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Getting Out Of Debt In January 2013!

post #1 of 155
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

post #2 of 155
Thread Starter 

Happy New Year! Here's to a debt free or serious debt reducing 2013! champagne.gif

post #3 of 155

Here is looking forward to a great path to freedom from debt!  I can't wait to see what this year will bring to my family financially.

post #4 of 155

Looking forward to being on track and making great strides this year! Happy New Year everyone!

post #5 of 155

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 arggh!
0.1 No new borrowing. used my lowe's card last month to get 5% off and paying extra to cover it is not in budget this month due to school being out and me not being paid.
0.2 Talk with spouse and get him/her on the same page as you concerning finances. N/A
0.3 Do a written budget done
0.4 Temporarily stop all retirement contributions no problem! don't have any!
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) working on this.
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball trying to get myself up to listing my Windstone Editions dragon collection on ebay. i've collected them for over 20 years and it's tearing me up to think of selling them, but i don't have much else to sell.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. netflix cut off for the time being and only driving to central office 1x/week instead of 2. sometimes i might not have to drive at all! i only make $8/hour and gas for the trip is $3 so i'm not down by much and get to leave an hour later for work.
0.8 Get current on ALL bills done.


no car payment, no house payment, i tried to request a home insurance quote from one company but did not get a response. i'll have to try another company, i guess.

post #6 of 155

Subbing.

 

Have been missing in action due to a nasty virus that I seem to have had for forever now (actually just 14 days but feels like forever!)

Will update how December ended up for me and my plan for January soon.

 

Happy New Year Everyone!

post #7 of 155
Subbing!

Still chugging along here. Getting the EF back to where it needs to be and then back to paying down DH's student loans. Happy to hear the fiscal cliff was resolved because I need that tax money to pay for tuition!
post #8 of 155
smile.gif
Edited by Annie Thibodeau - 1/3/13 at 4:42pm
post #9 of 155
Welcome Annie! I also waitress and while it is inconsistent at times, we also rely on what I make for our family of 5 too. Can be stressful but usually works out just fine. It seems like our older kids are the same age and my son is 5 - life is probably never dull for you either wink1.gif Glad you could join us. I find just reading everyone's posts very motivating.
post #10 of 155
Thread Starter 

welcome Annie! The more the merrier. wanted to also FYI that this is a public forum so in other words, a quick google search can pull up this thread. If you aren't comfortable with anyone knowing your bills you could contact an admin to get a more annonomous user name. Or you can just start a new MDC user. I made this same slip up when I was first on MDC and it caused some problems for me IRL.

 

 

my DH was at a friends house the other day google searching brake parts for the RV and up popped the MDC RV group. He called me on the phone and said "hey I was searching for brake parts for the RV and a picture of our kids popped up! Who is Trekkingirl?" funny story! He said wow, you're a senior member! I said hey, I worked hard for that title.....

 

meandk wow no car payment and no mortgage/rent!!!!!?????!!!!! That's golden, hold on to that for dear life! I got my rent down to $400 a month and have been able to accomplish so much more since I made that change. I was paying $1625 plus utilities. Of course now we're in our RV instead of a real house but it's a really cozy temporary spot and we live right down town of a beautiful victorian/western town. Walking distance to all the posh establishments ;)

post #11 of 155

trekkingirl, good advice, i took it and started a new acct., as i couldn't figure out how to change my name :) i guess, i will go delete my other acct. and start fresh! thanks for the info!

post #12 of 155
Quote:
Originally Posted by meandk0610 View Post

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 arggh!
0.1 No new borrowing. used my lowe's card last month to get 5% off and paying extra to cover it is not in budget this month due to school being out and me not being paid.
0.2 Talk with spouse and get him/her on the same page as you concerning finances. N/A
0.3 Do a written budget done
0.4 Temporarily stop all retirement contributions no problem! don't have any!
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) working on this.
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball trying to get myself up to listing my Windstone Editions dragon collection on ebay. i've collected them for over 20 years and it's tearing me up to think of selling them, but i don't have much else to sell.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. netflix cut off for the time being and only driving to central office 1x/week instead of 2. sometimes i might not have to drive at all! i only make $8/hour and gas for the trip is $3 so i'm not down by much and get to leave an hour later for work.
0.8 Get current on ALL bills done.


no car payment, no house payment, i tried to request a home insurance quote from one company but did not get a response. i'll have to try another company, i guess.

 

I know you didn't ask, so I hope it's okay to chime in with my thoughts.. I wouldn't sell the collection unless I was absolutely, positively desperate. It's one thing to part with or sell items that are unused *and* unloved, but if it tears you up to sell them and you haven't even listed them yet, then I would simply keep them. You don't have to part with a much loved collection just because dave ramsey thinks it's the only way to be on a better financial path.

 

hug2.gif

post #13 of 155
Quote:
Originally Posted by LoveOurBabies View Post

 

I know you didn't ask, so I hope it's okay to chime in with my thoughts.. I wouldn't sell the collection unless I was absolutely, positively desperate. It's one thing to part with or sell items that are unused *and* unloved, but if it tears you up to sell them and you haven't even listed them yet, then I would simply keep them. You don't have to part with a much loved collection just because dave ramsey thinks it's the only way to be on a better financial path.

 

hug2.gif


maybe i'll think about it a little while longer before i list any of them. it just feels like i can't get ahead and selling them would give me a jumpstart on my emergency fund. thanks for the hugs. maybe slow and steady can win the race but i wish i could see the future. redface.gif

post #14 of 155

I'm back for January (not that I've gone anywhere).

 

DH is starting his work term next week and our plan is to save every penny he makes. That means our budget will be taking a hit since he won't be doing his part-time gig.

 

Come on, let's keep January in the black!

 

....oh, and a question:

 

After 4 years of budgeting, I still suck at it.

 

What do you do when your month ends in the middle of the week or when you have a 3 day pay-month (but also have a weekly mortgage payment and groceries to buy, and then don't get paid until almost 2 weeks into the next month?) are there rules for this? Budgetting gets us thinking about our finances and having a loosey-goosey plan, but I'm no accountant.

post #15 of 155
post #16 of 155
hi all, i hope its ok for me to join in! i am relatively new here at mdc, but have been reading quite a bit lately about frugality etc... i haven't read Dave Ramsey yet, but i plan to. i have no written budget, as i am confused about where to start. i work 20 hours a week at a restaurant. i make anywhere from 4-600, i also get CS for my older DS deposited into my checking acct. weekly, an that covers the bills i have automatically withdrawn, which are phone, car ins. , and charity. i am also responsible for half the rent 675 and the groceries 150-200 weekly. my SO has a decent saving acct. but i am slowly but surely talking him in to paying his student loan off with that money. i have 0 debt, but also 0 savings., actually up until today i had 150 bucks in my saving acct., but on my way home from work i stopped an put all the money i made today an my last 2 paycheck s in, so i now have just over 300! that will be the beginning of my EF.

my short term goals are EF and car repair fund.
my mid term goal i car replacement fund (i refuse to ever hav a car pymt. again.)
my long term goal is to buy some acerage up north with my family, my mom and sister and do some homesteading.

i have 2 DS 16 and 11, from a PR and a 13 mo DD. we are on the fence about having a sibling close in age to DD, because of money and because i am not getting any younger greensad.gif
anyway, sorry for the ramble, i didn' t want to leave anything out a i hope you all can givee an idea of where to start, as i have been reading along and you seem like a good group of knowledge able and kind women
post #17 of 155
ooops, it kept saying error so i kept pressing submit:)
post #18 of 155
oops smile.gif
post #19 of 155
smile.gif oops
post #20 of 155

This is my goal for 2013.  Just put my fancy car up for sale and bought an older car with cash.  I am so excited to get out of that massive car debt so I can start using that money to pay down other debts.  thumb.gif  I'm hoping to greet 2014 with a positive net worth instead of a negative one.

 

We have our emergency fund, so we are in the amputating stage.  Go away expensive toys!  The best part is after years of cajoling, DH is finally on board so now I feel like we will make some real progress.

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