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

post #121 of 309
steps

1-done-current
2-done-1000
3-currently doing. plan to be done by 2015
4-someday
5-someday
post #122 of 309
Well I'm done for now :P

We are in contract. We will be moving in less then a month, and then I'll come back
post #123 of 309
QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
post #124 of 309
BS 1: done!!
BS 2: 35,900 to go

Baby steps, right? Just baby steps...
post #125 of 309
Quote:
Originally Posted by TattooedMama View Post
QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
Probably when I first realized and accepted that I am not entitled to anything, just by default of being alive. And the concept of my parents working for 35 years to have a nice house, so therefore, I should not expect to be handed the same nice house and furniture that they have after only working for 4 years

It all comes down to me being selfish and feeling entitled. I am really working on that. Trying not to be selfish and feeling entitlted to things has saved me so much money. You just can't imagine.
post #126 of 309
Quote:
Originally Posted by TattooedMama View Post
QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
i guess that never really happened. since we started with minimal debt its more of a "keeping myself accountable" goal than Aha! kind of thing. its just tightening the budget i already had in place and the purposeful movement of money to pay down our cars.
post #127 of 309
Quote:
Originally Posted by TattooedMama View Post
QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
OK, I guess I asked a confusing question...
What I meant was what did it feel like when you "got it?"
I remember a year ago I was back at work from my maternity leave and we were trying to figure out if I could quit working my part time job or not. It is almost laughable to me now how ignorant we were. We had no written budget, we paid the bills, (mostly on time) and then "guessed" if we had enough money left over to eat out Thai food or whatever.
I quit work anyway and we prayed we would still be able to pay the mortgage and buy groceries, but we thought it was important enough for me to be home with our three boys to wing it.
We limped along and watched our money and paid the bills all summer and then started TTMM last Oct.
OMG! We are idiots! We have plenty of money. The A-HA! moment for me was when I realized we had paid all our bills, I had bought a week or two of groceries, the cars had gas and we would still have some money coming in later in the month. And that was a good feeling. I didn't feel like I needed to go buy things to fill myself or my house up. My paycheck from work used to go to Caribou coffee shop and Target. :
It was awesome to realize that we had paid off a small balance Best Buy card several months early and hadn't had to eat dog food to do it.
That's when I turned into a zealot. In a good way.
Anyone else have any stories????
post #128 of 309
Oh, and Happy Mother's Day!
post #129 of 309
Quote:
Originally Posted by TattooedMama View Post
QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
Umm, yesterday? hehe

In May of 2006 my husband and I purchased a brand new Infiniti G35 Coupe and then over the next twelve months put more than $10k into it to customize it for car shows. It was fun, not smart, but certainly fun.

As of yesterday I no longer drive an Infiniti. I still have a car loan but between insurance, car payment and maintenance on the G35 I'll be saving about $700/mo that I can put onto a snowball. I was a little nauseous when I sold it and that is when I realized how silly I was to have such an emotional attachment to a vehicle.

Now we'll be able to clear BS2 in about 18 months plus cash flow my college (going part-time, will graduate in two years).
post #130 of 309
Quote:
Originally Posted by TattooedMama View Post
Oh, and Happy Mother's Day!
Yes Happy Mother's Day to all the moms.
post #131 of 309
Thread Starter 
Quote:
Originally Posted by TattooedMama View Post
QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
After dh read The Total Money Makeover and got on board with the idea of doing the budget together. After the first two months, we found that we had money for everything we needed with extra left over to snowball. Us thinking we were broke had come from us not communicating about money.
post #132 of 309
Today we decided to take our emergency fund and stimulus check down to $1000 and use the rest to pay off our credit card. So here we are:

StrawberryFields
BS1 $1,000 to start an Emergency Fund
DONE

*CURRENT STEP BS2* Pay off all debt using the Debt Snowball
Credit Card: $1,400.00 DONE
Car Loan #1: $5,000
Car Loan #2: $15,000

BS3 Three to six months of expenses in savings
BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement (6% current /15% goal)
BS5 College funding for children
BS6 Pay off home early
BS7 Build wealth and give! Invest in mutual funds and real estate
post #133 of 309
Quote:
Originally Posted by TattooedMama View Post
QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
I'd say just in the last month I really got how powerful the snowball can be. We inherited a little bit of money from my grandmother, and used that as well as our tax return to pay off 4 of our credit cards. Realizing how much of a difference that made to our cash flow got me really excited, and I can't wait to knock out some more of them. Around the same time, I realized that I was writing our 25 checks a month just for bills - no wonder I felt like it was overwhelming, had a hard time getting everything paid on time, etc.

I would say those two things were the "A-HA!!" for me, and it has made it so much easier to continue with it.
post #134 of 309
Awesome!!!
post #135 of 309
Hi everyone! I'm new to this thread and I am very excited to jump in! My dh and I did the FPU several months ago, so we know all about Dave Ramsey and are looking forward to having FREEDOM! Anyway, I'll post more later. I have a sick child that needs her mama, AND we'll be working on our new budget tonight, so I'll post our baby steps and whatnot later.
post #136 of 309
Thread Starter 
Good news!

I got an email from a mom that I've babysat for asking me to watch her kids over summer break. It'll be $300 a week for 10 weeks and will give us a big shovel over the summer to work on this debt.
post #137 of 309
Great news!

My BP is finally under control! This will drastically reduce my medical bills because I wont have to go to the doctor so many times a month to get checked! I am so happy
post #138 of 309
Best news! - I couldn't help it.

Just saying I happy for you two

phathui5 - That is great. It is always good to get extra money. Good for you.

~*Jaime - This great your BP is under control and that you are feeling better. More money for you.
post #139 of 309
Quote:
Originally Posted by ~*Jaime View Post
Probably when I first realized and accepted that I am not entitled to anything, just by default of being alive. And the concept of my parents working for 35 years to have a nice house, so therefore, I should not expect to be handed the same nice house and furniture that they have after only working for 4 years

It all comes down to me being selfish and feeling entitled. I am really working on that. Trying not to be selfish and feeling entitlted to things has saved me so much money. You just can't imagine.
I found your post really insightful. It would be so helpful if our kids would learn this idea along with money management skill before they leave home. It is hard just starting out. Dh and I had our house reasonably done and furnished and then it burned down. So, now it is like we are starting over. We went ahead and made the place bigger-as our original house was not built with kids in mind. so, even though we had insurance we still didn't get this place all the way finished. So, now I find myself back in that place trying to restrain myself from wanting to finish everything at once. I could spend and spend and spend and still not have it all the way done. I just have to be patient and learn to appreciate the moment and be happy with what we have, before just moving on to wanting something else.

So, I am trying to keep this in mind as I am trying to keep the savings up high and spending as low as I can, all the while doing those household jobs a bit at a time. This year I have started sending money straight to the savings account. So, our savings account is doing well, but our checking account is down, so we will need to spend the next couple of months being "good" to get it back up again.



phathiu5- that is so awesome an extra $3000 will go a long ways, I bet you are so excited!

Jaime- that is great about your bp for your health and pocket book.
post #140 of 309
I haven't posted in forever but just wanted to woohoo I paid off a card yesterday!!
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