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Dumping Debt and Building Wealth with Dave Ramsey~ FEBRUARY - Page 8

post #141 of 240
Quote:
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 wouldn't personally buy things other than the books. I've found that having his books handy helps me to stay motivated.
post #142 of 240
Taxes

We deducted:

- our property taxes

- our mortgage insurance (ugh)

- money donated to our church

- items donated to Goodwill while decluttering

Because I'm self employed, I deducted:

- 1/3 of what we paid on our mortgage (since it's home childcare)

- mileage on my van

- science center and zoo memberships

- 1/4 of my grocery bill

- supplies bought that the extra kids used
post #143 of 240
Quote:
Originally Posted by Red View Post
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!
I have a kit that came with the fee for FPU. It came with a book, workbook, audio CDs, and the envelope binder. We also received a scholarship, so we only paid half of the fee. : I don't think I'd buy his stuff otherwise, and I'd get the books from the library.
post #144 of 240
Thread Starter 
Quote:
Originally Posted by phathui5 View Post
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.

:
Awesome!!

Quote:
Originally Posted by Piglet68 View Post
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!!"
For DH and myself, the great bulk of our debt is medical bills from me I feel bad about that, but I went so long without health insurance, so credit was one of my only options. However, when my BIL mentions how he is taking 4 vacations this year and that he is litterally going to still be paying them off when he is 60 (he is 30 now), well, that just shocks me. I would not voluntarily ever want to be in that position. I'd rather stay home now and save, invest, then vacation when I am 60, you know?

Quote:
Originally Posted by Red View Post
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!

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.

Well I have been thinking about the envelope wallet for a few months now I have decided not to get it because it wasn't how I pictured it in my head. I am going to keep using the coupon organizer, because it seems to be about the same thing, really. The only thing I know is that when I ordered his book *My library didn't have it and I waited for the $10 sale * I liked how he does not accept credit cards.

I am working hard to be healthy, I exercise and have been eating better. I am getting a lot more serious now that we are moving in to where we want to TTC.


I hope everyone is having a good day
post #145 of 240
Quote:
Originally Posted by ~*Jaime View Post
Awesome!!
When my BIL mentions how he is taking 4 vacations this year and that he is litterally going to still be paying them off when he is 60 (he is 30 now), well, that just shocks me. I would not voluntarily ever want to be in that position. I'd rather stay home now and save, invest, then vacation when I am 60, you know?
How do you relax on that vacation? I mean when I vacation I don't want to be thinking about how much my sandwich will cost over 30 years, kwim?

Quote:
Originally Posted by Red View Post
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)
My thought exactly. But I'd add a printout of the new american dream's wallet buddy to the outside of the envelopes.
www.newdream.org/walletbuddy.pdf

Quote:
Originally Posted by Red View Post
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!
Yeah, I just don't get that piece at all.



Introducing myself:
Kristin, married for 8 years, all of which one of us has been in graduate school working on a phd. I don't feel badly about making that decision. Having dd1 (and then subsequently dd2) before we had planned put us in a tricky spot.

We have some consumer debt, massive school loans for our 6 degrees, a mortgage and a furnace. My plan is to take my giant tax refund (2000 bucks!) and pay off one bill. I think I'd be all for consolidation only so I had to keep track of one account. BUT...I know it's not worth it.

Anyhow, here I am and my tip for sticking with it is to put the 1 hr free podcast on subscription and I listen more or less daily.
post #146 of 240
: I just paid off our car and 3/4 of one of the credit cards. Next week I am paying off the lowest balance card and that will leave us with about $1700 to go. Provided we stick to our budget, and nothing major comes up we can get that taken care of in 1.5-2 months.
post #147 of 240
Hi We have been on the DR plan for a few years now... We started with over 86K in debt (other than mortgage). But we are chugging right along and today I finished paying off one of our debt snowballs so I am here to celebrate because that leaves just 4 more and then the mortgage. Hoooray! It seemed so overwhelming at first and bankruptcy was looking mighty fine at the beginning but I am so proud that we have stuck to this plan and are seeing results. Anyways, HELLO to all the DR fans! Stick with it!
post #148 of 240

Financial Peace University

Hi everyone. I'm coming out of lurkdom to ask two questions:

1. DH is super relucant to even approach the subject of our money. Any advice on getting him on board?

2. My employer is sponsoring Financial Peace University and our cost for the course would be $149. To anyone who's done it , was it worth it? I like that it would provide some accountability because we need it badly and I think that it may help with DH.

Thanks!
post #149 of 240
Quote:
Originally Posted by CHEMama View Post
2. My employer is sponsoring Financial Peace University and our cost for the course would be $149. To anyone who's done it , was it worth it?
Dh and I are taking it now. The price seems a little high. We're attending through a church, and the course was only $100. We also got a scholarship and only had to pay $50. The class has been wonderful so far, and I'd recommend it. You might shop around your community for a better bargain, though.

Quote:
Originally Posted by CHEMama View Post

1. DH is super relucant to even approach the subject of our money. Any advice on getting him on board?
The class will help you a lot with this. There is homework that kind of forces the issue and encourages couples to work together on a plan.
post #150 of 240
Thread Starter 
Quote:
Originally Posted by kerc View Post
Introducing myself:
Kristin, married for 8 years, all of which one of us has been in graduate school working on a phd. I don't feel badly about making that decision. Having dd1 (and then subsequently dd2) before we had planned put us in a tricky spot.

We have some consumer debt, massive school loans for our 6 degrees, a mortgage and a furnace. My plan is to take my giant tax refund (2000 bucks!) and pay off one bill. I think I'd be all for consolidation only so I had to keep track of one account. BUT...I know it's not worth it.

Anyhow, here I am and my tip for sticking with it is to put the 1 hr free podcast on subscription and I listen more or less daily.
Welcome

Quote:
Originally Posted by APBTLuv View Post
: I just paid off our car and 3/4 of one of the credit cards. Next week I am paying off the lowest balance card and that will leave us with about $1700 to go. Provided we stick to our budget, and nothing major comes up we can get that taken care of in 1.5-2 months.
Awesome!! What a great feeling that must be!

Quote:
Originally Posted by westernskies View Post
Hi We have been on the DR plan for a few years now... We started with over 86K in debt (other than mortgage). But we are chugging right along and today I finished paying off one of our debt snowballs so I am here to celebrate because that leaves just 4 more and then the mortgage. Hoooray! It seemed so overwhelming at first and bankruptcy was looking mighty fine at the beginning but I am so proud that we have stuck to this plan and are seeing results. Anyways, HELLO to all the DR fans! Stick with it!

Hello and great job on the debt reduction!
Quote:
Originally Posted by CHEMama View Post
Hi everyone. I'm coming out of lurkdom to ask two questions:

1. DH is super relucant to even approach the subject of our money. Any advice on getting him on board?

2. My employer is sponsoring Financial Peace University and our cost for the course would be $149. To anyone who's done it , was it worth it? I like that it would provide some accountability because we need it badly and I think that it may help with DH.

Thanks!

I have never taken the class, but that would probably be a good place to start to get your DH involved
post #151 of 240
Thread Starter 
Did anyone else read this on Dave's site? About what he suggests you do with the stimulus refund?

Quote:
Make the Money Work For You
Don't wait until it comes in the mail to formulate a plan, and whatever you do, do NOT spend this money before it gets to your hands! Those are just formal invitations for Murphy to unpack his suitcases in your spare bedroom! Here are a handful of ways I recommend making your tax rebate work for you, depending on where you are in the Baby Steps:
Pay off debt. This may sound like a no-brainer, but I already expect that few people will actually do it! There's really no reason NOT to throw this "free" money toward your debt snowball. It will get you one step (or maybe quite a few) closer to being debt free, and THEN you will have the freedom to buy that toy or take that vacation you've had your heart set on for quite a while! Learn how

Invest it. If you put this big chunk of change into a mutual fund for a few years, you'll actually receive TONS more money than just the initial $600 or $1,200 check this summer.
Say you get back $600 and put it automatically into a mutual fund averaging 12%. In 2018, that one-time investment will grow to approximately $2,000! If left in for 20 years, it will be worth about $6,500! For the married folks, this free money can grow up to $13,000 over 20 years - WOW! Calculate your earnings

Have some fun. I'm not a total meanie. I actually do like to have some fun with my money, and I encourage you to do the same! There's nothing wrong with taking your spouse out for a nice dinner or buying that new pair of jeans with some of this money you could be getting. Just stick within your boundaries, and remember that the quicker you get out of debt, the more fun things you can do and the more money you can give away to bless others.
post #152 of 240
Jaime, I just read that in his newsletter yesterday.

The anticipation for this tax return is killing me. Not the rebate, but our actual return.
post #153 of 240
Thread Starter 
We are getting about $900 back, and are putting it all in to the snowball. DH hasn't actually finished the forms yet

I have to budget new socks in to the budget next month. My socks are getting holy and threadbare. I hate spending money on things like socks. I don't know why, perhaps it is a mental block, of sorts

I really need to budget for clothing in general, but I never know how much to. I mean, DH wears uniforms, thank goodness, so that is so easy on clothing for him. But I never know what to budget for clothing for me. So I just don't :

How do you all decide on a clothing budget? My job is casual and I am hardly a fashion plate. I am normally in knit pants, a tee shirt and a sweatshirt
post #154 of 240
Quote:
Originally Posted by ~*Jaime View Post

I really need to budget for clothing in general, but I never know how much to. I mean, DH wears uniforms, thank goodness, so that is so easy on clothing for him. But I never know what to budget for clothing for me. So I just don't :

How do you all decide on a clothing budget? My job is casual and I am hardly a fashion plate. I am normally in knit pants, a tee shirt and a sweatshirt
We have been doing DR for about a year now. When we started I didn't budget anything for clothes, but figured we would just make do with what we have. This worked for a while, but now we all need more to wear.

Now I set aside $50 a month (2 adults, 2 kids, 1 baby) and this covers 1-2 new pairs of shoes a year, socks, unders, basic clothing for us. Most of the clothing budget gets spent on shoes while our clothes tend to be second hand. Also, we get a lot of gift cards for holidays/birthdays and these get spent on clothing.

This is what works for us. Dh's job is casual, the kids are homeschooled (no uniforms or social pressures to dress a certain way) and I am a SAHM. Our clothing is functional, not real trendy. When we have more cash to spend, we will probably spend a bit more on clothing since our wardrobes are pretty lean.
post #155 of 240
Jaime, you and I must be clothing soul sisters. I never have any idea what to budget for clothes. Now, we're both getting low on stuff we can wear. One of dh's flannel shirts was so thin, it tore when he put it on. I am constantly searching for undies each day, and our sock situation is grave!

I'm budgeting $20 a month for now. First is new undies, then we'll go see what we can find at the local Salvy...Wednesday is 1/2 price day! So, we'll go over early and get some good buys. (1/2 price means decent tops for $2.50-$5.00, jeans, when we can find our odd sizes are $3.50-$7.00) The $20 a month will work for now, because we haven't bought ANY clothing in a few years. (We each got a pair of wool socks for xmas, I got a gc for $20 to Old Navy that I'm saving to get a NEW pair of jeans, and I bought a package of Hanes undies a few months ago, that fell apart. Other than that....nothing in 2 or 3 years but cheap socks for dh on occassion and a few pair of jeans for his work.) So, $20 will seem cool.

After a few months, I'd think the $20 would be good, cause we'll just need to replace stuff and don't mind doing it slow. After all, I reall, really need some warm winter clothes, : but we're more than 1/2 way through the winter. I'll get stuff next summer, late. This spring, I'll sew up some new summer tops. YK? (All my kids have jobs, or live outsdie and buy their own stuff now! Before I always had to budget in $444 for Back to school and summer, and winter and ....*sigh*!


I did my taxes, and did them again and again. I'm using HRBlock online and have noticed that the refund amount has changed a LOT when I've made just slight changes. (remembering a work expense for dh, etc.) THe programs "Tuition Assistant" gave us teh tuition credit, instead of the Hope Credit, for college expenses. Fixing that boo-boo nearly doubled my refund!!!


The pork is in! We picked up our meat today. About 800 lbs of pork, ready to go! I'm putting out the sign at teh bottom of our driveway tomorrow, and someone is coming by to pick up about 200lbs. I can't wait to get it selling!
post #156 of 240
can someone exactly how you do debt snowballing i read his book and listened to his utube and just dont get it.Also what are the envelopes and how do u use them?
here are our current past due bills and debt we have. How would i do a debt snowball?

CC#1 1,500
CC#2 2,000
CC#3 2,500
old apartment 2,500
cc#4 6,000

cc#5 10,900
Medical bill#1 17.00
medical bill# 2 75.00
medical bill #3 85.00
medical bill # 4 330.00
Past Electric old apartment 500.00
Past Gas old apartment 500.00

then of course we have Student Loan and Car Loan.
post #157 of 240
Quote:
Originally Posted by kayleesmom View Post
can someone exactly how you do debt snowballing i read his book and listened to his utube and just dont get it.Also what are the envelopes and how do u use them?
here are our current past due bills and debt we have. How would i do a debt snowball?

CC#1 1,500
CC#2 2,000
CC#3 2,500
old apartment 2,500
cc#4 6,000

cc#5 10,900
Medical bill#1 17.00
medical bill# 2 75.00
medical bill #3 85.00
medical bill # 4 330.00
Past Electric old apartment 500.00
Past Gas old apartment 500.00

then of course we have Student Loan and Car Loan.
For the debt snowball you pay off debts from smallest to largest, using any extra$ you can scrounge up. As you pay off, you use the money you were paying monthly to pay extra towards your next smallest bill. In this way, you have the satisfaction of completely eliminating some bills and you pay it off faster than if you just paid the minimums forever.

For instance, pay off your $17 bill and then use any money you paid towards that to pay off the $75 one. When that is done, use the payments you were paying towards the $17 and $75 towards the $85 bill and so on. HTH! nak
post #158 of 240
Your "snowball" would look like this:

Medical bill#1 17.00
medical bill# 2 75.00
medical bill #3 85.00
medical bill # 4 330.00
Past Electric old apartment 500.00
Past Gas old apartment 500.00
CC#1 1,500
CC#2 2,000
CC#3 2,500
old apartment 2,500
cc#4 6,000
cc#5 10,900

What you would do is continue making the regular minimum payments on all of these and put every extra dollar you can find to pay off the first thing on the list. When that's paid off, you scratch it out and put every extra dollar to the next debt, and so on.

How much do you owe on the Student Loan and Car Loan?
post #159 of 240
oh and i have another bill a student perkins loan that is 1,500
the car is 27,000- this is automatic debited from bank
student loans are 31,000- this is in forberance till may 2008
then we have a reg bills like food
electric rent.
post #160 of 240
also what are the envelopes and how do u use them?
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