Comments on: Net Worth Update: November 2009 http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/ Money issues for college students and 20-somethings, without being boring. Tue, 24 Apr 2012 13:02:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Shawanda http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82302 Shawanda Wed, 02 Dec 2009 01:28:12 +0000 http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82302 Good to see your net worth is headed in the right direction: up. Putting off the student loans to stack up emergency cash is a good move. When deciding to choose paying off student loan debt over saving for retirement, I strongly consider two things: 1) the employer match, if any and 2) the interest rate on the loans. Certain student loan interest is pretty much fixed. You know your rate of return. Even if it's negative. When it comes to investments, "prior performance is no indication of future performance." Since my employer didn't provide a match, I took practically every cent I could've invested and put it towards my student loans. Mathematically, it may not make since over the long run. But it's comforting not owing anyone anything. I don't knock people for holding on to low interest rate student loan debt as long as they're actually saving, investing, etc. the money they could use to pay it off. I'm sure you don't have this problem. Good to see your net worth is headed in the right direction: up. Putting off the student loans to stack up emergency cash is a good move. When deciding to choose paying off student loan debt over saving for retirement, I strongly consider two things: 1) the employer match, if any and 2) the interest rate on the loans.

Certain student loan interest is pretty much fixed. You know your rate of return. Even if it’s negative. When it comes to investments, “prior performance is no indication of future performance.”

Since my employer didn’t provide a match, I took practically every cent I could’ve invested and put it towards my student loans. Mathematically, it may not make since over the long run. But it’s comforting not owing anyone anything.

I don’t knock people for holding on to low interest rate student loan debt as long as they’re actually saving, investing, etc. the money they could use to pay it off.

I’m sure you don’t have this problem.

]]> By: Financial Samurai http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82283 Financial Samurai Tue, 01 Dec 2009 14:35:08 +0000 http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82283 I like the uptick Steph! Sweet! Whooo hooo! I like the uptick Steph! Sweet! Whooo hooo!

]]> By: Stephanie http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82282 Stephanie Tue, 01 Dec 2009 14:33:12 +0000 http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82282 Thanks! You've pretty much hit the nail on the head there - once you put money into your student loans, you can't get it back out again to retire on or pay for an emergency. Yes, there's deferrals and forbearance if times get tough, but if you need more help than that... you can end up screwed. Thanks for the encouragement :) Thanks! You’ve pretty much hit the nail on the head there – once you put money into your student loans, you can’t get it back out again to retire on or pay for an emergency. Yes, there’s deferrals and forbearance if times get tough, but if you need more help than that… you can end up screwed. Thanks for the encouragement :)

]]> By: Tweets that mention Net Worth Update: November 2009: Poorer Than You -- Topsy.com http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82281 Tweets that mention Net Worth Update: November 2009: Poorer Than You -- Topsy.com Tue, 01 Dec 2009 14:30:58 +0000 http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82281 [...] This post was mentioned on Twitter by Dr. Rebecca Housel, Stephanie. Stephanie said: Hey guys, check out my net worth update - it's for seriously awesome this month: http://bit.ly/7x4QnR [...] [...] This post was mentioned on Twitter by Dr. Rebecca Housel, Stephanie. Stephanie said: Hey guys, check out my net worth update – it's for seriously awesome this month: http://bit.ly/7x4QnR [...]

]]> By: Rebecca http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82280 Rebecca Tue, 01 Dec 2009 14:26:45 +0000 http://poorerthanyou.com/2009/12/01/net-worth-update-november-2009/#comment-82280 Great job! Yes, keep contributing to retirement and emergency savings. You can increase your payments to student loans as your income increases, even making one double payment a year will help when you can. You're right to prioritize saving for emergencies over aggressive repayment of student loans; loans like mortgages don't look at student loans in the same way as other unsecured debt like credit cards, but without an emergency fund, if you lose employment in future, you can't pay your mortgage or rent by showing the bank or your landlord your progress on your student loans.... Keep up the GREAT work! Great job! Yes, keep contributing to retirement and emergency savings. You can increase your payments to student loans as your income increases, even making one double payment a year will help when you can. You’re right to prioritize saving for emergencies over aggressive repayment of student loans; loans like mortgages don’t look at student loans in the same way as other unsecured debt like credit cards, but without an emergency fund, if you lose employment in future, you can’t pay your mortgage or rent by showing the bank or your landlord your progress on your student loans….

Keep up the GREAT work!

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