[quote]on edge wrote:
[quote]usmccds423 wrote:
That is pretty sweet On Edge. Did you mention what state this is? Looks like my kind of place. [/quote]
It’s St. George Utah. Southern Utah is pretty awesome. Check out Moab too.[/quote]
Love Moab. The desert is pretty but I don’t think I would want to live there. Utah in general gave off a strange vibe to me, but I thought Moab felt like it was more like Colorado than Utah.
[quote]on edge wrote:
To give you guys a sample of what frugal living can do for you, here is a picture taken from the inside of my parents house. Unfortunatelly I don’t have pictures I can show of the house. Trust me though, it is really nice and the view is like that all the way around. Actually a lot more impressive from other angles.
They built the house with cash.[/quote]
I know several people who I am convinced could be millionaires right now if they didn’t HAVE to live in our plaza district and always go out to the nice clubs and wear expensive clothes. Investing starting at 22 is fantastic, once the interest starts compounding you can have whatever you want. Honestly, I don’t miss most of the things I’ve given up when I wrote my budget. “Live like no one else so later you can live like no one else.”
[quote]on edge wrote:
To give you guys a sample of what frugal living can do for you, here is a picture taken from the inside of my parents house. Unfortunatelly I don’t have pictures I can show of the house. Trust me though, it is really nice and the view is like that all the way around. Actually a lot more impressive from other angles.
They built the house with cash.[/quote]
I want something like this, and will have it probably by the age of 50. 14 years to go.
[quote]on edge wrote:
[quote]usmccds423 wrote:
That is pretty sweet On Edge. Did you mention what state this is? Looks like my kind of place. [/quote]
It’s St. George Utah. Southern Utah is pretty awesome. Check out Moab too.[/quote]
Probably a dumb question, but it that where the Jeep Wrangler “Moab” gets it’s name?
[quote]usmccds423 wrote:
[quote]on edge wrote:
[quote]usmccds423 wrote:
That is pretty sweet On Edge. Did you mention what state this is? Looks like my kind of place. [/quote]
It’s St. George Utah. Southern Utah is pretty awesome. Check out Moab too.[/quote]
Probably a dumb question, but it that where the Jeep Wrangler “Moab” gets it’s name? [/quote]
Yes. It is also the gateway to Arches, Canyonlands and the Needles national parks. Spectacular place.
[quote]Testy1 wrote:
[quote]usmccds423 wrote:
[quote]on edge wrote:
[quote]usmccds423 wrote:
That is pretty sweet On Edge. Did you mention what state this is? Looks like my kind of place. [/quote]
It’s St. George Utah. Southern Utah is pretty awesome. Check out Moab too.[/quote]
Probably a dumb question, but it that where the Jeep Wrangler “Moab” gets it’s name? [/quote]
Yes. It is also the gateway to Arches, Canyonlands and the Needles national parks. Spectacular place.
[/quote]
Also, Moab is Mecca to off-roaders.
[quote]dmaddox wrote:
[quote]on edge wrote:
To give you guys a sample of what frugal living can do for you, here is a picture taken from the inside of my parents house. Unfortunatelly I don’t have pictures I can show of the house. Trust me though, it is really nice and the view is like that all the way around. Actually a lot more impressive from other angles.
They built the house with cash.[/quote]
I want something like this, and will have it probably by the age of 50. 14 years to go.[/quote]
From what I’ve read here, the way you are developing semi-passive income via apartments, you could probably have it a lot sooner. Houses are shockingly cheap in Southern Utah. My family just had a reunion and rented a ten bedroom mansion for the occasion. It had outdoor and indoor pools, jacuzzi, basketball and volley ball courts. Theater room, two of everything in the kitchen etc. We looked it up and it was valued at about 600K. My parents house would be a bit more but that’s entirely because of their location right at the base of Red Mountain.
[quote]on edge wrote:
[quote]dmaddox wrote:
[quote]on edge wrote:
To give you guys a sample of what frugal living can do for you, here is a picture taken from the inside of my parents house. Unfortunatelly I don’t have pictures I can show of the house. Trust me though, it is really nice and the view is like that all the way around. Actually a lot more impressive from other angles.
They built the house with cash.[/quote]
I want something like this, and will have it probably by the age of 50. 14 years to go.[/quote]
From what I’ve read here, the way you are developing semi-passive income via apartments, you could probably have it a lot sooner. Houses are shockingly cheap in Southern Utah. My family just had a reunion and rented a ten bedroom mansion for the occasion. It had outdoor and indoor pools, jacuzzi, basketball and volley ball courts. Theater room, two of everything in the kitchen etc. We looked it up and it was valued at about 600K. My parents house would be a bit more but that’s entirely because of their location right at the base of Red Mountain. [/quote]
I agree I could do it a bit quicker, but I need to get the kids out of the house and through College.
[quote]optheta wrote:
OP may I ask what kind of work you do? 58k is DAYM good for a fresh grad.[/quote]
I’m an engineer at a large manufacturing facility. 58K is pretty average for a starting salary in engineering!
Yes, yes it is. One important thing to note is that you have to always consider cost of living when they tell you your salary. I know engineers who make 100k graduating with a 4 year degree but they are in an area where cost of living actually puts them below the equivalent to my starting salary at 54k (four years ago).
For those that are mathematically and scientifically savvy, engineering is a great idea, perhaps one of the highest starting salaries with a 4 year degree and if you continue your education (and have your company pay for it) you’ll enjoy greater bumps in your career.
For me, I went the international assignment route and I am enjoying a 6 figure salary for the time I’m an ex-pat, will return to my normal wages when I get back - about 70k. (I’m not posting this to gloat, I’m posting it to motivate both animal and others, there are good jobs out there, you just have to be willing to push for them.)
The difficult part about finances is enjoying your hard-earned income now while still putting some away to continue to enjoy later. Deciding how much to put aside, how much “play money” to have now is a difficult decision, I’ve actually been surprised how many engineers/managers are just counting on their 401k’s. And I think that’s across the board. Figure out where you are financially, what you like to do, and put the rest away. Seriously, you and your family won’t regret it later on.
Anyone can put money away for savings and will benefit from it, at any time in their life. The earlier the better, but its never too late.
[quote]dmaddox wrote:
[quote]JCMPG wrote:
[quote]Zeppelin795 wrote:
[quote]24Animal7 wrote:
Hello,
I recently graduated college with about 14,500 total in student loans. I have a Stafford loan, which is about 4500 dollars, and the rest is a private loan, about 10 grand.
Both loans are in their grace period until November. I know the private loan has a variable interest rate which hovers between 2.9 and 3.2 percent. I’m unsure about the Stafford loan’s interest rate. Anyways, I’d like to pay these loans off quickly. I’d also like to open a Roth IRA and contribute $5,500 per year until I retire.
I earn around 58,000 per year, and I could pay off my loans entirely this year before January 1st, 2014 but I wouldn’t be able to contribute to my Roth IRA until next year. Since I began my job in June, I’ll earn around 28K this year.
I’m also in desperate need of a newer vehicle, as my toyota corrolla is about to shit the bed. I’m looking to purchase a vehicle for around 20K this year or the next, so its an anticipated expense that’s coming up fast.
So is it better to pay some interest on the loans and contribute to the Roth IRA? I don’t want to miss a year of the effect that compounding has on a Roth IRA, but I don’t want to lose money paying interest on student loans either.
Could anyone provide some insight on what’s best to do? I appreciate your help!
[/quote]
Self-directed Roth IRA’s are contributed with after-tax dollars while Roth’s are contributed with pre-tax and are taxed when withdrawn, I believe while self-directed are not taxed as the money contributed has already been taxed. I would advise you to look at a QRP, I don’t know a whole lot about it other than you can contribute up to 50k per year and invest in almost anything you want without having to get permission from a custodian. Look into investing into private trust deeds or mortgages. You should get around 10-12% return, sometimes even more. Sure beats leaving your money in a bank CD. And is safer, IMO, than the stock market.[/quote]
A 401(k) by definition is a QRP (Qualified Retirement Plan) and anything that is tax qualified is going to have limitations on it as far as the amount that you can invest in a year.[/quote]
Don’t take investing or Political advice from Zep. Especially the Private Trust Deeds. Get ready to loose your money on those.
[/quote]
Absolutely untrue as I’m getting 12% and haven’t lost anything. That is not to say I couldn’t but the option to foreclose is always available. It is backed by real estate and you can foreclose if things go bad. What is your recourse when you buy a stock for $30 a share and it goes down to $3? Sue the stock broker? Sue the company? You are out money. With private trust deeds you may have to wait for the foreclosure to run it’s course but you will probably make more money in the end. I’m talking about privately investing in a rehab project. An experienced rehabber will easily pay 10-12% for the use of funds.
[quote]24Animal7 wrote:
[quote]optheta wrote:
OP may I ask what kind of work you do? 58k is DAYM good for a fresh grad.[/quote]
I’m an engineer at a large manufacturing facility. 58K is pretty average for a starting salary in engineering!
[/quote]
Im sad 
[quote]24Animal7 wrote:
… I know the private loan has a variable interest rate which hovers between 2.9 and 3.2 percent. …
[/quote]
For the time being the variable rate loan hovers between 2.9 and 3.2, but is there any guaranteed limit to how much the rate can increase? My own unexpert unqualified disclaimer-for-entertainment-purposes-only opinion is that you should try to pay off all variable-rate debt first before paying off any fixed rate debt or contributing to a Roth, just to be safe in case of any unexpected drastic interest-rate changes.