Re: Credit Reports

From: Somesh Rao <somesh@syl.nj.nec.com>
Subject: Re: Credit Reports
Date: Mon, 27 Jul 1998 11:51:51 -0400

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>Subject: Re: Credit Reports
>	It is my recollection that one is entitled to a free credit
>report from each agency once a year

Not any more. You get a free report when you have been denied
credit based on a credit report. Additionally, some states have laws
entitling you to get a free credit report each year (New Jersey).

Somesh

>From: bonsai@channel1.com
>Subject: Re: A Vexing Choice faced by money novice...
>
>I recently got a raise and I'm determined, for the first time in my life,
>NOT to squander the extra money or let it slip away unnoticed in daily
>nickel-and-dime expenditures. This is a big step for me ;-)
>
>So I have about $400-$500 a month that I want to put somewhere, and I am
>torn between three options (each with obvious advantages, or tied to goals
>I have):
>
>1. ... extra money into my retirement account each month. ...
>2. ..."three-month" cushion, ...
>3. ... Downpayment ...
>

Bonnie,

There is still not enough information for making a decision. But this is
what I would do.
  a) First create a 3 month cushion. Remember, a three month cushion is a
     rule-of-thumb. If you are in a hot-profession, then three would be
     adequete, but if finding a new job in your profession is not easy, then
     I would suggest a larger cushion. Also, the cushion is not 3 months
     salary, but 3 months of expenses.
     I would do this first, only then worry about the other two.
  b) How is your retirement account? Are you on target for your retirement
     savings? Remember, that tax break that the govt. provides is quite
     great. So, incase my retirement was not on track, I would add to 
     the retirement plan.  The govt. lets you use some retirement funds
     for buying a first house. YOu could explore this option.

#2 and #3 are not mutually exclusive. Remember, you just need a pool
of money as emergency funds (your cushion). In the case of emergency,
you could dip into your downpayment funds. So this fund does double
duty. When purchasing the house, you can reduce the cushion for a 
couple of months (if you feel that your circumstances warrant it).

Again, I'm not a professional. These are just my opinions.

Somesh



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