From www.sooverthis.com -
Just over 4 years ago, long before I even knew the definition of “net worth”, I was in the negative. I owed about $35,000 in student loans, $15,000 in credit card debt, $226,000 mortgage ($235k home value), and I was leasing a $600 a month Audi A4. My assets consisted of $30,000 in a 401k and my measly $9,000 in home equity.
I had just bought the house a few months before losing my job, and only put down the required 3.5% for a n FHA loan that came riddled with higher origination fees and non-tax deductible PMI that I paid out each month.
I generally gauged my financial prowess by the amount of money I earned each year, not by how much I saved or invested, or even had at that point my life. I wasn’t even 30 years old yet and I was making about $95,000 a year, which for the metro Detroit area seemed pretty impressive to me.
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- The author talks about how much finance blogs helped him, when he started reading them he realized the folly of his ways and how much he was overspending on the stupidest things. He admits that he was actually embarrassed to use coupons for fear of how he might appear "less successful".
- The author had come to realize that he was shelling out an insane amount of annual banking fees for balances below the fee-free minimum, and that he was often paying ATM and online banking fees left and right which did nothing but leech his already small bank account. He found that switching to an online bank account was one of the best moves he's ever made. He has almost zero fees every year now. I've experience the same thing, I also fully endorse online banking instead of brick and mortar.
- He feels that maxing out your 401k, and any other tax-sheltered accounts to their fullest is the smartest route to take.