Hi mamas! I want to join up with this group, I read The Total Money Makeover about a year ago and it changed my life. Unfortunately dh and I were both very close to graduating college (living on student loans) so we decided to keep plugging away and start with Dave's plan as soon as we graduated and were working! Well I am done school now (trained as a midwife
) but dh is now a Ph.D. candidate. We will be starting the plan in January for sure, and I am working on Pre-Step 1 until then. These are our stats:IKEA credit card - 2000
Home Depot credit card - 3000
VISA - 3000
Student line of credit - 52,000
Student loan - 38,500
Student loan - 40,000
Personal debt to FIL* - 40,000
Home - 230,000 (interest free loan from family)
GRAND TOTAL = 368,500 (138,500 without home included)
The plan beginning in January (super intense!):
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 for the next 9 years!
0.4 Temporarily stop all retirement contributions I invest around 10,000/yr through my benefits program (tax-deductable) but will not do more than this
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) Done!
0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months Don't have any "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. Done, 1000 EF will take 1 month
0.8 Get current on ALL bills Done!
Beyond that, I made a budget and calculated the amount of time it would take us to pay off all of our debts (all 138,500 of them!) and then our home and we will havePaid off VISA in January 2010
Paid off IKEA card in October 2010
Paid off Home depot card in December 2010
Paid off personal loan to FIL in June 2013
Paid off student line of credit in September 2014
Paid off student loan 1 in July 2015
Paid off student loan 2 in February 2016
Paid off home in September 2018
This includes us having one more child and me taking a year off from work as well as dh finishing his studies and staying home until our youngest (fourth) child is 18 months old. After this point, we will be investing 4000/month in mutual funds and real estate, which assuming 10% interest (what Dave Ramsey says is what the average has been for a long, long time) we will have over 4 million dollars when we retire at age 55! We will also have over 3000/month to spend/travel/give away during that time! What a legacy to leave behind for our children and grandchildren!
I am so very grateful that I found Dave when I was young and just at the beginning of my career. So many women and families are trapped in a cycle of debt and living beyond their means! This easily would have happened to us if I hadn't stumbled upon this book. I feel like we have a bright future and that the sacrifice for 8 years of living on a very strict budget will be so worth it!
You mamas are so inspirational on your various journeys and I look forward to learning and sharing with you all.