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Getting out of debt in December, 2013

post #1 of 17
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 17
Thread Starter 
After 4 mos of being MIA, I'm starting to think (out of necessity) about finances again.

We've reached a point with DH's schooling where we need to decide weather to borrow or pull investments at a loss. ...I'm leaning towards the latter.
post #3 of 17

Just started following a budget for the 1st time in a long time! Right now I'm pre-baby step 1 - just trying to get bills current and credit cards tamed (like paying them on time and not getting sent to collections). Using Mint to track what I'm spending.

post #4 of 17
Hi Jakesmama! I'm at the same point as you. Will you tell me more about Mint? I've heard it mentioned, but what do you like about it?
post #5 of 17

Hi! I only started using it this month but it seems pretty user-friendly. Designing a budget is a little tedious - but not as tedious as doing one on paper! I go in once a day to monitor transactions and label things if they need labeling. I like that you can designate different goals. I will be doing a custom goal for the EF once I get spending under control.

post #6 of 17

jakesmama, Can you tell me more about Mint also?  Is it a website?

 

Thanks.

post #7 of 17
Does Mint link to your online banking? Or do you have to update it with purchase info., like you would a checkbook ledger? It would be great to have something that auto-updated. However, I would probably wonder about security...

I'm having a hard time budgeting for all of our day to day purchases. It would be way harder if I went to cash in envelopes, I think, and had no online accountability.
post #8 of 17
We paid out 12500 in cc debt this year, we are keeping 1000 on emg fund with our tax return and the rest 6-7k will be going to dh 20k student loan debt. We will be applying all extra money (dh medical studies and any holiday pay/overtime I get) I'm hoping with our 2014 tax return we will have it completely paid off.
post #9 of 17
We have internet but my left over school money pays for.that. we are under a contract so we have cheapest rate

work covers half my cell.phone. ds1 has a assurance phone (free) and dh's phone is $35.

We dropped cable and pay $16 for Hulu/netflix

Got rid of trash service. We compost and recycle

Have the cheapest car Ins an we can find

On.level pay so our utilities predictable

Work gave me a raise ans that covers my health ins. Unfortunately we cant afford dh to be insured. Since we are 100% poverty level we qualify for an exemption. Our state did not expand Medicaid so dh can't get that

We do minimal driving to save on gas. Work reimburses me for any work related driving.

We pay $286 for our mortgage (includes taxes and Ins.) So can't beat that
post #10 of 17

Sharlla you should be able to sign your DH up for obamacare. www.obamacarefacts.com 

 

The govnt is going to subsidize the cost of healthcare with a tax subsidy so he may be able to get coverage for very little, depending on your situation. Worth checking in to.

post #11 of 17
We don't qualify for subsidies because out state didn't expand Medicaid. I went online to the market place bit the premium for him isn't in our budget.
post #12 of 17
Quote:
Originally Posted by Greenmama13 View Post
 

jakesmama, Can you tell me more about Mint also?  Is it a website?

 

Thanks.

 

 

Quote:
Originally Posted by skinnyloveBC View Post

Does Mint link to your online banking? Or do you have to update it with purchase info., like you would a checkbook ledger? It would be great to have something that auto-updated. However, I would probably wonder about security...

I'm having a hard time budgeting for all of our day to day purchases. It would be way harder if I went to cash in envelopes, I think, and had no online accountability.

 

Yes, Mint.com is a website that will connect your accounts and update with all of your transactions. I go in daily to make sure that each transaction is labeled correctly for the budget line item. The only issues I have with it are when I get refunded for something or when I have to refund someone else (like through paypal) - it doesn't track the income and loss quite right (hard to explain). I just hide these transactions from my budget so that they don't mess with it.

 

Since it's been around awhile and is run by Intuit, I decided that it was safe. As safe as it gets, I guess!

post #13 of 17
Now the world of one income begins.
William Ernest arrived at 4:13 pm Sat. Dec 21 at 7 pounds 10 oz. Edward Ronald arrived in breech presentation at 4:15 pm Dec 21 at 6 pounds 2 oz. I did pitocin induction from 7:30 am Friday Dec 20 because both boys were head down then until 2:30 pm Sat Dec 21 where even though water was broken for first baby, I never prrogressed past 5 cm. Had spinal and c section.

Stayed in hospital until Dec 25 because of low blood sugar issues with Edward. So happy to be tandem nursing on demand at home now!
post #14 of 17

Congratulations lilac! What handsome little guys you have! Enjoy them!  The money stuff will work itself out.

post #15 of 17
Congratulations!! I agree with Orange--the money will work out. Enjoy those little boys!
post #16 of 17

Oooh, Congratulations lilacvioletiris! Welcome to the world, Edward and William! Two beautiful boys. Glad you are all home and doing well.

post #17 of 17
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