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Abhishek Desai

Hong Kong


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Ideator, Graphic Designer, Illustrator, Pop Artist and Box Collector!

2011 ENTRY

Say No To Plastic!

Say No To Plastic! In someway, we all have witnessed what debt can do to individuals, friends, families, organizations, institutions, companies, economies and even countries. Debt can be very stressful and Credit Card debt is one such global problem. Stay away from it.

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    Depending on your emergency fund (EF) needs, split between the EF and the car loan. But the crux of the matter is not really how to divert your leftover savings, but how to increase those savings to erase your debt burden more quickly.Saving depends on1) Increasing Income (often less feasible).2) Decreasing Expenses (often more feasible).Most people focus on #1, and neglect #2. But most expenses can be decreased dramatically, or even eliminated. Share rent with lots of people, or live at home or in a low-cost area if possible, avoid owning cars in the near future (they suck a lot of money), eat out less, buy less (or better yet, nothing) or secondhand, don’t engage in expensive sports/hobbies, no travel/tech gadgets/brand names/movies, etc. Reduce all water, power, phone, mobile + cable bills to the minimum. Analyze your biggest expenses (usually rent/car/food/leisure/bills), and find ways to cut all the financial fat. Since you’ll have a lot of extra time on your hands, use it to invest in educating yourself and developing your professional talents/interests/skills so that you can achieve a higher future income potential. Go DIY – don’t pay others to teach you.Live poor – because actually, you ARE poor. By my personal definition, if you need a job in order to feed yourself, you’re poor. If you need to worry about what your boss thinks of you, you’re poor. If you’re in debt, you’re in the hole poor. Don’t be generous or ashamed – you literally can’t afford to be. Be generous and proud after you’ve saved up some $ $ $ . Extreme situations call for extreme measures. If you compare yourself to other people with lots of debt, you’ll feel your situation isn’t so bad, but you should be comparing yourself to people with positive net worth. I only make 18K/year now, but I save about 10,12K – more than 50% savings on income. I’ve been doing this for many years now, so it all adds up. So despite my low income, I had my basic 1K EF in my first month. I intentionally chose to live in a lower-cost city that didn’t require a car, and in the beginning I had to forego a lot of costly urban enjoyments (movies, dining, shopping, etc.). But the payoffs have been tremendous; I don’t worry about money or jobs. Plus, I only work part-time now. If you can find a way to save 1K a month, you’ll be well on your way. It’ll only take 20 months to pay off all your debts. If you have higher income and can save 1.5K, you only need 13 months to be completely debt-free.After you pay off your debts, you should continue your hardcore saving for a couple years, (1yr =12K, 2y=24K, 3y = 36K, depends on what your long-term financial goals are), after which you can invest your savings, and your money can start working for you, instead of you always working for money. Then you can ease off on or abandon the Spartan lifestyle. If you’re a guy, you might not want to though, because being a Spartan is actually pretty cool. It’s good mental & physical training, because it helps to cut away all the consumer materialist crap in life. Makes you focus on what’s really important in life – which is ironically, not the money, but yourself, your relationships, and your purpose in life. And coincidentally, all those 3 things suffer when you’re working the 9-to-5 grind and spending nearly all of your hard-earned money on whatever. Best wishes to you - nexium viagra propecia online gt

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    My wife and I obtain our credit reports from each of the three major bureaus at least once each year. Invariably, we find accesses listed as “AR” (Account Review) by unknown or non-existent addresses. These are parties that have been provided our complete credit files with a complete list of each creditr card with the amount of current available credit. These have been determined in most cases to be identity thefts in progress. This can be verified by simply attempting to contact the firm listed and requesting verification and legitimacy of the inquiry. In the majority of the cases a non-existent telephone number will be listed along with a phoney address. Other examples will include using a previously closed credit card account number to access a credit files. In these cases the identity thief already has a current, valid credit card account number for the victim and he’s looking for the amount of typical available credit the account holder is maintaining so that he can max it out before the victim or the card-issurer is aware of it. We are planning on a press release detailing recent examples of this to encourage everyone to review their credit files. (Most states now require the bureaus to provide a copy once a year at no cost.) Be very aware of the various “free credit report” advertising as there is always a costly gimmick attached and we have found what is implied as advertised is rarely what the consumer gets. If you wish an e-mailed copy of our press release – due out about November 5th please e-mail us at: Sincerely, Ken & Karen Benner nexium propecia

  8. Coralyn says:

    Do both as soon as possible with more emphasis on the emergency fund, then car loan, then student loan. I am guessing that your car is still driveable for at least two years. If so, add up all the deductibles on your insurance short-term disablility, health, car, life, renters etc. That is your emergency fund (should be around $ 1000), once you have that you will immediately feel a little better. Then go great guns to get the car debt paid off, nothing sucks worse than your car breaking down and still owing on it. Now save some $ for the next car (or at least down payment), still have time before the car dies? now knock out the student loans.Also, be sure you are adding $ 50 a month to a mutual fund Roth IRA from day one and start pitching into your 401k at work. cialis auto insurance

  9. Neveah says:

    I would start a “baby” emergency fund of $ 1000. This will cover most emergencies except loss of a job. This is good finances as well as piece of mind.Second pat yourself on the back. You did accumulate debt, but not nearly as bad as others (myself included) and more importantly you want to pay it off.Next you need to promis to yourself that you will not accumulate more debt (outside of a house)Then pay the minimum on that student loan and attack the car loan with every extra cent you have until it is paid off, then attack the student loans.Don’t get mixed up in credit cards!!!!If you are a reader (or even if your not), check out Dave Ramsey’s “Total Money Makeover” It will detail out the steps to becoming debt free and wealthy – and it works viagra levitra

  10. Johan says:

    Please do not consolidate. It is not free, they will lower your pamenyts by increasing the length of time until you are debt free, and you will take a hit on your credit score. There is a better way.A. Have a garage sale and sell anything that you no longer need or want.B.Get a temporary part time job, if you have one, get another. The holidays are coming and there will be plenty of temporary jobs available. It is better to have a no fun year or two than a no fun decade. Here is a plan that can help you. If you work the plan, the plan will work for you:1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an emergency fund category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.2.First get current on all of you debts and make no more late pamenyts. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three pamenyts towards card #3 and that one will be paid off pretty quickly. As an example:To start :Debt #1 (highest interest): minimum payment+ extra paymentDebt #2 (middle interest): minimum paymentDebt #3(lowest interest): minimum paymentDebt #1: paid offDebt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra paymentDebt #3: minimum paymentDebt #1: paid offDebt #2: paid offDebt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late pamenyts. This works no matter how many different debts you may have.4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.5a. When you have your emergency fund in place, add a category for fun to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.You can do it and it isn't as hard as you think. Just follow the plan.

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  13. Eddie says:

    Depending on your emergency fund (EF) needs, split between the EF and the car loan. But the crux of the matter is not really how to divert your leftover savings, but how to increase those savings to erase your debt burden more quickly.Saving depends on1) Increasing Income (often less feasible).2) Decreasing Expenses (often more feasible).Most people focus on #1, and neglect #2. But most expenses can be decreased dramatically, or even eliminated. Share rent with lots of people, or live at home or in a low-cost area if possible, avoid owning cars in the near future (they suck a lot of money), eat out less, buy less (or better yet, nothing) or secondhand, don’t engage in expensive sports/hobbies, no travel/tech gadgets/brand names/movies, etc. Reduce all water, power, phone, mobile + cable bills to the minimum. Analyze your biggest expenses (usually rent/car/food/leisure/bills), and find ways to cut all the financial fat. Since you’ll have a lot of extra time on your hands, use it to invest in educating yourself and developing your professional talents/interests/skills so that you can achieve a higher future income potential. Go DIY – don’t pay others to teach you.Live poor – because actually, you ARE poor. By my personal definition, if you need a job in order to feed yourself, you’re poor. If you need to worry about what your boss thinks of you, you’re poor. If you’re in debt, you’re in the hole poor. Don’t be generous or ashamed – you literally can’t afford to be. Be generous and proud after you’ve saved up some $ $ $ . Extreme situations call for extreme measures. If you compare yourself to other people with lots of debt, you’ll feel your situation isn’t so bad, but you should be comparing yourself to people with positive net worth. I only make 18K/year now, but I save about 10,12K – more than 50% savings on income. I’ve been doing this for many years now, so it all adds up. So despite my low income, I had my basic 1K EF in my first month. I intentionally chose to live in a lower-cost city that didn’t require a car, and in the beginning I had to forego a lot of costly urban enjoyments (movies, dining, shopping, etc.). But the payoffs have been tremendous; I don’t worry about money or jobs. Plus, I only work part-time now. If you can find a way to save 1K a month, you’ll be well on your way. It’ll only take 20 months to pay off all your debts. If you have higher income and can save 1.5K, you only need 13 months to be completely debt-free.After you pay off your debts, you should continue your hardcore saving for a couple years, (1yr =12K, 2y=24K, 3y = 36K, depends on what your long-term financial goals are), after which you can invest your savings, and your money can start working for you, instead of you always working for money. Then you can ease off on or abandon the Spartan lifestyle. If you’re a guy, you might not want to though, because being a Spartan is actually pretty cool. It’s good mental & physical training, because it helps to cut away all the consumer materialist crap in life. Makes you focus on what’s really important in life – which is ironically, not the money, but yourself, your relationships, and your purpose in life. And coincidentally, all those 3 things suffer when you’re working the 9-to-5 grind and spending nearly all of your hard-earned money on whatever. Best wishes to you - MBA online business credit card

  14. Kaed says:

    Here’s the thing: you need to be able to handle an emergency or unexpected expense if and when it arises. You can do this by having a pile of money in a money market fund (great) or by having availability on a low interest bearing credit card (good). You need to make sure you always fall into one of these catagories–or both, preferably. Don’t worry about your student loan debt if you have a low interest rate (below 6%). You might want to go ahead and try to pay your car loan down if you have a high rate (above 6%). I chose 6% because the best savings accounts/money markets are currently earning just over 5%. You’ll be doing better to pay down the debt if your savings rate will be lower than the interest you’re paying. Plus if you pay down the car loan, you will have a huge monthly expense gone, which will free up more income and lower your DTI ratio (which is good in case you want/need to get another loan, like a mortgage, anytime soon). auto insurance nline masters degree

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