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Get out of Debt in JUNE

post #1 of 38
Thread Starter 

Do you want to get out of debt? Start living on a budget? Be able to start saving? Then this is the thread for you! Some of us use Dave Ramsey's method but please join us even if you're following someone else/your own plan. All are welcome!

 

Here's DR's plan:

Pre-Step 1: Get current on your debts and do a budget
0.1 No new borrowing.
0.2 Talk with spouse and get him/her on the same page as you concerning finances.
0.3 Do a written budget
0.4 Temporarily stop all retirement contributions
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing)
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF.
0.8 Get current on ALL bills

BS1 $1,000 to start an Emergency Fund
1.1 Chop up/freeze CC's (You have an EF now)
1.2 Get Health insurance NOW if in the US
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died.
1.4 Amputate cars that you can't pay off within 24 months

BS2 Pay off all debt using the Debt Snowball
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest.

BS3 Three to six months of expenses in savings
3.1 Start car replacement fund
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI.
3.3 Start furniture or other non-essential stuff replacement fund

BS4 Invest 15 percent of household income for retirement

BS5 College funding for children

BS6 Pay off home early

BS7 Build wealth and give! Invest in mutual funds and real estate

Here's the link to Dave Ramsey's website: http://www.daveramsey.com or if you want a good DR discussion forum, http://www.llnoe.com is good but hardcore. Gail vax Oxlade's Til Debt do Us Part is great tv show, very motivating. Her website is:http://gailvazoxlade.com/blog Others like Suze Orman or Mary Hunt, really doesn't matter whose method you use, just start the process to getting out of debt

 

Welcome.gif

 

Started a new one, as I couldn't find one for this month--hope no one minds :-)

post #2 of 38
Thread Starter 

BS 2 here.

 

As of this Friday:

 

Debt 1 paid off $18,000

Debt 2 $3227 (can't be paid early)

Debt 3 $34,000

Debt 4 in negotiations $2,000-$2,500

 

BS 3: 2+ months

BS 4: 10%

BS5: nothing yet

BS6: 11 years on mortgage

BS7: someday soon!

 

My husband for the first time ever is seriously considering getting a summer job! Woo-hoo!!! Can't even believe we are at this point in our lives, but he has the potential to earn more $$$ than I do so that's the plan for now. Would love to pay off Debt 3 by this time next year and some extra income would help immensely.

post #3 of 38

I was just about to do the same thing - start this June thread.  I wonder if eirual's baby came?  She was due for June but I didn't think it was this early.  She hasn't logged on in 6 days.

post #4 of 38

I am so excited about this month.  DH has 3 pay period.  So far we have snowballed our 3rd debt - no more Macy's credit card - don't need to shop at that expensive store anymore.  Paid it off yesterday.  We may pay off our 4th debt - best buy - but we are waiting until after we see the reproductive endocrinologist next week before we do that.

 

DEBT SNOWBALL GOING WELL!  I can feel the momentum.

 

I also have taken on a summer teaching job - starts on June 18 and the first pay for it is June 29 so I am looking to save/pay off bills with it.  Oh and this weekend I am supervising a college entrance exam so I will get a little extra money from that too.  June is looking good!

post #5 of 38

No baby yet (though it could be any day....due June 16th). We MOVED though!!....hence the being off-line. Thanks for taking care of the June thread because it was the FURTHEST thing from my mind (I thought of it on May 28th and not again since).

 

No financial news for us really; we'll be able to manage this new house for the next 2 months just fine. When DH goes back to school and I stop receiving my mat-leave top-ups from my employer is when we'll start sweating. We should have a renter coming in and childcare starting which will keep us in the black for the year, but I hate to count my chickens before they've hatched.

 

It does feel so good to finally have some space to breathe though. I'm happy we decided to take a risk and buy a house, even though it could potentially be more than we can chew financially for this year (banking on a. renting a room b. doing childcare to bring in cash and c. just making it work....because on paper it's messy, but we somehow always manage to figure something out). 

post #6 of 38

Glad to hear you are in your new home, eirual, before your baby comes.  I forgot you were moving.

 

The debt snowball feels so good to get one debt after another gone.  One less thing to worry about!

post #7 of 38

Is there any reason why this thread won't pop up in my list of "Your Recent Activity".  I have obviously posted to this thread, but it still doesn't show up.  What do I need to do to fix that?  Never had the problem before.

post #8 of 38

Maybe try actively subscribing? Usually it auto subs you once you post, but I guess that didn't work for you?

 

I just got notice that I didn't get a TA job for summer. I knida saw it coming, what with recent district-wide budget cuts, but I'm still kinda disappointed. Now I'm trying to figure out what to do over the summer. We could survive on just DH's income and my EDD, but it would be tight and we really want to take 2 vacations in August. So now I'm trying to figure out how to bring money in over the summer. I only really need to net a total of $1000 for the entire summer to make it work, though more would certainly be nice.

 

I've considered getting a summer job serving tables, because I did that through college and have plenty of good experience and a strong resume for it, plus I live in a tourist-heavy area so there should be spots opening up for summer. But as soon as I started looking, I started to get the dreaded Server Nightmares (in which I have about a million tables spread throughout a huge restaurant, most of which are waiting on food or checks, and I can't remember where any of it goes, and usually I'm just about to serve the owner or some other VIP guest and generally just hate life and wake up all stressed out, lol) So maybe that's not the best idea.

 

I'd love to be able to get a temporary part-time job doing something that would improve my resume in the education field, so i'm checking out tutoring and daycamp or daycare type stuff, but I am afraid that those places have already done their Summer hiring.

 

Fingers crossed that something comes through.

post #9 of 38

Well, I changed the subscription to "Get notified when others reply? Immediately" so I will wait and see what happens.

 

I know I am teaching at a local community college with a "Upward Bound Program" for high school students.  If you are certified as a secondary teacher, you may be able to find work with a program like that.  It helps high school students who are potential first generation college students to be better academically prepared.  I did it last summer and loved it.

post #10 of 38

As always, I am optimistic for this month!

 

BS 1: $650 of $1000 if we stay on budget, this should be taken care of somewhere mid-late month

 

BS 2: $7800 - My student loans, just making minimums at this point

         $7700 - My car payment, just making minimum at this point

         $19,000 - DH's student loans, in deferrment, not even thinking about them at this point

 

BS 3: 3 months

BS 4: like, 3% lo!

BS 5: no movement here

BS 6: we rent!

BS 7: in a million years, I think.
 

 

We are anticipating some life changes within the year that we want to have a lot saved for.  DH may get laid off, he will be student teaching, my employer may be selling... so we're uncomfortable not having a goodly amount saved up incase things turn downhill.  Hopefully it will all work out and this time next year, I'll be paying off my car and a big chunk of my student loans.  DH will be applying for income based student loan repayment and based on what I have calculated, it won't cost us too much.  Also, since he will be a teacher, he should qualify for loan forgiveness after 10 years of payments versus 25 years, so we may not make any big movement on them any time soon, especially since they are deferred for another year and half at least.  Thank goodness!

post #11 of 38

homeschooling has kept me busy as it's the last week of school here! Aggresively saving has left me pretty low on cash this week. Can't wait for direct deposit to come through at midnight because top ramen isn't on my diet, gah!

post #12 of 38

i have been in trying to cut expenses since last sept. got a second job to start the process. i moved twice and am now paying 140 dollars less in rent. and i'm closer to work so have cut my gas expense in half also.

list my big bills

car payment still own $3700 on it paying 240/m but both car payment and rent due same check so they allow mw to split my car payment between my 2 cks a month. and on my 3ck monthes i make an extra payment.

my other bill is my student loan still owe $2400 paying 50/m just paid 4400 off this past spring with my tax refund will pay everymonth and pay it off with next yrs tax refund.

so i have

325/m rent

240/m car

90/m insurance

100/m gas

50/m elec

50/m student loan

30/m internet

20/m phone

25/savings (saving for car inspection/registration)

post #13 of 38

Pollyanna, it looks like you are on your way to better spending habits.  Having a cheaper place to live that decreases your transportation costs as well is huge!

 

This morning, "My Recent Activity" has worked itself out and the things that I have post in have appeared.  I didn't do anything "different" to make it so, expect restart my computer and come back the next day.

post #14 of 38
Lilac, I was having the same issues with recent posts, and now it is fixed for me as well. So it wasn't your computer.

And poly, lilac is right. Lower cost of rent and transport are Huge improvements that will make a big difference!
post #15 of 38

Makes me frustrated to live in Ca. To lower my rent to the same as Polyanna I had to move into an RV!

 

Glad to finally have some groceries so I can get back to my low carb diet. It is almost impossible to eat low carb from your pantry as most of my diet consists of refrigerated food. My check was $150 less then I had calculated (my error) so I am really glad I did a side job for $150. Waiting for that check in the mail. I was able to fill up my gas tank with $50. I hope that lasts a couple days.

post #16 of 38

thanks guys i have been trying hard. And it is hard to break that cycle of spending on credit. I started following a blog that has helped me a bit 'the simple dollar'. and when i need help staying on track i just read a bit and it keeps me focased on what i want to acomplish. I still don't have the emergancy fund i want but i can pay my bills and i'm training to become a manager at work to get a better pay rate.

trekkingirl i live in a small moble home has 2 bedrooms and one bath needs work but 325 is a good rent it is 4 mls from my mom's so i can drop my son there while i work. when i moved down here i lived the next town over so i commuted about 50mls per day now it is 25mls round trip.

 

thanks or the positive feedack on my expenses

pollyanna

ps excuse my spelling not my best subject and my computer doesn't help when it decides to miss letters :)

post #17 of 38

We are going camping this weekend and I've given myself a budget of $40... including any canyon entrance fees, food, gas, treat, etc.  I will be able to use a lot of food from home and obviously I can use a bit of my grocery budget, but it's tricky! I plan on making some cookies and trail mix from home.  We actually have lots of fruits and veggies sitting around that need to be eaten up, so I'll take those as well.  It's just so hard to avoid vacation mentality and go to the store and buy a whole bunch of treats and stuff.  We haven't been camping for 4 years and need some new equipment, but I've been good and borrowed stuff from my dad and will just make do with what we have... but I really want to go buy a new air mattress and camp chairs... and fishing poles, and hydration packs, and hiking shoes.... and whatever else.  Lol! 

 

I'm being good, but it is HARD!  Summer is SO hard!

post #18 of 38

I was very proud of DH this morning. He has a vacation coming up next month and he said this morning that he wants to do activities from home instead of staying somewhere! That's huge for him.....thumb.gif

post #19 of 38
Thread Starter 

As of today:

 

Debt 1 paid off $18,000

Debt 2 $3227 (can't be paid early)

Debt 3 $34,000

Debt 4 $2,500ish (DH is writing the check today and this monkey will be OFF.OUR.BACKS!!!

 

Now to clean up a little current debt, $3,000 hospital stay and $1,500 house repairs, and will attack Debt 3 next month!

post #20 of 38

that's awesome sarafi

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