Dumping Debt and Building Wealth with Dave Ramsey~ FEBRUARY - Page 7

[ReikiMommy07]

Just popping in to say our BEF is still at $950/1000. This is really amazing b/c we had a $163 plumber bill that wasn't budgeted/expected... But we had enough to cover it without dipping into the BEF! That, however, was just luck. Extremely good luck, though!

Congrats to Jaime and Einly for completing the BEF! And good luck to the rest of you!

[koofie]

DH made an announcement that surprised me - he thinks we should use some of our tax return for the BEF! He previously wanted to throw everything at debt, and we are all paid off except our HUGE SL debt that we are moving to BS 6 (or wherever the mortgage is). We are also going to pay down the 10 part of our 80/10 mortgage. WE had a house we wanted to buy, but it wen under contract 2 days before we put in our offer and it is a quick close, so we doubt it will fall through so now we are back to house hunting - I want DD to be in a house for kindergarten, esp since I'm not crazy about the one she would go to if we are still in our condo.

To find anything we like, we may have to move N or NE a bit, which is farther from my family and occasional free babysitting

Anyway, I will pos when it is done, but soon we will have $2k in our BEF! right now we are $900/$2000 and step 2 is done, if you want to update us, Jamie.

thanks!

[alleyoop]

Well, we paid off the last CC last week and now have no CC debt! We are very proud of ourselves (can I say that?). I had to do a lot of nagging over the past 11 months to keep DH on track. Now we have his work truck which I was considering a business expense but I think we (vs. the business) will work on paying it down. I'm hoping to finish paying it off this year.

At the same time, I want to get more money into the EF as DH is self employed and we need more that $1000 to get through hard times in our part of the country.

[Galatea]

Still paying down debt, nothing exciting to report on that front. The really exciting thing is seeing the peace this has brought our marriage. In fact, dh was even bragging to his best friend about how it seems like we have more money than ever and how great it is to be in control. That made me feel great. And we never argue about money now and there is still money for things we want or need.

[mtm]

Great work Alley! Still plugging away here, managed to put an extra big payment on dh's cc as I finally got a backpay cheque I was waiting for.

[TattooedMama]

My extended family's finances make me sad...

Is anyone else finding themselves in the position of being more well off than their parents or other family?
It's kind of weird (and sad) to me that my parents and my IL's are financially worse off than we are, and they are much closer to retirement!! Eeeeek!!
How have you broached that subject if you have? I know we have mentioned casually, "Hey we read this great book and ever since we instituted a monthly budget we are doing great..." and "wow, it looks like we are grown-ups now, we have life insurance and a retirement plan."
Anyone?

[Galatea]

Do you cancel cards as you pay them off?

Originally Posted by TattooedMama

Is anyone else finding themselves in the position of being more well off than their parents or other family?
It's kind of weird (and sad) to me that my parents and my IL's are financially worse off than we are, and they are much closer to retirement!! Eeeeek!!
How have you broached that subject if you have? I know we have mentioned casually, "Hey we read this great book and ever since we instituted a monthly budget we are doing great..." and "wow, it looks like we are grown-ups now, we have life insurance and a retirement plan."
Anyone?

We are still working on it, but it makes me sad to see my dad's situation. They live very well but are still mortgaged up to the gills. He has had to take out more term insurance that is wildly expensive since he is 76 b/c something needs to pay off his bills so my mom is not destitute. They put everything on credit and he is always stressed out and having to shuffle money around.

On a different note - as we pay off our credit accounts, should we close them or leave them open? I already cancelled the really expensive store accounts - Macy's, Old Navy, Sam's, etc. - b/c they are always available to you at the store and we didn't want the temptation. We cut up our Visa/MCs a long time ago, but should we close the accounts, too? We will want to buy a house eventually, and I don't want to ruin our credit, but I also don't ever intend to use them again.

[TattooedMama]

I do close cards as we pay them off. It is really hard though! And not because I want to keep them open, but because apparently if you call a credit card company to cancel a card red alarm buzzers start going off and all heck breaks loose!
I had to speak to no less than 3 people and a supervisor recently to get them to agree to close a credit account of mine. I was really pi**ed off by the time I got off the phone. They ARGUED with me and were really patronizing and aggravating about closing it. ARGGGHGHGHG!!!!

[bc1995]

Dave Ramsey says to cancel them, but if you plan to buy a house in the somewhat near future your score will be better if you leave them open. So far I have not cancelled the ones I have closed. I am not sure what we will do. I have no plans to ever use them again. At the same time though, since we don't have our 3-6 months of living expensives saved I might feel better having them locked away somewhere.

[kerc]

back later to introduce myself. for now subscribing because i just found ya'll.

[kayleesmom]

still catching up on bills and paying off debt.
We paid off
medical bills from makayla
2 credit cards
caught up on many bills

still have
4 credit cards to pay off
catch up on a few more bills
and get 1000 in emergency fund
emergency fund should be funded soon.

[Red]

jamiew, we do like Shanetedissac, too. Liking the food isn't an issue. If you're hungry, you eat what you have.

Have you added up what lunch out 5 times a week costs you? (Not to mentin what you paid for what you're wasting)

TattooedMama, My relatives are driving me nuts! I want to shake them all! My dd19 just got a cc bill! I freaked on her. She's paying it off NOW and cutting it up. Darn kids.



My update. *sigh* I've been doing it wrong. I thought I'd read TMM, and hadn't. I kept seeing catch-phrases here I didn't recognize. I'm about 1/2 through now, dh is even further....a fact I may live to regret. THe biulls have always been MINE and sharing is going to be tough.

Anyway, I've been doing this wrong. bills caught up...that probabaly doesn't mean that the creditors aren't calling. It probably means you're paying things as they are due. Not a month or 6 weeks later. *Sigh* again. So update me back to BS0! Yup, this month I start catching up. I looked it all over, have 3 bills behind. With in a month, I'll be down to one, so it's not too bad, but I feel....dumb. What was I thinking? (I've rolled some change to get that started!)

I also did my first cash flow plan, and the first ever zero budget ever. Still working on that one. Harder than I thought!



On a good note, I asked dh what he thought we should each have for blow money. We have never, ever had our own before! (also never had a line item for vacations, car repairs, etc!) He said $20 each, which will include any alcohol or dining out! That's LESS than we spend without a plan, a fact I pointed out. It's great to have had HIM suggest spending less, as he usually wants MORE. ( I snuck a bit extra into another line in case that's not reasonable for us as the months go on.)

I"M EXCITED! Yep, I'm totally in. I have a starting plan and it's going to work!





Galatea- I'm trying to convince myself to cut them up. It will take a bit though. Up until now, teh cc;s WERE my EF. I have to adjust to my new life.

[TattooedMama]

Oh don't beat yourself up Red... after we were a couple of months into the TMM I found out we were paying our energy bill a cycle behind. Now however you want to break the semantics down--it was a late bill as far as I was concerned. We were basically carrying a $200 balance on it from month to month-- so not caught up. :
You'll get there!

I have also discovered that since I have tied my menu planning and grocery shopping to a stricter food budget I am cooking less often throughout the week. I am no longer making something new for every lunch and dinner. We are actually EATING our leftovers. and there are more things in the fridge to prevent the impulse lunchtime drive thru trip.

[Purple*Lotus]

Okay, I am pretty excited!

Yesterday at my new family doctor, my blood pressure was sky high : I tend to get that anxiety that comes from seeing a doctor I always freak out. Anyway, she wanted me to check it several times a day for a month! Ugh. Well with my work schedule I was going to be able to get to the pharmacy that many times over a day to check there, so I started to get frustrated, because the home units are so expensive But FIL has one and he gave it to DH yesterday and said that we could consider it on long term loan! Whoooop! I am so excited! That is $50-$75 I can keep in my EF thanks to FIL :

Oh, and upon checking my BP today, it was much lower than it was at the doctor's office

Originally Posted by dachshund mom

My last debt payment is offically going out on Valentine's day. How's that for a present! Much better than grabing something at those drive by flower sales tents.

We've decided to go ahead an work on the second mortgage (we did 100% financing with an 80/20 loan), but I'm not sure which order to put it in yet. DH is getting a big raise in April and we need to rework the budget. Any thoughts?

I've got you updated

Originally Posted by Red

Yea
Also, eldest dd and her dh came home to roost for a bit. They expected to find jobs immediately, but are instead experiencing a bit of life's ups and downs. (SIL just found a part time job after a month. DD is getting desperate, ready to apply for anything. She'd hoped for somehting in accounting, as she's newly graduated as an....accountant) silly girl.

So, teh food budget is off a bit, even though we're thrilled to have them. I need a week or so to figure this all out!

Originally Posted by Einley

Well we've accomplished babystep #1 and we are going to move onto the debt snowball.
I'm having budgeting issues as dh is getting paid $440 less a month
Quite a chunk to have to work around, but I'll figure it out.
I'm happy to have accomplished one thing though

I have you updated

Originally Posted by Piglet68

And you know, I was just thinking today as we were driving home from a long day out in the rainy cold that normally after a day like that I would hit Starbucks or somewhere for a hot drink, but instead I came home and made tea. I haven't bought snacks for the kids in ages because now I make sure to always pack lunches and snacks. I think that means it has become a habit, and that's a Good Thing!

That is great!!

Originally Posted by jamiew

I don't quite understand parts of this (BS2, BS0, etc), but I"m trying to cut down on food waste. We have a terrible time with it, we've got a 10 month old daughter who's so all over the map with solids that so much goes bad before she eats it.

Our leftovers always rot in the fridge, I just can't seem to use them up.

I've got a job 3 days a week, and we both have freelance artistic careers we're trying to hold down as well. My goal is to make lunches for myself to take to work and freeze them, but I can't seem to find the time. Burritos and lasagne are on the list.

Welcome!! As for me, well I fixed my budget to have very little grocery room in it. Going to the store and getting something on a whim is not a financial option for me. I am lucky to scrounge up enough for a gallon of milk So maybe try not leaving yourself any wiggle room? Eat up those leftovers. Or at the very least, freeze them if possible for a future meal. I do that a lot with leftover sloppy joes.

Originally Posted by ReikiMommy07

Just popping in to say our BEF is still at $950/1000. This is really amazing b/c we had a $163 plumber bill that wasn't budgeted/expected... But we had enough to cover it without dipping into the BEF! That, however, was just luck. Extremely good luck, though!

That's great!!

Originally Posted by arismomkoofie

Anyway, I will pos when it is done, but soon we will have $2k in our BEF! right now we are $900/$2000 and step 2 is done, if you want to update us, Jamie.

thanks!

I got you updated

Originally Posted by alleyoop

Well, we paid off the last CC last week and now have no CC debt! We are very proud of ourselves (can I say that?). I had to do a lot of nagging over the past 11 months to keep DH on track. Now we have his work truck which I was considering a business expense but I think we (vs. the business) will work on paying it down. I'm hoping to finish paying it off this year.

At the same time, I want to get more money into the EF as DH is self employed and we need more that $1000 to get through hard times in our part of the country.

Awesome!! Are you already on the main list? I couldn't find your MDC name on there, but you might be there as your real name. Let me know so I can update you or add you

Originally Posted by Galatea

Still paying down debt, nothing exciting to report on that front. The really exciting thing is seeing the peace this has brought our marriage. In fact, dh was even bragging to his best friend about how it seems like we have more money than ever and how great it is to be in control. That made me feel great. And we never argue about money now and there is still money for things we want or need.

That is way awesome!!

Originally Posted by TattooedMama

Is anyone else finding themselves in the position of being more well off than their parents or other family?
It's kind of weird (and sad) to me that my parents and my IL's are financially worse off than we are, and they are much closer to retirement!! Eeeeek!!
How have you broached that subject if you have? I know we have mentioned casually, "Hey we read this great book and ever since we instituted a monthly budget we are doing great..." and "wow, it looks like we are grown-ups now, we have life insurance and a retirement plan."
Anyone?

Nope, I am the oppsite. My parents are a lot better off than us, because of my father's military career and from him working for the Government. He has a lot of income and has saved it wisely over the years. I hope to be as financially stable as them one day.

Originally Posted by kerc

back later to introduce myself. for now subscribing because i just found ya'll.

Welcome!!

Originally Posted by kayleesmom

still catching up on bills and paying off debt.
We paid off
medical bills from makayla
2 credit cards
caught up on many bills

still have
4 credit cards to pay off
catch up on a few more bills
and get 1000 in emergency fund
emergency fund should be funded soon.

Hi Are you on the main list? I couldn't find you on there either. Let me know so I can either update or add you

Originally Posted by Red

My update. *sigh* I've been doing it wrong. I thought I'd read TMM, and hadn't. I kept seeing catch-phrases here I didn't recognize. I'm about 1/2 through now, dh is even further....a fact I may live to regret. THe biulls have always been MINE and sharing is going to be tough.

Anyway, I've been doing this wrong. bills caught up...that probabaly doesn't mean that the creditors aren't calling. It probably means you're paying things as they are due. Not a month or 6 weeks later. *Sigh* again. So update me back to BS0! Yup, this month I start catching up. I looked it all over, have 3 bills behind. With in a month, I'll be down to one, so it's not too bad, but I feel....dumb. What was I thinking? (I've rolled some change to get that started!)

Better late than never on reading Dave I have updated you! You can do this!

I hope everyone has having a good day!

[Purple*Lotus]

Oh, I have made it my goal to try to learn how to make things crocheting. I am starting off with a super simple baby booty pattern I would like to learn to make things to sell for extra money. Wish me luck!

[Purple*Lotus]

Triple post!

Has anyone ever seen one of Dave's envelope wallets in person? I can't tell from the website what it looks like. I mean, are there like, built in envelopes in it? I can't figure it out.

[TanyaS]

I have one! It came with the FPU kit. It's a brown binder about the size of a small datebook. There's a plastic zipper pocket and several envelopes in a binder. There are also some extra envelopes in a pocket separate from the binder.

Of course, I haven't started using it yet..... :

[phathui5]

Did our taxes today!

Our awesome tax guy deducted enough things in our life to get our taxable income down to $8600 (we made $48k), which meant that we owed nothing.

We're getting a $6000 return, which will be applied to debt payoff as soon as it arrives. That will get us more than halfway through BS2.

:

[Piglet68]

Way to go, phathui!

Does anybody here feel like they've discovered this "secret" that really is SO SIMPLE and yet I sure didn't think much about it until now...? Today on the radio they announced that some consumer debt group discovered that Canadian families are bringing in, on average, $61,000 per year and saving only $1000 of that!!! Household debt has risen 7x faster than income over in the last 15 years!

I know how average people get into debt, I know the attitude of "buy now, pay later" and I know how it can be even easier to rack up debt when you earn more b/c you figure "hey, I can pay this off whenever I want, but I want to get X right now instead...". But I listen to these statistics and I wonder how an entire society can just dig their heads in the sand...anyways, when I hear stuff like this I just want to scream "You CAN be debt free!!"

[Red]

Originally Posted by phathui5

Did our taxes today!

Our awesome tax guy deducted enough things in our life to get our taxable income down to $8600 (we made $48k), which meant that we owed nothing.

We're getting a $6000 return, which will be applied to debt payoff as soon as it arrives. That will get us more than halfway through BS2.

:

Hey! Share those tips! In fact, let's all try to share one. Mine? Don't forget the deduction for what you paid to get your taxes done last year. I'll come back with a few m ore, cause finding good ones is a tax time hobby of mine.

February's budget is a bit messy. Still trying to adjust to our rather cozy circumstances. Can someone send the job fairy to visit dd? Or maybe one of those tv shows that would slap an addition on my house?


Just want to say again, we love having them, it's just a big change.


Welcome newbies!!!!




A question about DR's 'stuff'. If we're being all gazelle about this, why would we want to spend money buying his stuff? I have envelopes and could easily improvise a way to carry them. (An elastic band comes immediately to mind)

I just have a picture of dave, sitting in some huge office, surrounded by phones and people to answer them, laughing like crazy as the orders come in!

His show is on my DTV tonight. I think the decision was just made to watch him!



Piglet, I know just what you mean! DD told me that her friend is buying a new couch and tv with her rebate and I started rambling about saving it, or paying down her debt. DD pointed out, with some exasperation, that we don't even know the girl HAS debt! : I wanted to yell, "Of course she does!" then realized that I don't really know....(But I'd bet one roll of pennies on it!) I felt like calling her up and saying, listen here, you pay off one cc with that money!


Jaime! Take this health warning seriously! Are you taking good care of yourself? My SIL just told us he has high BP and cholesterol. I've been poisoning the guy with my cooking.