I need to cash out my 401k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP back- Yes, I think I am disciplined enough not to use the CC ever again. I can't reduce my living expenses though. I work in Tysons, so I need a 2 bedroom in an area commutable there. These are my major costs:

-My rent currently is $1600. I don't think I can reduce that unless I live way out and then I would have to pay more in gas, tolls ect, so is it even worth it?
-Daycare: 1300
-Cellphone: $70
-Internet & Cable: $75 ( its basic cable, cheapest I could find)
-Car Ins: $150 ( i have 3 accidents)
-Car Payment: $350
-Credit Cards: about $400/month
-Utilities: $250
-Gas:$200
-Food: Varies

So these are my main expenses. Thanks

Drop internet/cable. You can access this from the library for free.
Sell your car and take the bus/train. No more car insurance or gas. That's $775 saved.
Now you have $700 per month to put toward CC debt (you'll use the difference for public transportation--can't cost more than $75/month, right?).
If you're feeling like you can't do it--just think, it's only temporary, until you're debt free and can SAVE for the next car. Your next care will be a used car that you pay for up front, in cash.

Good luck!

Don't listen to this. This is one of those idiots who make 800k and drive 15 yo hyndai so that they can leave a zillion dollars behind when they die or something.

Exactly! Being squeezed financially doesn't mean you have to give up everything and be a martyr. Like I said in my response, your car and childcare expenses take the biggest bite out of your budget. Housing, food and gas are reasonable for the area. Car (assuming you have less than 2 years left) and childcare (child is 4) should be should go down significantly. The important thing is to not take up another bill after this. Until then do your best to keep paying down and saving, even the smallest amount. When things free up save more and pay down more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP back- Yes, I think I am disciplined enough not to use the CC ever again. I can't reduce my living expenses though. I work in Tysons, so I need a 2 bedroom in an area commutable there. These are my major costs:

-My rent currently is $1600. I don't think I can reduce that unless I live way out and then I would have to pay more in gas, tolls ect, so is it even worth it?
-Daycare: 1300
-Cellphone: $70
-Internet & Cable: $75 ( its basic cable, cheapest I could find)
-Car Ins: $150 ( i have 3 accidents)
-Car Payment: $350
-Credit Cards: about $400/month
-Utilities: $250
-Gas:$200
-Food: Varies

So these are my main expenses. Thanks

Drop internet/cable. You can access this from the library for free.
Sell your car and take the bus/train. No more car insurance or gas. That's $775 saved.
Now you have $700 per month to put toward CC debt (you'll use the difference for public transportation--can't cost more than $75/month, right?).
If you're feeling like you can't do it--just think, it's only temporary, until you're debt free and can SAVE for the next car. Your next care will be a used car that you pay for up front, in cash.

Good luck!

Don't listen to this. This is one of those idiots who make 800k and drive 15 yo hyndai so that they can leave a zillion dollars behind when they die or something.

Exactly! Being squeezed financially doesn't mean you have to give up everything and be a martyr. Like I said in my response, your car and childcare expenses take the biggest bite out of your budget. Housing, food and gas are reasonable for the area. Car (assuming you have less than 2 years left) and childcare (child is 4) should be should go down significantly. The important thing is to not take up another bill after this. Until then do your best to keep paying down and saving, even the smallest amount. When things free up save more and pay down more.

^^ another thing i forgot to mention. If you dell your car now, you'd probably still owe money on it.

[Anonymous]

Op back. Thanks for the suggestions. Wanted to point out that selling the car is not an option. My job and school are not Metro/ bus accessible and even if they were, taking Metro/bus with a child during the winter is just deadly. The car is new I bought it last year. I bought it new because 2 years ago I needed a car and I got one used for $15k. I didn't want to finance a car so I bought a used one and paid cash, put all my cash into it. I put about $4k worth of repairs in the 2years I had the car and around the end of last year more repairs were quoted and I was told I might eventually need a new engine so I sold the car and bought a new car with a 4 year warranty because I didn't want to go through car repairs again. Most of my credit card debt stems from car repairs.. At least now I know I will have zero repairs to wordy about four at least 4 years not even oil changes or inspections. ....

[Anonymous]

Anonymous wrote:Op back. Thanks for the suggestions. Wanted to point out that selling the car is not an option. My job and school are not Metro/ bus accessible and even if they were, taking Metro/bus with a child during the winter is just deadly. The car is new I bought it last year. I bought it new because 2 years ago I needed a car and I got one used for $15k. I didn't want to finance a car so I bought a used one and paid cash, put all my cash into it. I put about $4k worth of repairs in the 2years I had the car and around the end of last year more repairs were quoted and I was told I might eventually need a new engine so I sold the car and bought a new car with a 4 year warranty because I didn't want to go through car repairs again. Most of my credit card debt stems from car repairs.. At least now I know I will have zero repairs to wordy about four at least 4 years not even oil changes or inspections. ....

Not to nitpick but most of the issues spotted during inspections aren't covered by the warranty (tires and brakes).

[Anonymous]

Anonymous wrote:

Anonymous wrote:Op back. Thanks for the suggestions. Wanted to point out that selling the car is not an option. My job and school are not Metro/ bus accessible and even if they were, taking Metro/bus with a child during the winter is just deadly. The car is new I bought it last year. I bought it new because 2 years ago I needed a car and I got one used for $15k. I didn't want to finance a car so I bought a used one and paid cash, put all my cash into it. I put about $4k worth of repairs in the 2years I had the car and around the end of last year more repairs were quoted and I was told I might eventually need a new engine so I sold the car and bought a new car with a 4 year warranty because I didn't want to go through car repairs again. Most of my credit card debt stems from car repairs.. At least now I know I will have zero repairs to wordy about four at least 4 years not even oil changes or inspections. ....

Not to nitpick but most of the issues spotted during inspections aren't covered by the warranty (tires and brakes).

I have a bumper to bumper warranty + free VA inspections for life

[Anonymous]

Anonymous wrote:Op back. Thanks for the suggestions. Wanted to point out that selling the car is not an option. My job and school are not Metro/ bus accessible and even if they were, taking Metro/bus with a child during the winter is just deadly. The car is new I bought it last year. I bought it new because 2 years ago I needed a car and I got one used for $15k. I didn't want to finance a car so I bought a used one and paid cash, put all my cash into it. I put about $4k worth of repairs in the 2years I had the car and around the end of last year more repairs were quoted and I was told I might eventually need a new engine so I sold the car and bought a new car with a 4 year warranty because I didn't want to go through car repairs again. Most of my credit card debt stems from car repairs.. At least now I know I will have zero repairs to wordy about four at least 4 years not even oil changes or inspections. ....

Yeah really. The person who thinks you should just do away with your car is clueless - and has clearly never had to worry about how to safely get a child to daycare.

[Anonymous]

Anonymous wrote:Don't listen to those people, they are obsessed with retirement. Cash in your 401k, it's fine. You are young, you will save enough.

Do not move from your place and do not cancel cable. You have a good deal on your rent, and it's close. Cable makes life easier and more enjoyable. You don't need to kill yourself to live responsibly.

You don't need the food budget, you are fine. The only cost that is kind of excessive is your car. If you can do something about that, great. If not, drive more carefully.

People here are puritans that take pleasure in savings. They don't save to achieve goals, but to feel good. If you are not like that, you should not be taking their advice.

Lol your quote is so true (and funny)! You're not American I suppose?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't listen to those people, they are obsessed with retirement. Cash in your 401k, it's fine. You are young, you will save enough.

Do not move from your place and do not cancel cable. You have a good deal on your rent, and it's close. Cable makes life easier and more enjoyable. You don't need to kill yourself to live responsibly.

You don't need the food budget, you are fine. The only cost that is kind of excessive is your car. If you can do something about that, great. If not, drive more carefully.

People here are puritans that take pleasure in savings. They don't save to achieve goals, but to feel good. If you are not like that, you should not be taking their advice.

Lol your quote is so true (and funny)! You're not American I suppose?

Not the same poster, but I'm from the Midwest and I've noticed the same thing since moving here. Before moving here we'd thought some Coastie friends of ours to be on the crazy side; forgoing vacations, cars, having children, and anything fun at all ever, in order to save for retirement; even though both of them are relatively high earners in very stable careers. After spending some time here it seems they are not that unusual.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't listen to those people, they are obsessed with retirement. Cash in your 401k, it's fine. You are young, you will save enough.

Do not move from your place and do not cancel cable. You have a good deal on your rent, and it's close. Cable makes life easier and more enjoyable. You don't need to kill yourself to live responsibly.

You don't need the food budget, you are fine. The only cost that is kind of excessive is your car. If you can do something about that, great. If not, drive more carefully.

People here are puritans that take pleasure in savings. They don't save to achieve goals, but to feel good. If you are not like that, you should not be taking their advice.

Lol your quote is so true (and funny)! You're not American I suppose?

Not the same poster, but I'm from the Midwest and I've noticed the same thing since moving here. Before moving here we'd thought some Coastie friends of ours to be on the crazy side; forgoing vacations, cars, having children, and anything fun at all ever, in order to save for retirement; even though both of them are relatively high earners in very stable careers. After spending some time here it seems they are not that unusual.

yeah it is weird. I like my job and expect to work into my early 70s. I'll contribute the most I can to my 401K and pay off my house beforehand. And I'll pay for my kid's college costs and hopefully their graduate schools. Other than that, I want to enjoy my life!