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Getting out of Debt in February 2013 - Page 3

post #41 of 96

We are currently on the DR journey but it is slooooow going with a single income. Military at that.

 

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

The only "toy" we have is my husbands guitar/amp. It's been on craigslist for months but it's really good quality and no one wants to pay what we're asking..Which is almost half what it's worth.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF.

We have never had cable. We are under contract for our phones until this summer at which time we will be switching to a much cheaper, no contract plan with Cricket. We just got moved so we've been eating out more while our kitchen was in 2 places but now plan to eat at home only. My husband has offered to get a second job to raise money for EF but he's army so I'm not sure how that works.
0.8 Get current on ALL bills

BS1 $1,000 to start an Emergency Fund

We are actually doing this in a weird way. We're saving $500, then spending $500 on really necessary things we NEED for the house. Then saving again until we get to $3,000.
1.1 Chop up/freeze CC's (You have an EF now)
1.2 Get Health insurance NOW if in the US

We're military so we have Tricare.
1.3 Get Life insurance NOW if you have debt/your family couldn't make it financially if you died.

My parents have a policy on me but I need to check and see how much. My DH has life insurance through the military.
1.4 Amputate cars that you can't pay off within 24 months

Our only car loan is scheduled to be paid off mid 2014. Our van is so upside down we wouldn't be any better off to sell it.
 
BS2 Pay off all debt using the Debt Snowball
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest.

Besides the van loan we only have one credit card, scheduled to be paid off by the end of this year!

BS3 Three to six months of expenses in savings

We're aiming for more like 6-12..we have job security for the most part but I'll feel better with a bigger cushion.
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

post #42 of 96
Quote:
Originally Posted by orangemomma View Post

MonkeyPrincess - no advice on the budgeting systems but wanted to say welcome!

 

Thanks. :)

post #43 of 96

I don't post very often but I'm so excited. We finally made it to BS2 and I just paid off my first credit card! The last 2 years have been really hard for us because my dh's hours cut at work for a significant portion of 2012 and child care costs were killing us. Now my dh is working lots of OT and it looks like it will continue for the forseeable future. Plus, we only have 2 more months of child care expenses! Yipee!  We're using 2K of our tax refund to pay down another CC and then saving the rest. I'm hoping to be completely debt free in 4 years. It's a long way to go but I know we can do it.

post #44 of 96
Yay goldfishkate, you must be totally psyched smile.gif
We still haven't done our taxes., DP is totally dragging his feet. Apparently, he loves loaning the gov't our money orngtongue.gif
post #45 of 96
Quote:
Originally Posted by goldfishkate View Post

I don't post very often but I'm so excited. We finally made it to BS2 and I just paid off my first credit card! The last 2 years have been really hard for us because my dh's hours cut at work for a significant portion of 2012 and child care costs were killing us. Now my dh is working lots of OT and it looks like it will continue for the forseeable future. Plus, we only have 2 more months of child care expenses! Yipee!  We're using 2K of our tax refund to pay down another CC and then saving the rest. I'm hoping to be completely debt free in 4 years. It's a long way to go but I know we can do it.

That is awesome about the credit card! What are you using to maintain your focus?

post #46 of 96
Quote:
Originally Posted by trekkingirl View Post

We just got our refund! My EF is now up to $10,770

Holy cow! That's great!!

Quote:
Originally Posted by trekkingirl View Post

whats a vision board????

I got this definition real quick off of christinekane.com -

 

"A vision board (also called a Treasure Map or a Visual Explorer or Creativity Collage) is typically a poster board on which you paste or collage images that you’ve torn out from various magazines. It’s simple.

 

The idea behind this is that when you surround yourself with images of who you want to become, what you want to have, where you want to live, or where you want to vacation, your life changes to match those images and those desires."

post #47 of 96

I visualize my new home during meditation whenever I can. Limited space in my RV doesn't allow for such spacious crafts.

post #48 of 96
Quote:
Originally Posted by trekkingirl View Post

I visualize my new home during meditation whenever I can. Limited space in my RV doesn't allow for such spacious crafts.

 

thumb.gif

 

Pinterest dot com may work for a vision board too :)

post #49 of 96
Paid off 270$$ master card, down to one cc balance if 1345$. Sold 75$ worth of stuff on craigslist so far this month...
post #50 of 96

I'm back or should I say, I'm still here. I don't think I visited at all in January. It was a tough month. This month, I'm doing a no spend and its going well because I don't have the extra money to spend. I'm still not ahead and barely catching up but I do have my emergency fund on my mind so hopefully it wont be long. Someone mentioned going bare bones and minimal and I'm heading there myself. I know I have a few things I can sell so I'll be doing that starting soon.

 

It's nice to see updates from everyone. Hopefully there will be continued good news all around!

post #51 of 96
Quote:
Originally Posted by ILoveMyBabyBird View Post

Paid off 270$$ master card, down to one cc balance if 1345$. Sold 75$ worth of stuff on craigslist so far this month...

Nice!

Quote:
Originally Posted by esg View Post

I'm back or should I say, I'm still here. I don't think I visited at all in January. It was a tough month. This month, I'm doing a no spend and its going well because I don't have the extra money to spend. I'm still not ahead and barely catching up but I do have my emergency fund on my mind so hopefully it wont be long. Someone mentioned going bare bones and minimal and I'm heading there myself. I know I have a few things I can sell so I'll be doing that starting soon.

 

It's nice to see updates from everyone. Hopefully there will be continued good news all around!

At least February is a short month...

Good luck with the selling.

 

I am so excited! We had the FPU insurance class lastnite and we are really well covered and just need some minor tweaks here and there. We also had a pow-wow, just DH and I, lastnite to talk about the upcoming BS like college funding and retirement and I was kind of surprised to know that DH had already set up a little bit of saving already for both those things through his business. He also has our 6 months of EF funded through his busniess. He is keeping it in his busniess account because once it goes into our personal account it would be taxed. So now it looks like once our car  is paid off in October we can up our retirement and college funding and start putting a little extra away towards the mortgage. 

 

I always welcome that kind of news rather than oops we messed up and have to go back 3 spaces...

post #52 of 96
BaileyB that is so awesome of your husband!! Always great to get together and think ahead.

AFM, last night my boss gave me a $50 visa gift card! I'm putting it straight into my EF. I also found a penny wink1.gif so I now have $50.13 in my fund. I'm just trying to quickly get us to $500 this time. I got us to $1400 in our EF once and that was great but I need us covered in something substantial enough soon. I'm hoping my paycheck comes in today too (it's always between Wednesdays and Saturdays) so I can stuff some more in while its crazy on my mind.

How's is your day going so far?
post #53 of 96

I just called my mortgage lender to re-visit the idea of doing a streamline refinance.  Bad news....they are no longer giving a credit for closing costs.  Now I'm not sure how to figure if the $2,000 is worth a 1% decrease.  We could pay it off faster & save $ without the $2000.  YK?  I have no clue how to do the math though to figure it all out!

post #54 of 96

Waiting to hear back on a really great property. Last update I got is that we are up against 12 other offers. They are reviewing tonight at 6pm. The house is a regular sale by the original owner from 1967! The house is in perfect shape and really nice. It is also way under budget so it would be a great fit for our goals. I hope we get it. My DH has a good feeling about it.

 

 

http://www.realtor.com/realestateandhomes-detail/25-Stetson-Dr_American-Canyon_CA_94503_M11126-36179

 

It has a sun room, and a good sized yard for gardening!

post #55 of 96

Wow, BaileyB! Great work, both of you! :)

post #56 of 96
Thread Starter 

6pm?  So I think that is 9pm my time. I will keep my fingers crossed for you especially right then - hope this is THE ONE!

 

I checked out the link - looks like it was kept up great. You'd only have to change things if you wanted to do so. Will be great to sit in the backyard, sip lemonade/tea/beer/some yummy beverage and watch the kids and the garden grow :)

post #57 of 96

Haven't heard anything yet

post #58 of 96

Fingers crossed for you!
 

post #59 of 96
Quote:
Originally Posted by trekkingirl View Post

Haven't heard anything yet


Hopefully that is good sign. I looked at the link and that house is a sweet deal! I hope you get it.


Edited by SunRise - 2/15/13 at 4:21am
post #60 of 96

Thinking of you Trekkingirl, I know how painful the wait is!  Keep us posted!

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