My Salary And Finances - Need To Decide What To Do

Discussion in 'Money Matters' started by Mylifeatusa, Jul 18, 2018.

  1. Mylifeatusa

    Mylifeatusa Silver IL'ite

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    Dear Ladies,

    I need your opinion on my current financial situation and what is best to do to have some financial security.
    • Me and my DH both work here in USA.DH came here before wedding and worked for 1+ years before he come back to marry me.Before wedding we know that he/his family don't have any properties, but his father mentioned that he saved up and good amount and looking to invest some where !! I'm not a kind of a person who expects DH/Inlaws has to be rich. We know he is hard working and disciplined and living in US so I said yes to wedding thinking we both can earn and create financial security.
    • After coming to US, I realized he has zero knowledge on investments and whatever he saved up he spent on gifting Gold jewelry to his sister in laws and his aunt(fathers sister) and also on our flight tickets ,he lost his mother when he is 2 .
    • I have conceived immediately, I worked (internship) until I'm 9 months pregnant and took off for an year after the baby born. Once he is 2 I have started working again. Mean while we manage to saved up a little and had some chits and invested in Farm land in India (with my pressure).
    • Later we both worked for 2yrs continuously and saved up and invested close 70 lakh in India in 2014 which is doubled in value now.
    • Later husband decided to change his career from science to IT and took break for 2 yrs(Yeah thats long time). We managed with only my salary..DURING THIS PERIOD HE INVESTED IN MONEY MARKET BY TAKING LOAN FROM 401K(WITH OUT MY KNOWLEDGE***) THINKING HE CAN MAKE SOME MONEY AS WE LOST HIS INCOME..AND LOST A BIG CHUNK.
    • Finally DH got his job and we r back on track..saved up again and bought a home here in USA last year.
    • All these years we have only one common account where both of our salary goes into it.He takes care of paying bills and mortgage etc.
    • RECENTLY I REALIZED THAT HE DIDN'T LEARN HIS LESSON FROM LOOSING IN MONEY MARKET AND INVESTED AGAIN AND **LOST AGAIN CLOSE TO 60K USD :(
    • NOW WE HAVE CREDIT CARD DEBIT OF 100K TO PAYOFF..THAT I REALIZED LAST WEEK( I know we might have 20 to 3k as we bought furniture and for new home and other expenses but we have close 100k in which 70 from his loss).
    • ** I'm planning to take a loan from 401 k and payoff credit card debit and we have some savings in India close to 35k bring them back here also to payoff. You guys have any suggestions on what could be a better option to pay those off ?
    • I don't want to fight with him instead wants to take finances into my control..at least my salary. planning to open separate savings account and move one of my paycheck to it and move one paycheck to checking account to payoff bills. the main idea is to have limited funds available to DH .
    Im sorry for the long post..please review and advise how to handle this situation with out causing friction at home.

    Thanks.
     
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  2. centsibleindian

    centsibleindian Silver IL'ite

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    You both are working now? How much can you save every month? Can the savings be paid towards the credit card loan?

    I strongly caution you to take 401K loan. The penalties are high and it looks like you're getting used to the idea of taking money from 401K.
     
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  3. Mylifeatusa

    Mylifeatusa Silver IL'ite

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    Hi Centsibleindian,

    Thank you for your response. Yes we both are working now and we can save up to 3k. WE can pay with our savings but soon most of the cards will charge interest rates that are close 13% apr. That's why I'm planning pay them of with 401k loan as interest is low compare to CC.
     
  4. centsibleindian

    centsibleindian Silver IL'ite

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    Here are some ideas:
    1. Call the credit card company and negotiate. Ask them for an extension and try to extend the loan for 0% interest rate for a few months.

    2. Until you pay off the loan, both of you don't contribute to any 401K, HSA etc (tax-advantaged accounts)

    3. Reduce your expenses and increase your savings rate (live on a budget - search centsibleindian online if you need any help on this)

    4. Make sure your husband feels the pinch by going on a strict budget.

    5. Write down the exact amount under each credit card in a paper and stick it on the fridge (or other visible places). Every time you make a payment, make the change in the paper itself. Once a credit card is done, cross it off from the list. Writing goals is a good way to track and achieve your goals.
     
  5. poovai

    poovai Platinum IL'ite

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    I am NOT an expert. I had similar experience with our income. When we had joined account, my DH had similar attitude and spent everything, managed to keep nil balance.

    I keep my income in separate account, and it is off-limit to my DH. Mine was towards, retirement savings and for the future towards our kid's education. It is not a good idea, to touch the 401k; we tried to put maximum in our 401k savings and it will be the best investment for retirement.

    Whatever, my DH could manage with his income, that is our budget for mortgage, and monthly expenses. Occasionally, I may contribute for property tax / major purchases but, I collect it back towards the savings, if possible. Invest in 'moderate' mutual funds, there are good bank investment programs available and consult with your bank.

    This helped us to build our nest egg, but have to be very strict about living within the budget.
     
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  6. Mylifeatusa

    Mylifeatusa Silver IL'ite

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    Thank you for your response Poovai. My DH will be short of 1500$ on our monthly budget only with his salary as we have 15 yr mortgage and we pay 3450 towards mortgage. Thats why I'm planning to send 2000 $ to our checking to help with monthly maintenance and send rest to my account.
     
  7. centsibleindian

    centsibleindian Silver IL'ite

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    Refinance your loan if needed and move the rest of the money to debt payment. It much cheaper than borrowing from your 401K.
     
  8. Mylifeatusa

    Mylifeatusa Silver IL'ite

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    Thank you very much for suggestion and pointing me to Blog CentisibleIndian. I will try not to touch 401k. Keep you posted on how we did.
     
  9. sokanasanah

    sokanasanah IL Hall of Fame

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    This may not be a good idea. If your retirement account involves matching funds from the company, then you are leaving money on the table by not contributing. Review and rethink appropriately.
     
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  10. Mylifeatusa

    Mylifeatusa Silver IL'ite

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    Ours is only 1 year old home though, can we still refinance ? Also can you please advise how this refinance this works ? I'm a first time home buyer and no idea how it works !!

    Thank you in advance for your time .
     

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