I need to cash out my 401k

[Anonymous]

Wow, seems like you might be in the same position again sooner rather than later. $240 for a carseat is crazy if you know it is not in your cash budget. It seem so easy for your to..."just put it on your credit card.

[Anonymous]

You definitely do NOT need a $240 car seat, OP! It seems like you're not making very good spending choices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are young enough to do this so if you feel you will have the discipline after the fact to not use CC and to save for retirement, you might as well go ahead and do it.

I might make sense to do this. I was given the $7K to pay off the cards from my aunt. Now that I have no debt on the cards I feel like I have so much money! I plan better, and I might wait until the next month to make a large purchase. But at $70K with all those expenses...It is going to be hard no to use those credit cards for the large purchases. Right now I have to get a new car seat for the next stage. I don't know what I didn't get a convertible one. I knew nothing about car seats that is for sure. I still don't know...but I know the one I like is $240. I have some time, but not much. I will just have to put it on the card, but I am trying not to. That is a low rate of pay for DC, being a single mom. Sure people do it, but I don't know how. On the HPAP chart for DC that is considered low income.

Same old same old for you I see...just keep bringing out the card. The sad thing is, that when you are back in debt again, your Aunt might become bitter - her good gesture just enabled you to stay in the same mindset., on her dime.

[Anonymous]

Anonymous wrote:You definitely do NOT need a $240 car seat, OP! It seems like you're not making very good spending choices.

I agree. Nothing that was said on this forum sunk in for her. I predict she will be in the same if not worst position in a year or 2.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are young enough to do this so if you feel you will have the discipline after the fact to not use CC and to save for retirement, you might as well go ahead and do it.

I might make sense to do this. I was given the $7K to pay off the cards from my aunt. Now that I have no debt on the cards I feel like I have so much money! I plan better, and I might wait until the next month to make a large purchase. But at $70K with all those expenses...It is going to be hard no to use those credit cards for the large purchases. Right now I have to get a new car seat for the next stage. I don't know what I didn't get a convertible one. I knew nothing about car seats that is for sure. I still don't know...but I know the one I like is $240. I have some time, but not much. I will just have to put it on the card, but I am trying not to. That is a low rate of pay for DC, being a single mom. Sure people do it, but I don't know how. On the HPAP chart for DC that is considered low income.

You can get a Graco Nautilus for a hundred less and it will last until DC ages out of safety seat requirements (and I'm sure there are other great options that can cut that car seat expense by more than half, this seat happens to be one I know). Stick to a budget and change your attitude toward credit or you'll work your way right back up to $7k of debt.

[Anonymous]

OP Back here- I am not the one who posted about the car seat, I don't know who that poster is and why they are impersonating me. I do not need a car seat and I would never spend $240 on a car seat

[Anonymous]

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

Our income, age, family size, and commute are roughly the same. I saved on rent and daycare, less than 200/week at a church daycare with a wonderful curriculum (and I'm not religious).

in what area do you live?

[Anonymous]

Anonymous wrote:I also vote not to touch the 401k. Check out www.mrmoneymustache.com. He does regular case studies on ways to cut down your monthly costs (many good ideas already floated on the forum). My husband and I started cycling to work last year and it save us probably around $500/month. Yes, I know this is not the answer for everyone, but there are certainly other ways to cut down your transportation costs (where there's a will there's a way). I'm rooting for you!

Thanks I will check it out! Commuting with a child, biking won't work for me though...

[Anonymous]

Anonymous wrote:OP Back here- I am not the one who posted about the car seat, I don't know who that poster is and why they are impersonating me. I do not need a car seat and I would never spend $240 on a car seat

Good.

I kind of thought someone was just pretending to be you. You seem like you want to not be in the same position again.

[Anonymous]

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.

[Anonymous]

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.

This person is an idiot. Everyone needs a budget; it's the only rational way to control your finances. Having a budget <> being frugal. I wouldn't call myself frugal but I have a budget so I know where my money is going and that I can afford what I buy.

I'd like to second idea of using YNAB (ynab.com). You are the textbook example of a person who will be helped by that system. They have their own forums and if you start a journal there are plenty of people who will chime in and provide support.

[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.

Actually, I am a poster who told the OP not to touch the 401k and I HAVE taken a loan on mine. So I'm not obsessed with retirement and/or savings at all. You are so cavalier about it - 'cash in your 401k, it's fine'. Um, no, it's not fine. It's a big decision and one that needs to be taken seriously. There is no reason why the OP needs to do so. She has other ways to make it work. The 401k should be a last resort, and she's not at that point yet.

[Anonymous]

Anonymous wrote:

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.

This person is an idiot. Everyone needs a budget; it's the only rational way to control your finances. Having a budget <> being frugal. I wouldn't call myself frugal but I have a budget so I know where my money is going and that I can afford what I buy.

I'd like to second idea of using YNAB (ynab.com). You are the textbook example of a person who will be helped by that system. They have their own forums and if you start a journal there are plenty of people who will chime in and provide support.

Um, I don't have a budget and have no issues with money. Budgeting money is like counting calories, not everyone needs to do it to control their weight.

[Anonymous]

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!

[Anonymous]

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.