Young Man's Financial House
Oct 13, 2022 11:18:19 #
This is a hypothetical challenge for all the financial wizards on UHH. It has to do with the financial situation of a young man having just graduated from college and started his first job.
His current annual financial posture is below. Note that parentheses indicate negative numbers.
$ 26,000 Income
($ 58,000) Expenses - including apt. rent, car payments, utilities like gas, water, electricity, cell phone, internet, Netflix, cable TV, food, entertainment, insurance, medical, etc.
($310,000) College Loan Debt. - yes it was an expensive college
($342,000) TOTAL SHORTFALL from above numbers
If you were his financial advisor, how would you have this young man fix his financial house? Note that filing for bankruptcy is not an option, as College Loan Debt cannot be wiped by bankruptcy. Note that there is an underlying theme or a trick to this financial challenge that will be revealed when enough UHHers have had a chance to respond.
His current annual financial posture is below. Note that parentheses indicate negative numbers.
$ 26,000 Income
($ 58,000) Expenses - including apt. rent, car payments, utilities like gas, water, electricity, cell phone, internet, Netflix, cable TV, food, entertainment, insurance, medical, etc.
($310,000) College Loan Debt. - yes it was an expensive college
($342,000) TOTAL SHORTFALL from above numbers
If you were his financial advisor, how would you have this young man fix his financial house? Note that filing for bankruptcy is not an option, as College Loan Debt cannot be wiped by bankruptcy. Note that there is an underlying theme or a trick to this financial challenge that will be revealed when enough UHHers have had a chance to respond.
Oct 13, 2022 11:46:41 #
Oct 13, 2022 11:58:55 #
I don't believe the college loan debt is all due in one year. So how much are the payments?
What is his degree?
What is his degree?
Oct 13, 2022 12:14:40 #
Get rid of netflix, cable tv and cut the entertainment to a minimum. Get rid of the car payment if possible. Get a better and/or second job.
Oct 13, 2022 12:15:43 #
Oct 13, 2022 12:22:09 #
davyboy
Loc: Anoka Mn.
bobbyjohn wrote:
This is a hypothetical challenge for all the finan... (show quote)
Must first cut expenses to match income. Buy a duplex and let the renters make your house payment. Seek a job that will allow you to work off some of the loan debt.
Oct 13, 2022 12:48:49 #
Oct 13, 2022 12:49:49 #
bobbyjohn wrote:
This is a hypothetical challenge for all the finan... (show quote)
Get a second job, reduce unnecessary luxuries for now and pay off your student loan. (Refinance it at a lower interest rate if possible.)
Oct 13, 2022 13:01:38 #
His biggest two living expenses are apartment rent and car payments. Car payments? He has more than one? You'd have it itemize what the cost for each of his financial responsibilities was.
Why only a $26,000 degree income for a degree that cost over $75,000/yr.? What was it in, anyway?
Why only a $26,000 degree income for a degree that cost over $75,000/yr.? What was it in, anyway?
Oct 13, 2022 13:17:18 #
SteveR wrote:
His biggest two living expenses are apartment rent and car payments. Car payments? He has more than one? You'd have it itemize what the cost for each of his financial responsibilities was.
Why only a $26,000 degree income for a degree that cost over $75,000/yr.? What was it in, anyway?
Why only a $26,000 degree income for a degree that cost over $75,000/yr.? What was it in, anyway?
Art Appreciation?
Oct 13, 2022 14:26:09 #
Oct 13, 2022 14:57:15 #
SteveR wrote:
What was it in, anyway?
Gender studies maybe.
Some whopper floppers make more than that in some places, nearly that much in most places if you're full time.
Oct 13, 2022 15:28:16 #
Move back in with the folks that would take care of the house and utilities, television and everything that goes with it, sell the car and use dad a mom's, get a hardship forgiveness on the college loan and pay it later. You have a Ivy League college degree get a better job other then flipping burgers at MacDonald's
Oct 13, 2022 15:32:08 #
Oct 13, 2022 17:05:09 #
26000 per year = 500 per week.. Based on a 40 hr week that is just over $12.50 per hour...not even minimum wage. Bogus example but point well taken...avoid expensive useless degrees and the cost of a college education is toooo expensive!!
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