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Dumping Debt and Building Wealth with Dave Ramsey- July - Page 7

post #121 of 146
I just did Dave's balance to zero sheet last night and it was a real eye opener. We are just barely making it each month with little left over to pay down debt. So this weekend I'm going to go through all of my baby stuff and try to sell some to generate funds to pay off our cc and eliminate that monthly payment. My snowball needs more momentum! I'm excited about getting out of debt but feeling discouraged about how long it will take. I know it didn't happen overnight but I'd still like to see more progress!
post #122 of 146
Hello!

I don't have anything to add to the thread. I just purchased the FPU program today and can't wait to join y'all next month!!! :

I also have just printed out the Balance/Zero sheet. Can't wait to fill it out with husband this weekend.

Mrs B
post #123 of 146
Hi,

I'll join in...

BS1 $1,000 to start an Emergency Fund - DONE
BS2 Pay off all debt using the Debt Snowball - DONE (not including the student loan which is locked at 2.5%)
BS3 Three to six months of expenses in savings - Working on it: $2000/$9000
BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement - DONE
BS5 College funding for children - DONE
BS6 Pay off home early - Working on it
BS7 Build wealth and give! Invest in mutual funds and real estate - Not yet

End of year goal: Complete BS3, save $7K or more
post #124 of 146
Quote:
Originally Posted by phathui5 View Post
Is anyone else here beyond Step 3? I'm finding now that we're working on steps 4-6, it's hard for me to be motivated to be frugal, because it's going to take way longer to pay off the house than it did to do steps 1-3.
Have you played around with DR mortgage calculator on his web site? What would it take to pay off in 12 years? 10 years? 5 years? Maybe that would be "fun" for you to see. : ) (NERDS!).

Another idea is making baby step goals with the large balance. For example, every time you get into the next digits - going from $63,000 to $59,999 - CELEBRATE BIG. Celebrate big again at $49,999. Give yourself some kind of "gift" for achieving the next $10,000.

We will be at baby step 3 when we refinance our house and combine the first and second mortgage to a 15 year loan. That is not an exciting way for me to get to step 3, but it makes the most sense for us. For us, we're highly motivated to get our 3-6 months savings and get back to contributing to 401K. That is painful (and motivating) stopping that in the first few baby steps.
post #125 of 146
QOTW: Can you go sell something this weekend and make a little cash?
Go take advantage of Craigslist and see what you can sell. : )
post #126 of 146
BS1 $1,000 to start an Emergency Fund done!

BS2 Pay off all debt using the Debt Snowball paid 1353.95 today yay

BS3 Three to six months of expenses in savings

BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement

BS5 College funding for children

BS6 Pay off home early

BS7 Build wealth and give! Invest in mutual funds and real estate
post #127 of 146
NAK
OK! everyone's doing beautifully here!
ok-here's where we are at end of month:

midwife paid in full!
BS 0-done
BS1 1,000 to start an Emergency Fund --DONE!!: we completed this the day before DD was born.
BS2 Pay off all debt using the Debt Snowball
BS 1.1- Adoption100/2200-phone conference w/lawyer today
HBSC Cc-211.00/191.00
Elan Cc-2362.92/2319.92
Working Assets Cc-3800/3700
Citi-7800/7720
Student Loans 39,000( Pie in the Sky!!)

BS3- (3-6 mos)looking forward to working on this.
BS4-15 percent of household income to retirement-not yet.
BS5 College funding for children-not there yet.
BS6 Pay off home early-Ditto
BS7 Build wealth and give! Invest in mutual funds and real estate-ditto

weekly challenges:
set up drawer in Steph's filing cabinet for paperwork-done/need to make file & organize
filled out aplication for term life- 7/28 (wanted to not be pregnant)
listed books on half.com/more to list

whew! lawyer is willing to bill us-we are in court on 6th or 8th and final soon thereafter!
post #128 of 146
Thread Starter 
Congratulations mimimapster! It was a big thing for us to get the midwife paid off too.

Welcome mama2naomi! I added you to the roll call.
post #129 of 146
Thread Starter 
Quote:
Another idea is making baby step goals with the large balance. For example, every time you get into the next digits - going from $63,000 to $59,999 - CELEBRATE BIG. Celebrate big again at $49,999. Give yourself some kind of "gift" for achieving the next $10,000.
This is an awesome plan.
post #130 of 146
I am making super slow progress, but I have to stay positive eh...
post #131 of 146
Quote:
Originally Posted by Mommy&Will View Post
QOTW: Can you go sell something this weekend and make a little cash?
Go take advantage of Craigslist and see what you can sell. : )
Okay, no one answered me.

Well, we did not sell anything this weekend, although we do have our truck up for sale and thought we had a buyer. He's totally interested but wants to "pay us some now, the rest later." He wants to take the car and have us keep the title until he's paid in full. Um, no thank you. I can't figure out why people would go car shopping without having the money to buy it ready.

I did score some great deals at garage sales and thrift stores! Bought some Clark shoes for winter for $5, and bought my dress, purse, and shoes for a wedding this weekend for $10 at the thrift store! Love that.
post #132 of 146
I didn't end up listing anything FS this weekend, I meant to but didn't. I have so much baby stuff but I'm not sure if I should hang onto it or sell. But I did cash in our CD, it was our emergency fund and it was more than $1,000. I rolled $1,000 over into a savings and put the rest towards some debt. We are a lot closer to paying off the cc and I'm excited!

Anyone else have a partner that feels the need to hang onto cash rather than apply it to debt? DH is always trying to get me to build up our savings rather than pay down debt. I explained to him how we are paying more in interest on debt than our savings account pays us but he still feels the need to have a massive savings.
post #133 of 146
Quote:
Originally Posted by Jilian View Post

Anyone else have a partner that feels the need to hang onto cash rather than apply it to debt? DH is always trying to get me to build up our savings rather than pay down debt. I explained to him how we are paying more in interest on debt than our savings account pays us but he still feels the need to have a massive savings.
My dh goes back and forth on this. I can understand the desire for more cushion, mostly with the way everyone is freaking out over the economy.

But I remind dh what Dave Ramsey says about this:

If you didn't have that money to put in savings.... would you go get a loan at 9% interest (or whatever interest your cc is at) so that you could put that money in savings? Essentially that is what you are doing when you choose to save that money rather than put it toward debt.


Does that make sense? Helps calm my dh down everytime. : )
post #134 of 146
Quote:
Originally Posted by Jilian View Post
I didn't end up listing anything FS this weekend, I meant to but didn't. I have so much baby stuff but I'm not sure if I should hang onto it or sell. But I did cash in our CD, it was our emergency fund and it was more than $1,000. I rolled $1,000 over into a savings and put the rest towards some debt. We are a lot closer to paying off the cc and I'm excited!

Anyone else have a partner that feels the need to hang onto cash rather than apply it to debt? DH is always trying to get me to build up our savings rather than pay down debt. I explained to him how we are paying more in interest on debt than our savings account pays us but he still feels the need to have a massive savings.
I think that that is kind of unusual for a man. As a woman, I know that my security gland gets tied in knots if we have to dip into our E-Fund for something. DH just gets annoyed that we didn't see the expense coming. I think we need to set up an e-fund for our baby e-fund.
post #135 of 146
I am really enjoying reading as people share their small and large successes. It's so motivating! :

We have $3000 in Emergency Savings, but have a lot of debt. Since I'm on maternity leave and dh is seasonally unemployed, things are going to continue to be tight $ around here until I go back to work in January. I'd really like to blitz dh's $3000 student loan as the first step of the debt snowball, since HALF of our monthly payments are going to interest (gah!!!) but I have no extra cash flow for that. It's soooo tight. Sigh. One step at a time. I am considering what I can sell to get some extra money, and also am considering some self-employment to get some extra money in to put towards blitzing debt. But I am stretched so thin as it is with time and energy....we'll see....

Keep at it Mamas!
post #136 of 146
funny..i didn't see the QOTW. although i had/have intended to put some stuff on CL. need to get rid of the mower and trimmer which should have another $75 to put into savings. dh NEEDS to get rid of the motor lift but i haven't a clue why the heck hes keeping it.

our snowball is stalled. things are to tight around here and its to depressing....
post #137 of 146
Thread Starter 
*&*^ $^^# @&%$

Dh came home tonight unemployed. I guess Murphy doesn't know we have our FFEF done, but dangit, I didn't want to have to use it.
post #138 of 146
Quote:
Originally Posted by phathui5 View Post
*&*^ $^^# @&%$

Dh came home tonight unemployed. I guess Murphy doesn't know we have our FFEF done, but dangit, I didn't want to have to use it.
So sorry to hear about the unemployment! Thank goodness for your FFEF; hopefully your DH finds new employment quickly and the FFEF does not take much of a hit. Good luck!

Kim
post #139 of 146
Time for a quick recap of July goals before pushing this snowball forward into August:

1. Sell (1) rental property - Still doing final fluff + buff - need to push really hard in Aug.
2. Sell DH's motorcycle - DONE!
3. Break $65K in paid off debt since beginning snowball (Feb. 2008) - DONE!


SNOWBALL PROGRESS...

Since the official launch of our snowball on 2/15/08:
(Our payoffs include large chunks of LT debt (before ST debt is complete) b/c it was a requirement to partially pay off a mortgage with recent land sale)

Snowball - Phase 1 (BS2/short-term): $13,250.17 PAID OFF

Snowball - Phase 2 (BS6/long-term - mortgages for 3 properties, HELOC, + grad school loan): $52,084.36 PAID OFF

TOTAL PAID OFF: $65,334.53

Snowball Goal for July: break $65,000!
***************** DONE!!!!! **********************

Kim :

GOALS FOR AUGUST:
1. Sell (1) rental property
2. Break $67K - will aim higher if rental sells
post #140 of 146
Quote:
Originally Posted by phathui5 View Post
*&*^ $^^# @&%$

Dh came home tonight unemployed. I guess Murphy doesn't know we have our FFEF done, but dangit, I didn't want to have to use it.
I'm so sorry to hear this, but I'm glad you have the FFEF.

We're in the process of selling our condo (close next Friday) and moving in with Mom while we look for a house. While our payments will go up once we buy, we plan to stay a long time - we couldn't stay in our condo much longer. the small space, lack of privacy, no outside area and no kids for DDs to play with was driving us crazy. Because of the move, I had to quit my job as a teacher here, because Mom (and the new area we will move to) is just far enough that the commute will kill me. I am currently waiting for interviews with a new county system and as it gets closer to the start of school I am getting antsy.

Luckily, in the last year we have sold one car, paid off another, paid off all CCs and one (private) SL, so all we have left is the two huge SLs, but we are in a much better shape financially, and the new school system will pay at least $5k more. I'm really hoping it all works out, but murphy seems to be a permanent resident in our household these days. :

Our back up plan is to live with mom long term, but with 4 adults and 2 kids in a quite small house, I think we will be very motivated to save up and get out!
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