WWYD Wednesday: Buyouts

Around here many face taking a buyout or face possible layoff, as a matter of fact many have already chosen one over the other.

I have many friends who have made one decision over the other. Some have had success with leaving the state after taking a buyout, those that have stayed have not fared well. Others have stayed only to be laid off later without the option of the buyout but have unemployment. Some have opted not to take a buyout and have done well doing so but may still be in danger now.

I work at the airport and I am seeing many taking buyouts from Delta and Northwest and some who are staying as well. My company is contracted and I do not have that option but we face possible layoff as our contract is up for bid now.

I read an article at DetNews.com on this very subject. Many families are facing the decision on what to do.

WWYD if you were faced with the possible fate of the Auto workers here?

If you took a buyout how would you plan so that you don't fall to the fate that others have?

If you would ride it out what would you do to protect yourself financially?

Photo By: Forbes.com

WWYD Wedensday: Retirement Investments vs. Debt

In light of most people who had significant investments for retirement losing a good portion of them this year, I thought this would be a good topic to discuss this week.

I read a short article at Comcast Finance about borrowing from your 401k or 403b to pay off debt. I once did this since it was considered a hardship and I lost the job where I was contributing to it I didn't have to pay it back. However it didn't come without steep tax penalties and I only took about something to the tune of $1200 at the time.

Currently, I have no retirement investments (yes, I know I need to). So it really isn't an option for me but it is for many out there who may have enough left after losing portions of it during the credit crisis etc...

But should you? Should you borrow against your retirement to pay off debt? Should you borrow from your future to save the present?

Personally, I say no, at least not in most situations.

What do you think? Would you borrow from your retirement if you were in hot water financially? How much is too much borrowing if you would use retirement to do so? What would be the circumstances you would borrow from retirement?

Photo By: Juan Marketing

Looking for suggestions?

I would like to use the name Fiscal Fussbudget around the net and not just in blog land.

I have realized though it is usually 1 character too long without spaces to fit as a user name in most places.

I would love to get suggestions on name abbreviations or whatever you have. I would love to tie in my blog to my user name at these places. On twitter I just used fiscalfussbudge but that kind of stinks don't you think? I'd like to change it there too, when the time comes I'll have to find out how to do that.

What suggestions do you have?

Should I just stick with fiscalfussbudge?

Ha, I guess this is another Wednesday WWYD huh?

WWYD Wedensday: Discretionary Income

I was reading online and stumbled upon a WWYD link. I thought it might be fun to answer the question.

Being in the situation I am in now, I would choose option B. I know what having no emergency fund can do to a person. Not only what no e-fund does financially but your health too the stress is pretty high. I'd rather take a extra time in paying off debt and have the cushion there. It never seemed an option for me so I'm working on that right now.

Chances are you'll run into some unexpected expense in the 12 months you are paying off the card, or at least that is my experience. Car repairs, home repairs, unexpected medical bills... the list can go on and on.

So WWYD? Please explain... especially if you'd pick option A. I want to hear from you.

Photo By: pickuppennies

WWYD Wedensday: More of some questions for you all

So, I know a few things about finances and learn even more as I go along.

This is a question I thought of yesterday and today even more so. I plan on looking it up online as well but here goes it:

When talking about housing expenses and the percentage it should take of your income I've heard 25% and 35% of your income should be allocated towards housing.

What exactly is included in those numbers? Is that just rent or mortgage or is it all living expenses like rent/mortgage, electricity, insurance (rental or house), gas etc...

Also is that a percentage of gross or net income?

What happens when your percentage of income is not enough to live on in the areas you have to choose from to live? Is this still a big no-no?

So this week is more of a what do you know than it is a WWYD question. I hope that is okay for my readers but I really had this question looming and it made it difficult for me to come up with anything else.

I suppose I could pose it as a WWYD, as in WWYD if your percentage of income was lower than what your housing costs were. Yes, we'll do that in here as well.

So WWYD? and WDYK (What do you know)?

WWYD Wedensday: Tax Day Edition

Since today is tax day our WWYD is tax related.

I'll put a spin onto it, lets first discuss what we are doing with our refunds. Mine goes right back to the IRS to pay back taxes... I know, I know but at least I'm getting it paid off. What are you doing with yours?

Also here is a link for Tax Day freebies, let us know if you utilize any of them. Look at the link there are also links within with tax tips and tax information for all of us but mostly for you last minuet folks.

So now for the WWYD:

You've gotten your refund you have several places you can allocate it to:

• Your Emergency fund which is almost non-existent but you are plugging away on
• Spending on a much wanted and useful item you've been trying to save for
• Much needed car repairs
• Paying off a credit card
• A vacation you couldn't afford otherwise

So, WWYD? Tell us why. I tried to think of different possible scenarios that cover someone just starting out in the healthy financial journey because that is where I am at and I believe many people are hurting right now so that can help those people too. If you have other things to add please do add them.

Photo By: reallyboring

WWYD Wedensday: Leaving a job

In these economic times leaving a job could be a grave mistake. Sometimes though it could make a whole lot of sense.

This is our last Fiscal Year where our contract is valid, and the first time ever the customer is bidding it out. There have been problems with the head honcho here and the customer satisfaction. It really does look like we may be out of here and we aren't hearing a thing about it.

I decided not to actively look but to wait it out and save money just in case (this is what is funding my emergency fund). I also decided after doing the simulator on paying some old stuff off to up my credit score not to do that for now and just work on my emergency fund.

The reasons for this are simple, the job market especially in Michigan is pretty scary and it isn't likely I'll find a decent job. I make better money here than I would someplace (really anyplace else at the moment) I can ride it out here and hope the economy is better in a year to find a job or my emergency fund can float me while getting unemployment to finish school like I wanted when I got laid off a while back.

Don't get me wrong I have my feelers out, I'm working on something to earn extra income, and I'm updating my resume. I'm being proactive but not jumping the gun quite yet. Who knows we could win the bid if I left I could have left a decent paying job (for what I do) for a crap paying job because I was in a panic about something that hasn't happened yet.

WWYD?

Photo by: Amarendra Bhushan

WWYD Wednesday: Frugality

This week I'm not going to post a scenario... well maybe I am.

You are learning that in order to work with your budget and live within your means you have no choice but to be extremely frugal.

Most people cut their grocery bill down, however some have cut it as far as humanly possible. Other things to watch and cut could be utilities, and cutting of course cable, internet and phones out.

WWYD to live within your means? What exactly would you cut down? What are things you are unwilling to live/go without.

My partial Answer to what are things I am unwilling to live/go without: For me technically it is possible to live without the internet but it would severely impact my life to do without it and it would negatively impact my schooling and how quickly I could get it done. Going to the library is rarely an option for me besides my library has 1 hour time limits on their computers and internet time. In order to do my classes it is a requirement to have high speed internet.

I'll comment more as I think more on it and see what you all have to say that will help me too. I figure need an emergency game plan to put in action if it ever needs it.

Photo by: Bottom of the Glass

More on car repairs

So today I'm having some of my car repairs done. The other day we bought a new hose for the windshield washer solvent and that solved that problem total cost $2.67 not too shabby. The hose was cheap and it was rigged but works and best of all it isn't one of those rigging things that will damage anything else.

I bought the parts for the power steering pump, brake pads & rotors. Total cost $123.99, $20.00 of which I get back when I bring in my old power steering pump leaving the cost at $120.99. I do have to pay the guy repairing the vehicle a total of $50. I love it he needs money and I need repairs so we both can do each other a favor. He works out of his driveway today for a small amount and I can afford it YAY!!!

Total costs for parts and service for today: $170.99 not too shabby.

While it isn't quite as cheap as DIY and I could have tried to get a used pump, this makes me happy for a couple of reasons. I'm not quite sure how cost effective a used pump would be or if it is something that should be put on used and I can't do this work myself.

Now I need those pesky gaskets (trans pan and oil pan) replaced and I think I'll be good to go. I need to find a garage to do this as the car will need to be lifted for the work. Cross your fingers that the brake issue fixes my problem and it isn't something much bigger.

What have you done for auto repairs? Do you barter for services? Do you do it yourself or do you go to a garage or a friend?

Side note. I decided to add a feature to this blog WWYD Wednesday where I'll post a scenario either one a reader submits, my own or a made up scenario and ask WWYD. I thought it would be a good way to get the blog going in the right direction and keep me posting as well as help out the readers.

Photo By: The Prime Buyer's Report

WWYD Edition 1: Accepting "gifts"

Okay new edition to my blog, not sure yet how often I'll do this but I figure its a great start to getting interaction between bloggers so WWYD?

Scenario...

You are practicing becoming financially healthy, your friends have more money to play with than you do for whatever reasons (it doesn't matter the reasons in these scenarios they vary anyway). At various times they all want to do things with you, you turn them down. Except each time they beg and offer to pay.

What do you do?

They call it a gift, you feel like its charity. Which is it?

Is there a point you just always say no?