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Dumping Debt and building wealth with Dave Ramsey JANUARY - Page 2

post #21 of 585
Jaime - that is awesome!!!!
post #22 of 585
joining in here. I haven't read tmm over yet, but watched some of dave ramsey's videos on you tube and, luckily dh is sold a few cars yesterday, so he will be getting a decent sized comission check on top of his base salary. Plus, we got a check in the mail from the escrow account, so that was an extra 600$ we weren't expecting. So I am confused on the steps as I haven't got the book yet, so please help me, are you suppose to get the 1000$ in savings first or pay off late bills first? I went ahead and paid the property taxes, and one small bill and the rest of the phone bill: This is what is going on:

107.56/1000 in savings

overdue bills,

94.00$ car insurance
160.00 doctor bill
95.00 cell phone-but I am going to have dh call and dispute it as I don't think they got one debit payment, and i can't call cause I'm not on the account

everything else is current

so w/the extra 600$ do i pay these bills or put on savings?

Gotta go, ds woke
post #23 of 585
Quote:
Originally Posted by shanetedissac View Post
When I first started the plan we did not do the budget. We accounted for everything that we spent on paper. For the first three months I just wrote down everything that we spent on lined paper as it was spent. No catagories and such just date, item, and amount. After doing that for the first few months then I began the budget. The budget is very daunting at first. You are to figure what you are actually going to spend for the month to come, not the average of the past year and such. Some things will be consistent: rent, mortgage and such. Some will not: clothing, repairs and such. It takes many months to fine tune a budget, don't give up when you get there.

Have you been writing down all your spending?

Be well,
i've been tracking it for about 3 months. it's not pretty. see below.

Quote:
Originally Posted by TattooedMama View Post
If you have excess in one budget area monthly you could adjust that category if you are consistently having an overage. Or you would add it to your EF if that is the step you are on, or the snowball if that is what you are working on.
Or if you are like me with my grocery part of the budget, you can carry it over to the next month... or spend it to zero. I have a pantry and a deep freeze... there is always SOMETHING I can find to buy with grocery money.
i think you misunderstood. i'm carrying forward onerspending in several categories (eg i "budget" 40 for pets but between meds for terminal dog, tests for the dog we're going to breed and food for 4 dogs, fish, & 7.5 parakeets, we always go over). we've been using our savings to cover our losses but i want to stop the bleeding. meanwhile, dh just spent another $100 last night buying dd a toy because it was on sale. :

i have redone our budget for january and finally did a written meal-plan with 14 regular dinners and 2 occasional dinners, including sides, plus breakfasts, lunches and snacks. hopefully, this will help a lot.

sarah
post #24 of 585
hello--this is my first month posting here. I listen to dave ramsey on the radio and have one of his books-which I currently can't find. I am saving our 1000 emergency fund now--and instead of straight off doing a budget I am tracking my spending on an excell worksheet to get an accurate accounting of where our money goes. I am also gettingbalances on our debts and putting them in order to et the debt snowball going.


so-
45/1000 emergency fund
tracking cashflow so I can make a budget
post #25 of 585
Thread Starter 
Quote:
Originally Posted by ReikiMommy07 View Post
My January budget:
Rent (includes water/sewer, trash/recycling): $588.12
Renters Insurance: $20
Phone/internet: $39
Electric: $50
Satellite: $38.73
Gas (cooking): $20
Fuel oil: $136
Alternative healthcare: $30
Savings: $60.24-45.57 (higher end is steep but I hope to make it...)
Household: $10
Food: $200 or less
DH: $40
DS: $30
gifts/gift-making supplies: $16.66
Are you debt free? If so that is GREAT! Otherwise it needs to be listed in the budget how much you are paying to each creditor.

Be well,
post #26 of 585
Thread Starter 
Quote:
Originally Posted by arismomkoofie View Post
Question about Student Loans... If your SL are huge, like $100+k, should they still be paid off in BS#2 or moved to BS# (um whatever the mortgage one is - I'm still stuck in BS#2)

TIA!
According to the plan you are to put your student loans in BS#2. So far what I have heard is that the only debt your would put with the mortgage would be a second mortgage that is more than half of your income.

Those of you that are gazelle are awsome. It takes time to get there, I can remember

Be well,
post #27 of 585
Thread Starter 
Quote:
Originally Posted by ILoveMyBabyBird View Post
So I am confused on the steps as I haven't got the book yet, so please help me, are you suppose to get the 1000$ in savings first or pay off late bills first?
Before you are to fund the Baby emergency fund you are to get all your bills current, exactly what you are doing! As soon as you are current and are paying the minimums then get going on the EBF.

Be well,
post #28 of 585
Thread Starter 
Quote:
Originally Posted by sarahlyao View Post
i think you misunderstood. i'm carrying forward onerspending in several categories (eg i "budget" 40 for pets but between meds for terminal dog, tests for the dog we're going to breed and food for 4 dogs, fish, & 7.5 parakeets, we always go over). we've been using our savings to cover our losses but i want to stop the bleeding. meanwhile, dh just spent another $100 last night buying dd a toy because it was on sale. :

If you are going over on a catagory then you need to adjust it to the appropriate spending that is going on. So you need to take from another catagory to get it up.

Regarding the $100 toy spent, return it.

You are ready to start the budget if you have been tracking for 3 months. It is not pretty the first 3 months or so, it takes a while before it may get to zero budget.

Keep it up
post #29 of 585
Thread Starter 
Quote:
Originally Posted by gnutter View Post
hello--this is my first month posting here. I listen to dave ramsey on the radio and have one of his books-which I currently can't find. I am saving our 1000 emergency fund now--and instead of straight off doing a budget I am tracking my spending on an excell worksheet to get an accurate accounting of where our money goes. I am also gettingbalances on our debts and putting them in order to et the debt snowball going.


so-
45/1000 emergency fund
tracking cashflow so I can make a budget

What a great start. Every dollar will feel like a bunch!

Be well,
post #30 of 585
Ok.

I just made my first budget ever, and I feel a little weird posting it online for the whole world to see. Maybe in a few months I'll feel more comfortable.

I made my budget, but I had to guesstimate some of the numbers, because I do not work full time - I can work up to 40 hours, but I am not considered a full time employee, so if one week I only work 36 hours, I only get paid for 36, and I never know ahead of time what my hours will be.

I ended up with about $300 extra, and that will go toward my emergency fund. Since I am new at this, I am going to put the money in my EF at the end of the month, in case I over or underestimated my budget. I put in all of the essentials in my budget, and I should have enough wiggle room to buy any needed toiletries out of my grocery budget, though I should be set on that stuff.

Once I have kind of gotten the hang of this better, I am hoping I can figure this out better. I am going to need to work in some things into my budget -- in a few months I am going to have to take time off work to take DD out of state to see her dad, so I need to set aside some money for that.

I was also going to start a mini emergency fund for $200 in case DD gets sick. She has a compromised immune system, and $50 should cover any doctor's copays and prescriptions that should come up. Or should that just come out of my $1000 emergency fund? I am really confused on this one. Also, I really need to get new glasses at some point, so how do I budget that? Do I set aside a certain amount each month, or do I just pay it all in one month? New glasses are going to cost me about $100, which I could afford to pay for up front, but it would set me back a bit on setting up my emergency fund and starting my debt snowball - so, which should I do?


Emergency fund - $27.84/$1000
post #31 of 585
Just finished BS1!! On to paying off the credit cards!!
post #32 of 585
Quote:
Originally Posted by littleaugustbaby View Post
Ok.

I was also going to start a mini emergency fund for $200 in case DD gets sick. She has a compromised immune system, and $50 should cover any doctor's copays and prescriptions that should come up. Or should that just come out of my $1000 emergency fund? I am really confused on this one. Also, I really need to get new glasses at some point, so how do I budget that? Do I set aside a certain amount each month, or do I just pay it all in one month? New glasses are going to cost me about $100, which I could afford to pay for up front, but it would set me back a bit on setting up my emergency fund and starting my debt snowball - so, which should I do?


Emergency fund - $27.84/$1000
For the glasses {if it were me) I'd start now.. I would add that to my budget..x amount for January, x amount for Febuary..that way when the time does come the money is there and it won't throw you off..
Just my opinion
Congrats on getting started!!
post #33 of 585
Quote:
Originally Posted by my2girlz View Post
Just finished BS1!! On to paying off the credit cards!!
What a start for January and the new year!!
post #34 of 585
I started listening to the audiobook version of Total Money Makeover on Saturday and Dave said that he was paying $7/month for term life insurance. I was looking up quotes online for term life insurance and couldn't find anything that inexpensive.

Any ideas how/where he managed to find something at that rate per month?
post #35 of 585
subbing
post #36 of 585
Quote:
Originally Posted by arismomkoofie View Post
Question about Student Loans... If your SL are huge, like $100+k, should they still be paid off in BS#2 or moved to BS# (um whatever the mortgage one is - I'm still stuck in BS#2)

TIA!
Technically, Dave wants you to pay off all SL debt in step 2.

As much as I want to get out of debt, we are leaving ours in step 6 as the interest rate is 1.65%, and we want to be able to get back into building a FFEF later this year when the rest of the debt is gone. It just doesn't make sense to us to not fund retirement for an extra two years to accelerate payment on a loan with such a small interest rate. PERSONAL finance is personal, so you'll have to make the best choice that you can for your family.
post #37 of 585
Quote:
Originally Posted by arismomkoofie View Post
Question about Student Loans... If your SL are huge, like $100+k, should they still be paid off in BS#2 or moved to BS# (um whatever the mortgage one is - I'm still stuck in BS#2)

TIA!
Yes, technically you should pay them off in BS2, but if they are a huge amount and you can not get them paid off in 2 years, then move them to BS6.

Not trying to pry but are you making a substanal wage that would support having that much SL debt? If you have that much SL debt then you should be pulling in enough money to pay that off in 2-3 years, thus leave it in BS2.

Good luck
post #38 of 585
A refresher:

Dave Ramsey - Baby Steps

0-- Get current on bills
1 -- $1,000 to start an Emergency Fund
2 -- Pay off all debt using the Debt Snowball
3 -- Three to six months of expenses in savings
3.5 -- save for downpayment on house if you do not already own a house
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5 -- College funding for children
6 -- Pay off home early
7 -- Build wealth and give! --- Invest in mutual funds and real estate
post #39 of 585
I think we should make a list of everyone here and what step they are on, and where they are in it. It was helpful before to know eveyone's progress.
post #40 of 585
A quick question: We have about $1000 left on our last CC. I heard on the news recently and read on a thread here, that you can call the CC company and ask what amount they would accept if you pay it in full. Do they do that with a small amount? Are some CC easier to deal with than others? Ours is a Chase account.

Also, anyone have any opinions on this? DH doesn't want to do it because he feels we knowingly spent the money and it is our responsibility to pay it off. I say they are CC companies who are already making money hand-over-fist and if we can get something taken off then we should. He feels it is an ethical decision and I feel that if it would benefit us, then why not do it?

TIA.
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