81

Rent is not a debt because you have not borrowed any money from the landlord. Your current month's rent is a (very) short term liability, as are other payments for services rendered (like utility bills and maid service). Future rent obligated by a lease agreement can also be considered a liability, or you can consider the cost of breaking the lease to be a ...


80

There are two ways to improve your personal finances: Make more money Spend less money That's literally the secret. To afford the car, you either need more income, or lower expenses. Don't fret, though. It's good that you are learning this lesson early in life because a lot of people live paycheck-to-paycheck their entire lives without realizing that some ...


78

It means the number is negative. It's an alternate way of showing negative numbers versus prefacing with a negative sign (-) In some cases, a negative value also has a different name. For example you'll often see Net Profit (Loss) : (10,000) Where the parentheses means that it was a loss and not a profit. Mathematically it's the same as a "negative ...


67

I’m sorry to hear about your situation. There are a couple of issues at play. Parents are responsible financially for their kids until they turn 18. They are required to provide food, shelter, and clothing for you, and if you cause damages to someone, they are required to pay it. There are two results of this that affect your situation. First, it is not ...


51

$160 a month is less than $40 a week (except in February when it can be exactly $40 a week). At the Ohio minimum wage of $8.55 an hour, you should have something like $8 an hour left after FICA taxes (and not pay income tax until working more than twenty hours a week). That's only five hours a week. Five hours is a single shift, not even a full day (eight ...


38

If this is understood as "irrelevant to investment decisions", then it is plausible because publicly released news is immediately (in less than a second) incorporated into asset prices, according to the efficient market hypothesis. Thus (unless you are one of the big guns of Wall Street trading at light speed) by the time you read that a country or a company ...


37

If you are 100% positive you want to use your money for schooling, it may be worth looking into the Utah Educational Savings Plan (my529) You will need an adult to set it up for you but it does not have to be your mother "The account owner and beneficiary do not need to be related" It looks like you could then contribute directly and possibly even ...


24

About your mental health, I trust that you are seeking professional help about that as others have mentioned. My answer is here to help you with the financial part of your question, which should (hopefully) alleviate some of the stress you're experiencing that comes from debt. It's great that you're looking at your expenses and thinking about how to ...


24

The answer is a certain 'no'. There was a question along the lines of "How can one always be debt-free, given that we get monthly bills?" In that case, we make the distinction between an accumulated debt and regular bills. I'd prefer not to argue word definitions, per se, or semantics. For purposes of such exercises, your highlighted quote helps make the ...


16

But if you are disciplined and you have an emergency basket saved up, is there any other way that "banks can get you", so to speak? Annual fees. But the only people who should be paying annual fees on their cards are those who have special needs and benefit from those fees. The rest of us benefit from "slightly deferred payments" and fraud protection, ...


11

While only the author of that statement can tell you exactly what was meant, I would relate it to a seemingly similar argument made by Nassim Nicholas Taleb in "Fooled by Randomness" that it's pointless to pay attention to the daily (or hourly) updates on what is happening in the news or markets. His assertion is that it's mostly noise and statements from ...


11

Some credit cards will charge an annual fee. If you qualify for a card with no annual fee, don't get cash advances, and pay in full each month, you won't be charged any interest. I think I've been charged a month's interest twice in the last five years, both times because I spaced out and missed the billing due date. The main things are to really know how ...


10

Ok. I have heard several options on here. From "Buy a safe" to "Buy Bitcoins." Some of these are viable options, but they all have down sides. Honestly, I don't see a 100 percent option here until you are 18.....but Buying a safe wont work because Mom will either make you open it at some point or she will get drunk and break the thing and possible even get ...


8

Whenever someone asks about money issues, I refer to the book "America's Cheapest Family". I don't have any affiliation to the book, I'm just another happy customer. (Any referral link was added by SO/SE, as happened in other links I've posted.) This family has several kids and has bought vehicles, home appliances, houses, taken vacations, and more on very ...


7

Aside from the already mentioned Cash Advances, which typically trigger fees and immediate interest accumulation, also for previous 'normal' credit card payments, this applies also to some 'hidden' cash advances, depending on your credit card: Some count gambling (including lottery tickets), gift cards, and similar buys the same way (gift cards are a kind of ...


6

If you want to save and don't mind taking a slight loss, money orders are worth a look. They behave just like a check, but anyone can buy them. You make them out to a particular recipient, and both recipient and payer must sign it. Banks accept them, and you can self-sign them to cash them out. There's usually a limit of around $1000, and they cost around a ...


5

You might be interested in a financial advisor, specifically a Certified Financial Planner (CFP). Advisor is kind of a catchall term, while financial planners are a subset that typically are focused on helping you create and adhere to a financial plan. There are some advisors that are interested in your investment as they profit when you invest through them. ...


5

A "balance transfer" is when you use one credit card to pay off another. Say you get credit card A with a 24% interest rate. You put $5,000 on this credit card. Later you get credit card B with an interest rate of only 12%. So you get company B to pay off what you owe on card A and put that amount on card B. Now you are paying only 12% on your $5,000 ...


5

You've stopped the drawdown projection after 15 years, but you could easily live longer than that, and in just a few more years you'd run out of money. Your initial withdrawal rate of >7% is very high. You haven't considered the need to grow your withdrawals with inflation. As a result of the above, most people cannot rely purely on "conservative portfolios" ...


5

There are variations but the general process is that a company that wants to go public hires an investment bank to handle the IPO. If it's going to be a large IPO, more than one investment bank may be involved and they are called the 'syndicate' with one or more being the 'lead underwriter'. The general process is that meetings occur between the company, ...


4

APR == Annual Percentage Rate. Investopedia definition. If you intend for using your card for purchases, then no, the balance transfer fee would not apply. Even if you were not under the promotional rate, if you pay the balance off, in full, each month you will not incur interest rate expenses. For example, if you make a bunch of charges over the next ...


4

You could do what littleadv said above but there are also other methods to protect yourself which could be more beneficial. Firstly, addressing you point about sort of a gut feeling or reading articles about predicting if a company is going to beat earnings or not, earnings is simply an estimate made by some "educated" analysts. Anyone who can make more ...


4

So there are two issues here, and the first is a bit broad. You claim to have mental issues. If you have a mental disorder that cannot be overcome then perhaps disability is in order and that needs to be your main focus. There are other mental disorders that can be addressed with medication and/or counseling. Which kind you have is beyond the scope of ...


4

The answer that seems to be missing from this list of answers (so far) is "talk with your parents." Get them in on this. You list yourself as earning $160/month, with on the order of $150 in expenses, and that you are a high-school student. If I may read between the lines, this strongly suggests to me that you are a full time student living at home. ...


4

What do we know (not surmise) about elementary financial education at the pre-college and early college levels in the US for institutions that otherwise are recognized as providing good educations ? How rare is such financial education? High schools are measured by how well their students meet or exceed the graduation requirements. Even private ...


4

This question of the financial assessment test is asking for your monthly repayment rate for any annuity loans you have. An annuity loan is when you receive either a sum of money or goods/services worth a certain amount of money and then pay that money back over time through a monthly installment plan. The questionaire is asking you for the monthly ...


4

Debt is money owed to another for goods or services (or money) rendered. For example, if you took $5 worth of product from a store (other legal consequences aside), you would be in debt to that store for $5 of product taken. Rent is typically paid in advance for use of the premise for the upcoming month, or other unit of time specified in your lease ...


3

Other answers have suggested your car payment is 50% of your income, and this percentage is too high. We have not even seen your housing expenses or your healthcare expenses, but what I suspect is that your net income upon independence is going to be negative. I will note that if with your skills you are only able to earn $160/month, I think you should take ...


3

There are two sides to the equation: income and expense. Your car loan and insurance expenses are fixed, and if you don't want (or can't) reduce your expense by selling the car, then your only option is to increase the income side of the equation. Please don't fall into the trap of comparing what you drive to those around you or measuring your success by it....


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