I've decided I'm paying off my onerous 2nd mortgage before June 2015. It's an interest only balloon loan that comes due mid 2015 original balance on 1/1/14: 40,000 2/1 applied 20,000 from savings: 20,000 balance 2/15 liquidated a mutual fund account of 7000: 13000 balance Next I'm applying 3000 of my tax return, so it'll be at 10,000 soon and I'll work it down piecemeal from there. I've had this thing on my back for years even while I've had cash stockpiled that I should have applied to the principle years age. A lot of the motivation to start this process came from this website and www.mrmoneymustache.com
Logan - have you tried lendingclub.com to try to consolidate your 19.9% loan to something more reasonable?
@Squeegeebeckenheim someone on twitter pointed this out too. Thanks for the info, I'll use it going forward.
The capitalone360 checking account lets you overdraft a certain amount and you don't pay any kind of standard fee - you just get hit with a small interest charge. The overdraft amount starts at 500 but you can request it be increased. It's been very handy - I've had a few mortgage payments take my account into the red by 500$ for 3-4 days and I only paid a couple of dollars (don't quote me on the exact numbers)
I agree that financial education as it's taught now doesn't work, but I don't think that's a reason to give up. You're right that $$ behavior is a habit, and one class can't change that. But what about starting earlier and integrating money issues into math classes starting in grade school and sustaining it through high school. There are ways to bring money knowledge into algebra, calculus, etc and it has the knock on effect of giving these subjects real world relevance. Of course not everyone is going to absorb/use all the information, but that's true of everything about school. I'd give this a parallel with smoking education. We pound a few simple points into people's heads throughout their lives. By age 18, are people smoking? Of course they are. But there isn't one person that doesn't understand that smoking is bad for them. The same isn't true about financial issues: there are lots of people that legitimately don't know what compound interest is, or how credit cards work. I'm more okay with people making mistakes if I think that they all at least know how the game is being played.
@sea ermine that's a great idea. There are also some low cost financial planning websites online that I've wanted to check out
@jfruh it is diversified at a risk level appropriate for your age. The rebalancing happens internally by the fund managers. If you've got all your eggs in that basket, no need for rebalancing
@VelourFog The new yorker had a great article this year about stanford and how the university is very intertwined with large tech companies and how much that twists the school's mission toward business (read: $$)
@milena the only way I can think to spend that much $$ on 'entertainment' would lead to me smelling like perfume and my wife being very angry
The answer to almost every problem is a spreadsheet.