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Getting Out of Debt in November - Page 2

post #21 of 106
MyTwoAs- Thanks for the welcome!
I wish I was talented enough to go into freelance writing. Alas, my blog is merely a way to pass on recipes and info about gluten, dairy & soy-free living. I was facilitating an in-person group for it, but wasn't able to coordinate with enough people enough of the time to make it worthwhile - hence the blog. Thanks for the suggestion, though.
post #22 of 106
Thread Starter 
_ktg_, keep us posted on how the no eating out, no splurges goes. I'm thinking about trying it for January.

stanleymama, sounds like a good month coming for you with the loans about to be paid off. I defnitely wax and wane on my motivation/intensity. Posting here and reading finance blogs helps me keep on track.

Melaniee, if you like books and can learn through reading, TMMO for sure. If you want the cd's and the class setting, FPU. Really though, you can't go wrong with either one. Both will walk you through building a budget and getting your financial house in order.

Pogo0685, I hope the program for winterizing comes through. Nothing worse then sitting around waiting for stuff you can't control.

moonlitemama, welcome! If you want the budget sheets before your workbook arrives, let me know. I saw some good ones posted at llnoe.com and I can find the link for you. Great news that your dh is on board for the budget, it makes a big difference.

MyTwoAs, bs4/5 is going okay. I automated my payments so I don't see them but I was hoping to have extras to throw towards bs4 and I haven't done so hot with those. We're catching up on a few big expense things (veneers for dh to the tune of 2000) and Christmas so I think its January before I feel like we're getting more traction.

eirual, sounds like a good plan.
post #23 of 106
Off for a walk. I wanted to jump in.
I am sourd of new here. I am from June 2005. Long story short I have a new ID here and come from another forum.

We are on BS3. We are on our first month of starting our FFEF. Super excited to keep up with you ladies and see what is going on for all of you

Well off for that walk. It takes us FOREVER to get out the door!!
post #24 of 106
I'll join in! I was on BS4 only a couple years ago, then after a yucky divorce, am back to BS2 (this was after crawling out from starting it ALL over!). Oh well, life goes on! Literally, as we are expecting DC#3 - with a new partner who is oh so wonderful with money, it makes me so happy to know we will not have huge financial differences like my last partner and I had. In fact, I am going to cut up my credit card, on DP's advice

Last week I took my kids on a plane trip across the country. My mom was supposed to be getting married, but it was cancelled fairly last minute. I hadn't bought the trip insurance stuff, figuring that even if the wedding was cancelled (yes, I had thought of this being an outcome since I heard the plans), we still hadn't been back to see her for 5 years, so a trip was due. Anyhow, of course on short notice, I didn't have the money to buy plane tix, so I bought using my CC. As the trip got closer, especially since we knew about the revised no-wedding plans, I was started dreading it - I REALLY don't get along with my mom AT ALL!

Laying in bed the morning of the trip, DP and I were talking about CC's and I said, "Well, it was a good thing I had that credit card because I never would have been able to come up with that money on such short notice and if the wedding had gone through, I wouldn't have been able to go, and we haven't been there in so long, blah blah..."

He replied with, "No honey, if you hadn't had a credit card, you would have had to say, 'sorry we can't make the wedding on such short notice since I don't have a credit card'! And then you wouldn't be dreading this trip and trying to pay off $1000 tab on a trip you really don't want to go on, especially when the card was almost paid off!"

ugh. he's totally right ... i love that guy! The trip sucked, by the way. I should have been *paid* to do it, I'm in pain thinking that I will now be reminding of the dreadful weekend for the next few months while I pay it off
post #25 of 106
Hi mamas! I'd like to join in to BS2! I have read a few of Dave Ramsey's books, and usually lurk in this thread for ideas and inspiration, but I will admit I have been a bit lax on actually implementing the ideas!

My name is Sabrina... I am a midwife and I have three gorgeous, healthy children and a super-fabulous stay-at-home husband!

Here's our situation:

CC 1: 500
CC 2: 1900
CC 3: 2500
CC 4: 2500
Student line of credit: 52K (!!!)
Student loan: 34K

We have had a few major setbacks since I returned to work this summer (dh is a SAHD) such as unexpected major dental work, our water softener breaking, our chimney liner needing to be replaced, and a couple of accidents resulting in a MAJOR hike in our insurance premiums. Also, my income is quite irregular since I am a midwife and the number of women I have booked per month varies, as well as the 3-month delay in billing from the government!

But, we REALLY want to eradicate our debt since we want to buy a farm sometime in the near future (a little over a year), which will eventually produce income for our family. The student loan I am not super duper concerned about since it has a low monthly payment, is tax deductible and can be deferred in times of struggle etc. We own our home outright also. The credit cards and credit line, on the other hand, HAVE to go if we are going to qualify to purchase the farm with the special government program (15-year fixed loan).

I have worked the numbers, and we should be able to pay off all 4 credit cards and a little over 80% of the credit line (about 45K) in 12 months if we are really, really committed. We already have a BEF of $1000 and so will jump right into BS2, starting next month (I get paid the 1st of every month).

I am really going to need support and encouragement through this process, and will happily cheer all of you on too! I plan to join the No-Spend thread as well, since staying within a budget will be somewhat new for me. I think we have enough wiggle room in each category, it will just take careful planning and discipline.

Thanks mamas!
post #26 of 106
Blissful-Oh I wish you luck!!! You have some big plans I hope you have great success!

Root- We all have setbacks and we ALL have a little Murphey in our world. I wish you luck on your journey as well.

As for me- I am very proud of us being debt free. Staying there is just as big a challenge though. We do still have a mortgage. We are going to build our FFEF and then begin on that mortgage with a SMALL amount of money being saved for retirement. We will make up for retirement with our old house payment. I will also go back to work one day and fund retirement with that.

I must say I like the support of this forum. The forum I come from is very judgy and rude! I am glad to have found you ladies
post #27 of 106
Checking in here while on BS 3. Nose to the grindstone during the Holidays, ladies! I tend to get all "people-pleasy" and overspend bc I don't want to "look cheap." Feel free to hold me accountable for this ridiculous thinking....
post #28 of 106
Hi everyone, can't believe it's November!

We're still on BS2, and after months of making large over-payments on my car loan, there is an end in sight! ~$3500 remaining at this point, should be paid off in 4 months at current rate.

Speaking of gazelle intense- I did a FFEF first (3 months worth) and then paid off debt, backwards of Dave Ramsey order. Would you empty half of your FFEF to finish paying off a loan? I want this debt gone, but the idea of taking away part of my cushion scares me, even though I could rebuild the cushion in about 3 months, with no more payments to the car loan...

I posted on this thread a few months back, very excited about getting to move from per diem to part-time at work. Well, after only 4 months of PT, I have requested to go back to per diem. I wanted the job for the benefits, due to my worry over DH's job. On paper, it didn't look like any more hours than what I was already working. BUT... With the added on-call time, the every third weekend thing, and the fact it's 100% night shift, it was taking over my entire life and having bad effects on the entire family.

So... we have chosen to be a little more stretched financially, but to have a better quality of life, since all of us are much happier when I don't work as much. I still have 3 more mos in my current schedule, but now that an end is in sight, I'm okay with that.

Yay for paying for holidays with cash not credit, everyone!
post #29 of 106
I would totally pay off that loan major mama!! borrower is SLAVE to the lender, and all Plus, you're scheduled to work for 3 more months, so you'll totally have that 3 month emergency fund back in place before you know it!
post #30 of 106
Major mama, I would just go ahead and pay it. Once you are debt free your money is yours We hated the low savings account number BUT it feels good to be debt free Now when we get back taxes this year we owe NO ONE!! Its fabulous!!!
post #31 of 106
Also , we are doing a cash flow xmas as well. We will do PB balls for siblings, grandparents and aunts and uncles, then we do 100ea for our kids Wish us luck!!! We bought one of my sons a book that a momma in my due date club wrote and a used toy that goes for 50$ new. It has all the pieces and it was clean My middle child (a son) wants a wheel barrow like daddy. I have NO idea where to find an actual wheel barrow for him. I hope I can. How cute is that?
post #32 of 106
Back from a month away from this forum.

We're expecting a new LO in May! Had to make some major adjustments to BS2 as I want to drastically cut back my practice for the first year of the new babe's life...so things will get a delayed (we'd hoped to have all our debt paid by the end of 2012). With me cutting back my hours we should be able to make it month-to-month, but we won't be able to pay down any debt or save anything during that year. Ho-hum....worth it though, I think.

major_mama - hooray for choosing to spend more time with your family!!! I'd pay off that loan.. You can have that money back in no time at all. We can all throw a party for you!

Here's our progress...our debt is HUGE (and this doesn't even include our mortgage). No credit cards though.

Loan 1: $2600 - PAID
Loan 2: $2600 - PAID
Loan 3: $2700 - $2700 PAID. Remainder will be PAID OFF this month!
Loan 4: $15,300 - making minimum monthly payments
Loan 5: $25,000 - making minimum monthly payments.

I look at this list and CAN'T BELIEVE we've paid off $10,000 in just five months...I had no idea we had all that extra money floating away before we did our budget. Its insane...kind of a miracle.

I'm going to bite the bullet and send a check to totally pay off Loan #3 this month (I was planning on doing it over two more months). It will leave a sizable (and slightly scary) hole in our bank account, but I really want to start working on BS3 our FFEF before the new babe arrives and our income gets slashed.

So the FFEF.
A very cushy 6 month FFEF would be about $30,000. We currently have 10K in the savings account...and starting in December I've got five months to scrimp and save all I can. If I can have 20K in there by the end of April I'll be one happy mama. 25K would be stellar.

Happy November!
post #33 of 106
It is really exciting to me to read how well everyone is doing. After much deliberation and discussion with the DR people, we decided to go with the FPU at home so it should be arriving very soon. I'm anxious to get started!

Thanks to everyone for the encouragement.
post #34 of 106
Originally Posted by Melaniee View Post
It is really exciting to me to read how well everyone is doing. After much deliberation and discussion with the DR people, we decided to go with the FPU at home so it should be arriving very soon. I'm anxious to get started!

Thanks to everyone for the encouragement.
LMK what you think of it. We've never done it; I just read his book.

I also tune into his talk show every night for extra encouragement.
post #35 of 106
Originally Posted by Turquesa View Post
LMK what you think of it. We've never done it; I just read his book.

I also tune into his talk show every night for extra encouragement.
I'm going to look for it. I found a ton of his podcasts online for us to watch when we run out of the lessons. I just started one from last November and really only got to watch a few minutes of it but one thing rang true with me, and I'm paraphrasing but he said "Broke People shouldn't give Expensive Gifts!" Duh...that makes sense. This year, more creativity and less spending!
post #36 of 106
Sara Congrats on your new baby My sister is due in May as well. That is an amazing amount to pay off in 5mos. You should be so proud of yourselves.

Melanie, I have taken NO FPU at all. I was on a forum and posted my budget. The ladies there were quite harsh really. They laid it all out there and showed us where we could cut. At first I resisted but after some reflection I made the changes suggested. (Well MOST) So I think taking FPU could help but honestly what you can get for free from the library, here and other forums will do you

AFM, UGH!!! So DH wants a gun. Its 1600$ I am able at this time to put 547 in savings a mo. We are at 1600 plus the 428 I put in yesterday. Now DH is telling me that THIS is the last thing he wants before we save like maniacs. So basically with the extra check in DEC this money I just put in plus next weeks 100 plus the 547 for next month and any overtime he gets he will get his gun. So basically I can start the FFEF in January. Please understand I my husband!! I just hate when he does this. Its stupid! Its nearly xmas, and frankly I DO NOT believe him. I don't believe him because though he has never said THOSE words to me he is a mild horder and a collector of odd things

That said I also know that this gun will cost us 1600 but be worth 3,000 in as little as 3mos!! I know this because this is not DH's first rodeo so to speak. So it is an asset. I try to think of it like that. Otherwise I would strangle him I must also mention he likely won't sell it. Not unless we were starving or on the verge of losing our home.

So at any rate that is what is going on here. Basically FFEF is stalled until January. I am sorry to vent here I am just so tired of sweeping up his messes. I am constantly damage control.

Well good luck ladies I hope to hear of some successful weekends and grocery budgets met
post #37 of 106
Welcome Melaniee and Blissfull Maia and anyone else I forgot!

We didn't do FPU, but I read The Total Money Makeover (I read Radical Homemakers, which led me to Your Money Or Your Life, which led me to DR....I highly recommend all three books...all checked out from the local library for free! Life changing, I tell ya).

We also use mint.com to keep track of our expenses and accounts, our budget, month to month trends and our savings goals. Recommend checking it out too. It was a godsend for me since I'm not so good with always writing down what we spend. We use the budgeting system from Your Money or Your Life, not DR...though we do use DR's baby steps, because I think they're really, really smart.

The one thing that has made the difference is that DH and I are totally on the same page. I always handled all the finances, so I basically read those three books, explained to him what the new plan was and that was that...DH was raised by a very frugal mother, so it he "got it" right from the beginning...he's actually way more careful with money than I am.
post #38 of 106
3times, if your DH has a hobby of buying things that reliably appreciate, that's great.

He can sell some other item in his collection to get the $1600 to buy the gun.

Seriously. Draw the line. Tell him that his hobby is self-supporting from now on. He obviously needs you to set limits here. Even if it's a big fight, even if you wind up taking that money out of savings and carrying it around to keep him from spending it, it's worth it to change the paradigm. The next time he sees something he wants, you do NOT want him thinking about how much you have in savings. You want him thinking about what he has in his current collection that he can part with.

You love him. He loves you. That love will survive this alteration in his buying habits.
post #39 of 106
Just popping in to say we should have a whole CC paid off next Friday!! Granted it is our smallest one but I just checked our LES for next pay period and our check is TOTALLY enough to pay off that CC and get the holiday stuff we need and everything else!! Yay!!!! I will come back and post when it is actually paid off
post #40 of 106
Smithie, I agree. We will see where this goes.

Sarah, That is how it is here too. My husband hears me when I say that we have "savings" though.

chely, YAY!!!!

So for xmas we have been compiling lists with our children. It looks like our budget is reasonable.
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