A change I'm going to make

[manglicmot]

is to start saving. I'm not going to open a retirement account. Contrary to popular belief social security is not going to go broke and serves it's purpose as a retirement account. The purpose of a savings account is to have money for an emergency and I don't want to pay penalties to get it such as I would if I had it in a 401k or an IRA.

I'm going to invest in one of the Excelsior funds. http://www.excelsiorfunds.com/month_end_domestic.asp

They have a low minimum, $500, and they have an automatic investment program where they will deduct my checking account every month for as little as $50. I will probably invest in the Mid-Cap Value and Restructuring fund, but I need to think about it some more, all of the funds look good to me.

My C7 case will be filed in the middle of April, I wonder how long I should wait before I invest? Until after the 341, until discharge, or until closing?

[manglicmot]

Wow, I am doing more research into mutual funds and I found another family of funds that has a $500 minimum. Here: http://www.homesteadfunds.com/home/index.htm

If anybody else knows of any mutual funds that have this low of a minimum investment, post it here. I would guess that most BK filers are pretty low on cash after it's over, this could be a good resource for people who want to save and invest.

[SinkingFast]

ING pays right at 5% (4.9%??) on regular savings. Emigrant Bank also does online Savings and they're a tad higher. 5.05%. Both are low Opens.

https://www.emigrantdirect.com/Emigr..._source=Google

I know I asked our local Bank about opening a regular "Passbook" savings acct and they don't offer those anymore. The lowest starting balance savings program our Bank has requires $2500 to Open. UGH!!

[manglicmot]

Wow, thanks, that looks good too, and safer than mutual funds. I didn't see what the minimum is to open an account at Emigrant Bank though?

[manglicmot]

Never mind, I found it in the account disclosure - $1. That is hard to beat. I think I'll put this one up at the top of the list for now.

[manglicmot]

LOL! Now I'm thinking even more. All day I have been looking at the graphs of the returns of the mutual funds and how they have actually lost value in some years when the market was down. So there is a bit of risk in them. But with a savings account there would be no stock market risk. Another thing I just thought of is that I could actually do both - $500 to a mutual fund, and then maybe I could put $100 or $200 in the Emigrant account. The mutual fund required a minimum of $50 for automatic monthly investments, apparently there is no minimum for automatic deposits in the Emigrant savings account.

What a GREAT resource this site is! I would never have found out any of this stuff without it.

[tay666]

If you are looking for a regular savings account with a low ballance requirement. Look into credit unions in your area.
The one I am in currently only requires that you keep $10 in your account to keep it open.
Not sure what the rates are right now, but it is convenient for me.
It's only a few blocks from my house. And since I have an account, I can cash payroll checks for no fee.
After we do our BK I plan on dumping as much as I can into that savings account so I've got it for emergencies.

[keepmine]

Guys,

Do not pass up the opportunity to open a 401K. In the vast majority of plans, you get an employer match of up to 6%. You're leaving money on the table.
I'd also point out that ERISA qualified retirement accounts are exempt from creditor seizure in the event of future {God forbid} bk's.
Everybody is on the right track. No question, the toughest part of a bk is never get yourself in the position where you have financial problems ever again. Establishing savings is an important step.
Protecting your income is also important. Be sure you have adequate auto insurance. Take out both long and short term disability policies. HAve an adequate homeowners or rental policy and life insurance if approriate.

[manglicmot]

Oh my. I was just planning a budget without my credit card payments and it doesn't look very good. Even with belt tightening I have a $94.14 monthly deficit.

I do not want to give up socializing on the weekends. I live alone, no family and am having trouble making friends. I have been making a little progress in making new friends, but I still don't have anyone in my adress book I can call and just chat with or invite over for dinner. So to me socializing is a must. Of course, I can't be a cheapskate while socializing. The kneejerk reaction is that if you want to save money you have to give up your nights out, but I honestly don't see this as an option. Am I supposed to live like a hermit my entire life?

I really don't know what my point is here. I must start saving, and I must continue to socialize. The numbers just don't support both. I have to come up with a solution.

[lrprn]

Oh my. I was just planning a budget without my credit card payments and it doesn't look very good. Even with belt tightening I have a $94.14 monthly deficit. ... I must start saving, and I must continue to socialize. The numbers just don't support both. I have to come up with a solution.

The cold, hard budget numbers can indeed be sobering.

Your dilemma is wanting to save, also spend money having a social life, and still pay all your secured debts too. Something's gotta give! Can you give up an asset and reduce your payment load? Can you pick up a second part-time job after your 341? Do you have a hobby or something you are interested in? Find a group in your area who likes to spend time doing what you like to do that doesn't spend an arm and leg ever week. Are you a member of a religious group? Many larger churches, synagogues, etc have regular social events, including singles nights, that cost very little or nothing.

You have to start thinking outside the box here, because as you said, you can't keep doing what you are doing now and keep yourself out of financial trouble in the future.

[manglicmot]

The cold, hard budget numbers can indeed be sobering.

Your dilemma is wanting to save, also spend money having a social life, and still pay all your secured debts too. Something's gotta give! Can you give up an asset and reduce your payment load? Can you pick up a second part-time job after your 341? Do you have a hobby or something you are interested in? Find a group in your area who likes to spend time doing what you like to do that doesn't spend an arm and leg ever week. Are you a member of a religious group? Many larger churches, synagogues, etc have regular social events, including singles nights, that cost very little or nothing.

You have to start thinking outside the box here, because as you said, you can't keep doing what you are doing now and keep yourself out of financial trouble in the future.

Yes, you're right, I have to get out of this nice, comfortable, but deficit spending box and think of something new. Your post sparked an idea for me, I can start looking at the social calendar in the newspapers and weekly readers.

[lrprn]

I can start looking at the social calendar in the newspapers and weekly readers.

Good idea! Let us know what you find out!

[SinkingFast]

Another thing to think about is,...............

This is Spring. Many Youth Leagues are forming up to play Baseball and Softball during the summer. They are always in need of Adult assistance. Volunteering to help will give you something to do. A way to mix and mingle with people. Possibly mentor some young people from less than perfect families. And help out in your community.

Guys,

Do not pass up the opportunity to open a 401K. In the vast majority of plans, you get an employer match of up to 6%. You're leaving money on the table.

We're already doing 401K Contributions. We're looking for a place to save for emergencies and goals that pays more than 1% interest. Some place we can get at our money if need be, just in case.

[ilovemycaitybug]

A little perspective from an insurance professional...

Be sure you have adequate auto insurance. Take out both long and short term disability policies. HAve an adequate homeowners or rental policy and life insurance if approriate.

That is 100% correct, you do need to have adequate auto insurance. The cost to raise your coverage is so minimal compared to the premium you're already paying. Just bump it every 6 months to a year, 25/50/25 to 50/100/50... doubling your coverage for minimal cost. Then the next 6 months bump that 50/100/50 to 100/300/100... again, minimal cost for quadrupling your original coverage!

Also consider a Personal Umbrella or Excess Liability policy. This gives you $1 Million or more liability coverage on top of the liability on your other underlying policies for usually less than $200/year (in my area) for a one house, 2 car, no "toys" family. VERY cheap for what you get!

Another thing people with physical damage coverage don't think of is what they will actually be out of pocket in an accident. They only consider their own deductible. However... if you would INCREASE your deductibles (if the bank will let you) and INCREASE your liability.... you may not be paying any more than before and have a LOT more coverage. An extra $500 out of pocket at the time of an accident is better than $50,000 out of future earnings and assets! Think about it... and talk to your agent.

Hope this helps! I've been in insurance for 6 years so I like to help when I can. Many people don't want to think about it or don't understand what they're paying for and what they can get for just a little more money. A lot more protection!!!

[Avoid Bankruptc]

Social security is a retirement supplement ONLY!

Socail security is only a supplement for retirement, each person is responsible for saving for retirement. Social security may never be terminated but it is very possible that the benefits will be reduced.

Even corporate pensions are not guaranteed so everyone needs to take care of themselves.

Thanks. God Bless America.