or Connect
Mothering › Mothering Forums › Natural Living › The Mindful Home › Frugality & Finances › Getting out of Debt May 2010
New Posts  All Forums:Forum Nav:

Getting out of Debt May 2010 - Page 2

post #21 of 78
Quote:
Originally Posted by dagny.galt View Post
Here's a question for you... I sold a few old baby things on Craigslist today, netted about $40. Not much, in the grand scheme of things. Is the common wisdom to apply such small windfalls to the snowball, or just add it to my blow-it money or other cash budget category?
Definitely snowball... every little bit of "extra" money goes there. Your budget should be firm and then every penny extra goes to the snowball.

That's the beauty of the program... little bits at a time get it done
post #22 of 78
Quote:
Originally Posted by eirual View Post
I hate to say it, but....technically you should add it to your snowball.

I had a whole " but if you choose to spend it...." reply going but couldn't bring myself to encourage that. I'm going to be the voice of reason and say put it to work. I'm sure you've got enough voices saying all the fun things you could do with it.
Definitely snowball it - this is as much about behavior change as it is math. I throw $30 snowballs at our mountain of debt. We started with over $70k in BS2 and we'll hit the $5Xk mark this month and all of those little snowballs helped!
post #23 of 78
There is a post on the MyTMMO.com forums - Secrets of BS3 That No One Ever Told You. I'm pretty sure this link will work even if you don't have a subscription because I tried it on another computer where I'm not logged on and it worked. I thought I'd share it because some of you are in BS3 or nearing it and its been discussed quite a bit lately.

https://www.mytotalmoneymakeover.com...&enterthread=y
post #24 of 78
Quote:
Originally Posted by MyTwoAs View Post
There is a post on the MyTMMO.com forums - Secrets of BS3 That No One Ever Told You. I'm pretty sure this link will work even if you don't have a subscription because I tried it on another computer where I'm not logged on and it worked. I thought I'd share it because some of you are in BS3 or nearing it and its been discussed quite a bit lately.

https://www.mytotalmoneymakeover.com...&enterthread=y
It just tells me to join now and gives me an error code for the forum post...
post #25 of 78
Quote:
Originally Posted by triscuitsmom View Post
It just tells me to join now and gives me an error code for the forum post...
Hmm, they moved it. I got the same error. See if this link works https://www.mytotalmoneymakeover.com...&enterthread=y
post #26 of 78
Quote:
Originally Posted by MyTwoAs View Post
Hmm, they moved it. I got the same error. See if this link works https://www.mytotalmoneymakeover.com...&enterthread=y
Thanks so much for posting this link! I haven't been on here in a loooooong time (5-6 months maybe?) and came on to try to find just these answers.

Some background: Since June 2008 we have:
1. Found DR's TMMO
2. Did the BEF
3. Lived with my In-laws for 14 months in order to
a)Pay off all debt except car
b)Save up for house down payment
4. Bought a house last June (only paid ~7% down, 30 yr mortgage- so not very DR, but that's what we could afford. BUT we DO pay $100 extra every month since month 1 and we plan to soon start biweekly payments which would have us paying it off in about 17 years, so not too shabby)
5. We JUST paid off our car with our >$10,000 tax refund thanks to the first-time-homebuyers' tax credit.

So now we are on BS3, and I just didn't know what to do first! We need to get DH a truck, because during BS2 we've made due with only 1 vehicle, which is still feasible, but not really desirable. We also badly need to replace our kitchen table and chairs, living room furniture, (as well as much of our other furniture come to think of it) because 90% of it was given to us 6yrs ago when we got married, and was already in not-great condition. We actually also need to start back with the Basic Em Fund. We had somehow spent every last penny of our savings since buying our house, mainly on things for the house (new washer and dryer, a grill, a wall cabinet, putting in a garden, a microwave stand/shelf.....).

So... as I'm posting this, I've figured out that what we need to do is this:
1. Re-fund our BEF
2. Take care of our delayed expenses like a truck for DH and replacing some furniture items
3. Establish a sinking fund
4. THEN finally we'll truly be able to attack the FFEF.

It's really exciting to see the progress we've made as well as what the future looks like!
Thanks again, MyTwoAs!
Good luck to everyone in their pursuit of financial freedom!
post #27 of 78
Yay I'm glad that link worked! It sounds like you've had a busy almost two years. Houses do a good job on eating away at available funds, that's for sure. Good luck to you as you get started on building your EF and sinking funds!
post #28 of 78
I would like to be moved to BS#3 please!!

We got our long term home buyer credit in the mail and are DEBT FREE!!!

2 years since we took drastic measures. Less then 2 years on the Dave Ramsey plan. We sold our home , moved into a one bedroom 3 room house ( 4 people). Everything then broke - car , washer , dryer , camera and so much other stuff I lost count! We washed clothes by hand and scrapped by! Now we own a home again , have another car ( paid for) and a bosch washer ( paid for with cash)

We have $6000 ish FFEF in the bank. $1000 BEF in an undisclosed location ( Dick better keep his snarly hands off it) ...so $3000 more to go and we will be on to the next step!!

AND Dh avoided the layoffs!!!! So we actually get to keep this money for now LOL.

I did take about $200 of the credit bought flowers for the house, a new mail box ( ours has no door and got hit again by a car..it looks pathetic) , a new pillow for me , a bath mat and a bunch of other picky stuff...because Ive not spent hardly anything for 2 years FREEDOM!!!
post #29 of 78
Quote:
Originally Posted by mtm View Post
we had a bunch of new people last month. RisingSun, wife&mommy, vmommy, kat.c.stevens and kitteh, how is it going? Need encouragement or have any questions?
We're struggling with the process. I feel like we're on the same page with the budget and we sit down and make it together, but then I feel like DH kind of just forgets about it, whereas I feel like I'm constantly mentally number-crunching and thinking about the budget.

For example, last night my brother (he lives with us) gave DH $40 to go get some stuff at the grocery store, and DH also had some cash to pick up a few little things for us. But DH couldn't find something specific that brother had requested, so he got another brand instead and the total of the transaction came to $65. Instead of putting the cash towards it, or returning some items or whatever DH put it all on the debit card. We didn't have enough money in the account, so they charged us $35 overdraft I could cry.

It's frustrating because I just got back to work and we really have no idea what my income is going to look like this month (I'm a waitress and make most of my $ through tips.) I'm not getting the hours I need, because DH and I have scheduling conflicts, so I'm worried that this month is going to be really tight. Also next month is the same, and on top of it we're taking a week-long vacation to visit family (paid for by them, but we'll be losing income.)

To be fair, last month was our first shot at making a budget, but it still needs a ton of tweaking. We went WAY over on our grocery allotment and had some other random expenses that weren't even in the budget. I think I need to sit down and do a side-by-side comparison of what the budget was and where the money actually went so that maybe this month we'll have a better chance of making it work. Although, here it's already the 7th and we don't have a firm budget written. I just feel kind of lost

Maybe going cash-only and hiding of the debit-cards would help.
post #30 of 78
Thread Starter 
welcome HappyHelpmate! Sounds like a good plan. Definitely refund your bef. I might even fund it higher than the 1000 as you are new home owners and I think things just crop up. I'd probably do 2500 then do the delayed expenses as the new furniture would be nice but won't help if you have a big repair.

MyTwoAs, I'm reading that thread now and have jumped to other threads over there. What a great read, it mirrors a lot of my own problems with bs3.

p1gg1e, Great job! May your stay in bs3 be short. I'm glad you did a few splurges, I think it does help with motivation when you can do that.

kitteh, the first few months of a budget are tough. I think we were 304 months in before we budgeted for everything, didn't forget stuff etc. My dh was more likely to go off track at first too. You can do this. Sit down and write the budget as best you can and then tweak it as you figure out your hours/income. Cash only would definitely help. A Canadian financial guru (Gail vax Oxlade) does this jar system similar to the envelopes where you fund the jars and then can see what is left to spend.
post #31 of 78
Yeah, we watch Til Debt do You Part all the time! Good show, it's definitely gotten DH more motivated as well.

We've been saving up empty jam jars and will probably try to start implementing the cash-only thing for a while. it's just tough because I think I'm trying to do it on a monthly basis, and on the show she does it week-by-week, which makes far more sense seeing as how we don't get paid for the entire month straight away on the 1st. So we'll have to give that a shot.
post #32 of 78
Holy moly! My husband just looked at his commission check, which comes on 5/28, and it is 70% more than we expected. The team went way over 100% of goal evidently. We'll be able to pay off the 3rd account and about 80% of the fourth. Must...stay...focused. The kids want to go to the Grand Canyon this summer but I want to wait until next summer after BS2.
post #33 of 78
Quote:
Originally Posted by MyTwoAs View Post
Holy moly! My husband just looked at his commission check, which comes on 5/28, and it is 70% more than we expected. The team went way over 100% of goal evidently. We'll be able to pay off the 3rd account and about 80% of the fourth. Must...stay...focused. The kids want to go to the Grand Canyon this summer but I want to wait until next summer after BS2.
Awesome!
post #34 of 78

Woohoo for you two and a retirement fund Q.

HORRAY for BS3, P1gg1e!! We plan on getting there in a few months and the idea of it is exciting!

MyTwoAs, that's a pretty awesome (and well-deserved) surprise!!

We're being well-behaved and focused (for the most part) in May. Nothing much to report here....

I suppose I could ask a question though: Through my employer, I was given just over $2,000 which has to stay invested with one company for 6 months, then it's ours to have. It's meant to get the ball rolling on your retirement/pension (...really have to learn more about that!). But here's my question- with DH going to school in the fall, we could certainly use that money now to prevent taking out a loan to cover tuition. We're both 27. Is it wise to keep that money sacredly for retirement or if need be, should we use it instead of student loans to cover any tuition short-falls? It's now being invested at a pidly interest rate since I wanted it to remaine fairly fluid incase we needed it this summer (we'll have access to it by July).

If I can get a FT job out there and we manage to keep our living expenses down, I'm hoping it will be a non-issue since we'd hopefully just make and save enough to cover it all. I'm just wondering what, in your opinions, is the lesser of two evils: borrowing from a bank or borrowing from retirement funds?
post #35 of 78
I'm not a die-hard DR follower, but we're making some changes to eliminate our consumer debt and so I thought it would be ok if I joined this thread. We are on what would be considered BS2, I suppose. We're trying to pay off a credit card. One car will be paid off in August (which frees up a fair amount of money) and the other car is going to need to be replaced soon.

The past year and a half has been difficult for us. We were almost to where we wanted to be financially when I lost my job. We went through most of our savings, and cut a lot of stuff out (cleaning service, part-time daycare / preschool for our oldest, switched cable providers, reduced phone service, decided to keep repairing our old car, refinanced the house). We put our tax refund towards paying off some debt and then taking care of a few "needs" (I use that term loosely). Our income is much reduced since I got a new job.

We have made overall long-term changes, but I'm not comfortable with having any credit card debt. I am 29 and have no retirement money, we have very little savings, we are homeowners so we need a better cushion in case something breaks. We have significant student loan debt that I just can't think about long-term, because paying it off in the next few years is simply unrealistic.

The positive thing is that we have a home that we enjoy and because we were smart when we chose this place, although we are technically underwater, we would be ok staying in it for quite a while. Also, our one car has a high payment (we purchased it pre-job loss) but we got a 3 year 0% loan, so we have paid no interest and the car is almost paid off.

Anyway, I have about $4000 to pay down by the fall... hopefully we can do that. We are now on the same page about budgets, and are trying hard to stay in it. We are turning down a family vacation this year because recent car repairs mean that we simply cannot justify the $2000 expenditure.

So... here I am. !
post #36 of 78
Welcome here, selesai!

Sounds like you're well on your way! Good luck on reaching your goal in the fall!

Other than that I still have nothing. DH used the credit cards last month ()...a LOT (a few little $8 work expenses, an archery bow for DS, his $200 university deposit, $180 Medieval Times tickets, which his parents mostly paid us back for). I usually keep what cash we have on hand in an envelope to go towards next month's budgetted envelopes, but I couldn't stand having over $500 on the CC just sitting there, so I deposited it all and there's still $120 left on it which will hopefully be gone with DH's next pay.

I think the CCs will mysteriously disappear for next month....I keep mine cut up in a drawer so I can piece it back together for use online for course registration fees and the like, but it can't get used frivolously (I'm not a big online shopper).
post #37 of 78
I don't want to get into too many details, but have any of you had to deal with family/friends who make you feel bad for NOT spending money, whether they do it intentionally or not? How did you handle it, and does it get easier? I'm struggling with this issue with several in-laws and a few friends.

We've hit a minor setback...my stepson flunked two classes and now he needs to take a summer program to get his high school diploma, at the cost of $300 plus transportation (about $100) and expenses . Our baby emergency fund might still be done by the end of the month, but barely. I'm glad DH is back to work and we're getting smarter with our money, a month or three ago and this would have sunk us financially. Now, it's just a frustrating bump in the road.
post #38 of 78
Quote:
Originally Posted by dagny.galt View Post
I don't want to get into too many details, but have any of you had to deal with family/friends who make you feel bad for NOT spending money, whether they do it intentionally or not? How did you handle it, and does it get easier? I'm struggling with this issue with several in-laws and a few friends.
I have dealt with this and it really sucks because you are trying so hard to keep to the budget, which is a very good thing for you and your family, and you just want your friends and in-laws to be understanding and supportive. But in the end, you have to try with all your might to just ignore and stick to the budget. I recently had one of those friends come back and tell me how she wished now she had followed in our footsteps. So even if its hard, you may in the end be the one making a good and lasting impression on them. And I find that it does get easier in time, especially when you see your savings grow and your debt disappear. That is an awesome feeling!
post #39 of 78
dagny, that would be tough! Keep your goal and the end results in mind though.

If you google "change quotes" there are so many that speak to how difficult change is to some people, but how rewarding a profound change in yourself can be. If you're making people uncomfortable, chances are that you're on the right track!
post #40 of 78
I can't believe it's mid-May already!
We took a (very much needed) vacation at the end of April, and so I won't be saving or paying extra on debt for about two months to make up for it. I needed the time away, and visited with some wonderful friends, and now I'm brainstorming ways to make some extra cash for my debt snowball. I think I will spend the weekend going through stuff at my house and see what I can take to the consignment shop, or list on Ebay or Craigslist.

It will be great to declutter while I'm at it!
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Frugality & Finances
Mothering › Mothering Forums › Natural Living › The Mindful Home › Frugality & Finances › Getting out of Debt May 2010