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Getting Out of Debt in November - Page 2

post #21 of 143
Quote:
Originally Posted by annettemarie View Post
OMGosh, we had the best time at FPU tonight!

We were in the small group, and when she announced next week was mutual funds and investments. My friend and I looked at each other and I said "I'll bring the vodka!" and she said "I'll bring the OJ!" We then devised a Dave Ramsey drinking game. My husband (the pastor) was only mildly amused.
I'm going to have to join your Church !!

I'm looking at a couple ranches this week that will be in easier to care for age range. Thanks for your insight. That house was our dream home but not a Dave Ramsey Dream home thats for sure. We don't mind projects but not ones that are more emergencies. You get that when owning a home I know but at least we could live with an old kitchen and bath room in our old house...so long as the roof was good and foundation was good...KWIM?
post #22 of 143
P1gg1e are you still watching your SIL kids? How did that work out for you?

I ask because I recently agreed to start watching my sisters 3 kids 4 days a week for around 4+ hours a day. OMG is it a lot of work. Not to mention now I cant leave the house 4 days a week. My mornings are spent preparing for my sisters kids arrival and my evenings are spent cleaning the house after their arrival. 4 days a week are gone for me and the kids. It makes it almost impossible to homeschool.... All this for a few hundred a month.

Now my mother wants me to start managing an 8 apartment building an hour+ away from me. It means taking phone calls from 8 renters, collecting rent, following through on the on site manager... Ugh. For a few hundred a month. And I will be taking on the duplex thats only a block away from me as well. I just keep telling myself that its worth it.

All the little stuff adds up right?
post #23 of 143
Still at BS2.

The rate of paying off the car loan and medical bills has slowed dramatically as I prepare for the holiday season. We're not getting our usual (or ANY) bonuses this year at work so I'm needing to set aside some money for Christmas.
post #24 of 143
Quote:
Originally Posted by major_mama11 View Post
:

Our previous house was about that age (actually we still own it since no one will buy a fixer-upper around here) and, though i love old homes with all their charm, i will never buy a fixer-upper again until we are debt free and actually have the money needed to throw at all the problems! DH is quite the handyman, but at this point we just don't have the money needed for all those building supplies!
We have a 100+ year old home. We just bought it but luckily the previous owners put 20k and 3 years of work into it. Even the inspector said it's in better shape than most new homes he sees. We got really lucky.
post #25 of 143
Quote:
Originally Posted by Maluhia View Post
Can you move me into BS 5?
Maluhia - I am in awe of you!
Now I'm getting excited about getting out of debt all over again!!

Quote:
Originally Posted by annettemarie View Post
OMGosh, we had the best time at FPU tonight!

We were in the small group, and when she announced next week was mutual funds and investments. My friend and I looked at each other and I said "I'll bring the vodka!" and she said "I'll bring the OJ!" We then devised a Dave Ramsey drinking game. My husband (the pastor) was only mildly amused.

Details please on this DR drinking game!
post #26 of 143
So far the only things we came up with was
"Can I get a yes" = 1 shot
"Live like no one else so you can live like no one else" = 2 shots
I think we should get something special everytime Dave makes a sexist/misogynistic statement, but that might just be me.
post #27 of 143
Hi Again, I'm here for a November to remember! I think we are on BS2, with a jumpstart on BS3 perhaps?
We keep track of the bills and we basically budget for groceries and entertainment, wedding gifts, birthdays, etc. But, I still wish we had even more of a budget that included the long term plans like car fund, furniture, things we know will break or need replacing soon. We just assume our monthly contributions to savings will cover that. (it ends up that if we do replace something, it depletes our savings, and we just have to build it back up again. not that fun.

We have $1000 emergency fund, plus about 2.5 mos living expenses so far, if we were at bare minimum. We decided rather than deplete savings to pay off debt, in DHs volatile industry, we'd be better served with some savings to pay essential bills if something were to happen to his job. G-F.

we have no CC debt, 3 SLs, and 2 car payments to pay off, plus the silly bed payment. (although, i will say, that bed is worth every penny- i sleep like a rock every night!)

So, it will feel good that when the debt snowball is finished, we will be able to already have part of BS3 on it's way. Also, we're scheduling a re-appraisal for December so we can hopefully refi to a lower rate 15 year mortgage, so we can build up equity more quickly. Our PMI should be eliminated after this one last project.


So my goals for November are:
* make a definitive budget for November and December
* Set financial goals for 2010 and make budget plans for the year.
* Pay off at least one loan
* finish house projects to increase value for re-appraisal and eliminate PMI
* get a jumpstart on frugal holiday shopping.
post #28 of 143
I can't remember if I told you all this.

We were at Old Navy a couple weeks ago and when we were checking out, the sales lady asked if I would like a store card. Katie Grace (8) pointed at her and yelled "CHEETAH!!!!" So funny. I had to tell her not to do it anymore because it's not nice to point or to freak out clerks.
post #29 of 143
We just paid off the loan that was a combination of the car and my student loans! This is a big deal for us, because we never had a bunch of little debts, only a few big ones. It will probably be over 2 years before another one disappears.
post #30 of 143
I was just able to transfer another $100 from Paypal towards the emergency fund. Yay! I haven't heard back about the refund, so I'll email her again.
post #31 of 143
Quote:
Originally Posted by annettemarie View Post
I can't remember if I told you all this.

We were at Old Navy a couple weeks ago and when we were checking out, the sales lady asked if I would like a store card. Katie Grace (8) pointed at her and yelled "CHEETAH!!!!" So funny. I had to tell her not to do it anymore because it's not nice to point or to freak out clerks.


we sat down and did the NOV budget. It is going to be a crazy month around here. We are refinancing our home to get a better interest rate and doing a 15 year instead of 30 year mortgage. Which means we have to bring quite a bit of cash to the table. We have that all saved up and are ready to go
so that is going to be a major adjustment in the budget.

Then, we finally called to get details about canceling my whole life insurance (to get the term insurance instead) and there are penalties to do so (of course). So dh is going to run the numbers and see if it makes sense to just do it, or wait 4 more years until there are no penalties and then switch.
That should get figured out this month.

We have already started contributing to the kids college funds again. So with retirement going, and college funds going, I think we are in BS6

and since we lumped our large HEL loan in with the mortgage in our Ramsey plan, we have started to throw all our extra money at the HEL now. That should take about 2 1/2 years to pay off. So I think we'll be at this step for a good long while.
post #32 of 143
Wow, Softmama, that's great! I never thought I'd meet anyone who got beyond Step 5.

I forgot to tell you all something funny about the budget. DH was budgeting $75 a month for the dentist! WTH?? Cleaning are covered 100% and fillings and such are 80/20, I think. So we cut that down to $25 a month. And then he was budgeting $25 a month for laundry and cleaning. The church pays to dry clean his vestments and don't dry clean anything else, and I budget detergent and such with the household expenses, so there's another $25 a month.
post #33 of 143
Thread Starter 
updated to here
post #34 of 143
Yah Softmama and Kyamo! What an inspiration!!

Ugh. . well we are shooting for a better November than October. We spent more than we had planned traveling (trip planned over a year ago) due to delayed flights. Also, we now have a small unexpected medical bill to pay off. We aren't going to be able to build our EF until December or January.

So, we are stepping back from BS1 to prestep 0.8.

I feel confident that we can get back on track, but it stinks to go backwards. I'm fighting not getting the cards out to pay off the medical bill.

On a positive note, January looks great and our tax return will be way more than the EF 1000!!
post #35 of 143
Quote:
Originally Posted by Softmama View Post


we sat down and did the NOV budget. It is going to be a crazy month around here. We are refinancing our home to get a better interest rate and doing a 15 year instead of 30 year mortgage. Which means we have to bring quite a bit of cash to the table. We have that all saved up and are ready to go
so that is going to be a major adjustment in the budget.

Then, we finally called to get details about canceling my whole life insurance (to get the term insurance instead) and there are penalties to do so (of course). So dh is going to run the numbers and see if it makes sense to just do it, or wait 4 more years until there are no penalties and then switch.
That should get figured out this month.

We have already started contributing to the kids college funds again. So with retirement going, and college funds going, I think we are in BS6

and since we lumped our large HEL loan in with the mortgage in our Ramsey plan, we have started to throw all our extra money at the HEL now. That should take about 2 1/2 years to pay off. So I think we'll be at this step for a good long while.
This is so inspiring! I feel like we are going to be in BS2 forever and the idea of paying off our home loan is laughable at times. It's nice to see that it IS possible. Congrats on all your progress!
post #36 of 143
Quote:
Originally Posted by annettemarie View Post

1.2 Get Health insurance NOW if in the US (chances of getting sick w/ major medical bills are larger than that of death) We are coveed by the state right now

1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died.
OK we have not done this, we had some through my husbands work and then he go cut to part time and lost benefits. I do think either one of us could still make it if one of us died though, and we don't feel we really need it right now.

So the only thing in BS 1 we have not done is the life insurance. We keep going back and forth on that one. We both work and I think we could both make it with family support if the other passed away.

We do have a HELOC loan of 14K and a mortgage of 142K, so we are working on the HELOC debt first to free up another 400 dollars a month.

Life Insurance is the big one for us, you can get term CHEAP and it makes a huge difference. I watched my parents who both worked when my Dad died (unexpected, no health problems) and the insurance $ is what SAVED my Mom. We (two kids 11 and 9) needed her in a way that made her job let her go within a year, we needed her support and time and we were acting out, etc. She was able to pay off the mortgage, sell the house and move into a smaller paid off place. It created college funds which she would not have been able to fund on 1 salary, etc.

Life insurance is SERIOUS and a good good idea. Even for a sahm - covering the costs of that childcare so a wohp can keep working, it's worth it to have big insurance on "us" too.

State Medical - will that last forever? Is it time to shop around and be ready to price out, etc. for that? Seems a bit precarious to rely on state medical when the economy/states are cutting so much in random places.


SoftMama - CONGRATS on BS6, what an accomplishment!
post #37 of 143
I didn't check the list (sorry!!!) To see if I'm already there from last month. We are on BS2 - debt snowball. We have our 1200 plus a little which was last months goal.

This month will be harder because DH saves a lot of vacation time for hunting season and that started sat. Vacation is paid but he loses the optional OT he would have gotten over the weekend.....it's a toss up though if he fills the freezer!!

I tweaked the budget a bit since we just couldn't stay below budget on gas (DH to work and back + 1 trip to grocery store for me) groceries and DHs spending. We went round and round with those but we just couldn't go lower so those amount were raised slightly for next month.

I've developed gestational diabetes over the last couple weeks so planning meals that I can eat will be even tougher with the grocery budget but I'm going to try super hard. Rice and Beans just aren't keeping the blood sugar levels low enough!!!

So here's to a successful November!!
post #38 of 143
Subbing...
post #39 of 143

Super long!

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 have

Paid 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.
post #40 of 143
I haven't been able to read all the posts, but a lot will be coming at us in November (a one-time pay deduction for me, DH took an un-paid sick day, a million birthdays, losing track of $100 that needs to be replaced from last month, etc.). I'm working extra hours, so at least we'll be close to breaking even instead of taking steps backwards....

Once you get your butt in gear, no matter what comes at you you can always be happy that you're better off now than you would have been before, even if it's not anywhere near your target.
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