RE: #8 Christine’s comment about the chest freezer. It is definitely a good idea to compare the energy usage of an old used frezer versus buying new. Freezers that are 10 years old or more use significantly more electricity than today’s models. A typical smaller chest freezer from the 80’s will use $70 more per year than a new one. The Energy Star website has a calculate to estimate the difference:
http://www.energystar.gov/index.cfm?fuseaction=refrig.calculator

Jim

My question is, where to start? Pay down debt in hopes of rebuilding our credit? Start saving so a down payment may help our credit situation? When I lie awake thinking about it, all of it seems too insurmountable that I don’t really know where to start. My law school and undergrad debt is astronomical, so it’s a given I’ll be paying that for the rest of my life, but what about the house? Is that a viable option for the 5 or 10 year plan? I realize this is a bigger question than a mere blog can answer, but a start might help. . . Thanks.

To Dee – regarding CC debt. Take some of the money from your savings, pay off the CC debt but keep your credit limit the same. That way you are saving interest but still have a line of credit for an emergency. Worst case scenario is that you have an emergency, have to use your remaining savings to pay for it, plus put some of it on your card. You will still have saved some interest in the meantime.

To give a little more information, I don’t have a whole lot of investments. I currently have no stocks or mutual funds (the amount allotted to me after the merger would be my first) and I have only a relatively small amount in my 401k plan. The amount of stock I will receive has the potential to substantially exceed the amount I’ve invested through 401k, so I may not have any choice to have more than 5% (or 20%, etc.) of my investments in my company’s stock. If that’s the case, should I still sell enough to get down to that magic ratio? And if I do sell, do I use it to pay off some significant debt or use it to buy into other investments?

As I stated in my question, I’m relatively young and pretty new to the workforce, so that’s why I’m looking for some advice about this situation. :) Thanks again!

Whether you go the route of face-to-face social activities, online personals, or some other means of meeting like-minded potential soulmates, think about your values and be prepared to broadcast them. If you value debt freedom, intellectual discussions, charitable giving, frugal living … whatever … don’t be shy about saying so! The wrong person will probably furrow their brow and give you a funny look. The right person will light up like a sunrise.

Me, I still recall my delight the first time DH (then DBF) and I went grocery shopping. First I witnessed him compare prices on jars of grape jam, and then later pile 20 cans of frozen orange juice in his cart when he found out it was on sale. “Woo hoooo – I caught a frugal one!!!” (*grin*)

1 – buying a used freezer is dumb, and you didn’t address that part of the letter (especially since she addresses “carbon foot-print”)! I looked into this last year and according to my research a used freezer that’s just 5 years old can cost upwards of $200 a year to run (based on 10 cents/KWh)… a new one is about $30. These things degrade unbelievably quickly and for the price differential (a new one is about $300 where I live), you’d recover the difference in less than 18 months. Plus, you’re more environmentally friendly.

2 – How come you never talk about available credit as being part of an e-fund? Not all of it, but part of it. I think that this fellow who has $3500 in savings but $5000 in cc debt SHOULD plunk some of that savings against cc debt. I learned a long time ago when I had massive debt and a small e-fund that good credit is worth more in an emergency than cash in the bank. More so nowadays. Case in point – Zoom Airlines passengers stranded an ocean away from home… you try withdrawing $1,000 for a new ticket home in a strange country. Your bank account locks up faster than anything you’ve ever seen. Happened to me. :(

3 – This fellow who never wants to retire… that’s cool, but what about if he has no choice? You didn’t address that option – whether it’s forced retirement or illness that takes him out of the work place, odds are against him in that regard. How do you feel about disability insurance for people who want to work their lives this way? I do like that you pointed him towards figuring out what he wants to do ‘for the rest of his life’… too many people think of retirement as sitting in an easy chair! My retirement will be filled with the things I currently do on weekends only – stitching, travelling, spending time with friends, volunteering. I can’t wait!

4 – (OK, I said there were 3, but this is a bonus) Fantastic advice on that last one! I like that you tend towards putting people in their place when they want advice on how to rain on someone else’s parade. Helping someone else? You’re good at giving them the tools. Being a tool? You tell them to stop it! Love it!