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Two years ago, I took steps to fix my economic situation and among other things, quit mastercard.
Current situation:
1. My only remaining debt is a student loan of approx 12 4000 dollars which I pay dutifully every month (although I payed late fees in July and August due to moving and losing track of stuff).
2. I make around 3100 dollars every month after tax.
3. I now have 7500 in an index fund, otherwise no savings.
4. Until very recently, I have zeroed my bank account every month, but for the first time in a long time I will not do so this month. I have taken steps to make sure I will impulse shop less in the future. So I think this month will be the new normal for me.
5. No reason t believe I will lose my job.
6. Outside of the late fees in July and August, I am on time with all payments lately.
7. 872 $ in rent every month.
Here's my question: I want a new gaming rig. I'm looking at a build-yourself deal for a pretty sweet rig, that would go for 1861$. If I put my head into it, I believe I can afford this by February. However, my room mate will move out then, and I will have to buy a lot of furniture, so the money will be needed elsewhere then. The electronics retailer has a partial payments plan over a year that seems fair(40.13 $ extra to establish the plan, 5.23 $ fee every month, no INTEREST).
I am very tempted, and everything seems to suggest I have truly changed and can do this responsibly, but I am worried that I will become a squanderer and slip back into economical irresponsibility. Also, I *will* have to buy new furniture in February, so it seems really stupid to buy that machine. But my current laptop only has a Nvidia 560m card, I can't play nothing with sweet graphics.
tl;dr: Former stupid-with-money-person wants new gaming desktop, not sure if I have matured enough to handle partial payments.
Also not sure if my economic stupidity is far enough in the past that I'd even be viable.
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your student loan is 124,000? holy shit
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>>17776020
>12 4000>>17776025
>your student loan is 124,000? holy shit
I snuck in an extra zero. The student loan is approximately 106,000 Norwegian Kroner, which becomes 12 332 Us Dollaroos according to google.
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>>17776020
IMO you should liquidate the index funds and pay down your loans. We have had an amazing market run since 2008. We are long overdue for a recession. Cash out and get a guaranteed return of 5%+ by paying down loans.
Drop the PC budget to $1000. Price/performance drops off past $1000. My $1200 build from 5 years ago still runs games like Metro 2033 just fine. My 7950 was a beast when new, and still gets the job done.
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>>17776093
The housing market is insanely overpriced here, and law dictates I need to be able to front 15% of any house I buy from my own pocket ( that is, I need to pay 15 % of the house from savings, not loans).
If I am ever going to become a home owner, I can't liquidate and pay off debt. Instead I'll have to work my savings up to 20 or even 30 000. Even old, run-down houses go for the equivalent of 200 000 dollars in Norway!
The advice of going for a cheaper computer is good, though. So I take it that the partial payment plan is not too risky and I should try it?
Also forgot to mention that I'll have to pay rest tax in June.
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>>17776130
I feel the markets will drop or stay flat over the next few years. Paying off your loans gives you a sure fire "return" equal to the interest rate.
Late payments ding your credit. No balance on the loans will give you a far better credit score.
>So I take it that the partial payment plan is not too risky and I should try it?
My rule of thumb for hobbies is don't get it unless you can pay cash.
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>>17776358
>I feel the markets will drop or stay flat over the next few years. Paying off your loans gives you a sure fire "return" equal to the interest rate.
Not sure what you mean here. Could you explain?
>Late payments ding your credit. No balance on the loans will give you a far better credit score.
The rules for mortgage loans are weird here. Basically, no matter how bad my credit score is, as long as I can front the 15% of a house cost, the bank can't legally reject my application. As long as I don't HAVE 15% of the price though, they can't make a loan contract no matter how strong my credit rating is. As far as I understand things, improving my credit score is actually pretty unimportant to me, which is really counter-intuitive.
>My rule of thumb for hobbies is don't get it unless you can pay cash.
Sigh. That was what I was afraid off. With the furniture in February and extra tax in June, that won't be until after August , at the earliest. And the headset jack is not working, so that means single-player ONLY.
Oh well, I'm not going to be one of those who asks /adv/ and then reject the ugly truth. Waiting six+ months it is.
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>>17776480
>Not sure what you mean here. Could you explain?
The markets can't go up forever. We have not had a recession since 2008. Usually we have a recession every 5-6 years.
Every dollar you pay over the minimum on your loan saves you from paying interest on it.
>As far as I understand things, improving my credit score is actually pretty unimportant to me, which is really counter-intuitive.
I live in the US so it is different. I could get approved with a good credit score and 3.5% up front.
>And the headset jack is not working, so that means single-player ONLY.
Snag a USB headset for cheap. Does the job and costs less than a new PC.
You can always buy used furniture
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$1500 is enough for a 7 year able rig.
Not your fault devs are shit at coding, full modded morrowind will still lag with your super rig
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