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It's July and we're getting out of debt with DR - Page 3

post #41 of 106
This is a great thread. I have been reading the DR threads for a while, thank you all for posting!

We are on BS2.
$22,375.00 on cc
$5,000 loan.

A few years ago we were on BS7. It's amazing how fast things can change. I can't say enough good things about a 6 mos EF. We had one, and it is what saved us from losing everything. To everyone working on one or dreading trying to make one, it is so worth it!

We are now rebuilding our finances and I am grateful everyday for what we do have.
post #42 of 106
Can you add me to the list? We're just starting out, on BS2 (had enough for the EF right off the bat).

Paid $925 out of $45,400 owed.
post #43 of 106
So what would you mamas do if you suddenly were faced with a large increase in income prior to completing step 3? It is looking like we'd have between 1500-2k "extra" each month - We want 6k total in our FFEF, so 3 months, BUT...we'll have our first access to a 401k, so I am tempted to split. It'd be a 2 year long contract, so plenty of time for both. Or I could do the minimum we're comfortable with (500$) and put the rest in savings for 6 months or so, and then move to a higher amount and start the supplementary 529/finish DD's prepaid funding. I've never had to worry about what to do with the extra before LOL
post #44 of 106
personally I'd fund the 401 up to what they match, then sock the extra into the EFF. Once EFF is full, go back and up the 401.
post #45 of 106
Thread Starter 
KailuaMamatoMaya, have a lovely vacation, great job spending small.

tryingforbaby, take it one step at a time and you'll be making progress soon. Emergency Fund first.

mich, sorry to hear you are back in bs2 but thank goodness you had the ffef!

smallmama welcome :

RoadWorkAhead, is there a company match? If so I'd do enough to get the match then the rest to bs3, if not do it in order, all to 3. Is 6000 enough for you? I might up that but I have an anxious security gland.
post #46 of 106
Quote:
Originally Posted by RoadWorkAhead View Post
So what would you mamas do if you suddenly were faced with a large increase in income prior to completing step 3? It is looking like we'd have between 1500-2k "extra" each month - We want 6k total in our FFEF, so 3 months, BUT...we'll have our first access to a 401k, so I am tempted to split. It'd be a 2 year long contract, so plenty of time for both. Or I could do the minimum we're comfortable with (500$) and put the rest in savings for 6 months or so, and then move to a higher amount and start the supplementary 529/finish DD's prepaid funding. I've never had to worry about what to do with the extra before LOL
I would finish step 3 first. If you truly will have 1500 - 2000 extra each month, and are aiming for $6k, you'll be done with step 3 in 3 months. Just get it done and move to step 4/5.
post #47 of 106
I would fully fund your emergency fund to 6 months and then I would start the 401k. If there is a match I might start the 401k only to the upper amount they match while saving your FFEF. After it is all saved then start saving in the 401k and Roth IRA to 15% and once you can do that then start on any kids 529s or ESAs. Work the steps! You are doing awesome!
post #48 of 106
We have a built in "extra" in that we qualify for and receive SSI when DH doesn't work, and our home is on wheels- All we need are plugs so we can survive 6 months on far less than most.

I know they will have a match, so I will match and we'll see from there. I just don't want to waste much more time on retirement savings either since I'm 28, and well, we don't want to be tied to work forever IYKWIM. Plus, doing paperwork agfain in 3 months sounds like a PITB. Luckily, step 5 is about 50 % complete for us since 1.5 of the kids have prepaid, so we only need to complete 1 prepaid and do a 529 for whichever child needs it. And our mortgage will be paying itself for a while since I have a tenant set to move in now. I see light at the end of the tunnel.
post #49 of 106
Yea for Craigslist!
I keep finding things to post on there. I am really on a kick to sell everything.
So far nothing has sold but I have had some emails.
:
Now I am on a search around the house for more random things I can sell.
post #50 of 106
Add me to pre step1!!! Im so excited to see a thread on this!

Pre-Step 1: Get current on your debts and do a budget
0.1 Commit to NEVER borrow $$$ again -Done
0.2 Talk with spouse and get him/her on the same page as you concerning finances. - Done
0.3 Do a written budget - Done
0.4 Temporarily stop all retirement contributions- done

0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) will be working on
0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months - don't have toys

0.7 Cut lifestyle (Cut CATV, Cellphone, Regular phone "extra's", Internet, Eating out, etc) and/or take second job if $1000 EF will take more than 30-90 days. Have no catv, don't eat out, plan on talking to hubby about cell phone useage, regular phone is internet phone 20.00 a year!

7/10 - Went to work for an old friend today. 2 hours with baby in tow... this will give me a little extra to pay some bills!
0.8 Get current on ALL bills - will be working on.
post #51 of 106
$20 a year? What kind of internet phone is that? I thought mine was cheap at $30 a month.
post #52 of 106
Thread Starter 
welcome BonnieNova, let us know if you have any questions!

We leave for vacation on saturday, two weeks out west seeing friends and family. Tickets paid off, accommodation all arranged, money for the rental car put aside, US money in hand. We just need to cashflow spending money for the Vancouver part, we've never done a vacation where we paid for everything in advance
post #53 of 106
Quote:
Originally Posted by mtm View Post
welcome BonnieNova, let us know if you have any questions!

We leave for vacation on saturday, two weeks out west seeing friends and family. Tickets paid off, accommodation all arranged, money for the rental car put aside, US money in hand. We just need to cashflow spending money for the Vancouver part, we've never done a vacation where we paid for everything in advance
Yeah for already paid for vacations, mtm!
post #54 of 106
Quote:
Originally Posted by tryingforbaby View Post
$20 a year? What kind of internet phone is that? I thought mine was cheap at $30 a month.
most likely Magic Jack or Vonage
post #55 of 106
Quote:
Originally Posted by Denvergirlie View Post
most likely Magic Jack or Vonage
Our Vonage is $18 a month with taxes.
post #56 of 106
I have vonage now and after taxes it is $31. I have the unlimited plan because I know I would go over the limited minutes.
post #57 of 106
Thread Starter 
We're staying with friends and family while we're away, any ideas for frugal thank you presents? I was thinking about making a nice dinner for my sis and aunt but wasn't sure about my friends, maybe a nice bottle of wine? Thoughts?
post #58 of 106
Quote:
Originally Posted by mtm View Post
We're staying with friends and family while we're away, any ideas for frugal thank you presents? I was thinking about making a nice dinner for my sis and aunt but wasn't sure about my friends, maybe a nice bottle of wine? Thoughts?
Making a nice dinner is a great idea. Providing babysitting services if they've got young kids, so they could have an evening out would be nice. Taking over washing dishes/kitchen clean up while you're there would make things easier on the host and wouldn't cost anything.
post #59 of 106
I want to do this sooo badly. My DP is somewhat behind the idea but still wants his spending money. I can somewhat maybe make it work in the future, but most of the time we are barely making it paycheck to paycheck. I would love to get rid of tv and cell phones and the like but he would probably leave me if I did that. sigh, our expenses are over 5000 a month and we rent. I can barely make my min payments on cc's and I only do that and then use it right away to buy groceries.

it makes me cry a lot of the time
post #60 of 106
Quote:
Originally Posted by nym View Post
I want to do this sooo badly. My DP is somewhat behind the idea but still wants his spending money. I can somewhat maybe make it work in the future, but most of the time we are barely making it paycheck to paycheck. I would love to get rid of tv and cell phones and the like but he would probably leave me if I did that. sigh, our expenses are over 5000 a month and we rent. I can barely make my min payments on cc's and I only do that and then use it right away to buy groceries.

it makes me cry a lot of the time
Don't wait! Start working on whichever baby step you can (i.e. 0.1). If you continue doing what you're doing - you're gonna continue getting what you're getting, except worse. You can do it, and we're here to encourage you on your way.
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