Dumping Debt and building wealth with Dave Ramsey JANUARY - Page 9

[shanetedissac]

[QUOTE=dachshund mom;10191200 48 more days and we'll be debt free!!![/QUOTE]


Holly cow, that is so great!

We did not have a lot of debt to pay and I wonder how much others have going to their snowball now?

We we started the plan 10/06 we had $2000 in cc. It took us two months. I know other have a lot more and as it snowballs it gets bigger.

Live like no one else, so you can live like no one else!

[ReikiMommy07]

Originally Posted by littleaugustbaby

Here's Dave's Credit Card Q&A:
http://www.daveramsey.com/etc/cms/cr..._q&a_7041.html

This link doesn't work for me...

[dealic]

Originally Posted by ReikiMommy07

This link doesn't work for me...

Add a c to the end of the URL (so it ends htmlc)

[Purple*Lotus]

Originally Posted by dachshund mom

This made me laugh. DH and I went on a vacation after the CCs were paid off, but we still had the cars and student loans to go. We saved the money ahead of time, but still shouldn't have gone. Very soon after we got back, our A/C went out and had to be replaced. I swore Dave Ramsey had bugged our house and broke our A/C to teach us a lesson. No vacations while doing the debt snowball!

For the record, we haven't followed all of his rules. After the CCs were paid, we started putting 6% into DHs 401k to get the match since the rest of the debt was very low interest. We also kept a bigger emergency fund due to DHs job and because we have high deductible insurances. I'd say make changes if it keeps you on the plan, kwim? I'm much more straight DR and DH is more mainstream, so we make compromises, but overall are going in the right direction. 48 more days and we'll be debt free!!!

Congrats on being so close to being debt free!! That must feel unbelievable!

Originally Posted by shanetedissac

Holly cow, that is so great!

We did not have a lot of debt to pay and I wonder how much others have going to their snowball now?

We we started the plan 10/06 we had $2000 in cc. It took us two months. I know other have a lot more and as it snowballs it gets bigger.

Live like no one else, so you can live like no one else!

Well basically I drew up a budget and included the min. payments on the credit cards. After I get my EF funded I plan to take every extra cent and put it directly on the lowest card to get my snowball rolling. If I get overtime, if DH gets overtime, if I pick up a sub job, if I save money on groceries, it is all going to the lowest debt.


*****************

For me, I need this thread to support me in the way that if I should be tempted to ever use credit again, someone would say "Oh heck no!!" I need that tough love, I think

I do not want to use credit ever again. I can not control it. I have proven that to myself by being in this much debt. I am 29 years old and this is the first time ever in my life that I have had any saved money. How sad is that?? I have $280.59/$1000 in my EF right now and that is the most I have ever managed to save. So I need to follow Dave as close as I can. I have read tons of books on getting out of debt, I have a stack of them, I really do. But for some reason I found this thread one day- maybe it was God *yes, I am a Christian*, or maybe it was just an accident. But I started reading the December thread, then I saw the sale on Dave's sight for the $10 books, and I bought one. What impressed me the most was that he does not accept credit cards on the site. I actually thought while ordering how weird it was going to feel if I put a getting out of debt book on credit? Then when I saw he didn't accept credit cards, I was very impressed. Walking the walk, I think that is wonderful.

Anyway, I am not following Dave 100% as I can not convince my DH to sell his car, and it is close to being paid off so I am not fighting that fight with him right now, as I have chosen to be submissive to him and he made the decision. But I am working really hard following as close as I can and I feel good about it. I do welcome other people on the thread, because I am new to the thread myself so I feel that I can not say one way or another who is here and who shouldn't be, you know?

I do have a question though about saving for your children's college. I myself paid for my own college. I only have $19,000 in a loan for 5 years of college, that includes my degree and the extra classes I have to take to keep my teaching license active. I paid the rest all myself by working all the way through school. My parents did not help me, I did it all on my own. They could have paid for it if they wanted to, but they chose not to. I respect that. My DH had his college paid by his parents 100%, and I think I notice a big difference in how much I value my education compared to him. Is that weird? Possibly. But I worked for mine and I think it built more character in me than I see in my DH. Not that he does not appreciate it, but he did not have to struggle like I did. So I wonder if maybe paying all of your child's education costs after high school is somehow doing them a disservice? I don't know, I am just thinking out loud!

[ReikiMommy07]

Originally Posted by dealic

Add a c to the end of the URL (so it ends htmlc)

Strange way to end a URL... But it worked and thanks!

[dealic]

Originally Posted by ReikiMommy07

Strange way to end a URL... But it worked and thanks!

Oh I agree. But I went to the website and looked around, and I noticed that's how his URLs ended so I tried it on that link.

[PancakeGoddess]

Originally Posted by ~*Jaime

But I worked for mine and I think it built more character in me than I see in my DH. Not that he does not appreciate it, but he did not have to struggle like I did. So I wonder if maybe paying all of your child's education costs after high school is somehow doing them a disservice? I don't know, I am just thinking out loud!

Jaime, I've heard this argument a lot. I'm sure it's true in some cases, but I believe there are more variables than just who pays for your school. You might just have to decide based on the personality of the kid. You will know if they aren't taking it seriously by the grades and their willingness and inclination to discuss what they're learning, I bet.

My parents worked to cover my college tuition and housing, and I worked a little part time for extra expenses, but I had most of my time free for study. I imagine that for some kids this would just mean more time for partying, but that's not what I did (long story, but I did my partying in hs and was clean and serious by college).

My point is that I am so grateful I didn't have financial stress in college. We have definitely struggled mightily as a couple since we got married but when I was studying, it was just studying. I found college so exciting and fascinating intellectually, and I think my parents did a great thing for me by allowing me the time and space to fully experience that.

my 2cents.

[shanetedissac]

Originally Posted by ~*Jaime

I need that tough love, I think

So I wonder if maybe paying all of your child's education costs after high school is somehow doing them a disservice? I don't know, I am just thinking out loud!

I'm great at giving tough love!

In regards to our own childrens college educations this is our plan..... We have been putting all their gift money into education accounts (currently our state's 529 plan). We also put some in the first few years of their lives and then got debt free and can't yet contribute. We will be able to contribute after getting the bar mitzvah's funded but not a lot. When I grew up it was understood that I would be going to state school, I had an inheritance of about $20,000 to use for school (1993 I graduated HS). I'm going to instill the same in my children.

The big factor that I'm instilling in my children is to not get sucked into debt, even for education. So, unless they find a school to pay for their education or get super scholarships from other resources they will be going to the local state school and living at home. Oh, and they will also be working.

Now, if we are to come into a large chunk of money in the next 10-15 years then we will definetly help out much more.

Be well,

[baileyandmikey]

i struggled to get thru college financially that is. no help from parents what so ever. So, I feel that I need to help my kids, to encourage them to go. They have lots of savings bonds, probably about three thousand each... all gifts from relatives. They both have 529s that my dh's aunt established from them, but we don't know the amount, because she wishes for it to be a suprise. So, we are planing to have at least 20 thousand in college funds for them before they are ten (hopefully we can do this) that way it will have time to mature

[MommyErin]

Originally Posted by phathui5

Not for entertainment purposes maybe, but I can think of plenty of reasons that someone would need to rent a car or hotel room even without lots of money in the bank.

Actually, I was thinking of a specific to me situation -- MIL died, we had travel to Cleveland and check into a hotel for over a week. We didn't worry about putting it on the debit card b/c DHs check was going to post before checkout. However, they put such a large hold on our debit card at check in b/c of the length of our stay and the outrageous hotel taxes that we ran out of money in our checking account.

I'm all for supporting y'all who've had success following DR. I just have noticed that his rules work most of the time but there are always going to be the rare exception when they don't. I was glad to read that even DR teases people who follow him to the exact letter.

I guess I see something like following DR as a guide to help a person learn to manage money wisely according to their life and needs. But it is a GUIDE as DR does not know everyone's particular situation. I'd love to hear what he says about families with special needs children. Without credit, my DS would have never have gotten the therapies and treatments he needs.

I put TTMMO book on hold. I'm gonna read DR for myself and see ...

However, I do want to congratulate those mommas here who have been able to take DRs theories and run with them. Good for y'all for working so hard to learn to manage your money and spend wisely. Y'all do deserve a pat on the back!

[phathui5]

Good news!

We gave my mom TMMO for Christmas and she told me today that she made up a budget for herself. She's definately a spender, so this is new for her. She's even using the envelopes and everything. She was telling me she's starting her Christmas envelope now because she likes to spend a lot on Christmas and this way she won't be charging it.

[shanetedissac]

Originally Posted by baileyandmikey

They have lots of savings bonds, probably about three thousand each... all gifts from relatives.

I'm in the process of cashing out all the boys savings bonds. They are horrible investments. Back in the days they made a bit of return but not today. I have put the money from the savings bonds into their 529 which will get a much bigger rate of return. I still a a few that I have to wait for. Some of the new ones require to to keep for a year. I have also convinced my mother in law to stop giving them and just give us cash to put in to the 529.

This is what Dave says:
Savings bonds have a lousy rate of return, so you should cash them out and put the money in good growth stock mutual funds. If the kids already have student loans, use the savings bonds to pay those off.

This is what Dave says about investing for college:
Investing For College:
I recommend investing the first $2,000 per year in an Education Savings Account, aka ESA, aka Coverdell Savings Account. ESA’s are very simple and work much the way a personal IRA does. When saving for a young child that will attend a public school, the ESA will usually be all you need.

For investing more than this amount or if your income exceeds $200,000 annually, choose a 529 plan. The challenge with 529’s is that every state has a different 529 plan and they all vary in mechanics. Some allow you to pick mutual funds, some require you to choose funds based on your child’s age, while others are pre-paid tuition programs.

When choosing a 529 plan, I strongly suggest picking a plan that allows you to choose the funds up front and to keep those funds all the way up until time to use the funds for education. Remember to stick with the four types of funds I suggests. (Don’t use the pre-paid plans or ones that do age based asset allocation.)

[shanetedissac]

Originally Posted by phathui5

Good news!

We gave my mom TMMO for Christmas and she told me today that she made up a budget for herself. She's definately a spender, so this is new for her. She's even using the envelopes and everything. She was telling me she's starting her Christmas envelope now because she likes to spend a lot on Christmas and this way she won't be charging it.

Way to go mom!!!!!! My dad's married to a woman with lots of trusts but does not plan to be giving anything to his children. I want to build my wealth and give, give, give.

Be well,

[PancakeGoddess]

The reason we prefer the 529 is that it's the only one specifically for college that doesn't get dispursed to the kid unless it's used for college. At some point, the Coverdell type accounts go to the kid regardless of whether s/he goes to college. Not cool for me.

[phathui5]

Originally Posted by PancakeGoddess

The reason we prefer the 529 is that it's the only one specifically for college that doesn't get dispursed to the kid unless it's used for college. At some point, the Coverdell type accounts go to the kid regardless of whether s/he goes to college. Not cool for me.

But what happens if they never decide to go to college?

[Purple*Lotus]

Originally Posted by phathui5

Good news!

We gave my mom TMMO for Christmas and she told me today that she made up a budget for herself. She's definately a spender, so this is new for her. She's even using the envelopes and everything. She was telling me she's starting her Christmas envelope now because she likes to spend a lot on Christmas and this way she won't be charging it.

That is great

Okay so I am annoyed : The washing machine wasn't working the other day. I briefly considered not getting it fixed and going to the laundromat, but our laundromat charges outrageous prices and when I crunched the numbers *I am such a nerd* I realized that the price of said part to fix it would be way cheaper.

Yes, I am super irritated that I spent $17 on a part when I could have put that in my EF, but anyway, at least I didn't have to TAKE money OUT of the EF to buy it, because it was Christmas money

Anyway, well DH fixed the part, which was really great because I had heard from others that it was a difficult fix and they had to call a professional to do it *Yay for DH for saving us the money on a repair person * However, once he got the part back on the stupid hose started leaking : My Father bought us this washer for our wedding present and it is not even 3 years old yet. The warrenty is expired, but I am just annoyed in general. My Mom has had her washer for 20 years and it still works. Mine is practically new and it has problems

Thanks for letting me vent

[shanetedissac]

Originally Posted by phathui5

But what happens if they never decide to go to college?

You can change the benificiary to another child or even to yourself. It just has to be used on educational uses.

Be well,

[shanetedissac]

I hear you on the quality of modern large appliances! This past year since beginning the program we have had to replace the washing machine, range/stove, and dishwasher. We did it all with cash!

Be well,

[TattooedMama]

Originally Posted by shanetedissac

I hear you on the quality of modern large appliances! This past year since beginning the program we have had to replace the washing machine, range/stove, and dishwasher. We did it all with cash!

Be well,

That is great though! About the cash part anyway.
Because we had to do the same thing a year ago except that is when we took out our first credit card (Best Buy) as a married couple. We had no credit card debt before that.
But lucky for us we got back on track to living a credit free life before we got too swept away.

[TattooedMama]

Hey, I know I told you gals before in a previous post that I really enjoy this thread, I think of us as a "tribe" if you will.
I can tell already that we come from many diverse backgrounds, religions, home arrangements etc. A true microcosm of MDC actually!
I would really like to stick around and follow this thread month to month for at least a year while we are doing TTMM. Kind of like a DDC (due date club).
So can we get to know one another a little bit better? And when checking in at the beginning of each month maybe do a little refresher for other folks lurking/joining us?
I think we all have a unique perspective on finance that has some differences depending on whether we are frugal by choice, frugal by circumstance, married, TTC, have a passel of kids , but I truly think we can stick together and support one another while we are working on living like no one else!

I'll go first....

I'm Jessica in Iowa. Married to a self employed music instructor. We have 3 boys ages 9, 3, and 1.
I am currently a SAHM but I am a registered nurse, been a birth doula for 9 years, childbirth educator, etc. etc. I homebirth!
We read TTMM in October and then started putting it into practice in November. So we are really still new at it, but we had AMAZING results right away that has really helped us to want to stay on target.
That and you guys, you have helped more than you know. We do have some friends IRL that don't "get it" or downright make fun of us.
That tells me we are doing the right thing!
I would like to find out a little bit more about anyone that wants to share a bit.