Handling Money. Lots of it.

TrailerParkJawa · Post by **TrailerParkJawa** » 2002-09-28 10:14pm

I find it interesting to see how some people handle money. I have a buddy who is like 15,000 in debt yet he spends money like water. No thought for the future.

So here it is: You just won $50,000 US Dollars. Tax free. What would you do with it ?

Here is what I would do:

1) Pay off second mortage. Current balance is 25,000. Then I would refinance my first mortage and all of this would save me about 300-400 a month.

2) I would but 12,000 into my savings account. This would give me a 6 month supply of emergency cash.

3) I would use 8,000 as a down payment on a new car. Turn in my car and I would be able to get a Santa Fe with pretty low payments.

4) The remaining 5000 bucks I would probably splurge on useless but very cool personal items, like binoculars with built in compass and range finder.
Or mabye a nice vacation in Whistler would be a better idea.

WHat about you?

phongn · Post by **phongn** » 2002-09-28 10:17pm

Save some, invest some more.

Stormbringer · Post by **Stormbringer** » 2002-09-28 10:20pm

Apply half towards my student loans and save and/or invest the rest. And maybe pay off my car too.

Post by **Mr Bean** » 2002-09-28 10:27pm

50,000?
Hmmm 22k into the Market, lots of great deals going on,

I'm NEVER in debt, don't have to worry about that(My Philosopy, if you can't afoard it, just wait a fucking month or two

)

8k into a Special Saving Account in the bank, Being able to have 8k Emergancy money is quite useful
Leaving me with 20k

10k Going to USEFUL and fun things

Yes thats what you think it is DoD fans

Plus of course the maditory T-3 installed in my curret housing

The other 10k I would take someplace Ironic

Maybe Vegas

Joe · Post by **Joe** » 2002-09-28 10:28pm

Deposit it into IRAs, 2000 bucks a year. I'm 19, so that would pretty much take care of my retirement.

TrailerParkJawa · Post by **TrailerParkJawa** » 2002-09-28 10:31pm

Except for my house. Im debt free. I learned that lesson the hard way when I was younger.

Hey Bean, if the aliens ever invade I can use my laser range finder binoculars to find targets for your...ahem...toys.

TrailerParkJawa · Post by **TrailerParkJawa** » 2002-09-28 10:34pm

Deposit it into IRAs, 2000 bucks a year. I'm 19, so that would pretty much take care of my retirement.

Thats a pretty good idea at 19. Especially if you use a Roth. Did you know that the limit for IRA's is higher than 2000 now? Problem here in CA is the fucking state government didnt change the rules. So anyone that goes over the 2000/year limit will potentially run into trouble with the state but not the feds.

Post by **Mr Bean** » 2002-09-28 10:42pm

Heh thanks but I plan on using the money I'll Ironcily make in Vegas to get one of these nice T-90 Tanks shiped over

After that, levearge a few things, make a little more and get one of these made for a small price(Though the parts will not)

Still that one is a few years off..

Post by **Sea Skimmer** » 2002-09-28 10:49pm

Figure I'll invest about 35,000 for collage and after, blow about 5000 on various things like movies and ammunition, and use the other 10K to get a computer with 4 gigs of processor power along with a couple gigs of ram along with a broadband connection and a couple other things.

Tosho · Post by **Tosho** » 2002-09-28 11:11pm

I'd donate the money to charity.

phongn · Post by **phongn** » 2002-09-28 11:17pm

Tosho wrote:I'd donate the money to charity.

That sounds good, but I'd argue that you should invest it wisely, then donate to charity.

Joe · Post by **Joe** » 2002-09-28 11:20pm

TrailerParkJawa wrote:
Deposit it into IRAs, 2000 bucks a year. I'm 19, so that would pretty much take care of my retirement.
Thats a pretty good idea at 19. Especially if you use a Roth. Did you know that the limit for IRA's is higher than 2000 now? Problem here in CA is the fucking state government didnt change the rules. So anyone that goes over the 2000/year limit will potentially run into trouble with the state but not the feds.

Really, it's over 2000? Hmm, I've got enough money to get one started up, 2000 bucks a year until I can get a real job. I'll have to think about it...

I read somewhere, that if starting when you're 19, you put in 2000 bucks a year for eight years, you'll be a millionaire by the age of 65. Imagine, having your retirement taken care of before the age of 30!

Master of Ossus · Post by **Master of Ossus** » 2002-09-28 11:21pm

I would invest it. 30% stock, 25% bond, 15% dollar, 10% euro, and saving 20% in a bank account.

TrailerParkJawa · Post by **TrailerParkJawa** » 2002-09-28 11:31pm

Really, it's over 2000? Hmm, I've got enough money to get one started up, 2000 bucks a year until I can get a real job. I'll have to think about it...

I read somewhere, that if starting when you're 19, you put in 2000 bucks a year for eight years, you'll be a millionaire by the age of 65. Imagine, having your retirement taken care of before the age of 30!

The limit now is 3,000 if I recall correctly. They did not index the limit to inflation so the IRA limits were 2000/year since they were incepted many years ago. It about time.

There are lots of calculators on the net. They will show how much money you will make given a current rate of savings at a paticular rate.

If you put away 2000/year ( 166/month) for 20 years you will have 86,500 if you make 7%.

Go to bobbrinker.com, they have a calculator there,

Sienthal · Post by **Sienthal** » 2002-09-28 11:31pm

40,000 would go into savings, so that I might actually get some fairly good interest...

5k would go toward a car
The other 5k would go toward anything in particular (Most definately a lap top, or at the least a desktop)

Post by **Dalton** » 2002-09-28 11:32pm

Pay off both credit card bills, bank a bunch of it, buy a car, then splurge on electronics

Azeron · Post by **Azeron** » 2002-09-29 12:25am

Find some chick that will use me for my money, and blow completely on this false delusioned hope of love

OR

Buy Mexico

Post by **Darth Wong** » 2002-09-29 12:53am

$35,000 => long-term low-risk investments.
$5,000 => vacation
$10,000 => hire someone to track down Arminius, kidnap him, and then drop him in Somalia.

Stormbringer · Post by **Stormbringer** » 2002-09-29 12:59am

Darth Wong wrote: $10,000 => hire someone to track down Arminius, kidnap him, and then drop him in Somalia.

Why waste the money? There are people out there that would do that for free.

Post by **Sea Skimmer** » 2002-09-29 01:01am

Stormbringer wrote:
Darth Wong wrote: $10,000 => hire someone to track down Arminius, kidnap him, and then drop him in Somalia.
Why waste the money? There are people out there that would do that for free.

They might still need airfare and accommodations though.

Phil Skayhan · Post by **Phil Skayhan** » 2002-09-29 02:17am

Why bother hauling his sorry ass all the way to Somalia?
I know a street corner in Paterson, NJ that will do just as well.

XPViking · Post by **XPViking** » 2002-09-29 03:59am

1. Pay off any outstanding debt, such as a mortage.
2. Take the remainder and invest half. Save the other half.
3. Maybe take a vacation to either China, the Phillipines, or Singapore.

I would never go out and buy a new car. You lose value as soon as you drive it off the lot.

XPViking

salm · Post by **salm** » 2002-09-29 07:11am

frist i´d get a dishwasher.
then a couple of computers for rendering porpouses.
i dont need to save money since germany is a welfare state, so i´d throw the rest out for fun stuff.