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Dumping Debt and Building Wealth with Dave Ramsey~ MARCH - Page 6

post #101 of 284
Hi everyone.

February was a bit of a bust - we went way over budget, but by not contributing anything to our savings that month we at least didn't end up in the red. AND even though we didn't contribute to our savings we DID get a bonus cheque - money we'd lent out over a year ago was repaid to us - so we actually put in over 3x the amount into our savings acct as we thought we would. Phew!

So with March we are back on track and there are no big expenses due (last month we paid our accountant and the bill was half our misc fund for the month) so we should be easily able to stay on track.

Jaime, I just finished reading this great book called Animal, Vegetable, Mineral by Barbara Kingsolver. She and her family spent a year eating local/seasonally on their farm. Since you are veggie gardening you should definitely read it - she has all sorts of recipe ideas and she cans/preserves/dries her summer bounty so they have lots of stuff to keep them over the winter (and they eat a lot of squash over winter). If you plan now, and do as she did, you could save a BUNCH on food AND eat fresh, local, seasonal veggies all summer and then still have tons left to eat over winter when the prices in stores go up, up, up!

And on the progress front: I got paid by a client and when I deposit the check we will have reached the halfway mark for our savings plan and it's only the first QUARTER of the year! Things will slow down a bit now as there were a few bonuses in this quarter that aren't expected next quarter but still.....it's a wonderful feeling!!
post #102 of 284
Quote:
Originally Posted by binkin View Post
Hee hee, yeah, I said I hadn't had any luck in my post that you quoted. Our library here is kind of bad, a lot of times they have a book listed in their catalog but someone has stolen it or they've otherwise misplaced it, which seems to be the case with this.

I will have a look at the online stuff although I tend to absorb a lot more when I read something, so I'll look for the Money Answer Book.
Can't read apparently.

I looked around and ABEBooks.com seems like it has the lowest price for the 2003 book. I think this book is popular right now.
post #103 of 284
Please add me on!

Sorry I don't have time to read the whole thread right now, but we are working on this right now. With our tax refund, we were able to complete step #1 and work on #2, so exciting, and completely pay off our car, which also lowered our insurance rates.

so,
#0 done (we actually found an extra 300$ a month by starting a new budget)
#1 done 1000$
#2 my student loan working on this... 8400 left
#3
#4
#5
#6 save for a dp (we don't own a home yet, in military housing)
#7
post #104 of 284

Updated info

Hi:

We got our statement for our Bar Mitzva account so I can update that. We put $600 towards it in Feb. All of our tax refund will be going to that account. Hope to have that soon.

Shane in CT:
0-- Get current on bills - n/a
1 -- $1,000 to start an Emergency Fund done
2 -- Pay off all debt using the Debt Snowball done
3 -- Three to six months of expenses in savings done
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement doing
4.5 Bar Mitzvah funding saving up to $3800/$21,000
5 -- College funding for children after the Bar Mitzvah's are funded
6 -- Pay off home early I so can't wait to be here!
7 -- Build wealth and give! --- Invest in mutual funds and real estate To be able to share will be a bessing.
post #105 of 284
I haven't posted in a while since I was just plodding along. It's been excruciating to get our cc debt down to $2999.89 Yes, I scrimped so with my last payment I'd be able to see it under $3000!

We are expecting a tax refund and I am planning to use it to pay off debt, but could easily get carried away. I'll be checking in. . .
post #106 of 284
Ok, ya'll, I need a kick in the pants. We went to H&R yesterday and got our taxes done, and we're getting a huge refund again. [he's helping us get our deductions worked out though so that next year we won't]. So should I be good and put all that "found" money towards my EF? Or should I take part of it and put it towards "car replacement fund" and/or "vacation" and/or "home improvement"?
I'm sure Dave would say EF all the way, but.... but... Did I mention it's a huge refund? I keep thinking what I could have been doing with that money during the year if 1) I'd had it, AND 2) I'd been clued in to TMMO and YNAB budgeting.

So what should I do?
post #107 of 284
Quote:
Originally Posted by Mama Rana View Post
Ok, ya'll, I need a kick in the pants. We went to H&R yesterday and got our taxes done, and we're getting a huge refund again. [he's helping us get our deductions worked out though so that next year we won't]. So should I be good and put all that "found" money towards my EF? Or should I take part of it and put it towards "car replacement fund" and/or "vacation" and/or "home improvement"?
I'm sure Dave would say EF all the way, but.... but... Did I mention it's a huge refund? I keep thinking what I could have been doing with that money during the year if 1) I'd had it, AND 2) I'd been clued in to TMMO and YNAB budgeting.

So what should I do?
Maybe you could do both? Dedicate the bulk of it (like 75%) to debt snowball and then split the remainder among your savings funds.
post #108 of 284
Mama Rana,

How much is the refund? How much do you have in your emergency fund right now? Do you have any debt left to pay off?
post #109 of 284
We put the bulk towards the debt snowball and set the rest aside for big expenses we knew were coming up - midwife, paternity leave for dh, family vacation.
post #110 of 284
Quote:
Originally Posted by phathui5 View Post
Mama Rana,

How much is the refund? How much do you have in your emergency fund right now? Do you have any debt left to pay off?
No debt, not even a car payment, except for mortgage. My EF is at about $1500/$15000. I'm embarrassed to say the refund is almost $10,000. :
post #111 of 284
I haven't checked in for a while, but I'm being good with the budget. But.... We are making a big decision financially that DR probably wouldnt' approve of.... we have an older house that really needs some work (and, um, insulation!) and we are refinancing for 30 years (again) and taking cash out of the equity to do some home repairs. We are still only gonna have about half of the value of the house financed, but it's 30 years. The interest rates are super low right now and, well, I want to do this. We had a five year second mortgage (we used to buy a car) already we are also paying off in the process, so that our monthly bills will actually go down. (I know- if you really think about it that means our car is financed now for 30 years.....I am choosing not to see it that way. Instead, I am saying the car is paid for and we owe more on our house.)

This will free up a bit more money in our monthly budget to do our debt snowball more aggressively (we will be done as soon as that tax refund check comes...) and then save more aggressively. And that will hopefully mean I can go part-time when the possibility opens up at work and be home with family more.....

I am so impressed with all the great work here by everyone. I am psyched about all the goals met!

Jaime- way to go on the EF and on losing some inches. Isn't there great joy in feeling disciplined in your life?
post #112 of 284
Hello! I just joined this thread and I wanted to add my get out of debt plan.

0-- Get current on bills - done! Finally!
1 -- $1,000 to start an Emergency Fund -$1000
2 -- Pay off all debt using the Debt Snowball -this looks daunting,but baby steps right?
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!

I'm excited to read how other MDC families are doing the program.
Mia
post #113 of 284
Quote:
Originally Posted by Mama Rana View Post
No debt, not even a car payment, except for mortgage. My EF is at about $1500/$15000. I'm embarrassed to say the refund is almost $10,000. :
I'm just popping in to give my 2 cents.

I personally would use part of the refund to get my EF up to half ($7500) and split the rest among the car replacement, vacation, and home improvement. (Since you're changing your W-4) I'd realize that I'll be getting a whole lot more in take home pay throughout the year and set a goal to finish off the EF throughout the year. I know what I'm saying contradicts DR but really having a car replacement and home improvement fund may actually prevent you from dipping into your EF if you've got the money to take preventive action on your cars and necessary home updates/repairs. As for vacation...I just used my vacation money for travel to attend my grandfather's funeral; my EF money was safe.
post #114 of 284
Thread Starter 
Quote:
Originally Posted by mumkenna&lucas View Post
heres my March update so far:

Amanda (mumkenna&lucas) in CA
0-- Get current on bills we are here should be current in next 2-3 weeks
1 -- $1,000 to start an Emergency Fund (275/1000)
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! ---
I have you updated

Quote:
Originally Posted by pranamama View Post
subbing for inspiration

Welcome!

Quote:
Originally Posted by binkin View Post
I'm subbing because I'd like to join. I think I need to read a copy of the book first, though, and I can't seem to find it at the library. I'm trying to find a cheap used copy but... no luck so far.
Welcome

Quote:
Originally Posted by Maggi315 View Post
thought I'd pop in with an update...we are working on taxes, hoping to finish in the next few days, luckily, we are getting a refund from federal which will pay for state and local, I hope it all equals out.

We had a pipe burst yesterday and had to use some emergency money, but I was thrilled we could fix it ourselves (with help from brother in law who used to work for plumber) and save alot!!!

Our medical bills continue to pile up, which truly sucks. They didn't pay for my 9 year old well check up, so that was 125.00. my son was found to have a heart arrthymia and his EKG had all kinds of stuff on it, so he is going tomorrow for all kinds of tests, our insurance will only pay 80% of most of that, which could easily leave us with a bill of 1K.

We looked into our state program, we would still have to pay 150/per kid and no insurance for me, which I have to have and with my tumor and other health problems might be impossible to get private insurance. Plus our state makes us wait 6 months without coverage for the kids before you can get their program, isn't that crazy?

On the bright side, my business is picking up, I am getting more clients over the summer and looking for a place to see them so I don't have to drive around all day (I see my regular clients in my home office, but some clients are amish and live about 45 min. away, I need to find space up there so that i can see more than 3-4 in day!)


Quote:
Originally Posted by Piglet68 View Post
Hi everyone.

February was a bit of a bust - we went way over budget, but by not contributing anything to our savings that month we at least didn't end up in the red. AND even though we didn't contribute to our savings we DID get a bonus cheque - money we'd lent out over a year ago was repaid to us - so we actually put in over 3x the amount into our savings acct as we thought we would. Phew!

So with March we are back on track and there are no big expenses due (last month we paid our accountant and the bill was half our misc fund for the month) so we should be easily able to stay on track.

Jaime, I just finished reading this great book called Animal, Vegetable, Mineral by Barbara Kingsolver. She and her family spent a year eating local/seasonally on their farm. Since you are veggie gardening you should definitely read it - she has all sorts of recipe ideas and she cans/preserves/dries her summer bounty so they have lots of stuff to keep them over the winter (and they eat a lot of squash over winter). If you plan now, and do as she did, you could save a BUNCH on food AND eat fresh, local, seasonal veggies all summer and then still have tons left to eat over winter when the prices in stores go up, up, up!

And on the progress front: I got paid by a client and when I deposit the check we will have reached the halfway mark for our savings plan and it's only the first QUARTER of the year! Things will slow down a bit now as there were a few bonuses in this quarter that aren't expected next quarter but still.....it's a wonderful feeling!!
Thanks for the tip!

Quote:
Originally Posted by SarahLi View Post
Please add me on!

Sorry I don't have time to read the whole thread right now, but we are working on this right now. With our tax refund, we were able to complete step #1 and work on #2, so exciting, and completely pay off our car, which also lowered our insurance rates.

so,
#0 done (we actually found an extra 300$ a month by starting a new budget)
#1 done 1000$
#2 my student loan working on this... 8400 left
#3
#4
#5
#6 save for a dp (we don't own a home yet, in military housing)
#7
I have you added


Quote:
Originally Posted by shanetedissac View Post
Hi:

We got our statement for our Bar Mitzva account so I can update that. We put $600 towards it in Feb. All of our tax refund will be going to that account. Hope to have that soon.

Shane in CT:
0-- Get current on bills - n/a
1 -- $1,000 to start an Emergency Fund done
2 -- Pay off all debt using the Debt Snowball done
3 -- Three to six months of expenses in savings done
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement doing
4.5 Bar Mitzvah funding saving up to $3800/$21,000
5 -- College funding for children after the Bar Mitzvah's are funded
6 -- Pay off home early I so can't wait to be here!
7 -- Build wealth and give! --- Invest in mutual funds and real estate To be able to share will be a bessing.
You're all updated

Quote:
Originally Posted by Ary99 View Post
I haven't posted in a while since I was just plodding along. It's been excruciating to get our cc debt down to $2999.89 Yes, I scrimped so with my last payment I'd be able to see it under $3000!

We are expecting a tax refund and I am planning to use it to pay off debt, but could easily get carried away. I'll be checking in. . .
Nice to see you

Quote:
Originally Posted by Mama Rana View Post
Ok, ya'll, I need a kick in the pants. We went to H&R yesterday and got our taxes done, and we're getting a huge refund again. [he's helping us get our deductions worked out though so that next year we won't]. So should I be good and put all that "found" money towards my EF? Or should I take part of it and put it towards "car replacement fund" and/or "vacation" and/or "home improvement"?
I'm sure Dave would say EF all the way, but.... but... Did I mention it's a huge refund? I keep thinking what I could have been doing with that money during the year if 1) I'd had it, AND 2) I'd been clued in to TMMO and YNAB budgeting.

So what should I do?
I would go EF all the way.

Quote:
Originally Posted by namellea View Post
I haven't checked in for a while, but I'm being good with the budget. But.... We are making a big decision financially that DR probably wouldnt' approve of.... we have an older house that really needs some work (and, um, insulation!) and we are refinancing for 30 years (again) and taking cash out of the equity to do some home repairs. We are still only gonna have about half of the value of the house financed, but it's 30 years. The interest rates are super low right now and, well, I want to do this. We had a five year second mortgage (we used to buy a car) already we are also paying off in the process, so that our monthly bills will actually go down. (I know- if you really think about it that means our car is financed now for 30 years.....I am choosing not to see it that way. Instead, I am saying the car is paid for and we owe more on our house.)

This will free up a bit more money in our monthly budget to do our debt snowball more aggressively (we will be done as soon as that tax refund check comes...) and then save more aggressively. And that will hopefully mean I can go part-time when the possibility opens up at work and be home with family more.....

I am so impressed with all the great work here by everyone. I am psyched about all the goals met!

Jaime- way to go on the EF and on losing some inches. Isn't there great joy in feeling disciplined in your life?
It is good to see you

Quote:
Originally Posted by mia_jean View Post
Hello! I just joined this thread and I wanted to add my get out of debt plan.

0-- Get current on bills - done! Finally!
1 -- $1,000 to start an Emergency Fund -$1000
2 -- Pay off all debt using the Debt Snowball -this looks daunting,but baby steps right?
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!

I'm excited to read how other MDC families are doing the program.
Mia

I have you updated

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

Sorry I have been MIA. This ear infection has knocked me on my butt. I have been spending most of my time resting in bed.

I hope everyone is having a great week
post #115 of 284
Ok I think I am ready to join.

0-- Get current on bills ALWAYS DONE!!
1 -- $1,000 to start an Emergency Fund DONE!!
2 -- Pay off all debt :18200 TO PAY INCLUDING CAR PAYMENT
3 -- Three months of expenses in savings 1900 OF 13200
4 -- Roth IRAs and pre-tax retirement :HAVE ONE BUT NOT SAVING 15% YET
5 -- College funding for children DS HAS ONE
6 -- Pay off home early:NO HOME YET
7 -- Build wealth and give! ---ONE DAY
post #116 of 284
I am so happy that I found all of you : I LOVE Dave!!!! Dh and I just saw him live in Feb and met with on of his financial counselors last thurs and we are getting our butts in gear. We have no household debt but way too much business debt (DH has a construction/lawn/snow company). We live in Michigan and the economy sucks big time so we are doing our best with what we have to work with. I stay home with the kids but have a small side business encapulating placenta for our local birth center to make some extra money. So far I have funded our Christmas budget and our summer vacation doing this Right now I am trying to save as much as I can from our house $$$ to fund our baby emergancy fund and DH is trying to do the same for the business. One of our problems is that I would go down to bare bones but DH is having non of that so I some times feel like he thinks that I am trying to "mother" hiim and I want him to feel like we are a team. Anyway you will be seeing lots of me know that I found all of you and I am excited to have some support!!!
post #117 of 284
Oh and Jaime I love the way you spell your name......I do it the same way :
post #118 of 284

Still plugging away...

I'm still plugging away...loving being on a budget!!!! We are current on our bills now, but don't have our EF yet. We don't have anything saved for the EF except for our change jar behind our bedroom door! But...I'm hopeful...I'm wanting to have a yard sale in the next month or two and my husband will get an extra pay in May. So...we should have it by the end of May.

The good news though...we haven't used our credit cards in about 10 or 11 weeks (since starting). And...I've only used my debit card twice (I think) in those 10 or 11 weeks. That's huge for me!!!

I'm constantly reading this thread to stay motivated!!!

Thanks
Mjoy
post #119 of 284
subbing

I've read Dave's books a few times over the past few years and would love to join this thread. Reading others' stories is so inspiring and dh gets tired of talking/hearing/thinking about money issues. He thinks I obsess, but I think given our situation in the past I've got good reason to. :

I'm a SAHM and have been for nearly 11 years but am going back to school in the fall for my RN degree. My student loan from my first bachelor's degree is our debt, plus mortgage.

My question is what to do with the $1000 EF and then the 3-6 month EF. I can't see putting it in our bank savings account that gets only 1%, but I know you want to keep it liquid for when you might need it (only not so liquid that dh thinks it's super easy to get to, lol).

So to start, here's our steps.
0-- Get current on bills : always done
1 -- $1,000 to start an Emergency Fund : done
2 -- Pay off all debt using the Debt Snowball : $29K in student loans at 7.5% which will increase some over the next two years as I'm going back to school (going for my RN though so anticipate making a decent amount to pay this off fairly quickly)
3 -- Three to six months of expenses in savings : just starting, only $100 so far but are working toward this before trying to pay off student loans in BS2
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement : currently invest 5% plus get matching 5%
5 -- College funding for children : ugh, none yet, pray for scholarships
6 -- Pay off home early : owe $128K @ 2% with 27 years left
7 -- Build wealth and give!
post #120 of 284
Quote:
Originally Posted by lauriem33 View Post

My question is what to do with the $1000 EF and then the 3-6 month EF. I can't see putting it in our bank savings account that gets only 1%, but I know you want to keep it liquid for when you might need it (only not so liquid that dh thinks it's super easy to get to, lol).
I've been obsessing over this question, too. I think i've decided to keep 6 weeks expenses liquid in the savings acct. (thinking that would cover any sort of emergency like transmission blows, fridge dies, ect) for the rest i am going to split it up into percents, (don't know how yet) but some in 3 month CDs, 6 month CDs (all with different maturation dates) and T bills and maybe a money market deposit account. lol, honestly, i don't have a real plan. like i said, i am obsessing over this
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