Finances and Planning for Future

[SAT 9,609]

A question for some of you that we've been trying to figure out. We will have enough in cash to buy a house, but I don't think it is prudent to spend it all. What combination of mortgage/cash would be best?

yes really Nola. that's a tough question for us to answer here. It has a lot to do with the other factors that harvey mentioned. For example, If you have no income, then you are better off paying cash for the house with no mortgage.....(you bragger). If you have a very high income, and can afford a 5000 a month payment, then put 25% down and use the rest of the cash to invest (once again, you bragger). Or buy a second property....

Also, don't be "under-insured"

Edited February 24, 2013 by SteveAndTiff

[oohpartiv 484]

Oh jeez, this thread is great and overwhelming at the same time. I feel like such a doofus reading all of your great posts and advice. I'm really dumb when it comes to finances, mostly because I left the States right after I turned 18, never had a job there, and am just now confronting the reality of moving back home and getting a real job. I'm honestly kind of terrifed.

This is my plan right now (please feel free to correct/advise/comment as you see fit):

Hopefully my husband's visa will be done sometime in April, as we plan on moving home in May sometime. The idea is to take a month or so to get settled in (we'll be staying with my Dad until we get things under control) before looking for jobs. Both my husband and I are going to go back to school in the fall, and have already done the admissions nonsense for a community college. I want to live with my Dad for a year or so, so we can have time to get part time jobs and save up some money while still going to school. After the first year, we'll hopefully have enough saved up to rent an apartment of our own. I'd like to transfer out of the community college by this point, but we'll see how it goes.

Insofar as paying for college, I've already done all the FAFSA applications, but like I said I really am kind of grasping at straws and am not quite sure as where else to go from here. It will obviously be difficult at first, but any advice on how to make things a little less painful? My husband obviously doesn't know how things work in the States, so I'm expected to lead the way (at least at first), but at this point I'm feeling like the blind leading the blind.

[SAT 9,609]

Oh jeez, this thread is great and overwhelming at the same time. I feel like such a doofus reading all of your great posts and advice. I'm really dumb when it comes to finances, mostly because I left the States right after I turned 18, never had a job there, and am just now confronting the reality of moving back home and getting a real job. I'm honestly kind of terrifed.

This is my plan right now (please feel free to correct/advise/comment as you see fit):

Hopefully my husband's visa will be done sometime in April, as we plan on moving home in May sometime. The idea is to take a month or so to get settled in (we'll be staying with my Dad until we get things under control) before looking for jobs. Both my husband and I are going to go back to school in the fall, and have already done the admissions nonsense for a community college. I want to live with my Dad for a year or so, so we can have time to get part time jobs and save up some money while still going to school. After the first year, we'll hopefully have enough saved up to rent an apartment of our own. I'd like to transfer out of the community college by this point, but we'll see how it goes.

Insofar as paying for college, I've already done all the FAFSA applications, but like I said I really am kind of grasping at straws and am not quite sure as where else to go from here. It will obviously be difficult at first, but any advice on how to make things a little less painful? My husband obviously doesn't know how things work in the States, so I'm expected to lead the way (at least at first), but at this point I'm feeling like the blind leading the blind.

You're making do with what you have. You're young yet, so enjoy the moment. The best advice I can give you through the next few years is to watch your credit and don't let it go to #######. It'll make life a lot easier once you're on your own 2 feet.

[oohpartiv 484]

You're making do with what you have. You're young yet, so enjoy the moment. The best advice I can give you through the next few years is to watch your credit and don't let it go to #######. It'll make life a lot easier once you're on your own 2 feet.

That's what I figured. It's hard because I like to have control of those kinds of things. I guess it comes down to saving as much as possible and being on top of my bills, at least until I can get a good enough job after finishing college.

[AKSinghSingh79 143]

Oh jeez, this thread is great and overwhelming at the same time. I feel like such a doofus reading all of your great posts and advice. I'm really dumb when it comes to finances, mostly because I left the States right after I turned 18, never had a job there, and am just now confronting the reality of moving back home and getting a real job. I'm honestly kind of terrifed.

This is my plan right now (please feel free to correct/advise/comment as you see fit):

Hopefully my husband's visa will be done sometime in April, as we plan on moving home in May sometime. The idea is to take a month or so to get settled in (we'll be staying with my Dad until we get things under control) before looking for jobs. Both my husband and I are going to go back to school in the fall, and have already done the admissions nonsense for a community college. I want to live with my Dad for a year or so, so we can have time to get part time jobs and save up some money while still going to school. After the first year, we'll hopefully have enough saved up to rent an apartment of our own. I'd like to transfer out of the community college by this point, but we'll see how it goes.

Insofar as paying for college, I've already done all the FAFSA applications, but like I said I really am kind of grasping at straws and am not quite sure as where else to go from here. It will obviously be difficult at first, but any advice on how to make things a little less painful? My husband obviously doesn't know how things work in the States, so I'm expected to lead the way (at least at first), but at this point I'm feeling like the blind leading the blind.

My husband and I are a few years older than you (him: 26, me: 25) but I can offer some insightful advice from a fellow twenty-something currently undergoing a quarter-life crisis .

Like the other posters said, don't buy a car like I did. The monthly payments suck up a big chunk of my income. I never expected they would be that high (naivete), and once I already signed the loan I seen the number and didn't think much of it since I was rolling in the dough. Fast forward to me getting laid off again. Lay offs happen. To me they seem to happen more than most but I'm going with the flow. My point is, in this economy, never take a job for granted like I did. I thought I was invincible and everyone around at work told me our field was strong and not subject to the economic downturn (more naivete!).

Save, save, save! Don't apply for more than one credit card as well. Regardless of how careful you are regarding spending, the temptation will always be there. Especially when you are new and get those no APR for xx months promotions. Even more tempting. If you do get a credit card and they have those reward programs attached to it, make sure you get a high return. Some cards are designed for high spending in order to get a significant benefit. For example, I have a Chase Sapphire Preferred card. It's not worth the annual fee and it takes forever to get enough points worth cashing in for a flight. Go with a specific Airline's credit card if you want good flight rewards. Their returns are higher, faster, and capable with less spending.

Try to rely on public transit if possible or share vehicles. I'm not sure if that is possible in the area where your dad lives. As you know, public transit is highly variable depending on the region. I purposely chose an area to live where the metro and bus stops are easily accessible. That way when my husband gets here, he can find a convenient way to get around to attend job interviews, go shopping, etc...until we save enough money to get a decent (used!) vehicle for him.

There are also some neat freebie sites, (Shop4Freebies), and another one I use is MyPoints. You basically earn points and cash them in for gift cards. You don't need to spend any money to earn points but of course your points total will add up really quickly if you do. They also offer their "daily deals" where I've gotten small kitchen appliances and other things for my apartment at amazing prices.

You sound like you've got a great plan of action already!

[oohpartiv 484]

My husband and I are a few years older than you (him: 26, me: 25) but I can offer some insightful advice from a fellow twenty-something currently undergoing a quarter-life crisis .

Like the other posters said, don't buy a car like I did. The monthly payments suck up a big chunk of my income. I never expected they would be that high (naivete), and once I already signed the loan I seen the number and didn't think much of it since I was rolling in the dough. Fast forward to me getting laid off again. Lay offs happen. To me they seem to happen more than most but I'm going with the flow. My point is, in this economy, never take a job for granted like I did. I thought I was invincible and everyone around at work told me our field was strong and not subject to the economic downturn (more naivete!).

Save, save, save! Don't apply for more than one credit card as well. Regardless of how careful you are regarding spending, the temptation will always be there. Especially when you are new and get those no APR for xx months promotions. Even more tempting. If you do get a credit card and they have those reward programs attached to it, make sure you get a high return. Some cards are designed for high spending in order to get a significant benefit. For example, I have a Chase Sapphire Preferred card. It's not worth the annual fee and it takes forever to get enough points worth cashing in for a flight. Go with a specific Airline's credit card if you want good flight rewards. Their returns are higher, faster, and capable with less spending.

Try to rely on public transit if possible or share vehicles. I'm not sure if that is possible in the area where your dad lives. As you know, public transit is highly variable depending on the region. I purposely chose an area to live where the metro and bus stops are easily accessible. That way when my husband gets here, he can find a convenient way to get around to attend job interviews, go shopping, etc...until we save enough money to get a decent (used!) vehicle for him.

There are also some neat freebie sites, (Shop4Freebies), and another one I use is MyPoints. You basically earn points and cash them in for gift cards. You don't need to spend any money to earn points but of course your points total will add up really quickly if you do. They also offer their "daily deals" where I've gotten small kitchen appliances and other things for my apartment at amazing prices.

You sound like you've got a great plan of action already!

Thanks for the tips! My Dad lives in the middle of nowhere, but luckily he has two cars and is willing to let us use one while we're living with him. I eventually want to move to a more metro area where public transportation is available. An airline's credit card sounds like a good plan, too - flight rewards are always a plus. And I'd never heard of those websites but will definitely check them out! Sounds like a good deal.

[CHarvey80 72]

Thanks for the tips! My Dad lives in the middle of nowhere, but luckily he has two cars and is willing to let us use one while we're living with him. I eventually want to move to a more metro area where public transportation is available. An airline's credit card sounds like a good plan, too - flight rewards are always a plus. And I'd never heard of those websites but will definitely check them out! Sounds like a good deal.

Just remember that those flight reward cards have a yearly fee they charge you to keep the account active. Some as high as $400.

[Ippsy Pippsy 31]

Great advice!

I have way more student loan debt than I'd like (interest, ugh), so we are paying off as much as we can a month. Meanwhile we're trying to put in as much as possible to retirement. That same interest that killed me on loans will work in our favor as it compounds over the decades. So put a little in retirement every month. If you're young, get an index fund (stocks). (Recs? I'm on a phone atm.)

If your company has 401k matching, max it.

Don't get a car loan or a new car. We've got Zipcar. CityCarShare works. Subsidized by work, or we might not bother! We spent the money on nice bikes.

We kept the Dutch bank account. Interest on savings is higher there than here.

A house is unlikely. We're in the SF Bay area, which means we'd be stretching. Housing prices didn't really come down here they just stagnated. They're on the rise again. We could afford a condo, but that seems too risky and high HOA fees.

[Ippsy Pippsy 31]

Maybe this thread should be a sticky?

When my sweetie first got here, we got short-term health insurance for him. It turned out to be easier than putting him on my $$$$$$ self-employed insurance. His new job then had proper health insurance. Don't want medical bankruptcy. Its expensive but you should get health insurance. And maybe disability insurance.

That myfreestuff.com or whatever website looks horrible. You're giving out personal info worth $500+ to get a free bag of tea???? Who needs the junk mail? And you should never give out info like household income.

[SAT 9,609]

Just remember that those flight reward cards have a yearly fee they charge you to keep the account active. Some as high as $400.

I wanna add that The Discover card is among the best credit cards in the US. Though not as widely accepted. The rewards are in the form of free cash that you can spend at any given time, many websites have firect links to your rewards $$ in your Discover account.

The Costco American Express is also a great card to use.

[SAT 9,609]

Maybe this thread should be a sticky?

When my sweetie first got here, we got short-term health insurance for him. It turned out to be easier than putting him on my $$$ self-employed insurance. His new job then had proper health insurance. Don't want medical bankruptcy. Its expensive but you should get health insurance. And maybe disability insurance.

That myfreestuff.com or whatever website looks horrible. You're giving out personal info worth $500+ to get a free bag of tea???? Who needs the junk mail? And you should never give out info like household income.

My wife goes to that site all the time (She's a greedy little sucker). And she does not use her real name, and she never gets junk mail. It's really hassle free-free stuff. (I don't know how many "captain crunch" T-shirt she wants to get for my daughter).

[SAT 9,609]

For smarter shopping at Amazon.com, put your item in your wish list (not in your cart). Then sit on it. Amazon will try to lower the price bit by bit until they get you to buy it. They'll try their best not to let another company get your business.

[christeen 966]

Since everyone here is dealing with foreign spouses... I have been married to mine for 10 years so this is my 2 cents on what i have learned....

I think that the number one of the most important piece of advice for finances is to have HONEST conversations and planning session with your significant other. This may seem like a no-brainier, however you each come from different cultures and mentalities and laws and understanding regarding finances. Items to discuss should include;

Thoughts on debt, and debt tolerance

Ideas of saving ( amount, liquid and assets)

Buying of a home, renting, how they feel about mortgages etc.

Weekly, monthly and yearly budgets and spending

Tolerance for risk in investments

Insurance (life, medical, car, renters etc...)

Bank accounts

Taxes and deductions

Retirement savings

Another thing to consider is building and maintaining credit score. Many foreign spouses do not immediately understand the us system of credit scoring and how important this is. Sometimes jobs check this score as it reflects on you trustworthiness and personal ability to conduct yourself in a responsible manner. You need to do what it takes to establish good credit AND maintain that credit. It will make life easier as you move forward.

Live within your means... NOT what you PROJECT your income to be... Before buying anything, think if you NEED it or WANT it? If it is a true need, then you have to buy it, just look for the best value. If you only WANT it, then ask yourself "can I afford it"? This should be the premise for all expenditures to keep things in perspective.

The main thing is to really TALK and understand where each one is coming from and what is most important to them. More fights and problems in relationships revolve around money and most times this stems from not understanding the expectations and financial beliefs of the other person. Be honest with each other and even the lean times are manageable.

Everyone has their own ideas about what is the "best" investment, way to save etc... But you need to determine what is "best" for YOU (in a plural term meaning your family)... That is what matters.

[SAT 9,609]

I'm not crazy about the way the markets are moving. Watch you 401s, IRAs, various funds, bonds, etc...

Just my opinion.

[indiana_sweetie 120]

Since everyone here is dealing with foreign spouses... I have been married to mine for 10 years so this is my 2 cents on what i have learned....

I think that the number one of the most important piece of advice for finances is to have HONEST conversations and planning session with your significant other. This may seem like a no-brainier, however you each come from different cultures and mentalities and laws and understanding regarding finances. Items to discuss should include;

Thoughts on debt, and debt tolerance

Ideas of saving ( amount, liquid and assets)

Buying of a home, renting, how they feel about mortgages etc.

Weekly, monthly and yearly budgets and spending

Tolerance for risk in investments

Insurance (life, medical, car, renters etc...)

Bank accounts

Taxes and deductions

Retirement savings

Another thing to consider is building and maintaining credit score. Many foreign spouses do not immediately understand the us system of credit scoring and how important this is. Sometimes jobs check this score as it reflects on you trustworthiness and personal ability to conduct yourself in a responsible manner. You need to do what it takes to establish good credit AND maintain that credit. It will make life easier as you move forward.

Live within your means... NOT what you PROJECT your income to be... Before buying anything, think if you NEED it or WANT it? If it is a true need, then you have to buy it, just look for the best value. If you only WANT it, then ask yourself "can I afford it"? This should be the premise for all expenditures to keep things in perspective.

The main thing is to really TALK and understand where each one is coming from and what is most important to them. More fights and problems in relationships revolve around money and most times this stems from not understanding the expectations and financial beliefs of the other person. Be honest with each other and even the lean times are manageable.

Everyone has their own ideas about what is the "best" investment, way to save etc... But you need to determine what is "best" for YOU (in a plural term meaning your family)... That is what matters.

All of the above!!! Hubby has been here just over a month and he was having trouble visualizing my budget. His spending method is to have a fist full of Euros in his pocket which physically decrease as he spends them. He has never had a checking or a savings account. My method is a debit card, which to him seems endless. On top of that, we live in an area with stores everywhere which is an endless source of enticement to buy. Hubby has a bit of the "kid in a candy store" problem right now. On top of that he promised his family a bunch of gifts without actually discussing how much to spend with me. So today I signed us up with mint.com, so he can see the money come and go, and learn about budgets and credit and saving. I'm not the type to fight over money, but I needed him to understand where we stand. He thanked me.