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Example - For my employer I travel sometimes and stay over night. So lets say I leave Monday to go out of town and buy meals and pay for a hotel over night on my personal credit card. Then I travel home Tuesday and pay for meals on the same card.

I can then expense all meals and hotel for both days. Lets just say it equals $200. How would you input this into YNAB?

And how would you input it if say the charges were used towards the end of July and you weren't credited back until the next month, August?


I feel like we should have a business expense how-to pinned.

It’s like 1 in 5 new posts is people asking the exact same question.

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Original Poster1 point · 1 hour ago

So thanks for not answering it for me...

11 points · 1 day ago

Create a category and fund it with $200. Spend it.

When you get it back categorize the inflow to that category and move the budgeted amount back to TBB

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Original Poster2 points · 23 hours ago

Okay, I guess that does make sense. Thank you.

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I am the leader of US guild - NightsWatch (#HHNLV) and have 2 spots open. Needs to be at least lvl 8 and donating 150 a day + attack guild boss. Newer guild but I have been playing since soft-launch so there is a lot of knowledge for any who would like to join.

Just PM me with your level and stats.



Quick background, I am 29, single, and a home owner. My finances

73k salary

~10% annual bonus

Contribute 10% to 401k, company matches an additional 6%

Company contributes $1,000/yr into HSA

Pension with estimated 250k in 25 years

My net income is ~$3,600/mo (after 401k contributions), my overall monthly expenses are ~$2,600, so have ~$1,000/mo leftover

~40k in 401k accounts

5.5k in Roth IRA

15k emergency fund

My strategy - I will get at least a 3% raise every year, so my strategy will be based off that. If I get 3% raise then I would split it in half and half goes to increasing 401k contribution and the other half goes to paying myself.

Example - 3% = increase 401k contribution by 2% and increase my savings by 1%

Example - 7% = increase 401k contribution by 4% and increase my savings by 3%

Any pros/cons towards this strategy? I see the value in saving into retirement accounts, but I also see the value in living your life and enjoying it instead of stashing every penny away and never doing anything in life. I figure with this strategy you are actively increasing your contributions while still rewarding yourself by 'paying yourself' a few % each year.

**I also will be maxing my Roth IRA again this year and plan to do so every year. That's why my current budget has $1,000 leftover each month since $423 of that goes into my Roth IRA. I would use this strategy to increase my savings so I can take more vacations and use it for paying to do different hobbies.

2 points · 1 day ago

Sounds good to me. You're young, enjoy yourself some. This sub tends to take saving to an extreme, but honestly, if you put away 20% gross and are making over $50k/yr, you should be set. Anything extra is cake for a cushier retirement.

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Original Poster1 point · 1 day ago

Thanks for the reply. Right now my 10% + company 6% = 16% gross then I'm saving ~7.5% into my Roth.

I've seen other posts where people say a '4% withdraw rate' in retirement is safe. How would I calculate how much I need in retirement if I want to have a 50k/yr income or 100k/yr income ?

2 points · 1 day ago

$50,000/.04=$1,250,000 in today's money. You'll need $1.25m today to get $50k/yr today. I usually do $40k/yr minimum which 20% gross savings over 35 years on $50k+ will hit easily. Anything else is just extra.

You're fine. If you just want to retire, then hitting employer match 401k and maxing a ROTH every year will suffice for most people. If you want to retire comfortably, 20% gross or more. Keep what you're doing and go enjoy yourself.

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Original Poster1 point · 1 day ago

Thanks. Just wanted to make sure I'm on track to set myself up for retirement and still be able to do fun things while I'm young.

1 point · 1 day ago

Links to where you learned your minimalist ways? Sounds intriguing.


Been playing this game every since soft-launch. Just created a new guild and looking to build it up quickly to join the ranks. For now, anyone is welcome to join.

Guild name: NightsWatch

Guild tag: HHNLV


Hey I would love to join the guild. I just checked and your full now. Please let me know if you lose someone. I play every day and will be around for the long haul as I'm loving the game. Adult here as well. Thanks in advance

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Original Poster1 point · 1 day ago

whats your current level and in game name?

Hello. I'm keen to join as well but see that the guild is full. Am a relatively new player dealing approx 120-150 (depending on boss) dmg per day to guild bosses.

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Original Poster1 point · 1 day ago

What's your current level and in game name?

As someone who started in IT and started repairing computers on the side, I will say it can become a full time job. Or it can be a nice side revenue stream.

What I like about it is that your costs are fairly low as you don’t necessarily need expensive equipment and you can work out of your house. A lot of the stuff I buy for business expenses (and thus I write off or depreciate) have dual purpose home use (eg. I bought a high end gaming system for my office PC or I deduct my cell phone and internet bill).

That being said, since you’re starting out with a 9-5 job, you at least have a steady revenue stream. That’s good as finding new customers is going to be the hardest part in the beginning. You might have some people already lined up and that’s good. Try to find out what the going rate for service in your area is. You don’t want to undervalue your labor just because you do this on the side. If you do, it makes it harder to raise prices.

If you want to do everything on the up and up (eg. Pay taxes, get business licenses), here are a few things to consider.

For taxes, you can either withhold more with your W2 job to account for self employment tax and the added personal income tax.

Or you can file a form 1040-ES and pay your taxes quarterly (eg. April 15, June 15, September 15, January 15). I would say it’s save 25-30% of net income to cover your taxes.

Also if you sell stuff you’ll want to get a resale license to collect sales tax. You’ll also be in charge of remitting sales tax to your state’s tax agency.

You should also get a business license in whatever town you operate from. And if your state has any other licenses get that too. So for example, I need to get a California Bureaunof Electronic Appliance Repair certificate each year that costs $165. I also pay for business licenses in my home town and a neighboring town that requires a business license if you do business with anyone who resides there (even if your business itself resides in another city).

I also pay for a fictitious business license as I run my business using a fictitious name. If you use your own name you can skip this.

You should look to get an EIN from the IRS and also a business checking account to deposit checks in. If you use your personal account for business use, your bank may cancel your account. There are a bunch of free business checking accounts so no need to pay a fee if your bank doesn’t offer one.

Another thing to consider is that since your now your own employee, you can open a solo 401k for your side gig even if you have a 401k with your primary job. Just be mindful of max contribution limits between all accounts.

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Original Poster1 point · 3 days ago

Thanks for sharing this. I also live in California.

So after paying all of that tax, business licenses, etc. You still made decent money? Did you just charge per hour or job? How much?

By repairing computers do you mean fixing 'slow' computers or physical damage to them?

Yeah, I'll repair anything that your corporate IT department would normally handle. So that ranges from mundane software problems like a virus infection all the way up to hardware replacement. I'll setup networks, repair damaged laptops, data recovery, etc. Any specialty work like printer repair or cable networking, I have subcontractors I use. For severe data recovery, I farm the work out to data recovery labs like DriveSavers who have a great reseller program where they give you 10% for any referrals. I do the same for internet and VOIP referrals. So I make like $500 for every Vonage Business customer I refer to and around that much for every Comcast Business internet client.

I also do unrelated IT work, just because the work fell into my lap. So I have a tile company that I do the books for. I get an extra $350/month for maybe 1-2 hours work.

As for making decent money, I net around 66% of gross profits as most of my work is labor. So the question really depends on how much you value your time.

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Original Poster1 point · 2 days ago

Awesome, thanks for sharing. I'm a network engineer so setting up small networks would be right up my alley.

You mean book keeping for the tile company? I'm good with numbers so maybe I can look into something like this, as well. Is it difficult?

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Guild is already full :/ are you able to expand the member limit?

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Join my guild. Name is: NightsWatch

I've been playing since soft-launch so I can help you out, too. It's open to all players, for now.


I recently started with a new company and my financial adviser helped me pick out some funds for my 401k plan. Before anyone speaks out against this, he is a fiduciary adviser and fee based. He is also a friend of mine so he charged me nothing for his service. Here is what he came up with:

  • 50% Fidelity 500 Index Institutional 
  • 25% American Funds Europacific Growth 
  • 17.5% Fidelity Extended Market Index Premium 
  • 7.5% Fidelity Small Cap Index Institutional 

I know you all can't see the other funds I could choose from, but do you like this diversity? Before I talked with my friend I had looked through the funds myself and was pretty set on just investing 100% into the Fidelity 500 Index Institutional since it had super low fees, a proven track record, and tracks the S&P.

If it helps you decide, I am 29 and single. I also would consider myself more risk tolerant than most (I don't mind if my account dips 20,30,40% in a given year. I'm in it for the long-haul and the market will always bounce back.

EDIT - Here are the expense ratios

  • 50% Fidelity 500 Index Institutional  (0.015%)
  • 25% American Funds Europacific Growth (ER 0.49%)
  • 17.5% Fidelity Extended Market Index Premium (ER 0.045%)
  • 7.5% Fidelity Small Cap Index Institutional  (0.025%)

Fidelity Small Cap Index Institutional 

Those are open market rates. OP's 401k rates could be significantly different

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Original Poster0 points · 4 days ago

I updated post with ER

4.90 per 1,000 is correct. Just need to multiply by 100 for 100,000

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Original Poster1 point · 4 days ago

Whoops. User error lol My eyes are bad, I see now that it says 1000 and not 10000

Yikes! on the $490 per 100k per year!

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Biggest thing for me is that the controls suck. The joystick circle is so damn small that often times I miss it and my guy doesn't move accordingly. Also get tired of hitting the smash button 2.17^3858934 times.

Don't feel the game is worth $8.99....would be more desirable around $2.99-$4.99

You'll have to look up collection agency laws in Illinois then. Also google 'collection agency negotiating tactics'.

The way collection agencies work is simple. Think of them as pawn shops. Company's with uncollected debt will basically sell their debt to these collection agencies for penny's on the dollar, just as you would if you took an item to a pawn shop to sell.

Then, obviously, the collection agencies will contact you vigorously and try to collect the exact amount of the debt. I mean, why not? if they are actually able to get you to pay even 60-70% of it's worth then I guarantee you they have at least tripled their money. So don't ever think you're getting a good deal by whatever their 'reduced' offer is.

In my case, several years ago I was unemployed and having chest pains to the point that my arm went numb. I panicked and drove to the heart hospital in my town. Had no insurance and informed them of such, but due to chest pain and numb arm they rushed me to a room and set up an EKG monitor and took my vitals. Long story short, it was a pinched nerve.

So a few weeks go by and then I receive a bill in the mail for ~$2,600. I thought it was complete bs and threw it in the trash. Another 4-5 months went by and I forgot about it and finally got a job. Then another 6 months went by and I received a letter from a collection agency for the full amount of ~$2,600. Threw it in the trash.

Another 3-4 months went by and I received another notice saying 'we have been authorized to lower your debt to $2000 if you pay in full within 'x' amount of days'......anyways I ignored them for almost 2 years now and the rate has been 'reduced' several times and through several different agencies and is now down to $648.

So yeah, $2600 --> $648, who knows how much they payed for it, probably a couple hundred if that.

Summary: Look up local state collection laws. Don't pay the max amount they want you to. Look up negotiating tactics. You should pay all your debts, but it is illegal to be placed into prison for not paying student loans and medical bills. That is federal law across the United States. Pay what you can afford so it can be off your credit report and make sure you have it in writing whatever deal you make with them.

Good luck!


So I'm reading through my new employer's benefits package and I came across some wording that I'm not sure how to understand.

" Company has a two-for-one Company Match on eligible contributions that is based on your years of service." Okay.

"From your date of hire up to nine years of service, the maximum Company Match is 4%."

Okay. Table shows if I contribute 2%, then company contributes 4%. 6% total. Makes sense.

"Contributions qualifying for the Match can be either pre-tax or after-tax. Catch-up contributions are not eligible for the Company Match."

Wait. What? So if I contribute 2% to pre-tax then they match 4% pre-tax. And if I contribute an additional 2% to after-tax than they match an additional 4% to after-tax?

Am I reading this right? If so then this would be the best day of my life!

3 points · 4 days ago · edited 4 days ago

Because that's not how taxes work.

From $0 to $9525, you pay 10%. So $952.50.

From $9526 to $38700, you pay 12%. But the first $9525 you already paid 10%! So it's 38700-9525=29175 @ 12%, which is $3501.

Total so far is 4453.50.

Any money from 38701 up to 82500 is hit for 22%. So 82500-38701=43799 @ 22%, which is 9635.78.

You can eliminate that 9635.78 in taxes if you can stash that money (the amount above 38700) into pre-tax vehicles. Like Traditional 401ks, Traditional IRAs, HSAs, etc.

How are you getting only $22300 taxed @ 22% and not the full 73k?

Only the amount above 38700 is taxed at 22%. 38700 + 22300 is 73k.

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Original Poster1 point · 4 days ago

Thank you for simplifying this and breaking it out, learn something new every day!

I always misinterpreted this as I pay 22% on every dollar of my 73k salary, glad to know it isn't that brutal lol

So is 5.5k into a Roth IRA a waste for me then? Cause this sub says to get your 401k match, then max Roth IRA, then go back and max 401k.

Stop saying Roth, lol.

In your case, you left Roth behind a while ago.

Put 5.5k into a Traditional IRA. It doesn't matter that you do it with after-tax money; you get it back when you file taxes. Then it's effectively pre-tax.

Roth is a terrific vehicle for typically younger people, who are typically not making more than $50k. Which is normal in the beginning of a career. It also serves other groups, but you're not one of them anymore.

You make a good chunk of money. You're in a higher tax bracket. You need to stash away pre-tax money to get your tax burden down.

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Original Poster1 point · 4 days ago

haha I thought Roth was better for me, 29 yo, because it grows tax free and you can with draw from it without paying taxes, too.

This is the first I'm hearing that it's only beneficial for those making under 50k. I guess I will need to do more research into this, as well.

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Earlier this year I learned about Roth IRAs and opened one to make 2017 contribution of 5.5k

Fast forward to last month and I got a new job with an employer who allows up to 50% of post tax contributions towards a Roth 401k.

It seems you can add a lot more into it than 5.5k like you can with the Roth IRA

What is the difference here? Why put a cap on a Roth IRA if you can contribute 3x the amount into a Roth 401k?

Also, is this what people refer to when they say 'mega backdoor roth', simply maxing a Roth IRA and Roth 401k?


The 401k allows you to contribute up to $18,500/yr, and your employer might also contribute to it.

The Roth IRA only allows you to contribute up to $5,500/yr.

The 401k only has a limited choice of investments, and, unless you get a really good 401k, they might well have more fees and higher expense ratios than you could get with a Roth IRA.

So, unless your 401k is really good, the general recommendation is:

  1. Invest in the 401k up to enough to get the maximum employer match.

  2. Then switch to the IRA to get the lower fees and wider choice. and max it out.

  3. If 1 & 2 above don't add up to at least 15% of salary, go back to the 401k and contribute more, until you are contributing as much as you want to.

  4. A backdoor Roth is something totally different. It is how you can contribute $5,500/yr to a Roth IRA when you make enough money so that you are prohibited from making direct contributions to a Roth IRA.

Good luck.

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Original Poster2 points · 4 days ago

FYI from another comment on here, and through PM, since my employer allows after tax contributions to my plan, I can contribute after tax dollars and then roll them over to my Roth IRA. This can allow up to 55k combined between all retirement accounts, per year. Thus, I can contribute more than 5.5k towards my Roth IRA each year. a.k.a. mega backdoor roth

2 points · 6 days ago

Do your parents just have 400k laying around right now?

I'd seriously just consider putting it into a good fund and let that baby grow by 6-7% a year.

You could take up a new profession (thats cheaper) and be a massive millionaire and retire early.

Alternatively, you could just use the 6-7% gains each year to pay part of your tuition.

FYI 6-7% of 400k is 24-28k in profit the first year.

My advice, avoid a financial advisory unless you can find a fee based fiduciary one.

If I were you, I'd look up the top 4 or 5 CPA firms in my area and see which ones have the best reviews or word of mouth. Then I'd go visit each one and tell them you want to meet with a partner to discuss finances and taxes. They may look at you weird and refer you to a junior cpa but politely opt for a meeting with a partner.

My best friends dad is a partner in a CPA firm in the state I live in, he has over 25+ years of exp and deals with all of the business owners and other 'high income' clients.

You may have to pay several hundred dollars an hour or half hour, but I guarantee they will take care of your every need and give you the best advice for shielding your income from taxes.

Just my .02

2 points · 6 days ago · edited 6 days ago

Here's what you do. Take the 3%, then have everyone up their annual contribution by 2% (this would be the same as your employer matching 2%) and then everyone would still get an additional 1% raise.

2% + 1% > 2%

Sorry if I offend you but your boss seems like a scumbag for trying to sell everyone on taking the 401k option. Ultimately he is saving himself 1% of income per employee, not to mention tens of thousands of compounding annual salary increases over the years. I used to work for a contracting company and my boss at the time sounds exactly like yours. Always trying to cut corners and fill his pocket while screwing his employees any way he can.

Take the 3% annual raises and up your 401k contribution


Here is what the math looks like on a 100k salary:

Show your employees this math and point them to the 10 year mark in both columns.

You'll see that the 401k balance is only ~$3,000 more with the annualy raise vs the 401k match.

HOWEVER you'll also see that a 3% annual raise compounds in 10 years and would be making ~$130,000 vs the chums who pick the 2% 401k match, they are still only making $100,000 a's really a no-brainer.

2 points · 7 days ago

My sister was in a similar situation recently where she received 40k after an auto accident.

Here's what I told her, and more-so what I'd do if I were you.

- 10-20k emergency fund (depends on your expenses, 6-12 months)

- 5.5k into a Roth IRA for 2017 contributions, then another 5.5k for 2018 contributinon

What I would do next, may go against what some others on here would do, but I would then use the remaining ~50k to contribute 5.5k into my Roth IRA every year until it ran out.

I think it's a good strategy because you are actively maxing your Roth IRA contributions at a young age so they have longer to compound (interest free) before you decide to retire. Also, you are only draining 5.5k a year, so you will still have that large sum of money in case you decide to use some for a down payment for a house in a few years.

Alternatively, you could just max out your 401k with pre-tax dollars from your paychecks and use some of the ~50k if it gets a little too tight each month until it all ran out, then scale back your 401k contributions.

Original Poster1 point · 7 days ago

I hadn't thought about Roth IRAs. I will have to see what my budget looks like once I get my official offer and salary to see if I can fully contribute with my salary. I plan on being thrifty so hopefully.

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That's the beauty of your 70K nest egg. You would only be withdrawing from it each year to feed your Roth IRA. Therefore, you wouldn't have to use your salary to contribute towards it.

Now, the 401k would be through your employer, so yes, you would have to wait and see what their offer is first.

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Let me start by saying, I'm not going to make a big deal about this since the dollar amount in question is only $76.53, but I'm just wondering if it is legal.

6 months ago I worked for a contractor and was given some Fire Resistant clothing to work in the oil fields. Then I put in my 2 week notice and my last day was July 20th.

I went down for an exit interview and was given my final paycheck. My boss told me he forgot to add in my 2 hours of OT and would issue it to me later. My pay was $35/hr, so he owed me $52.50 x 2 = $105

Then he counted the clothing items and realized that I was 1 pant short. I told him I would look for it and get it to him. Then 2 weeks later I receive a check from him for $28.47. He didn't call or notify me of any of this, instead this last paystub says he paid me for 2 hours of $17.50.

I just found the pants in question and its barely been 3 weeks since my last day of employment with this guy. I was busy starting a new job and kept forgetting to call him (my bad).

MY QUESTION: Is this legal for him to not have paid me for my OT wages on my last day when he issued my final paycheck? Also, is it legal for him to make up some random wage and pay me that instead of what he owes me? It seems like the pants cost ~$70 so he just deducted it from my OT hours without notifying me or asking if I had found the pants.

What should I do?

Summary: Wasn't paid $105 on last day of employment for OT hours. Forgot to bring back 1 pair of company issued pants. Employer then only paid me $28.47. Three weeks later and I found the pants. Is any of what my last employer did legal or should it have been handled differently by him?

What should I do?

3 points · 8 days ago

Okay, technically they cannot reduce your payrate, what they can do is deduct the cost of the uniform from your last paycheck.

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The OP needs to contact the department of labor.

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Original Poster1 point · 8 days ago

I'll google that. What should I say, that I was paid wrongly? Is it even worth it since it's less than $100?

What will they do?

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Having allowed it to end up in collections, your credit score will not recover completely by paying the debt. It might recover a little but you still have an I9 on the report and that won't go away.

Not that you were in the wrong here. It's unfortunate and frustrating as hell.

All things being equal though, there isn't much of a difference between a 755 and 800 from a lender's perspective. Anything over 750 is golden. 800+ is more of a point of pride than a lender requirement.

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It'll never go away?


How can I calculate what I need to save each month/year to achieve a goal of 1M-2M by the time I am 50?

I am almost 30 and make 73k a year, 6% match, and ~10-15% bonus + 1k contributed into HSA each year + pension

I have ~35k(IRA), 5.5k(Roth), 2k(HSA), and 100k in my house with additional150k loan (home value 250k). No other debt.

I've read a lot of others saying a 3-4% withdraw rate is safe, so I am trying to figure out how much I need to save a month/year for the next 20 years to achieve 1M-2M in assets?

I know I'm a little behind but just created a budget on YNAB a few weeks ago so I can maximize my savings rate every month. Still don't know if it will be enough but I should be saving ~1.5k-2k a month now (including 10% into 401k and 211.53 a paycheck into my Roth IRA)


Your house is an asset, not an investment, so being ignored.

Have no idea about your pension, so that's being ignored.

Assuming your current investments are $42,500, and you get a 7% rate of return:

You would need to save ~$20,000 / yr to end up with $1,000,000 in 20 years.

You would need to save ~$41,000 / yr to end up with $2,000,000.

Your 401k match is $4,380 / yr, $1,000 HSA contribution (I assume this is employer) means you're looking at needing to save an additional ~$15,000-$36,000 / yr.

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Original Poster1 point · 10 days ago

Really appreciate you breaking this out for me and giving ranges.

I currently contribute 10% ($7,300) to 401k. So $7,300 + $4,350 + $1,000 +5,500 = $18,150 (currently saving)

So I am already within your range of $15,000-$36,000, correct?

The $15,000-$36,000 range already includes your 401k match and HSA employer contribution, so no (your addition above is also including them, so that would be double counting). You are ~$2,000/year short to be on track for $1,000,000 in 20 years.

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Original Poster2 points · 10 days ago

I see, thank your for clarification.

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I have 4 different 401k's from different employers and a personal Roth IRA. The 401k's combined are ~35k

Would it be wise for me to pay taxes on all of these and roll them over into my Roth IRA to help jump start it?

I am 29, single, homeowner, make 73k a year + bonus + 6% match. No debt.


Yes so you can control and distribute to your own choosing

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Original Poster1 point · 11 days ago

Mainly just so I don't have to pay taxes on it for the next ~30 years until I retire.

You could roll them into a traditional IRA and not pay any taxes on it.

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Original Poster1 point · 11 days ago

But then I'd pay capital gains tax on it over the next 30 years until I retire, correct?

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I have a unique situation that I'm looking into and just curious if others have had any success with this or not?

My situation - Grandmother broke her back and will be in a retirement home for at least the next 6 months - 12 months. Very possibly for the rest of her life as she is in her late 80's.

She doesn't know if she wants to consider selling her house or not so I was thinking of just Air BnB her rooms out and splitting it with her as I would be the one running/maintaining it.

Finance stuff - She doesn't need the money, per say, so it really would be a way to help me out and also give her some additional funds in case she ever needed it down the road.

So I'm assuming we both would have to pay taxes on whatever is made through renting out the rooms, correct? Is it just taxed like additional income? Or are there any tax breaks/advantages?

Summary - Grandmother in late 80's and in retirement home. I am looking to Air BnB her house for the foreseeable future. Anything I should think about before doing this? Pros vs Cons? How are taxes paid? Any tax breaks/advantages?


From a purely financial standpoint, I think this could be very smart if you have extra time. From a family dynamic standpoint, it could be very difficult, so please take into consideration any/all parties involved, which might be aunts, uncles. It might seem simple now, but what if someone books for a month? And you split it 50/50? You would put in a ton of work up front getting it ready to list, but other family could be upset about your profiting later for what they think was just you cleaning. Maybe talk to her estate planner attorney or financial advisor. I think she would make the money (taxed as regular income) and pay you as an employee (you would get a 1099). Otherwise, to simply profit 50/50 you would maybe need an LLC. Talk to tax accountant! As for your grandmother personally, preparing for the Airbnb might be a really positive experience for her dividing up some special items now and giving them away and decluttering, which would make a transition to long term care easier later. If she’s not prepared to let go of things now, then it might be stressful for you to have a cluttered house on Airbnb (so much to dust, clean, lock up).

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Original Poster1 point · 12 days ago

Thank you for the length reply. An LLC is definitely something worth looking into, I didn't even think of that.

You may want to consider whether the extra income will affect any social security/public assistance benefits she may be receiving, also

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Original Poster1 point · 12 days ago

Good to note. Thank you.

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Anyone dabbled in the Air BnB space? I have a unique situation that I'm looking into and just curious if others have had any success with this or not?

My situation - Grandmother broke her back and will be in a retirement home for at least the next 6 months - 12 months. Very possibly for the rest of her life as she is in her late 80's.

She doesn't know if she wants to consider selling her house or not so I was thinking of just Air BnB her rooms out and splitting it with her as I would be the one running/maintaining it.

Finance stuff - She doesn't need the money, per say, so it really would be a way to help me out and also give her some additional funds in case she ever needed it down the road.

So I'm assuming we both would have to pay taxes on whatever is made through renting out the rooms, correct? Is it just taxed like additional income? Or are there any tax breaks/advantages?

Summary - Grandmother in late 80's and in retirement home. I am looking to Air BnB her house for the foreseeable future. Anything I should think about before doing this? Pros vs Cons? How are taxes paid? Any tax breaks/advantages?


First check with your local government to see if it’s allowed. If it is, the you’d have to pay taxes on your profit, not the revenue. So if there’s mortgage, upkeep, repairs, you subtract those first then pay taxes on what’s left.

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Original Poster2 points · 12 days ago

Thanks. Should have mentioned I'm in the US.

Original Poster4 points · 12 days ago

You misunderstood. I was saving $150 a check, so $300 a month. As for what I did, I was/am in IT. I did network engineering and VoIP stuff. All learned on the Government’s dime while serving on Active Duty. 😀

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Yo Network Engineer here and AF vet. Thanks for your service, I know the crap pay and crap we had to deal with. Been out for about 5 years now. How do you like working Government IT contractor?


So last September (almost a year ago) I bought my first house. At the time I was making 60k, single, no debt. I was very fortunate that my dad decided to give me my 'inheritance money' now instead of when he passes away.

I was gifted 100k and used all of it as a down payment on a 250k house. Then maybe 6 months after that I learned a lot more about finances, budgeting, what it takes to retire early or comfortably, and I feel like I may have made a mistake with this house purchase. I know am making 73k, better benefits, and a 10% bonus.

The only reason I used it all as a down payment, then, was so my loan would be ~1k instead of ~1.6k if I only put down 20%.

My questions:

I paid 100k on a 250k house that could rent for ~1.6k. I realize now that I way overpaid for this given the 1% rule. So here are my options I'm considering.

1.) Sell house and find a better deal on one and only put down 20% and use the rest of the 100k to purchase another home and rent it out.

2.) Sell house and find a better deal on one and put down 20% and use the rest of the 100k to invest in a taxable account.

3.) Suck it up and keep the house I'm already in. Lesson learned.

So not sure if any of these options are good or if there is perhaps another alternative I haven't considered. Thanks in advance for any help/input on this matter.

EDIT: My interested rate is 3.875% on the house. So I feel like I could have spent this 100k better and be earning more on it if it was in the market or if I had two properties and rented one of them out.


I guess I am not sure about what the concern is? Or what the lesson learned is?

You make good money, your rent/mortgage payment is low for your income, you plan stay there 5+ years and your interest rate is VERY good.

My advice: stay in the house, hopefully it appreciates over time and enjoy it while you have it.

You have NO idea what the stock market or real estate market will do - You could of dumped $100k into the market, it could have cratered and is now worth $50k then it takes 20 years to recover. Same applies to the house.

Other option that you may not have considered: Take the money that you save by only having a $1000/month mortgage payment and dump that into the market over the next 5+ years. Now you own an asset (house) that may or may not appreciate WHILE contributing a large amount to retirement/stock market. Best of both worlds.

FYI: I don't think you made a mistake at all. But if you sell it you will end up on the losing end because of capital gains and paying closing costs etc.

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Original Poster1 point · 13 days ago

I guess I'm looking at this too one-sided. That's why I wanted to see other opinions.

Probably would be best to take the 'savings' I've made in lower mortgage payments and just invest that in the market.

Thanks for the response.

That's true but you also lowered either your monthly payment significantly or made it so you own your home a lot faster.

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Original Poster1 point · 13 days ago

I did, by about $600 a month lower.

Just seeing if that is still the best move or if it would make more sense to sell to get the 100k back, then find a better deal and invest that 100k differently.

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