Let's Help East Side Dave with His Finances

[Freitag]

Let's add some tips here that can help East Side Dave with his finances. Before you do, remember your audience - and discuss in very general, easy-to-understand terms.

Maybe others will learn too.

One of the most important things is to save for retirement. This is done by utilizing your company's retirement plan as well as an Individual Retirement Account, an IRA.

XM offers a 401(k) with a match. This means the following:

Whatever money you put into retirement savings, XM will match. Up to a certain limit.

A 401K works in a bunch of ways, but usually they invest in Stock Mutual Funds. Mutual Funds are basically a pool of stocks, and the overall performance of each individual stock daily contributes to the overall price of the fund - kind of like a fantasy football team.

Since you're thirty and you want to retire at 65, you're already behind the eight ball in saving, so the thing you gotta do now is put at least 25-50 dollars a week away in your 401(k).

An IRA is similar to a 401(k), except there's no match. However, you have better control of what you want to invest in. There are several companies to invest in IRAs - perhaps people can give their own recommendations?

[Dougie Brootal]

this thread is a good idea. people who know something (not me) should post in it.
I...:unsure: i mean Dave, needs your help.

[thejives]

Dave is a bad person.
Dave should feel very very bad.

He is shit.
His priorities are shit.

(transformation music)

Now all he has to do is pull $200 out of his ass every month and invest it.

[Marc with a c]

if you aren't contributing up to the match your company offers you are throwing away money.

[silera]

Get a better paying job.

[Soupy_Dreck]

play the lottery

[Marc with a c]

set up automatic savings, it will make you save. after your paycheck goes into your checking account the bank will automatically pull out a preset amount each check and deposit it into a different account.

[Caseyelan]

set up automatic savings, it will make you save. after your paycheck goes into your checking account the bank will automatically pull out a preset amount each check and deposit it into a different account.

I need to eat.

[Tallman388]

Whatever money you put into retirement savings, XM will match. Up to a certain limit.

A 401K works in a bunch of ways, but usually they invest in Stock Mutual Funds. Mutual Funds are basically a pool of stocks, and the overall performance of each individual stock daily contributes to the overall price of the fund - kind of like a fantasy football team.

Since you're thirty and you want to retire at 65, you're already behind the eight ball in saving, so the thing you gotta do now is put at least 25-50 dollars a week away in your 401(k).


At the age of 30 what you should be doing is putting as much as you are allowed into your 401(k). So if the limit is 12% of your check, put in 12%, add into that whatever XM matches, and you'll have accumulated a lot more money than you realize. Maybe read up on some of the financial blogs, or get an investing for Dummies book.

[Snoogans]

17 BLACK

That hits, you just increased your cash by 35 times. It doesnt hit, what could you have like, 100 bucks?

[FUNKMAN]

see it's like this dave, you put some money in a 401k. maybe the company matches 3 or 5%. anyway you can't touch this money till your like 60 without them taking 40% away from you. so you put your money in some fund where there's a fund manager. this fund manger makes like 7 figures a year. so everyting is fine and dandy and your earning like 8 maybe 10% and it's building up a few thousand at a time. then comes that fucking time OH AND YOU KNOW IT"S GONNA COME where the people that run the world will take their money off the table and all them years it took to earn them thousands of dollars will be ripped out of your account so fast your fucking head will spin. and guess what? the fund manager will just go on earning his 7 figures...

so enjoy

:tongue:

[Marc with a c]

I need to eat.

start smoking again

[Caseyelan]

start smoking again

ok:smoke::smoke::smoke::smoke::smoke::smoke:

[thejives]

ok:smoke::smoke::smoke::smoke::smoke::smoke:

great work, marc.

[Freitag]

Get a better paying job.

That was the Matty Fridays 2006 plan.



Bottom line - if Dave is not involved in XM's 401k, he's turning down free money.

[GvacMobile]

My simple solution to Dave's need to reward himself with toys is to base all of his financial needs (checking, savings, IRA, spending money, etc.) on two paychecks a month, assuming he gets paid bi-weekly.

There will be 2 months during the year where you will receive 3 paychecks in a month instead of two. It's kind of like found money. When you get that extra check, then you can buy something frivolous. That's what I do, and usually wind up buying a new guitar or computer.

[drjoek]

Simplest advice for Dave

Grow up. It know sounds like an insult but it is meant as constructive advice
Dave has a computer then he should download or purchase quicken or Microsoft Money and set up a budget and take a good honest look at what he spends and what he can and will eliminate to balance his budget and spending. Entertainment drinking smoking big cable bills are all low hanging fruit that can be picked to trim to live with in his means. And put something away BEFORE you start
Its painful but it will work
Just trying to help

[Cleophus James]

get more jobs

[JPMNICK]

the best advice is to limit the drinking and going out to dinner to one night per week, or twice a month if you can. it make a HUGE difference. not drinking 1-2 beers a few nights per week and staying home to eat is easily a few hundred per month

[Jujubees2]

Dave,

Now that you're going to have a family two words for you: Life Insurance.

I know you're young but protect those you care about by getting some. And don't go for the annuity, just buy a simple term policy.

And take advantage of the 401K. I did and over the past eleven years I've banked over $200,000!

[Caseyelan]

the best advice is to limit the drinking and going out to dinner to one night per week, or twice a month if you can. it make a HUGE difference. not drinking 1-2 beers a few nights per week and staying home to eat is easily a few hundred per month

Please send this to dave's email.

IMMEDIATELY!

[JPMNICK]

Please send this to dave's email.

IMMEDIATELY!

I am sure if i did, it would somehow magically wind up as spam.

I did this for a few years, saved a HUGE amount of money and lost 15 pounds without changing anything else.

[ralphbxny]

the best advice is to limit the drinking and going out to dinner to one night per week, or twice a month if you can. it make a HUGE difference. not drinking 1-2 beers a few nights per week and staying home to eat is easily a few hundred per month

Agreed. I have been really watchin my finances since June last year. This has helped alot. I only have one crazy expenditure a year and thats my Yankee tickets. I have started paying down debt, investing in my 401k and putting money in savings. Something I never did before. It only took me till I was 33 to figure it out...but I dont have a kid and a wife.

Davie Mac I hate to say you need to look at yourself, but you have to. That crazy old bastard is right. Stop with the toys and dumb spending so your kid and Casey can eat! If you start being good now and looking to get a better paying job. By this time next year you'll be able to treat yourself to something. You lived your dream now you need to get more $ from XM or more $ from somewhere else.

[Rockvillejoe]

If he is struggling now, he is in big trouble. Raising children is easily the most expensive endeavor one can undertake. Move to an outer suburb with a great public school system. Make the commute sacrifice. Beat the bushes harder. Hire an agent and get some in store appearances. Develop a stand up routine and market yourself with some of the other regulars. If all that fails, hit up your rich parents. Your mother sounds like a compasionate, caring, person. She should be good for a couple extra hundred a month.

[silera]

If he is struggling now, he is in big trouble. Raising children is easily the most expensive endeavor one can undertake. Move to an outer suburb with a great public school system. Make the commute sacrifice. Beat the bushes harder. Hire an agent and get some in store appearances. Develop a stand up routine and market yourself with some of the other regulars. If all that fails, hit up your rich parents. Your mother sounds like a compasionate, caring, person. She should be good for a couple extra hundred a month.

Best advice yet.

[topless_mike]

Best advice yet.

im sure you can agree with me.
raising a family on one income sux, but you can do it. just have to prioritize everything.

[JPMNICK]

Also when you go out drinking, leave your CC's at home and bring like 50 or 60 bucks. this will keep you from buying everyone next to you a drink

[Recyclerz]

I'm with Dr. JoeK (and that "tough love" guy who was on the show) on this one. If the stuff on the show is anywhere near reality (and I may be a rube but I suspect it is) Dave has to man up in a hurry. He's got to make a life plan just as much as a financial plan now that he's going to be a parent.

While I agree generally with the advice from Matty, Marc and Jujubees my advice is even more basic until he can get up to just broke. Start with a budget of your rent, utilities (basic cable only!), food and medical expenses for the month. Everything(!!!) else goes in the bank until the baby comes. Then start saving (401k, insurance, etc.) like a grown-up. (Let your folks buy the baby stuff.) Anything left over from that becomes your new entertainment budget. Less fun sure, but also less likely to wind up like some of the former R&F producers who haven't really had the happiest of results in life.

[Stankfoot]

Let's add some tips here that can help East Side Dave with his finances. Before you do, remember your audience - and discuss in very general, easy-to-understand terms.

XM offers a 401(k) with a match. This means the following:

Whatever money you put into retirement savings, XM will match. Up to a certain limit.



Is that what "match" means?

I always thought they meant one of these:

http://i14.photobucket.com/albums/a350/stankfoot/match.jpg

Thanks for clearing that up ....

[drjoek]

I listened to yesterdays show on the way to work today when Dave was laughing at Fez the organized "pack rat" who pays all his bills and then saves the paperwork. All these things that Dave finds so funny, are the type of lessons that he would be well served to emmulate as he begins on his journey as a married person, a parent and an adult. Maybe Dave should stop laughing at Fez so much and try taking a few examples, it couldn't hurt.

[EffMeBoobs]

I need to eat.

yes chocolate mint shakes are KEY people!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!

[Bellyfullasnot]

Start a 529 college fund as soon as the baby is born. The NY state version is easy to work with and you can direct deposit monthly as low as $25. It's a start, and it's better than nothing.

[ZigZagBigBag]

smoke more weed, drink less...herb stretches out more, keeps you outta bars.
is selling some jizz outta bounds?

[DESMO22]

Simplest advice for Dave

Grow up. It know sounds like an insult but it is meant as constructive advice
Dave has a computer then he should download or purchase quicken or Microsoft Money and set up a budget and take a good honest look at what he spends and what he can and will eliminate to balance his budget and spending. Entertainment drinking smoking big cable bills are all low hanging fruit that can be picked to trim to live with in his means. And put something away BEFORE you start
Its painful but it will work
Just trying to help

Thats great advice Dave but you should also stop buying Star war toys and lay off the bottle for a while, or for good. Think of your lovely wife and child that will be born.

[A.J.]

the best advice is to limit the drinking

That's crazy talk.

[Thebazile78]

Start a 529 college fund as soon as the baby is born. The NY state version is easy to work with and you can direct deposit monthly as low as $25. It's a start, and it's better than nothing.

I thought you could set the account up in a parent's name while you're expecting and then change the name on it when the baby is born.

(Actually saw something like that on TV, but it may not have been a 529.)

[IMSlacker]

I thought you could set the account up in a parent's name while you're expecting and then change the name on it when the baby is born.

(Actually saw something like that on TV, but it may not have been a 529.)

Yes, you can. We did this for my daughter. It's a bit of a hassle though, and they don't actually change the name on the account. They open a second account in your kid's name and transfer the funds. Because some sort of timing issue, we still have a little bit of money left in my wife's account now. Since your'e just a couple of months away, I'd recomend just waiting until the baby's born and you get her SS# before opening a 529 account.

Also, it's probably a good idea to get your current financial situation sorted out before worrying about college savings.

[ScottFromGA]

yes chocolate mint shakes are KEY people!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!

YUM....

[SouthSideJohnny]

Also when you go out drinking, leave your CC's at home

Unless I missed a show, Dave doesn't have a credit card . . .which is actually a good thing. I don't know how much of Dave's appearance with Larry Wingett was a bit. If it wasn't, it's time to man-up quickly since you've got a wife and a baby on the way!

I highly recommend the book "Total Money Makeover" by Dave Ramsey. It covers everything - budgeting, paying down debt, investments, and college planning. When I first saw the book, I was turned off and didn't buy it since there are some religious references and references to the Bible which made me think it wasn't for me. About a year later, my wife wanted to buy it, so I agreed. As I read it, it made alot of sense to me. It's a great book, and I recommend it to alot of people, especially financial novices or people that make good money but need to get their shit together. The author also has a show weeknights at 8:00 on Fox Business News and he's also on XM in the afternoons - I think it's on at 3:00 on 165. At first, I thought he was abrasive and annoying, buy I actually started watching the evening show regularly and have learned alot. Friday's shows are cool because people call up and tell their stories about becoming debt free. Until I read his book, I never thought that would be possible for me between cc, (huge) student loans, mortgage, business debt, etc. . . I've totally shifted my focus and am working diligently with my wife to make that happen. It's a long way off, but the book put us on track.

I was also really happy to hear Larry Wingett on the show. I've read his other two best-sellers and they're both good reads. There's nothing in there that's really new, it's just stuff you need to be reminded of from time to time. His show "Big Spender" was interesting - it makes you reflect on your own life when you see how much money people piss away on worthless shit.

Ramsey's book was better for financial strategy; Wingett's books are better for giving you a kick in the ass and straightening out your priorities in life. If Dave was being real the other day, he could use both.

[Pitdoc]

Ok, we have two options.
First, Dave grows up, becomes financially responsible for him and his wife , stops drinking.......................





.... Yeah, he's gotta sell the baby