Comments on: Reader Mailbag #80 http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/ Simple, applicable personal finance advice for the modern world Fri, 10 Feb 2012 00:51:16 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Tordr http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-777919 Tordr Sun, 20 Sep 2009 13:44:23 +0000 http://www.thesimpledollar.com/?p=4259#comment-777919 Thank you for answering my question. In retrospect I was a bit embarrassed about the question as it came out all wrong. (The question I was trying to ask was: How much can one man do alone? ) Thank you for answering my question.
In retrospect I was a bit embarrassed about the question as it came out all wrong.
(The question I was trying to ask was: How much can one man do alone? )

]]> By: Mike http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-777470 Mike Sat, 19 Sep 2009 01:18:08 +0000 http://www.thesimpledollar.com/?p=4259#comment-777470 Trent, do you ever enjoy a good cigar? Trent, do you ever enjoy a good cigar?

]]> By: AReynolds42 http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-776977 AReynolds42 Fri, 18 Sep 2009 01:33:58 +0000 http://www.thesimpledollar.com/?p=4259#comment-776977 I recently graduated college and have 2 student loans to pay off: Loan 1: about $4,000 left on it with a 6.8% rate Loan 2, Part 1: about $3,000 left with a 6.8% rate Loan 2, Part 2: about $7,000 with a 4% rate Loan 2, Part 3: about $6,000 with a 5.3% rate The kicker on loan 2: I was ‘automatically selected’ to pay off both part 2 and 3 before I can even start paying off part 1 (with the crazy high rate). I have asked around and done a bit of research on my own. Really the only thing that I keep coming back to is Ramsey’s idea of paying off the smallest loan first, while still making minimum payments on the other loan (so I don’t default). I have already built up an emergency fund and am trying to decide how to tackle these loans that would be the most profitable in the long run. Any and all advice will be welcomed. Please and thank you in advance!! I recently graduated college and have 2 student loans to pay off:
Loan 1: about $4,000 left on it with a 6.8% rate
Loan 2, Part 1: about $3,000 left with a 6.8% rate
Loan 2, Part 2: about $7,000 with a 4% rate
Loan 2, Part 3: about $6,000 with a 5.3% rate
The kicker on loan 2: I was ‘automatically selected’ to pay off both part 2 and 3 before I can even start paying off part 1 (with the crazy high rate).

I have asked around and done a bit of research on my own. Really the only thing that I keep coming back to is Ramsey’s idea of paying off the smallest loan first, while still making minimum payments on the other loan (so I don’t default). I have already built up an emergency fund and am trying to decide how to tackle these loans that would be the most profitable in the long run.

Any and all advice will be welcomed. Please and thank you in advance!!

]]> By: Canadian http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-776265 Canadian Wed, 16 Sep 2009 15:59:37 +0000 http://www.thesimpledollar.com/?p=4259#comment-776265 Friends do not have to be at the same stage of life as you, nor do they have to lead the same type of lifestyle, or be near your age. One of my closest friends is old enough to be my mother. Don't rule people out because of age or lifestyle. Friends do not have to be at the same stage of life as you, nor do they have to lead the same type of lifestyle, or be near your age. One of my closest friends is old enough to be my mother. Don’t rule people out because of age or lifestyle.

]]> By: Sharon L http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775886 Sharon L Wed, 16 Sep 2009 01:34:29 +0000 http://www.thesimpledollar.com/?p=4259#comment-775886 Those trees that give their lives to become paper were planted in the first place a quarter century or more ago for that very purposed. There are more trees around now than there were a century ago. Those trees that give their lives to become paper were planted in the first place a quarter century or more ago for that very purposed. There are more trees around now than there were a century ago.

]]> By: deRuiter http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775877 deRuiter Wed, 16 Sep 2009 01:10:40 +0000 http://www.thesimpledollar.com/?p=4259#comment-775877 Dear Jessica, A great place to look for "grown up" friends with a lot on the ball is your local Chamber Of Commerce. First of all, everyone who attends has a JOB so you're meeting people with a work ethic. You know they all actually do get up every day and do something productive. Chamber membership is cheap for an individual entepreneur, and if you work for a large company, the company may have already paid for a company membership which allows you to go to meetings for free. The Chambers generally have two "mixers" a month which are held at a different business location each time, the point being to familiarize the business community with different businesses, and to meet the owners. Refreshments are usually offered, and you get to meet people who are movers and shakers. It's a great place to socialize. You meet all kinds of people, but they tend to be productive people, all ages, all types, all lifestyles, but they are all workers. Dear Jessica, A great place to look for “grown up” friends with a lot on the ball is your local Chamber Of Commerce. First of all, everyone who attends has a JOB so you’re meeting people with a work ethic. You know they all actually do get up every day and do something productive. Chamber membership is cheap for an individual entepreneur, and if you work for a large company, the company may have already paid for a company membership which allows you to go to meetings for free. The Chambers generally have two “mixers” a month which are held at a different business location each time, the point being to familiarize the business community with different businesses, and to meet the owners. Refreshments are usually offered, and you get to meet people who are movers and shakers. It’s a great place to socialize. You meet all kinds of people, but they tend to be productive people, all ages, all types, all lifestyles, but they are all workers.

]]> By: Paul http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775655 Paul Tue, 15 Sep 2009 16:07:54 +0000 http://www.thesimpledollar.com/?p=4259#comment-775655 Question for next reader mailbag: Trent, My Wife and I bought a home recently and have determined that we do qualify for the $8K tax rebate on our 2009 taxes. This will likely mean a significant tax refund this year, we're thinking in the neighborhood of $10K as we always overpay to get a refund (I know, blastphemy to some), and are wondering if you think it is best to put it on the mortgage (5%) or pay off our credit cards completely (11 to 19%)? This seems a no-brainer to me, but it has started a healthy debate at my house and I was curious as to what you had to say on the subject. Thanks in advance. Question for next reader mailbag:

Trent,
My Wife and I bought a home recently and have determined that we do qualify for the $8K tax rebate on our 2009 taxes. This will likely mean a significant tax refund this year, we’re thinking in the neighborhood of $10K as we always overpay to get a refund (I know, blastphemy to some), and are wondering if you think it is best to put it on the mortgage (5%) or pay off our credit cards completely (11 to 19%)? This seems a no-brainer to me, but it has started a healthy debate at my house and I was curious as to what you had to say on the subject. Thanks in advance.

]]> By: Sharon http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775599 Sharon Tue, 15 Sep 2009 14:14:57 +0000 http://www.thesimpledollar.com/?p=4259#comment-775599 Please don't ditch all of your old friends. They will probably work themselves to your phase of life and it would be nice that you would be there. That said, no, you don't have to go out with them all the time, just remain in contact. Please don’t ditch all of your old friends. They will probably work themselves to your phase of life and it would be nice that you would be there. That said, no, you don’t have to go out with them all the time, just remain in contact.

]]> By: Gwen http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775424 Gwen Tue, 15 Sep 2009 03:04:20 +0000 http://www.thesimpledollar.com/?p=4259#comment-775424 Trent, I vaguely remember you answering this question elsewhere, if so, please remind me. If not, will you please tell me the pros and cons and differences between copper, stainless steel, and non-stick cookware? I am at the point where my first purchased pots (purchased in one of those large sets that you abhore) are starting to crack on the handles. Over the past year I have become relatively proficient in the kitchen and want to upgrade some of my cookware as it breaks or needs replacing. I'd like to replace it with something high quality, but is the mark up on copper really worth it? Trent,

I vaguely remember you answering this question elsewhere, if so, please remind me. If not, will you please tell me the pros and cons and differences between copper, stainless steel, and non-stick cookware? I am at the point where my first purchased pots (purchased in one of those large sets that you abhore) are starting to crack on the handles. Over the past year I have become relatively proficient in the kitchen and want to upgrade some of my cookware as it breaks or needs replacing. I’d like to replace it with something high quality, but is the mark up on copper really worth it?

]]> By: Mike http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775321 Mike Mon, 14 Sep 2009 21:46:58 +0000 http://www.thesimpledollar.com/?p=4259#comment-775321 Would you share with us your recipe for that wonderful sounding au gratin? Would you share with us your recipe for that wonderful sounding au gratin?

]]> By: Sarah T http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775265 Sarah T Mon, 14 Sep 2009 19:39:44 +0000 http://www.thesimpledollar.com/?p=4259#comment-775265 I think the salsa recipe you posted is safe, but want to point out that it calls for adding acid (lemon juice or vinegar) to make it acidic enough to can in a water bath. Readers who want to can tomato products that way should keep in mind that they need to use recipes designed for water-bath canning, as tomatoes these days are not always acidic enough to be safe on their own. I think the salsa recipe you posted is safe, but want to point out that it calls for adding acid (lemon juice or vinegar) to make it acidic enough to can in a water bath. Readers who want to can tomato products that way should keep in mind that they need to use recipes designed for water-bath canning, as tomatoes these days are not always acidic enough to be safe on their own.

]]> By: Ashley http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775243 Ashley Mon, 14 Sep 2009 18:47:09 +0000 http://www.thesimpledollar.com/?p=4259#comment-775243 Regarding the paper plate debate: we never use them. We don't own a dishwasher, but feel hand washing our dishes is more economical. We heat during the winter months (about 8 of them...we're in New England) with wood and coal. There are always kettles on the woodstove to moisten the air and provide plenty of free hot water for dish washing. NPR had a commentary recently suggesting people wash dishes by hand as a preventative measure for the flu season! Regarding the paper plate debate: we never use them. We don’t own a dishwasher, but feel hand washing our dishes is more economical. We heat during the winter months (about 8 of them…we’re in New England) with wood and coal. There are always kettles on the woodstove to moisten the air and provide plenty of free hot water for dish washing.

NPR had a commentary recently suggesting people wash dishes by hand as a preventative measure for the flu season!

]]> By: Kevin M http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775230 Kevin M Mon, 14 Sep 2009 18:07:27 +0000 http://www.thesimpledollar.com/?p=4259#comment-775230 FWIW, I emailed Trent last week and received a thoughtful response within 2 days. FWIW, I emailed Trent last week and received a thoughtful response within 2 days.

]]> By: Kacie http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775227 Kacie Mon, 14 Sep 2009 17:57:43 +0000 http://www.thesimpledollar.com/?p=4259#comment-775227 To the couple looking for more "grown-up" friends: Try Meetup.com. Lots of interests and groups, surely you'll find something! And for the grad student with a $6k e-fund as a goal: I say carry on with your plan as you have it spelled out. You know your financial situation and level of risk. If a higher e-fund feels better for you, do it. I don't know how much debt you're looking at, but if it's substantial, having a larger emergency fund sooner is better. To the couple looking for more “grown-up” friends: Try Meetup.com. Lots of interests and groups, surely you’ll find something!

And for the grad student with a $6k e-fund as a goal: I say carry on with your plan as you have it spelled out. You know your financial situation and level of risk. If a higher e-fund feels better for you, do it.

I don’t know how much debt you’re looking at, but if it’s substantial, having a larger emergency fund sooner is better.

]]> By: Diane http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775220 Diane Mon, 14 Sep 2009 17:41:47 +0000 http://www.thesimpledollar.com/?p=4259#comment-775220 #12 KC. You took the words right out of my mouth and probably stated it better that I would have. Trent chooses to share his hard-earned wisdom, perspective and joy of writing with all of us lucky people. He is not required to spoon feed anyone. I just re-read the post and can't believe the sense of entitlement the questioner seems to demonstrate. Wow, what nerve. #12 KC. You took the words right out of my mouth and probably stated it better that I would have. Trent chooses to share his hard-earned wisdom, perspective and joy of writing with all of us lucky people. He is not required to spoon feed anyone. I just re-read the post and can’t believe the sense of entitlement the questioner seems to demonstrate. Wow, what nerve.

]]> By: Michelle http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775209 Michelle Mon, 14 Sep 2009 17:21:44 +0000 http://www.thesimpledollar.com/?p=4259#comment-775209 NO, NO, NO, NO!! Are you trying to give your readers botulism??? Not all tomato based foods are safe for canning in a water bath! Pasta sauce is not acidic enough to can in a water bath. Tomatoes are borderline to start with, and by adding other low acid foods you reduce the acidity enough to bring them well below the 4.6 ph limit. I understand you were talking about salsa here, which is fine to can in a water bath, but I really think you should be very clear that when canning tomatoes in a water bath you have to add lemon juice (it doesn't effect the flavor, and puts them over 4.6 ph) and that it is NEVER safe to can pasta sauce in a water bath. I've been a long time reader Trent, and I have never known you to recommend anything unsafe before, please don't start now. NO, NO, NO, NO!! Are you trying to give your readers botulism??? Not all tomato based foods are safe for canning in a water bath! Pasta sauce is not acidic enough to can in a water bath. Tomatoes are borderline to start with, and by adding other low acid foods you reduce the acidity enough to bring them well below the 4.6 ph limit.

I understand you were talking about salsa here, which is fine to can in a water bath, but I really think you should be very clear that when canning tomatoes in a water bath you have to add lemon juice (it doesn’t effect the flavor, and puts them over 4.6 ph) and that it is NEVER safe to can pasta sauce in a water bath.

I’ve been a long time reader Trent, and I have never known you to recommend anything unsafe before, please don’t start now.

]]> By: Strick http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775206 Strick Mon, 14 Sep 2009 17:19:52 +0000 http://www.thesimpledollar.com/?p=4259#comment-775206 Christina - I don't see anything wrong with either approach for your savings. I think the bigger issue is, unless this upcoming funding cut is temporary, you need to work on slashing your budget little by little over the coming year. $200/month savings is not much margin for someone as financial fit as you currently seem to be, so the current budget needs work, and whatever extra savings this creates over the next year will obviously help meet the current goals even faster. As far as Trent's net worth status goes, he's in complete control. If he sold the house and rented he'd be the first person I know to increase their net worth by 175K in one day ;-) Christina – I don’t see anything wrong with either approach for your savings. I think the bigger issue is, unless this upcoming funding cut is temporary, you need to work on slashing your budget little by little over the coming year. $200/month savings is not much margin for someone as financial fit as you currently seem to be, so the current budget needs work, and whatever extra savings this creates over the next year will obviously help meet the current goals even faster.

As far as Trent’s net worth status goes, he’s in complete control. If he sold the house and rented he’d be the first person I know to increase their net worth by 175K in one day ;-)

]]> By: Carrie http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775204 Carrie Mon, 14 Sep 2009 17:14:33 +0000 http://www.thesimpledollar.com/?p=4259#comment-775204 Kathryn - You should download an amortization schedule in Excel (just google it). You can fill in varying extra payments each month. Hope this helps. Kathryn – You should download an amortization schedule in Excel (just google it). You can fill in varying extra payments each month. Hope this helps.

]]> By: Beth http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775199 Beth Mon, 14 Sep 2009 17:11:58 +0000 http://www.thesimpledollar.com/?p=4259#comment-775199 Ooops! My comment was for the original asker, not Joanna! @ Joanna, I agree with you about being in between :) I find this to be an asset though. We all learn from each other. Ooops! My comment was for the original asker, not Joanna!

@ Joanna, I agree with you about being in between :) I find this to be an asset though. We all learn from each other.

]]> By: Mol http://www.thesimpledollar.com/2009/09/14/reader-mailbag-80/comment-page-1/#comment-775198 Mol Mon, 14 Sep 2009 17:09:52 +0000 http://www.thesimpledollar.com/?p=4259#comment-775198 Has Sarah ever commented on any of your articles just to keep you on your toes? Has Sarah ever commented on any of your articles just to keep you on your toes?

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