MONEY: Ahhhhh, the ignorance of yute; what DO they learn in Gooferment Skrules

On Fri, Jul 20, 2012 at 7:27 AM, CLUELESS_RELATIVE WROTE wrote:

Do I need an emergency fund?

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On Fri, Jul 20, 2012 at 7:37 AM, UNCLE_GRUMPY WROTE wrote:

Uncle Grumpy

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On Fri, Jul 26, 2012 at 7:27 AM, CLUELESS_RELATIVE WROTE wrote:

Oh I have navy federal credit union, usaa and state department federal cu. Any one in particular u think is better?

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On Jul 27, 2012 12:31 AM, UNCLE_GRUMPY wrote:

Do a spreadsheet comparison of the factors that matter to you:

cu1 cu2 cu3

* Easy to do biz (atm location, fees)

* Share interest rate

* Can I have sub accounts

* Auto loan rates

* Home loan rates

Then pick one and stick to it. I’d keep a minimum deposit in the others to preserve your eligibility. That a mistake I’ve made.

Then you need (imho):

(1) Emergency Fund (Roach motel — money goes in but never comes out). Priority One uber alles. You’re a hard case to figure out the right amount. But at the minimum, I call it one year at your Minimum Burn Rate (see blog).

(2) Car amortization fund (See blog post on 6 year car payment so that you have the money to buy a new one when your current ride dies.)

(3) If you’re a “monthly” paycheck to paycheck (which is what it sounds like to me), then annual and quarterly bills need a “monthly” “bill”. For example if car insurance is $1200 per year, then you must “pay” the subaccount $100 / per month.

If you’re a “weekly” gal, subsitute as needed. If you’re a bi-weekly, the math is slighly more complex. In the example, $1200 / 26 = $38.50.
And, “monthly” bills are multiplied by 12 then divide by 26. (Hint: It’s 46%) You must get to the point, where you’re ahead to annualize.

Getting off the paycheck to paycheck is essential.

(3) You like to travel, you need a subaccount to “tax” yourself for you next trip. Take your last trip, if you know what it actually cost I’d be surprised. Guesstimate divide by the number of paychecks and that’s your “tax” for that. You may not be able to afford that, so either scale back the trip or stretch the duration until the next one.

(4) “Sinking funds” for any expenses that can’t be accurately estimated (very few of those) and who’s frequency can’t be predicted (very few of those).

Hope that helps,
Uncle Grumpy

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Ferdinand John Reinke
Kendall Park, NJ 08824
(732) 798-0508 (Personal page) (Professional page) (Personal blog)

On Fri, Jul 20, 2012 at 7:27 AM, CLUELESS_RELATIVE WROTE wrote:

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