Yeah that’s not really a concern right now

You have to itemize.

The SALT deduction (property tax, sales tax, state income tax, etc) is capped at $10K. Mortgage interest is not. With interest rates ticking up and for expensive homes, yes, it’s possible that along with SALT (and other itemized deductions) you could exceed the standard deduction of $13,850 (single) or $27,700 (joint). There is no savings until your itemized deductions exceed those levels.

TLDR, it depends. For most upper middle class or lower earners locked into a low rate mortgage, no. In your case, maybe.

Here in NJ, security deposit can't be more than 1.5x rent

If it makes you feel better and that feeling is worth ~$2000 a year then go for it

This was helpful! Thank you!

I appreciate the insight, and you're right - mathematically! I'm also thinking of the psychological aspects of not having 2 mortgages

>I feel like having two mortgages puts us at increased risk in case one of us were to lose a job.

That's a fair assessment, but if your numbers are good this risk becomes less and less something you need to concern yourself with.

>For context, my original plan, which was a bit Ramsey-an was to pay off both mortgages (our primary residence mortgage is a 30-year fixed at 2.25%), but I feel like that just doesn't make any sense.

You are correct. Mathematically speaking it doesn't make sense to pay down cheap debt. However, it's dependent on your risk appetite.

>I am curious about others' thoughts on either spending the next several months saving in a high-interest savings account then paying off the rental mortgage, thus freeing up around $800 a month in income, or simply investing all extra income into IRAs and taxable accounts.

I do my best to take emotion out of some decisions and let number do the talking. A little of both won't hurt either.

> Once it’s in there, make sure you invest it, otherwise it’s just sitting as cash and getting no interest.

The settlement account that your money just sits in earns interest. Right now, those accounts are earning ~2-4.5% interest.

Vanguard: https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx

Fidelity: https://www.fidelity.com/mutual-funds/fidelity-funds/money-market-funds-fcash

Just adding that $95 AF Amex card (the BCP) also comes with 6% Streaming and 3% Gas & Transit.

(Figured since you mentioned streaming on the Cap1, it was worth including for the Amex.)

Well, Chime can't conjure up money out of nowhere, nor can it make decisions about your spending or saving, nor can it increase your income or pay your debts for you.

It's possible that you might be able to get a better handle on your finances if you have everything all in one place — but again, there's nothing magical about Chime in that regard. You could just as easily open a checking account, savings account, and credit card account at any bank.

Have you tracked your expenses for any period of time to get a handle on where your money's going? Have you made up a budget for yourself to govern your spending? Doing the hard work of getting your finances under control is on you, and Chime can't do it for you.

No, you do not save money on taxes by owning a home - you may reduce some of the costs of owning the home via deducting those expenses on your taxes, but it is still an expense not savings.

Its a horrible idea to finance big purchases before buying a house. Hard to give you good advise when we dont know the cost of the ring, amount of cash, income, estimated housing purchases.

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I assume the next post will be is it a good idea to finance my wedding at 0% Apr...

My bank has this, and I will be using it from now on. They also have a feature where the card can only be used if it’s near your cellphone. I didn’t know such things existed!

At that interest rate it make zero sense to pay off the mortgage

Thank you for the support and reassurance (:

As far as roommates go- it's something I'll look into for the future if my situation doesn't improve enough to go without them. I'm really hesitant to do it though- my mental health has always taken a huge dive whenever I've lived with someone else. Even though I'm still a bit depressed at the moment, I haven't been as happy as I am now since I was like... 7 years old. Plus, if I get a/some roommate/s, and I get severely depressed again, I'll end up working a lot less and probably be in the same, if not worse, situation. Plus, I would have to break lease early to move out and get roommates, and that's not an option atm- no savings. BUT I'm not trying to dismiss thos out of hand- I'll give it serious consideration in the future.

As far as selling stuff goes, I've sold what I can, but a majority of the items I've tried to sell are only valuable to me. Getting rid of them doesn't solve anything and selling them just isn't happening, although I will keep trying at it.

Thanks again!

Thanks! I always thought debit card charges were pretty hard to recover. Glad to hear I was wrong!

Check out The Wealthy Barber and/or The Wealthy Barber Returns. Quick, encouraging reads.

Thanks! My bank cancelled the card and is sending a new one. They said it could take 10 days for the dispute to go through.

I have the bank’s card defend app which is how I found out about the transaction. I should have had it locked, but I figured it was safe since the card never leave the house and is kept in my safe.

Has he been working? If she is able to prove that he hasn’t been saving like she has even though he should have been able to she might have a case.

Not the same state but had a friend recently divorce and he saved a ton in his 401K and his wife had a good paying job but just chose to spend a lot more than he did. Not sure how it worked out with the lawyers… but I know she didn’t get it… at least not even close to half of it.

Taking loans doesn't help your credit.

Paying your loan back per the terms of your agreement helps your credit score.

In your situation where you have thousands in collections a loan isn't going to be a magic bullet.

NYS (not anywhere near NYC) and I've always had a landlord ask for first and last up front, then they apply first month to the rent and hold the last month amount as a security deposit

Are you saying it's better to rent the place for 3500 than pay 7000 to own it per month ?

I figured this would be the case, I was approved through Progressa for a loan for the exact debt but my main thing being whether it would further tank my credit score or improve it within time with proper on time payments.

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Can you elaborate a bit more on that