Werewolfdad

Werewolfdad t1_je74ceg wrote

Reply to How do you determine you coverage limits for home or auto insurance? What is your system for determining them? by joecarst

> Right now we own all three of our vehicles, no loans. Two are worth about $25k and the other is worth maybe $5k. Do I really need liability for $300k?

The value of your cars doesn’t matter for liability.

If you cause $300k in property damage, do you want to be responsible for a portion of it?

For hazard insurance, the replacement cost is a good number.

For liability insurance, however much you’d get sued for that was necessitate bankruptcy

I have maximum car liability insurance plus a $1mm umbrella policy.

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Werewolfdad t1_je6mpma wrote

Reply to Buying out my car lease. by Various-Cut-1070

Leasing a car is just buying the most expensive depreciation every 3 years.

> My concerns with buying is the value of the car depreciating quickly and I end up at a loss.

So why would you ever lease since that’s exactly what you’re choosing to do

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Werewolfdad t1_jaewlc5 wrote

Reply to why are all of my 401k accounts empty by [deleted]

If the amount was under $5k, likely rolled into an ira.

If the amount under $1k, they may have cut you a check

If the amount was over $5k, the employer may have a new custodian/administrator

Are you one of those “doesn’t open and read important mail” people? Or one of those “doesn’t set up mail forwarding” people?

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Werewolfdad t1_jaefqsw wrote

Reply to Help Me Understand What I Can Be Doing Differently by Outrageous_Ad_6993

> What am I missing?

Those other people spend less than you do.

> 5,000 per month will take like 8 years to pay off which seems just so daunting.

Yeah. That’s what happens when you get a large mortgage in student loans.

Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics

It’s just math. Spend less or make more.

Also you should have an after tax income of around $18k/month (ignoring state and local taxes), so you’ll need to figure out where that other $8k/month is going.

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Werewolfdad t1_jadtco1 wrote

Reply to comment by D0lphan72 in I want to save 9-12 months of living expenses. What falls under that? by D0lphan72

> When you say austerity expenses do you mean entertainment type items and non- necessary purchases?

Yeah, if you're on an austerity budget, you're only spending what you must, not what you may want to.

Nondiscretionary items would be things like insurances, mortgage, property taxes, probably half as much in groceries, student loan payments, car payment, etc.

Discretionary items are things like eating out, booze, travel, vacation, kid's activities, lunch at the office, some of your streaming services, etc

> Do you lump investment lines into that as well?

That's savings, which is not an expense

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Werewolfdad t1_jadsdrx wrote

Reply to I want to save 9-12 months of living expenses. What falls under that? by D0lphan72

>I want to save 9-12 months of living expenses. What falls under that?

Whatever you want, frankly.

You can have full expenses (aka 100% of your monthly spending) or 'austerity' expenses (aka 100% of your nondiscretionary spending) if you would cut out an luxuries in an emergency.

I wouldn't include savings line items since they are fully discretionary and not an expense.

My emergency fund is about 6 months of full expenses and 12-15 months of austerity expenses, for reference

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