1% and probably growing the Merck and Bank of American laying off so many people.
 








Another DR fan here. I absolutely agree with his debt free message and as of today, having paid off a HE loan, I am debt free. The 4-season room addition will just have to wait until I have the cash. I also invested over the years in some rental income properties that are also paid for and that has been a huge source of comfort. I'd encourage anybody to consider doing that if they have the means, especially now with real estate prices down. The more one can become self-sufficient in today's economic nightmare, the better off one will certainly be. I never would have survived Merck's madness without knowing I could survive without Merck if I had to.
 




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