Comments for Poorer Than You

Comment on Net Worth Update: January 2012 by Jon Smith

Jon Smith — Tue, 24 Apr 2012 13:02:17 +0000

So…it’s been over a month now! Any update?

Sorry to bother you, I’m just interested.

Comment on Dependent or Not Dependent: Why I Hate the FAFSA by Lauren

Lauren — Fri, 24 Feb 2012 18:21:06 +0000

Here’s a FAFSA nighmare for you. My husband and I both lost our jobs last fall (for the second time in three years). He just secured a new job, making $24,000 (half of what he used to make). I am still unemployed but do not get unemployment benefits because I was considered an independent contractor by the company I worked for (even though I do not have a business). Our savings are depleted because of the last layoff, so to avoid losing our house (which had lost considerable equity and is in a city where the housing market is extremely depressed), we cashed out our retirement plans and paid it off. We had to cash out extra to pay the taxes and penalties. We then moved in with my elderly, disabled father and turned the house into a rental. The $1,000 a month we receive in rent supplements my husband’s low salary and enables us to get by. Still, according to FAFSA, we are wealthy people because we cashed out the IRA (even though it all went to pay off the house and the IRS) and we will always be considered wealthy because we now have an asset (the rental). This is our only house and we hope to move back into it some day, but renting it out was the only way we could keep from losing it. Our daughter is a teaching major at an in-state college. She will be a senior next year and works two work study jobs to pay room and board. Because of FAFSA, she will lose both these jobs at the end of this semester, along with her Pell grant and one of her (need-based) scholarships. We have another kid at home (who ironically, qualifies for free lunches at his high school) and we are less than 10 years from retirement. Fair? I think not.

Comment on Reader Question: 401(k) Loan to Pay Off Credit Card? by Bobby

Bobby — Thu, 23 Feb 2012 04:53:34 +0000

@Stephanie
A loan against your 401K is really a distribution but you pay it back into your plan. You actually are selling shares of stocks/mutual funds for this loan and when you make your regular payroll payments to pay this back, you buy back shares based on your plans current investment direction. At least thats the way my plan works. If i take a 5K loan on my 401K plan, it sells shares of all my mutual funds based on the allocations of each, and then puts it into a new “fund” for 5K. As I pay this back, it lowers the balance on the “new loan fund” and buys shares back into my plan based on investement direction.

Comment on 5 Steps to Curing Yourself of Phone Phobia by Paul

Paul — Thu, 23 Feb 2012 01:54:53 +0000

Hello, i 100% suffer from this phone phobia, it’s not exactly the thought of not knowing what to say, or feeling secure of who I’m talking to, it’s the actual fact I’m talking to a phone. I’m not a shy person, I’m absolutely fine in talking to people when I can see their face it’s just taking to a phone, when you cannot see the person scares the living day light out of me, So much so I actually avoid answering the phone even if it’s best friends or family ringing! The advice given on here seems to be aimed towards working on shyness (which im not) and curing that shyness, rather than the fear of the actual phone! And technically talking to yourself! Any help?! Anyone else crazy like me? Haha peace.

Comment on Net Worth Update: January 2012 by Tom

Tom — Wed, 22 Feb 2012 14:08:42 +0000

What’s up, just wanted to tell you, I loved this post? It just so very helpful. Keep on posting!

Comment on How to File the FAFSA Without Your Parents’ Information by Stephanie

Stephanie — Wed, 22 Feb 2012 02:33:22 +0000

Hi Lynette,

I tried looking at the HEOA 2008 to find the exact provision, but honestly, it’s just too difficult a read to pin it down. Not that it matters that much, honestly. Here’s a link to the 2011-2012
Application and Verification Guide for financial aid administrators: http://ifap.ed.gov/fsahandbook/attachments/1112AVG.pdf
This is just a more up-to-date version of the guide that I based this article on originally. It says, on page 28:
“Students without parent support…
Students whose parents refuse support are not eligible for a dependency override, but they may be able to receive unsubsidized Stafford loans only. For a student to be eligible for this provision (the text of which is in the ‘Professional judgment’ margin note in Chapter 5), you must get documentation (1) that his parents refuse to provide information for his FAFSA and (2) that they do not and will not provide any financial support to him. Include the
date support ended. If the parents refuse to sign and date a statement to this effect, you must get documentation from a third party (the student himself is not sufficient), such as a teacher, counselor, cleric, or court.”
So nothing has really changed at all, the rules are all still the same as when I wrote this article in 2009. If documentation can be provided, the student can become eligible for unsubsidized Stafford loans only.

Comment on Kid Business: Making Money at a Young Age by parth sood

parth sood — Tue, 21 Feb 2012 06:45:05 +0000

hey,its a nice post..
my name is parth sood and i live in india..
Am pretty ispired by these teenagers..
Am too 17 years old n i want to start my buisness..
Am quite talented. I can do-mimicry,rapping and am a quite good and famous dancer too.. (lockin-popping) i do basically..
Yet i want to start my own buisness with my friend who is also an awesome rapper and dancer..
But in rapping or dancing line we can’t get enough money..
Can anyone suggest us some kind of things we can to to make good money i.e. Approx-400-500 US$ per month..?
Thanxx for suggestion

Comment on Net Worth Update: January 2012 by Ayesha

Ayesha — Sun, 19 Feb 2012 14:11:33 +0000

I love the snowball idea! My sister used to educate me about saving money and put them in jars that each have a purpose of their own like emergency fund, contingency fund, and other kinds of fund.

Comment on Net Worth Update: January 2012 by Young

Young — Sat, 18 Feb 2012 21:17:11 +0000

Keep pushing towards those goals. Wish you the best of luck and prosperity in 2012!! Stay young and thrifty

Comment on 20 Places to Legally Watch and Download Free TV, Movies, and Documentaries by manda

manda — Thu, 16 Feb 2012 21:57:12 +0000

…what do you knot understand about the words FREE and LEGAL??? Im pretty sure that if you have to enter your FREAKING CREDIT CARD NUMBER it is NOT free…God you stupid people….>:(