Dumping Debt and Building Wealth with Dave Ramsey ~ May - Page 14

[lalaland42]

Originally Posted by dhinderliter

ooohhhh...its cause your selling and don't want the cops to know where your income comes from??!! ROFLMAO where was that tribe started??! :

Well, duh... Then it would have to reported as taxable income.

[MyTwoAs]

Originally Posted by lalaland42

You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.

ROFL. I don't think $100 a month would support much of a habit. I guess I hadn't thought of someone else unfamiliar popping in and wondering wth I was doing LOL.

[jeca]

Originally Posted by lalaland42

You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.

[lauriem33]

You ladies crack me up. First it's receiving bills surly and now budgeting for blow. I love it.

[mumkenna&lucas]

Heres mine: I always round up so they are whole $ amounts And we are not zero-based at this time but we are pretty close DH has very irregular income, so we sometimes have extra $$ which we will put into savings ..

Homeowners ins. and tax $- $500
Savings 200.00
Tithe 100.00
Car payment - 386.00
Car insurance - 190.00
Groceries - 400.00
Gas - 400.00
Blow - 300.00
Medical - 20.00
Ballet - 45.00
PG&E- 170.00
Garbage - 33.00
Phone&DSL- 71.00
Water - 63.00
School- 235.00
Entertainment - 10.00
Clothes - 70.00
CCards - 100.00

[Purple*Lotus]

Originally Posted by lalaland42

You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.

[phathui5]

Good Lord ladies, I'm away for a day and you're all doing drugs.

So, as we near the end of the month, how is everyone doing with the baby steps? Meet any goals? Make progress?

[Mama Rana]

:*whine*: I'm scared, ya'll. I haven't entered any receipts into my budget tracker for ages, and I haven't taken a close look at the bills in a while. Most are paid automatically, but a few I still need to go hit the button on my bank website to send. And now I'm so scared and overwhelmed, that I'm avoiding it. I know it's not going to be HORRIBLE-we're-going-to-lose-our-home, but I have no idea how we've been doing on our budget. I really need to convince DH that envelopes are the way to go. The debit card is just too easy. He prefers it in the bank--can't remember why--but it's not safer there if it's so easy and tempting to spend, yk? Our checking account doesn't earn interest, and the savings account earns a pittance. so yeah. The question is how many envelopes to make..... When is the first? Sunday?

[shepav]

Hi Ladies!

My husband and I are huge fans of Dave Ramsey, but this is the first time I've written on this board. Over the past couple of years we've paid off both cars, paid down our student loans from $50000 down to $18000. I can't wait to get rid of these darn student loans!!!

This is what we have been doing, and doing this out of step. Please let me know what you ladies think. We have recently relocated and moved into a rental, the cheapest we could find.

We've stopped paying on our debt, and have been putting all of our "extra" money into savings. We've been saving for a downpayment, as we're hoping to be ready to buy a house before the market starts picking up.

What are your thoughts on this? My dh has started getting some overtime, so we're planning on using that money to throw toward my debt, but... it won't be anything significant. Bad move? Should be stick with Dave's plan and why?

[phathui5]

Here's the thing: You're paying more in interest than you'll earn by saving that money. You've come so far in paying everything off and getting to the point where you don't have any debt payments will not only make it easier to save up for a down payment but will make things easier on you all when you have all the home related expenses.

It's my understanding that saving for a house is Baby Step 3b. You would do it after you've paid off all your non-mortgage debt and saved up 3-6 months of expenses. I would say that it's especially important to have the bigger emergency fund after you buy a house, because unexpected things are bound to pop up when you own a house that you won't have a landlord around to fix.

[MyTwoAs]

Originally Posted by phathui5

I would say that it's especially important to have the bigger emergency fund after you buy a house, because unexpected things are bound to pop up when you own a house that you won't have a landlord around to fix.

We just had a $2300 air conditioning repair bill....in Arizona, not enough to cover it all. I definitely recommend making sure that you have sufficient savings to cover home-related Murphy visits prior to buying a house. Some areas of the country aren't expecting the market to turn around for a few years (lucky me, I'm in one of them - *sarcasm* - I'm ready to sell hehe).

Congrats on paying down so much debt - how quickly do you think you could pay off the $18k in student loan debt?

[shepav]

Originally Posted by MyTwoAs

We just had a $2300 air conditioning repair bill....in Arizona, not enough to cover it all. I definitely recommend making sure that you have sufficient savings to cover home-related Murphy visits prior to buying a house. Some areas of the country aren't expecting the market to turn around for a few years (lucky me, I'm in one of them - *sarcasm* - I'm ready to sell hehe).

Congrats on paying down so much debt - how quickly do you think you could pay off the $18k in student loan debt?

Well, if we only keep $1000 in our savings, we could put $12000 toward the student loan right now. I'm pretty sure dh won't agree to this though. If we started paying off the debt monthly as of now, we would be able to put $950 toward the loan every month.

I know what you mean about the housing market... we lost $10000 on ours when we relocated. That pretty much stunk. And we are in Michigan, who's been struggling for a while, so.. you're right; the market may not pick up any time soon.

[lauriem33]

Originally Posted by Mama Rana

I really need to convince DH that envelopes are the way to go. The debit card is just too easy. He prefers it in the bank--can't remember why--but it's not safer there if it's so easy and tempting to spend, yk?

You might want to re-think the envelope system if DH is already tempted to spend with the money in the bank. With the envelopes it'll be right there in your house to just grab and go. If he's not on board with reducing spending it might be hard to get him to follow that type of a system, yk?

One thing you might want to try is opening an ING savings account and putting over there every $ above and beyond bills and living expenses. That way the money is "safe in the bank" if that's what DH is worried about, but it's not nearly as easy to get to as it is when it's linked directly to your debit card. You actually have to go into ING and transfer it over to checking and it takes about 2 days for the money to be moved. Plus it actually earns around 3% so not the nothing that regular checking/savings earn.

[TattooedMama]

Originally Posted by shepav

Well, if we only keep $1000 in our savings, we could put $12000 toward the student loan right now. I'm pretty sure dh won't agree to this though. If we started paying off the debt monthly as of now, we would be able to put $950 toward the loan every month.

I know what you mean about the housing market... we lost $10000 on ours when we relocated. That pretty much stunk. And we are in Michigan, who's been struggling for a while, so.. you're right; the market may not pick up any time soon.

Hi shepav!

So... I am not sure why you are holding onto $12K in the bank when if you threw that and $950 a month at your student loans you could be
DEBT FREE
in 6-7 months?
I'm jealous, I tell ya. That's why I'm yelling!

[Purple*Lotus]

Originally Posted by Mama Rana

:*whine*: I'm scared, ya'll. I haven't entered any receipts into my budget tracker for ages, and I haven't taken a close look at the bills in a while. Most are paid automatically, but a few I still need to go hit the button on my bank website to send. And now I'm so scared and overwhelmed, that I'm avoiding it. I know it's not going to be HORRIBLE-we're-going-to-lose-our-home, but I have no idea how we've been doing on our budget. I really need to convince DH that envelopes are the way to go. The debit card is just too easy. He prefers it in the bank--can't remember why--but it's not safer there if it's so easy and tempting to spend, yk? Our checking account doesn't earn interest, and the savings account earns a pittance. so yeah. The question is how many envelopes to make..... When is the first? Sunday?

I am sorry you are going through this I don't use the envelopes so I am not much help there

[pranamama]

I am starting back over at BS#1

[Mama Rana]

Originally Posted by lauriem33

You might want to re-think the envelope system if DH is already tempted to spend with the money in the bank. With the envelopes it'll be right there in your house to just grab and go. If he's not on board with reducing spending it might be hard to get him to follow that type of a system, yk?

One thing you might want to try is opening an ING savings account and putting over there every $ above and beyond bills and living expenses. That way the money is "safe in the bank" if that's what DH is worried about, but it's not nearly as easy to get to as it is when it's linked directly to your debit card. You actually have to go into ING and transfer it over to checking and it takes about 2 days for the money to be moved. Plus it actually earns around 3% so not the nothing that regular checking/savings earn.

Hmm, good points. I definitely won't start unless I have him on-board. And I'm just as bad, so... yeah, I see your point. Well, we'll see.


Jaime, thanks for your sympathy. I hope to get it done tonight.

[MyTwoAs]

Originally Posted by shepav

Well, if we only keep $1000 in our savings, we could put $12000 toward the student loan right now. I'm pretty sure dh won't agree to this though. If we started paying off the debt monthly as of now, we would be able to put $950 toward the loan every month.

I know what you mean about the housing market... we lost $10000 on ours when we relocated. That pretty much stunk. And we are in Michigan, who's been struggling for a while, so.. you're right; the market may not pick up any time soon.

Tough decision but I think the fact that you're questioning it is good - you've got that little "pang of pain" when it comes to spending $$ (that isn't credit) that DR talks about on his show. I think I'd pay down your student loan and put that $950/mo on to it and be debt free in a few months and then really bang away at your FFEF/down payment. Just a WWMD (what would Melissa do) hehe.

[Purple*Lotus]

I am outting myself here, a bit.. but I can't have money at all.

I have very little self control, and I am not embarassed to admit that I have handed DH my debit cards and all of my cash and asked him to please lock them in the safe and hide the key from me. That is truly the only way that I can control myself.

So the envelope system does not work for me. I am to the point where I can't even go to the grocery store alone. Maybe I have more of a problem that I thought? :

[MyTwoAs]

Originally Posted by ~*Jaime

I am outting myself here, a bit.. but I can't have money at all.

I have very little self control, and I am not embarassed to admit that I have handed DH my debit cards and all of my cash and asked him to please lock them in the safe and hide the key from me. That is truly the only way that I can control myself.

So the envelope system does not work for me. I am to the point where I can't even go to the grocery store alone. Maybe I have more of a problem that I thought? :

I'm a spender myself and I have a weakness for shoes...eep! We can support each other.