Dumping Debt and building wealth with Dave Ramsey JANUARY - Page 5

[Purple*Lotus]

Originally Posted by mumkenna&lucas

We are on pre-step But we should be current and BS1 complete by the end of next month

Originally Posted by ILoveMyBabyBird

Bs #0 for us too. We should be caught up by the 15th. You're not alone!

You can do this ladies!! Keep your eye on the goal and go for it!

Originally Posted by tannersmommy

Okay, here I go with my budget for Jan.

Charitable Gifts (10%)
Church 375

Saving 0 (because EF is funded)

Housing (17%)
First Mortgage 509
Second Mortgage 90
Repairs 75

Utilities (11%)
Elec/Water/Trash 89
Gas 160
Phone/Cell/Internet 94
Cable 87

Food (16%)
Grocery 500
Restaurant 100

Transportation (11%)
Car 260
Gas and Oil 120
License and Taxes 26

Clothes (2%)
Children 40
Adults 40

Med/Health (6%)
Dr./Dentist 140
Meds/Vit. 75

Personal (9%)
Life Ins. 47
Hair 27
School 25
Subs. 9
Christmas Savings 100
Misc. 75
Blow 65

Recreation (2%)
Entertainment 60

Debts (17%)
Card 1 15
Card 2 115
Card 3 54
Student Loan 146
Med Bill #2 340 Payoff!

Sooo. I know Utilities and Food are both high and could be trimmed. But I'm still making a really good snowball payment this month. I will be talking to DH about getting more gazelle - like reducing our eating out and maybe our cable package.

I feel like I'm really putting myself out there with lots of financial info, but maybe it will be helpful to others who are budgeting.

You wont miss the cable. I have not had it for years. When I go to work and my clients are watching TV, sometimes I watch with them and my brain goes numb Sometimes my Mom will record things for me to listen to while crocheting, and it seems ridiculous to me how much time I used to sit and watch TV. As a child I was not allowed to, and I can really tell the difference between myself when I watch TV and when I avoid it.

Originally Posted by mom2dea

Way to go Jamie !!!!

Hi All I am here agian I am Sarah mom to 4 kids and wife to a wonderfull Dh that is so on board with getting debt free Westarted the program in Oct and we have the :
1000.00 in emergency fund started also started 401K , got life insurence on both of us , got reid of a Disney Vacation Home and our Cell phones !!!!
We paid off 2 CC (1,000.00) , Medical bill (125.00), My mom (600.00)
Now we have:
Verizon Wireless 175.00 (We canceled our Contract)
Greenbriair appartments 1200.00 (hoping to settel for less)
IRS 750.00 (just found out about this )
CC#1 1000.00
CC#2 1250.00
DH school Loan 4500.00
DH Car 7000.00

Then we are going to do our 3-6 monthes of Income and then work on paying off the 20% mortgage of 25000.00.

Hope to make lots of prgress in the next few monthes with Dh bonus , school money from GI Bill and also Tax refund !!!!

You are doing really well!! Keep it up I would love to get rid of my cell phone, I can't stand feeling like I am at everyone's beck and call. However, I am on call 24 hours a day with my job So I think I went in to the wrong line of work Although my job has only ever called me once in the months I have worked for them. It is everyone else who calls me all the time that I have an issue with

Originally Posted by mom2dea

I need some help everyone ... We brought a new house about 10 month ago and now that its cold out I am noticing that the windows are and doors are letting in TONS of cold air . OUr electric bill was 311.00 with the heat at 65 degress . I cna not put it down any lower as we have a newborn ! And we cna not afford much more on an electric bill . We are having someone come over to look at the doors , windows and instalation in the Attic .
Would you take this out an emergency fund ?
Not do the work and eat the electric cost for this winter ?
Take it out of some of the money you were planning on using to pay off debt (won't see the money for 1-3 weeks ) ?
I do not want to put it on the CC so thats not an option to me ....

Please help what would you do ????

I am not sure about the financial side, since I am new to Dave. However, we rent out house and last year DH took one of the panels out of our drop ceiling and noticed this huge hole in the underceling part, below the actual roof. So he bought some $15 insulation and stuffed in up in the hole and wow, what a huge difference it made.

Also, if you can not afford to replace the windows, then I would suggest the plastic you put over your windows inside. DH did this every year before our landlord went insane and bought us new windows a few months ago. It takes time to really get it tight with the hair dryer, but it is well worth it. Only a few dollars at the local hardware shop for a kit.

[SugarAndSun]

I was just thinking about Dave's plan today. He says to have 6 months of savings to cover expenses. Why not just stay six months ahead on the mortgage at all times and then keep in savings enough to cover other expenses for 6 months?

[PancakeGoddess]

My only thought is what if your emergency requires you to sell or move? Why not just have the cash?

[tannersmommy]

[phathui5]

Originally Posted by shanetedissac

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,

I've heard Dave say on the radio that if student loans are that big, to move them in with the mortgage.

[phathui5]

For the roll call. We're on step 2.

DONE0-- Get current on bills
DONE1 -- $1,000 to start an Emergency Fund
$5k to sell dh's truck, then about $5k more for other ones2 -- Pay off all debt using the Debt Snowball
3 -- Three to six months of expenses in savings
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

[TattooedMama]

On BS#2 for the roll call:

0-- Get current on bills DONE
1 -- $1,000 to start an Emergency Fund (was done but some was just used to pay back taxes. Will be replenished this week)
2 -- Pay off all debt using the Debt Snowball (working on this)
3 -- Three to six months of expenses in savings
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement (still investing $100 monthly in Roth IRA)
5 -- College funding for children
6 -- Pay off home early
7 -- Build wealth and give! --- Invest in mutual funds and real estate

[CeciMami]

To add to the roll call:

0-- Get current on bills DONE
1 -- $1,000 to start an Emergency Fund DONE (more actually since DH has unreliable income)
2 -- Pay off all debt using the Debt Snowball $16K CC, $13K SL, $20K Minivan
3 -- Three to six months of expenses in savings
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[/QUOTE]

I'm VERY excited on the progress we will make in 2008! Here's to a prosperous New Year!

[shanetedissac]

Originally Posted by tannersmommy

Read the section in TMM last night about insurance. We have all of the insurance that Dave recommends except for Disability Insurance. Do any of you have that insurance? I'm sure we can probably get it as an option through DH's work, but you're only allowed to make changes to your benefits once a year, and of course it was in Nov.

Just wanted to see what everyone else has.

My dh has it through his work. He got it when he started because he works mostly in the woods and such. Check it out.

Be well,

Shane

[shanetedissac]

Originally Posted by tannersmommy

Did you guys suspend your contributions to your 401K plans while doing BS1 & 2? I am trying to decide whether to suggest this to DH or not, because I'm sure he is going to balk at it. But that's what Dave says to do (which is funny to type, b/c my DH is "Dave" too - ha ha). DH's work does a 6% match, which is phenomenal, and I hate to give that up, but if it means getting out of debt quicker, maybe we should do it.

Thoughts? Input?

Yes you are supposed to suspend your contributions. Yes, you will loose the match during your snowball and emergency fund raising. This will motivate you to get gazelle!

Be well,

Shane

[shanetedissac]

Originally Posted by PancakeGoddess

I haven't read Dave yet, but I don't think it's ever a good idea to turn down free money. I guess you could figure out how to calculate the losses you'd incur by paying interest for a longer period due to smaller payments on your debt, and see if it's worth it.

This is a great thread - has anyone ever done a compare/contrast with Dave vs Suze?

Suze lives by the FICO score. The FICO score can only be had by having debt. I look forward to the day of having a FICO score of 0!

Be well,

Shane

[shanetedissac]

Originally Posted by mom2dea

I need some help everyone ... We brought a new house about 10 month ago and now that its cold out I am noticing that the windows are and doors are letting in TONS of cold air . OUr electric bill was 311.00 with the heat at 65 degress . I cna not put it down any lower as we have a newborn ! And we cna not afford much more on an electric bill . We are having someone come over to look at the doors , windows and instalation in the Attic .
Would you take this out an emergency fund ?
Not do the work and eat the electric cost for this winter ?
Take it out of some of the money you were planning on using to pay off debt (won't see the money for 1-3 weeks ) ?
I do not want to put it on the CC so thats not an option to me ....

Please help what would you do ????

I grew up having the dad put the plastic on the windows that you use a hair dryer to make them tight. Also look into insulating the molding around the windows with cauck or such.

Be well,

Shane

[shanetedissac]

Originally Posted by SugarAndSun

I was just thinking about Dave's plan today. He says to have 6 months of savings to cover expenses. Why not just stay six months ahead on the mortgage at all times and then keep in savings enough to cover other expenses for 6 months?

What do you mean "six months ahead on the mortgage? You do mean sending in extra payment? You can't pay forward on your mortgage they will just put it towards you balance and still expect payment next month.

Be well,

Shane

[shanetedissac]

I've updated the roll call as best as I could for now. The cool colors that you may have used did not copy and paste. When I get more 'free' time I'll make it cool again

I've put the state you are from to get an idea of what the regional differences may be in our finances.

Be well,

Shane

[alleyoop]

Originally Posted by tannersmommy

Did you guys suspend your contributions to your 401K plans while doing BS1 & 2? I am trying to decide whether to suggest this to DH or not, because I'm sure he is going to balk at it. But that's what Dave says to do (which is funny to type, b/c my DH is "Dave" too - ha ha). DH's work does a 6% match, which is phenomenal, and I hate to give that up, but if it means getting out of debt quicker, maybe we should do it.

Thoughts? Input?

That is a very nice match and I wouldn't give that up but cut from other places. I agonized over cutting my work Simple IRA contributions last January when we started this, and ultimately decided to contribute up to the match of 3%. I was super responsible with everything else I spent and was able to come up with substantial money to pay down debt every month.

[mom2dea]

Shane ~
I am in South Carolina Thanks for putting the 1st page together .

[SugarAndSun]

Originally Posted by shanetedissac

What do you mean "six months ahead on the mortgage? You do mean sending in extra payment? You can't pay forward on your mortgage they will just put it towards you balance and still expect payment next month.

Be well,

Shane

Not mine. I can be ahead two or four months or whatever and then it just says next payment due in April or whatever. I just send in multiple payments. It just seems that I might as well give it to them to keep just in case and save the interest.

Even if I had to sell or move or something as another poster mentioned it would probably take close to six months anyway.

[mumkenna&lucas]

Here's mine for roll call:

0-- Get current on bills we are here should be current in next 2-3 weeks
1 -- $1,000 to start an Emergency Fund Hopefully we will be able to complete by end of Feb.
2 -- Pay off all debt using the Debt Snowball
3 -- Three to six months of expenses in savings
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! ---

[Daisie125]

Daisie125 (michigan)
0-- Get current on bills - done! Finally!
1 -- $1,000 to start an Emergency Fund - $5/$1000
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 already have a house with a mortgage
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!

We got REALLY behind last month. It was an awful commission month, plus with the holidays and everything.. ugh. Our tax refund will be huge this year (we get back way more than we pay out... no real way to fix that) so we will be funding some of our EF, but we will be paying off one CC because right now there isn't intrest on it, but in two months there will be, so we want to get it paid before we get attacked with all of that interest.

[shanetedissac]

Originally Posted by Daisie125

Daisie125 (michigan)
0-- Get current on bills - done! Finally!

You rock!

As with your CC that will be coming up with interest, remember that without an emergency fund 'emergencies' are more likely to happen. It sucks to have to take extra interest on the debt. An emergency fund brings security.

With the size of the refund you incline then it sounds like you could fully fund the baby emergency fund? Then move straight to the debt snowball smallest to largest balance.

Be well,