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Dumping Debt and Building Wealth with Dave Ramsey~ April - Page 3

post #41 of 274
Thread Starter 
I have everyone added/updated
post #42 of 274


Currently we are at: $4034/$2100 We are going to be putting our tax return to this account when we receive it. I have to send the paperwork back to the accountant this week. We are getting about $4200 state and federal together.

April is going to be a tight month for us because we have to pay the accountant $300. We were able to find it in the budget but pretty much all the non-essentials in the budget are not getting anything this month. I'll post my budget on a separate post.

Be well,
post #43 of 274

My financially responsible boy...

So, yesterday, Mark (dh) took Theodore (ds#1) to Yu Gi Oh Draft night. He has been waiting for weeks to go because he had to save up $12 to play. So, he finally gets the $12. It is about a 35 minute drive to get to the shop. They get there and it turns out that Theodore took the wrong envelope, he took Issac's (ds#2) which only had $9 in it. And to add to that the shop increased the price to $15 due to rare cards in the packs. So, there he is with no enough money, and not even his own money. Mark calls me. I talk with Theodore. I ask him what would be the right thing to do? He sounded very dissipointed but said that she should not play. Mark was willing to put it on the debit card, I was not happy with that suggestion. Us paying for his gaming would put him into debt to us. I suggested to Theodore that he could stay to watch. That is what he decided to do. He had a fine time watching and was not overly upset after the initial dissipointment. I think that it was tougher for Mark then Theodore. I'm very proud of Theodore for making the right decision. We are very open regarding money in our house and it is paying off in our children's attitude towards it. !

Be well,
post #44 of 274
Hurray, April!

BS1 700/1000 (replenished on 04/11/08)

April 1st debt numbers:
Mastercard 1 $1699.36
Mastercard 2...4999.99 ***
Student Ln 1...3219.49
Student Ln 2...6919.87
Auto Loan.....11495.29

Written Budget:
Natural Gas.....0.00
Cell Phone.....80.00
Cable............55.80 (last month of cable! We canceled this yesterday! )
Auto Ins.......142.82
Weight Watch..80.00
Car Payment..385.00
Mastercard 1...40.00
Mastercard 2...80.00
Student Ln 1...50.00
Student Ln 2...50.00

Income: $2800-ish

*Edited since March 31st.

Well, here it is April 2nd, and I'm already editing the budget!

***This is the card that I ran up mostly at Starbucks when I was single, lonely, and STUPID. Only 1265 grande lattes to pay off.
post #45 of 274

Where are you on your EF savings?
post #46 of 274
Originally Posted by phathui5 View Post

Where are you on your EF savings?
BEF 700/1000 (drawn down last month) Will be replenished by 04/11/08
post #47 of 274
Very nice.
post #48 of 274
coming back to post more.
post #49 of 274
Thread Starter 
I am deleting this total "duh" post that I just had up. I overlooked something so what I originally said was totally stupid
post #50 of 274
Thread Starter 
In case you are curious, I was ranting earlier because my DH told me tonight to go buy new soap and shampoo because he is allergic to the brands I use right now. I did not want to put it in the budget, because I have Rosacea and the stuff I use now is dirt cheap compared to the other products out there. Then I was like, duh, Jaime, wash your face in the bathroom sink, not in the shower, that way it wont be near him to break him out *it causes a rash on his feet. Weird, huh?? My DH has weird feet, I guess *

I will have to buy some shampoo, though, because I have never been able to master washing my hair in the sink. So it wont be as bad as I was originally thinking, budget wise. I mean, how expensive is shampoo? Like, $2 for a bottle.. I hope! I have been using the shampoo bar for so long now.
post #51 of 274
Originally Posted by AniellasMommy View Post
Sometimes I don't care if I'm ever out of debt. I just wanna be the kid in the candy store.
That is how I feel as well!
Dave has a really funny clip about this in one of his FPU videos!
post #52 of 274
I must keep telling myself its a good thing! DH was asked to work one more night on his shut down and I was quite looking forward to having him home tongiht, but its 10.5 hours minimum of 16$ an hour, and at least part of it will be overtime, and while it means gas, it also means and extra day's per diem pay at 70$ a day (50$ above gas cost) so we're looking at at least $200 more than expected. And that's a good thing, but I so wanted my DH home tonight.
post #53 of 274
kerri, I can totally relate. But really, one more night = serious cash for you guys. Think of the mastercard commericials, which Dave Ramsey should modify to say, "being out of debt = priceless". Without these personal sacrifices it'll take that much longer.

Anyone read crunchy chicken 's blog? I'm doing her no-spend challenge. Personally I've tried to follow along on the no-spend challenges here at MDC, but I get lost in the never ending thread. And frankly I don't have a cabinet stocked full of food so when people talk about "slipping up" and spending 5 bucks at the store, I just can't relate. Anyhow, here we are, day 3. Thus far I've spent 8.00 on food at work because although I made soup yesterday, in the last bit of cooking I managed to burn it and ick. (and that happened right before I had to leave for work).

I also just mailed off a stupid tax: a speeding ticket and several parking tickets. So today I rode my bike to work. They don't ticket bikes, so I'm hoping to continue this process. (sometimes when I get to work late I have to park at a meter and then I forget to feed the meter ).

Nothing really new to report for me this month. I have to call our cable modem folks today to renew our "bundle", wish me luck.
post #54 of 274
Hi all! We did really well last month. I have been toying with the idea of going pt (I'm the primary wage earner) so we are really buckling down and trying to pretend-live on half our income. With our debt dwindling, it seems possible at some point. Woudn't that be sweet? Supporting our family on 20 hours of work a week? I'd be living frugally, but it would be so worth it.

I really struggle with the grocery bill. I know I splurge on eating out alot, but I know how to change that. Seems I can't do a menu for the week without DH coming home from the grocery store with $200 of stuff for the week. MAYBE $150. I know I'm in an expensive part of the country and we do a fair amount of organic stuff, but I don't see how people have these low food budgets! I really have no idea!

I signed up today for the Angel Food Ministry. I feel a little guilty about it, since on paper we make a lot of money. But I am justifying it by the rationale that on their philosophy they really should be able to make it work better if more people participate. NO? Anyway, I'll give it a try for a month and see. Even if I never do it again, I will have saved for next month's grocery bill.

We did pay off our car. Since I previously combined my student loans with BS 6 (due to large nature and inability to do them in a reasonable time frame), we are technically off to BS 4. BUT, I am afraid our 3-6 months living expenses are about to be used for repairs to the home. While doing some other remodeling, we have found major structural repairs that are needed ASAP (they actually said it was a good thing we didn't get a good snow this year or the house may have fallen!!). So we are gonna continue to save now for this. Yikes! I am heartbroken about having to use that money, but I suppose that is what it is there for (and my job is really really stable).
post #55 of 274
So I just saw Dh's first paycheck from this job, and I'm suddenly much happier about him working tonight. It sucks b/c DD is having a hard day but one more day is a good thing.

Kristen- Good luck with the bundling!

namellea: That sucks about the house repairs, but aren't you glad you know your finances to be able to do it? Its so much easier to look at the challenges now without so many tears here!!

Jaime: It's $1 at the dollar store LOL I'm using up the last of ours right now, and all the partials, and travel bottles, etc. stretching it as long as I can! I just don't want to spend it right now.

So advice please! DH has an aging truck that will need replacing very soon. We know this and had planned to buy him a motorcycle now while we had the money, but continue to be in some debt. But what about letting itgo for now, putting the amount after paying off debt in with our BEF, giving us enough for the bike if truck died before he could work a job to pay for it, but allowing him a chance to earn his bike first (He's a 2nd year welding student so he can go to the union and ask for an assignment). IS that a totally bad plan since we could have to raid our BEF in an emergency, or not so bad? We've got several active lookers at DH's bike and he'd be willing to sell his truck for parts or body as soon as it died or we got the bike. Which would just about or completely make up our BEF. I just don't know. I'd prefer to be out of debt and work towards the bike quickly, than get it now and worry he won't be as motivated to get the bike. Thoughts? *ETA: Okay, I just redid bills and such, and I'd actually come out with *at max* taking the BEF down to 550$ if his car died in an extreme emergency. And technically, we make less than 20k, so DR only recommends 500$ for our BS1 fund. I'm feeling much more at peace with the idea now, but would still love thoughts

oh, and more good news: We got DH's pay check today...the 2nd one comes tomorrow from this Monday-tomorrow AM. Let's just say we got significantly more than I was expecting!!
post #56 of 274
Ugh...I just did our bills since it's payday today. Somehow I was hoping to add $300 to the EF out of this check but it looks like it'll be nothing. Looking at last month we spent almost $800 on groceries (budget only $600) and $120 on eaing out (budget $50). Plus there were some expenses that didn't really fit into the budget because they weren't expected (auto license renewal increased by $30 per year, dh boat registration renewal another $30).

AND it's both our birthday's this coming week but I guess there won't be much in the way of celebration. I just comfort myself by thinking that since we're just starting it's hard and next year we'll be in a better place hopefully and able to spend some on treats.

I need to rethink how to deal with the food amount as well as the unexpected things that come up. Right now at the start it's just so hard becuse there's no wiggle room, no time to budget and save up for those things that come up. It's frustrating. But on a positive note, since we started up our retirement contributions again, our account has increased by $1000 just in the last month so that's nice considering the crazy stock market.

So here's my update and I removed the last few steps because it's just too overwhelming to think about it all at once.
0-- Get current on bills : always done
1 -- $1,000 to start an Emergency Fund : done *just transferred it to an ING account so it's harder to get at too :-)
2 -- Pay off all debt using the Debt Snowball : $29K in student loans at 7.5%
3 -- Three to six months of expenses in savings : $150 so far - doing this before paying off BS2
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement : currently invest 5% plus get matching 5%

short re-intro: 33 (will be 34 on Sun. ) SAHM for the past 10.5 years to two dd's, married 11.5 years, trying to get control of our finances for the first time and it's HARD! I'm so glad to have this support here!
post #57 of 274
Hi there, everyone. I'm weighing in for this month...

We went overbudget last month in almost every category, but especially food and gas, since those seem to have skyrocketed overnight; however, I just don't have more $ in our budget to devote to them. Anyway, I was all set to buckle down and try to see what more I could cut for this month, when DH dropped a far larger and more serious financial bombshell on me.

Serious problem #1:
He finally finished doing the taxes for his business (he's self-employed and our sole breadwinner) and discovered that he OWES $3500 for last year plus an additional $1500 for this quarter's estimated tax payment. He significantly underestimated the quarterly tax payments he made last year. But that's not the worst of it. The worst of it is that he has not planned for, nor put aside, ANY money to pay this tax bill. Not one cent. He wants to pay the bill from our savings/EF, which will deplete it by one-third. I don't think this is a good idea and am very angry with him for not communicating with me about this back when I could have helped him make better choices.

Serious problem #2:
He's also informed me that his business has slowed considerably this quarter (he's an HR consultant, and with so many people either being being laid off or fired, there are fewer companies hiring and therefore needing his services) and that if he doesn't get any new clients immediately, this month is the last month he will have any $ from his business to "pay" us. And he is our only source of income.

So suddenly our household budget issues pale in comparison to having no budget at all. We have around 3 months' worth of living expenses saved (2 if he takes that $ to pay the taxes.) He has no money saved for his business expenses, which run around $2000/month. And he's locked into service contracts for most of that montly expense which don't run out until the summer, so we'll be continuing to rack up that $2000 every month until then.

I'm truly and officially freaked out. And when I'm scared and depressed, I find it really hard to focus and make good decisions. DH feels guilty (he's terrible with planning and not great with accounting, never had been) and is currently doing that "man-in-cave" thing and not talking with me about it, which is only making things worse. Ugh.

post #58 of 274
i'm just starting out...working on getting things current and almost done with that actually. only one more payment next week. i have $20 towards my emergency fund...hey, it's a start. we owe about $15000 in cc debt because of having to live off our cards last year to cover things when dh wasn't working, right after we bought our house! he was laid off 3 days before closing... but he's working and so am i (i take care of 2 little girls during the day). our problems are we got caught in that cycle of getting overdrawn every month when we were trying to keep up, and so every month start out short! so i'm cutting way way back on grocery expenses and anything else i can find this month, in hopes that we don't go over again. we are planning a yard sale for next month and all that money is going into our savings. i've cut up most of the cc's except a couple for the just in case...we literally have no cushion right now if something were to happen to our car or roof, etc...i hate owing so much... we really want to refinance the house, but our credit rating has gone so far down that i don't know if it can happen right now. we are fortunate that we did get a fixed rate, conventional loan...so those payments will never change and we can afford them right now. it's the other stuff we are drowning in!

we are expecting another baby in november, so our goal is to have all the cc's paid off by then and most of the car. we still owe 5k on the car. once the car is paid off, our insurance will go down because we won't have to have full coverage anymore. that will help ALOT!

anyway, i'd like to join your group for support, etc...i'll list my progress in a bit so you can add it to the first post.

thanks for being here!
post #59 of 274
Originally Posted by Guinevere View Post
Hi there, everyone. I'm weighing in for this month...>>>>>>>>>>>>>>

Serious problem #1:
He finally finished doing the taxes for his business (he's self-employed and our sole breadwinner) and discovered that he OWES $3500 for last year plus an additional $1500 for this quarter's estimated tax payment. He significantly underestimated the quarterly tax payments he made last year. But that's not the worst of it. The worst of it is that he has not planned for, nor put aside, ANY money to pay this tax bill. Not one cent.>>>>>>>>>>
Oh Guin!! I'm so right there with ya! If you search the archives you would find MY post freaking out when I discovered that my DH had saved NOTHING in quarterly payments as our self employed SOLE SOURCE OF INCOME!!

So I feel for you. Here's what we did. And I don't know if this will help your larger picture of your DH's business being down right now, but it might help for later. We set up automatic withdrawals from DH's business account to a totally separate tax savings account. This is right now to pay 2008's taxes. We are still paying 2006 ( I think just a couple hundred $'s left), and just found out from our accountant that we OWE $4200 total to state and federal from 2007. This was obviously before we got savvy and started working on our financial peace. :
So we are going to be rolling the taxes owed to the top of the debt pile ahead of paying off our van. As a matter of fact we even decided to take the money that is saved for 2008 taxes and snowball it at the old taxes.
I am so sorry you have such a stressful situation going on. I think in your shoes I would absolutely not deplete your savings to pay those taxes. This is your "storm on the horizon" and you need that money. Those taxes will keep as long as you set up regular monthly payments. Obviously, since we are still paying 2006.
Keep us updated,
post #60 of 274
Hi Cat!
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