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Dumping Debt and Building Wealth with Dave Ramsey - AUGUST

post #1 of 145
Thread Starter 
Dumping Debt and Building Wealth with Dave Ramsey- AUGUST
Welcome to a new month ladies! This thread is for anyone who is following the Baby Steps outlined in the book The Total Money Makeover by Dave Ramsey. New people are welcomed to join us on our journey to financial peace.

These are the Baby Steps:

BS1 $1,000 to start an Emergency Fund
BS2 Pay off all debt using the Debt Snowball
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

Here's the link to Dave Ramsey's website:

www.daveramsey.com

You can do a lot of things on the site, including listening to his radio show.

Everyone post your intro and if you want, your baby steps and I will add it to this first link.

Note - I am out of town this weekend so won't be doing any updating until I get back!
post #2 of 145
We have basically fallen off the wagon..so we really need to get with it again this month! Dh was laid off and we have no er fund in place yet..
BS1 $1,000 to start an Emergency Fund We are here...still
BS2 Pay off all debt using the Debt Snowball
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 #3 of 145
We're treading water. We had our BEF and several sinking funds, but DH lost his job. So now we're living off the BEF and sinking funds - but we're not using the credit card to get more debt!

*sigh* We're back at BS1, again. Bleh.
post #4 of 145
I'm back after falling off the wagon probably 6 months ago. This month we had several unexpected bills, and then our washing machine broke... and all I could think was if we had that darn EF, this wouldn't be so hard. A friend is lending me the book and I'm looking foward to getting back on track again.

BS0 - Getting current on bills...

We have a mortgage payment to make by the 14th, and a loan payment that was due a week ago (thankfully my grandmother is the one who gave the loan)... It used to be that I had the mortgage payed by the first, and I'd like to get back to that. I'm getting ready to sell off some belongings, some of it's going to be hard.
post #5 of 145
BS1 $1,000 to start an Emergency Fund - Done!
BS2 Pay off all debt using the Debt Snowball - Still snowballing away

Murphy visited so our cc did not get paid off but hopefully it will be paid within the next 2 mos. The good news is that we haven't used our CC in a few mos! We rode out our first cc-free Murphy It was a good feeling. We also did our first "net worth" sheet to track our progress. And we're using that "balance to zero" budget starting last week. So far so good, we're actually under budget on a lot of things.
post #6 of 145
Start of August:
BS 0-done
BS1 1,000 to start an Emergency Fund --DONE!!
BS 1.1- Adoption 500/2200-sent 1st pmt, in court 8/8
BS2 Pay off all debt using the Debt Snowball

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
post #7 of 145
I'm currently on BS2. It should be a good month. I will be able to pay off a credit card. It has a balance of $2350. DH gets a bonus of about $3500 after taxes take 40% of it. Plus he will have retro pay for a promotion that came into effect in July and also retro pay from a the new guy he hired. I'm hoping that's an add'l $1000. That leaves me a little over $2000 to put towards the next card that has $54xx on it. I'm loving the snowball!
post #8 of 145
Dh came home two days ago with no job. He's been looking for one, putting out his resume, calling people.

Thank God for the FFEF. Six months ago I would have been terrified. Now my biggest worry is he and I getting on each other's nerves.
__________________
BS1: DONE!!
BS2:
$466 Capital One- killed!!!
$614 Van loan - killed!!!
$1091 Best Buy- killed!!!
$1770 Midwife- paid off, not killed!
$2184 HSBC Retail Services- Killed
$4249.63 Needed to get out of Truck loan- sitting in savings until we decide whether to sell it or keep it
BS3: Funded! 6 months of expenses.
post #9 of 145
We are on BS2: Paying off debt.

We had a few unexpected bills last month (car repair, DH dentist visit, me Dr visit) so we are a little behind on our snowball. Bills are current though and we still have $1000 EF, we just don't know how much we paid extra this month in total.
post #10 of 145
I had to dip into ef for the dogs lump. Hope it is something minor and easy to heal....

This thread is awesome. I really need to write out a spreadsheet with balances so I can get motivated to lower them.
post #11 of 145
OMG.. That is like 3 of us who have had layoffs
post #12 of 145
We have tried to do this several times and fall off the wagon big time due to life issues. We are commited yet again and hopefully for good.

BS1 $1,000 to start an Emergency Fund
*We are here.
post #13 of 145
subbing...
post #14 of 145
This layoff stuff scares the snot out of me. I am really really lucky that my Dp works at a university where she is the ONE person who fully knows how to run her program, which happens to be the biggest moneymaker and largest program in her division. There have been (very rare) layoffs at this University, but she would be last on a very long list. Even her 'boss" doesn't know how to run her program.

My job I know is a little more iffy. I'm on maternity leave now, and the family i work for does have other options, but so far I'm looking OK. I'm going to try at some point to pick up another second job-I quit my newspaper job at some point in my second trimester, and I'm not going back because after doing the math in time, gas and wear and tear on my car it wasnt worth the $.
post #15 of 145
* BS1 - Should be done by September 2008.
* BS2 - Should be done by December 2009. Total CC Debt is $8950.00
CC1 = $500.00
CC2 = $500.00
CC3 = $700.00
CC4 = $750.00
CC5 = $750.00
CC6 = $800.00
CC7 = $1450.00
CC8 = $1500.00
CC9 = $2000.00
post #16 of 145
i'm counting our checking account as our EF since my dh wants to see that as large as possible and doesn't care about moving it to a savings account even though we could get more interest. so that puts us on

BS1 $1000 EF done
BS2 student loan balance $9400

i will be hitting that as much as i can but we are trying to move pretty soon so we'll see what happens.
post #17 of 145
I'm joining in this month. We've gone totally gazelle and I'm close to having the first cc paid off (ok well over half way, at least).

BS1--Done
BS2--CC1 1944/4000
CC2 9765.66/10000
CC3 18560.73/20000

Hoping to have the CC1 and half of CC2 paid off by the end of the year
post #18 of 145
Just started the TMMO last month!

BS1 $1,000 to start an Emergency Fund - we're at $750, this will be done by Sept. 1!
BS2 Pay off all debt using the Debt Snowball - total debt is $44,300. This includes a business loan; we don't have a mortgage. If we continue only at our current rate of paydown... All CC's will be paid off by Sept of 09... Auto loan, student loan, and business loan done by August of 2011. But I am pumped about getting it done a LOT sooner -- particularly the CC DEBT!!


Question for you guys, where do you fit in adequately funding a health savings account, if you have one? Particularly if we are looking at 2-3 years before even starting the FFEF, or contributing to IRA's... I really want to prioritize the debt snowball, so I was planning contributing only the approximate amount that we spent on medical stuff last year. Or to pay down debt faster, should I just rely on the $1k EF and hope nothing out of the ordinary happens to me and dh (new dd will have separate kid's insurance so her costs will be more predictable.) All opinions are appreciated!
post #19 of 145
So here I am with our Emergency Fund ok but the debt snowball stalled. We are so broke at the moment. I am at least trying to tread water and make sure we don't spend more than we are bringing in - i.e. no adding to the debt! I am really making sure we stick to budget and dh and the kids are noticing the difference! But that's a GOOD thing!

I am thinking about selling a few valuables to make money and put it towards our debts. I am thinking about picking up some PT work or doing some self-employment to earn more money to pay off debt. I'm just so stretched to the limit as it is with time and responsibilities, I'm not sure it's feasible.

I just love this thread though, it really inspires me.
post #20 of 145
Hello everyone. I also fell off the wagon. I got really depressed when I had to deplete our BEF for some medical bills. But DH and I watched "Maxed Out" tonight, and seeing Dave on there got us back in to gear.

BS1 $1,000 to start an Emergency Fund $0/$1000
BS2 Pay off all debt using the Debt Snowball
CC # 1
CC # 2
CC # 3
Car Payment
Student Loan
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- N/A for us
BS6 Pay off home early- N/A for us
BS7 Build wealth and give! Invest in mutual funds and real estate
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