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Dumping Debt and Building Wealth w/Dave Ramsey *October* - Page 3

post #41 of 130
Start of October:
This month is going to be problematic. Dp needs to buy a plane ticket for school and we needed to pay the attorney-we only had money in the budget for one. We WILL NOT add to any cc's so we're going to have to dip into the ef again. The plus to this is that come jan we will be able to add 300 per month to the snowballl beacuse dp's student loans go into forbearance again.... arugh. So our time at bs#1 will be longer.

BS 0-done
BS1 900/1000 (for now)
BS 1.1- Adoption fees:1100/2100
BS2 Pay off all debt using the Debt Snowball

HBSC Cc-Done!
Elan Cc-2259.92
Working Assets Cc-3600
Citi-7720/7620
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 #42 of 130
Yay for Dave! He has completely changed our views on money in the last several months. I am so incredibly grateful for him! I was just up late trying to get back on track with our budget.

Now...if dh's work would just pick up (he's an electrician and mostly works new construction so things have been pretty slow the last 6 months) we could do some serious damage with the debt snowball. At least there is a plus with us that all of these money scares have really made us get serious about how to change our finances
post #43 of 130
P.S. I only have about $300 left to pay on my car and if I can keep on with the snowball in the next several months I will be able to knock out a few credit cards, an ooooooooooollllld student loan debt, and we are planning on selling dh's Jeep and getting something a bit cheaper to cut our payment by 1/3rd, the total of which should free up close to $600/month!
post #44 of 130
hi, all...

I'm new to this, but DH and I are really feeling the need to ditch debt... especially in light of current economic downturns in the world.

Anyway... I haven't really read anything by Dave Ramsey, but I did catch his show once and I get the basics, I think...

Here's where we stand, I guess:

We have an emergency fund, but honestly, we have about $3000 in it, mostly because if, god forbid, something happens to DH's job or something, we can pay for a couple month's mortgage. I know it's not what Dave advocates, but I guess I'd rather not lose my house. Is there a good reason not to do this?

We've been throwing $1000/month at our student loans, but that was all from "savings" (well, actually tax refund, I guess) and now we're down to what I mentioned above and we're afraid to go lower than that. Luckily, we're down to below $2000 on my student loan, now. We have no credit card debt. We have about $15k in car debt, for two cars, though. It's about $4k for one car, so we'll be paying that one off first and then snowball to cover the other car faster.

Beyond that, we do have my husband's 401k - we contribute 8%, but it's matched up to 6%. And we have maybe like $3k in a stock portfolio that my grampa started for me while I was in college with the thought that we could learn with it and treat it like "found" money - i.e. he meant for us to not liquidate it and so I want to be true to that thought for him.

This sounds really choppy and like we don't really have a good plan in any direction, huh.
post #45 of 130
Sunday was another DR class We went and put our snow ball chart together and called about balances and such. Turns out I only owe $75 on my student loan :

I told my mom and she gave me almost all I need to pay it off

SO we can save even more next payday into the savings

Its just so wonderful to have a SO on the same page as you and working together. It was such a sore spot for the years we have been together. Pinch me!
post #46 of 130
Thread Starter 
Quote:
Originally Posted by p1gg1e View Post
Sunday was another DR class We went and put our snow ball chart together and called about balances and such. Turns out I only owe $75 on my student loan :

I told my mom and she gave me almost all I need to pay it off

SO we can save even more next payday into the savings

Its just so wonderful to have a SO on the same page as you and working together. It was such a sore spot for the years we have been together. Pinch me!
YES! I know! It's like night and day now that DH has gotten on board. I try not to look back and think "what if I could have convinced him a year ago..." and just be happy that he's here with me now, making progress.
post #47 of 130
nm
post #48 of 130
we bought gold w/that stock portfolio money yesterday and it's already up like $4/share. I'm in shock.
post #49 of 130
oh Jillian, I'm sorry to hear about your kitty, how is she doing now?

MCsMom, I hope you find new renters quickly. I'll keep your dh in my thoughts, both in Iraq and that he has a job when he gets back/

PapayaVagina, yay on having the car almost paid off! You sound like you have a great plan.

Welcome Juvysen, Total Money Makeover is the book to read, Dave would say $1000 or $2000 in your ef, rest gets snowballed on your first debt to get you motivated (sounds like for you its your car). Not having extra lying around is supposed to scare you into getting the debt paid off sooner. Sounds like you are off to a good srart esp with the no credit card debt.

We just got dh's cc bill, we're down under $3000 ::
post #50 of 130
Quote:
Originally Posted by mtm View Post

We just got dh's cc bill, we're down under $3000 ::
wohoo! I can't wait unti cc2 goes under 2000!
post #51 of 130
Wow, it's so great to see how everyone's doing.

Right now I'm trying to decide where to put the FFEF while working on it. Should I just keep it in my ING account? Has anyone laddered CDs?
post #52 of 130
I'm in for the first time! I have been following this for a while and today I just completely redid the way I was doing my budget. Previously I had categories every month for entertainment, baby stuff, health etc... I redid our budget so that the only things in it were rent/utitilies/phones/internet/groceries/tithe and the minimum monthly payments for our debt... the things that must be paid first and foremost, and that stay constant every month.

Then I set up our two savings accounts for unique purposes. One is going to be for our emergency fund. The other has all of our other BS1 subgroups... things that I am positive will come up that we'll be able to pay without the emergency fund (things like the new freezer and other things we need before the baby is one subcategory, my business has another, and entertainment has another). I understand that entertainment isn't a "need" but everything will go in there that isn't an emergency but we are going to pay for, and it's better for us than having no way of paying for it or having to draw on our emergency fund.

I realized when I did this that with only my DP's income we have a surplus every month when the essentials are paid. So I took that surplus and what I make in a month (which is highly, highly variable) and will add any government cheques (like GST and CCTB) to that and divide it up into the savings groups until we get them fully funded and also add extra debt payments. I have assigned percentages to them all, because they aren't of equal importance (EF is the most important).

This will be a good month for us because we had surplus. From now on every dollar will have a spot to go in, so the next months after this won't see as much going to the funds and debt snowball but I'm excited to start seeing progress.

This took me quite a while today, but it'll be easy upkeep since it's so well laid out. Bedrest proved to be good for something at least

So here's where we're at today:

BS1 $1,000 to start an Emergency Fund
EF: $175.15/$1000.00
BS.1: $3.89/$200.00
BS.2: $0.00/$500.00
BS.3: $0.00/$500.00
BS2 Pay off all debt using the Debt Snowball
We have 12 things to eventually pay off. For now we're focusing on the first three.
BS2.1: $375.00 to go
BS2.2: $294.86 to go
BS2.3: approx. $2300.00 to go (will know for sure when I get the next statement)
BS3 Three to six months of expenses in savings
Looking forward to being able to say we're done this!

I have a qustion about BS#4... anyone have any idea what the Canadian equivalent is? I guess that's something for me to look into. Off to do some research!

This got really long... anyway the short version is I'm happy to be here
post #53 of 130
Well, glad we got started on this because we spent our EF today on a security deposit on a new apartment. Moving for a new job that will pay us more and give us more time together. I think it's worth it! We can't wait to get ourselves in the new place and then hit the EF and debt snowball again hard!
post #54 of 130
Sounds like everyone is doing pretty well this month. Keep up the good work!

DH put in his two weeks notice on his part time job. If he doesn't find a different part time job before January, I'll have to rework our budget but luckily all the bills are easily paid. I'll just have to adjust all the sinking fund amounts and we may have to be a little more frugal with our groceries and eating out that we had planned.

I'm off to find out what will be on sale at Walgreens/CVS on Sunday. I hear it's easier to get cheap or free soaps/shampoo there and I'll actually be in a town with both. I'm trying to stock the pantry now so if we have to cut the budget we can start with the toiletries category.
post #55 of 130
Quote:
Originally Posted by triscuitsmom View Post
I have a qustion about BS#4... anyone have any idea what the Canadian equivalent is? I guess that's something for me to look into. Off to do some research!
I think RRSPs up to your contribution limit (this is based on your income and whether you have a company pension - it also adds up from previous years, so if you haven't contributed yet you probably have a lot of room, check on your Notice of Assessment, you get this in the mail each year after you send in your taxes). You can claim these contributions on your taxes.

There are also RESPs for BS5.

Disclaimer in case I am wrong about any of this info: Neither of us have RRSPs yet, still working on debt.
post #56 of 130
Kyamo, that sounds right to me.

Triscuitsmom, that looks like a good plan. We kept a small eating out budget and it helps us stay on track.

Dmitrizmom, hope things are okay with you.
post #57 of 130
Well I fell off the bandwagon and did the whole "why not spend money I don't have cause I just want to" thing after having to use the EF for medical bills. So, we are doing a no spend month this month (still buying food and paying bills of course) to play catch up in our bank account and then will start all over with building our Emergency Fund and Paying off the CC next month.

And I am amazed at how low I can get our grocery budget down to. Only $50-60 a week for a family of four. Of course once our pantry starts to thin out we may have to raise that budget. But it has been so fulfilling to be more active in making our meals and treats. And they taste so much better!!
post #58 of 130
Our snowball is still parked. Murphy came to visit last week and he won't leave. It feels like one thing after another. I hope the next week is a lot better.
post #59 of 130
check in everyone, I need motivation.
post #60 of 130
We just realized we can cut $800/month from our budget, fairly easily : I guess we could have been doing a lot more toward ditching our debt. DH does't want to give up cable. Not sure how to talk him out of that one - we rarely use it.
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