March Getting Out of Debt - Page 2

[seashells]

Originally Posted by Ldavis24 

I have a question having not read DR's books yet, does he allow for any extras at all?

I'm thinking of a camping trip DH and I take each year for our anniversary, DH will be devastated if we don't do this, it is something he truly looks forward to each year. Are things like that allowed or is it so bare bones that you don't spend a dime on any recreation of any kind?

He doesn't encourage extras, he encourages going "gazelle intense" (basically getting out of debt like your life depended on it). But Dave Ramsey is not your mommy and you don't have to do it his way if you don't want to. How intense you are is entirely up to you, and all of us here on this thread have different levels. We, for example, are very intense about not spending, but not intense about increasing income.

[applecider]

I'm in again. Although I I'm on BS3/4/5 and it feels like we will be there FOREVER. So I've really run out of motivation/goals. We have no debt but the mortgage and a really small student loan (which according to DR I should just pay, and I may do here as soon as it comes out of deferment). So currently I'm throwing about 10% into 401k, an extra $300 at the mortgage each month (just started doing that) and the rest extra is going to savings. We are redoing our kitchen this summer (hopefully on the cheap) and also taking some trips. Also, I would REALLY like a poured concrete patio, but we'll see how much that costs. DP has decided to sell his Harley, so that would be 12-15k if it sold. Which would be AWESOME. But I have heard others feel like when they get to this point, it is hard mentally because there is nothing to really focus on and I have noticed that I spend a bit more freely now. Not a bad thing, but I don't want to lose focus. Anybody got any advice or tips on that?

[beansmama]

I'm back...well, I've always been "here", I'm just suuuuuper terrible at keeping up with these threads!

We're still on BS3. We WERE finished with it, but had some personal issues last year and decided spending it would make us feel better (insert eye rolly smiley here, lol!), so now, thanks to our tax refund, we're just over 1/2 done with our FFEF.

We've kind of just been bumbling around - putting a little money in our ffef, then taking it out for non-emergencies, then putting it back...so it hasn't been growing for months now. I FINALLY just sat down and said "ENOUGH". I figured out a tight budget (we still have $50/pay period for dates/fun...so it'll be sustainable!) and we will be done with BS3 on September first, should all goes as planned...although, you know how plans go, argh! But, I'm going to be sticking to my guns.

Like I said, we hadn't added any real money to the ffef in ages, instead, we were just constantly paying ourselves back...lame.

Last payday, I finally added in money and got to color in squares (we're dorks and have a big grid chart in the shape of a house on our wall - the roof is our e-fund, the rest will be our house downpayment fund), which tipped it just past the center...and...it made me feel soooo excited to visually see the difference! A small difference, but I feel that saving momentum gaining again! I can't wait till September!

$5,269.20/$10,000

[applecider]

I have to add that we are redoing our kitchen/taking trips, etc with cash. We do currently have our FFEF so I am putting aside $$ for all the stuff we're doing this summer. Plus if DP sells the bike that will be more $$ and I forgot to add our tax refund which will be $2700.

[chely7425]

We are pretty loosey goosey DR followers... we did the snowball with the CCs but we aren't too concerned with throwing extra at the student loans because they are on the IBR payment plan.  We try and do extra on the car loan, but in all reality it doesn't always happen.  We are most of the mindset that it is more important that we have the cash to NOT use CCs for incidentals.  Hopefully we will be making more money at some point and things won't be so tight.  We put 50 dollars a month in savings (I know, barely anything, but better than nothing) and will have a 1,000 dollar emergency fund by the end of April.  We are moving in a few months (back to LA where we are stationed) so I am trying to also save up for that.

[Ldavis24]

I just want to say this is all fascinating!

I took out Total Money Makeover today at the library and am about half way through it (major speed reader here) and I am feeling like maybe I should have taken the other one out first? The financial ...something?? I can't remember the name now.

Anyway it is really interesting reading this thread now and actually understanding what you guys are talking about.

DH spent the better half the evening tracking down all his debts. He is super into it at the moment and discussing what we can sell to help get to the 1,000 EF quickly. It is crazy I just keeping revolving this thought in my head. "You can actually buy a house or a car or whatever and never use credit." That is still blowing my mind.

[applecider]

That's awesome Ldavis! So glad your hubby is on board.

[eirual]

It's rediculous how much sense it all makes, isn't it?!?! and just how programmed we are to think otherwise; especially folks who you'll find on these boards who typically swim against the stream and THINK their decisions though- how even we get sucked into that "we need" mentality.

A mind stretched to new dimensions can never return to its original form. Enjoy your journey. 
 

Originally Posted by Ldavis24 

I just want to say this is all fascinating!

I took out Total Money Makeover today at the library and am about half way through it (major speed reader here) and I am feeling like maybe I should have taken the other one out first? The financial ...something?? I can't remember the name now.

Anyway it is really interesting reading this thread now and actually understanding what you guys are talking about.

DH spent the better half the evening tracking down all his debts. He is super into it at the moment and discussing what we can sell to help get to the 1,000 EF quickly. It is crazy I just keeping revolving this thought in my head. "You can actually buy a house or a car or whatever and never use credit." That is still blowing my mind.

[beansmama]

I'm getting antsy about getting our emergency fund polished off. If I can manage to shave an entire month or two now I'm dreaming!!!) off that 6 month plan...I'd be in heaven!

Today I listed some books on amazon. I didn't think I had much left to sell...I usually donate everything cause I'm lazy...but I listed about 8 books, most aren't worth much ($6-13/ea), but I had a textbook that was actually still the newest edition available! And it sold a couple hours after listing it! I'm now about $50-$55 richer (depending on shipping!)

Oh, and I'm selling my Mei Tai on Craigslist for $50 (I hope!). I'm so siked (syked? LOL!)

[beansmama]

Awesome! I'm glad you guys jumped on the band wagon...it's a good place to be :)

 

Originally Posted by Ldavis24 

I just want to say this is all fascinating!

I took out Total Money Makeover today at the library and am about half way through it (major speed reader here) and I am feeling like maybe I should have taken the other one out first? The financial ...something?? I can't remember the name now.

Anyway it is really interesting reading this thread now and actually understanding what you guys are talking about.

DH spent the better half the evening tracking down all his debts. He is super into it at the moment and discussing what we can sell to help get to the 1,000 EF quickly. It is crazy I just keeping revolving this thought in my head. "You can actually buy a house or a car or whatever and never use credit." That is still blowing my mind.

[Logan]

Originally Posted by beansmama 
I'm so siked (syked? LOL!)

Psyched 

[eirual]

So...we've decided to move into that small, cheap (but nice) one bedroom apartment. DH came to the realization we won't find anything cheaper (it's a good $300-$400 less a month) and the location's ideal for us. I really do love the space, and feel it will work well for us.

It will take an initial investment to get it functional: we're going to make a loft bed (otherwise to buy a double bunk would mean we'd have to buy mattresses to fit it, this way we can customize it and use the queen mattress we already have and I feel what we make will be more solid) $400, I'd like to buy a nice futon too $700, just so we have more sleeping options.....maybe in the fall? And we'll get a collapsable kitchen table ($150) and chairs/stools ($150?).

We're going to hold off until April 1st so we can help off-set the cost of these things vs. having moved in March 1st. We'll halt our debt-repayment for this month to save first and last's and what we'll need for furniture.

I'm hoping I don't go overboard on the little things, but those bigger pieces of furniture are necessary to make the space work. I'm stoked for all the simplicity it will bring (I hope....).

[Motivated Mama]

I'm still hanging around. We now have our EF. Unfortunately, DH was hospitalized this past week. He's fine now, but we did lose his income for the week. Thankfully, we still have transitional health insurance and shouldn't be billed for what amounted to many tests and many thousands of dollars, I'm sure. I just spoke to him about life insurance too so hopefully this doesn't impact how much insurance is going to cost us. He's 34 and was hospitalized for chest pains / possible heart attack. I've paid off 2 bills (one cc, one school bill not covered with loans) in the last 2 months. I hope to keep rolling with the debt snowball.

[eirual]

MM, I love your attitude!

It seems you run into obstacle after obstacle and just keep on going. Your perseverance is admirable. I'm glad your DH is okay and that while you lost his week's pay, the financial implications could have been much more severe had you not had insurance or had a bleaker outcome. 

[beansmama]

Originally Posted by Logan 

Psyched 

Let me follow that up with the only possible option - oh! DUH!

hehe...thanks
 

[Ldavis24]

So ok Dh and I have run into our first issue regarding DR's plan that we are starting....I would love some thoughts on this.

We have 2 vehicles both completely paid for (mine was a gift DH's we bought super cheap a few years ago).

DH's is a 16 year-old little toyota pickup, typical of toyota's it runs great and not showing ANY signs of slowing down or needing repairs soon (I am fairly knowledgable about cars, having multiple mechanics in the family) it is tiny and just a bench seat. We can put DD's carseat in there  and fit me and then the dog goes on the floor beneath my feet but you can bet it is not comfortable and forget about any bags or anything else in the cab with us if we are all squeezed in.

My car was a graduation gift from my grandparents, it is a 2000 Subaru Outback, fully loaded all the bells and whistles (2 moon roofs, 6 disc changer, heated leather seats etc.) although some of the whistles aren't working. The moon roof in the rear leaks water if it rains really hard and goes into the way way back. The front driver side window does not roll down and needs a new electrical panel installed (not worth the excessive cost, all the other windows work fine).

My car had a complete engine replacement in 2008 because I had work done it and the man who did it (why didn't I just go to a relative?! I couldn't make it to Maine where they were) basically destroyed the engine by setting the timing belt off.

My car currently NEEDS new brake pads and roters. I cannot drive it anywhere (and haven't) for a bit because the only place I am willing to drive it is to the mechanic to get the brakes done. It also needs a complete transmission flush to get things moving smoothly again. Basically I would have to put in about 400-600 bucks in parts (labor would be free thanks to family doing it) to get it running where I am confident driving DD in it.

So, we could REALLY use this vehicle because DH's truck just doesn't work as the "family" vehicle except when driving 5 minutes away. How do we pay for this? We don't have any cash saved up and we want to start DR's Baby step 1. Do we save up for the car being fixed first or do we just go ahead and do baby step 1? Also part of me feels like we should just sell the subaru, or what I would really like to do is sell DH's truck and be a 1 car family but he FLAT OUT refuses to do this. He is concerned our Subaru will only last for a year or two, probably two at most then we will be left without a vehicle at all. This is a legitimate concern but I just don't know what we should start with? Fix the car before even trying to start saving a thousand or what?
Oh wiser and BTDT frugal mamas how do we handle this...Fortunately for us putting it on credit is NOT an option as we only have 1 credit card with a very very low limit that is already almost maxed. We already destroyed the card anyway, just saved info for helping us pay it off.

[chely7425]

I would put the money into fixing the Subaru as long as the parts are less than 1000 dollars, which it sounds like they are.  You can sell it for quite a bit more if things are all working properly in a year if your DH changes his mind on 2 cars.

[eirual]

I think I'm with your hubby on this one. I'd sell the Subaru (and you'd have to make that call whether making the fixes is worth the return you'd get on it). 

Question.....if you repair and sell the Subaru, would you get enough to get a decent family clunker AND take care of your EF?....or would you be willing to live with just the truck and rent a car or cab it when need be? 

[Ldavis24]

Originally Posted by eirual 

I think I'm with your hubby on this one. I'd sell the Subaru (and you'd have to make that call whether making the fixes is worth the return you'd get on it). 

Question.....if you repair and sell the Subaru, would you get enough to get a decent family clunker AND take care of your EF?....or would you be willing to live with just the truck and rent a car or cab it when need be? 

hmm if we repaired the subaru say it would be about $600 (a safe estimate) for only things specific to it driving well. It has numerous cosmetic and other minor issues that could be addressed but would cost a lot for a little result if you know what I mean. The hood is also dented from a fender bender I got in although the engine was not affected in any way.

So if we repaired the issues on the subaru we could maybe...MAYBE get 1,500 for it on CL or something like that. So really it would be closer to $900 after paying for the repairs in the first place. I don't think we could contribute to the EF fund and get a family car. I totally don't mind being a single family car it is just frustrating to use DH's truck...Picture, a Complete Air (of course one of the bigger)  carseat RFing in the middle with DH (250lbs) driving and me on the passenger side with my feet literally on the dashboard because the dog (an 80lb mutt) is at my feet. That is how we do it now and it sucks but is possible. I guess that is why I would rather sell DH's vehicle even though it is far more reliable. I will also admit that I have a lot of sentimental attachment to my car (stupid I know, I've just had it since I was a teenager and have done and seen a lot in it, memories...

I don't know how much we could get a clunker for that would fit the whole family..

Another idea I had was sell BOTH vehicles as they are (maybe get 900 or 800 for the subaru) and then buy a somewhat decent clunkerish type family car and maybe have a few hundred to spare for the EF fund!!

[chely7425]

If you are going to be a 1 car family I would sell the Subaru, not the toyota.  It sounds like a very reliable vehicle that you know the history of.  How much would a rental car cost in your area?  How often do you all drive somewhere together?  Would getting a closed side crate for the dog and tying it in the bed be an option for the dog?  Just trying to help brainstorm :)